Business groups, financing constraints and investment: the case of India
AbstractWe examine the effect of business group affiliation on corporate investment behaviour in India. More specifically, we test whether group affiliation reduces financing constraints for the affiliated firms. We use a data set containing 694 listed Indian companies for the 1989-97 period. We estimate a simple investment equation and find evidence that the investment-cash flow sensitivity is much lower for group affiliates. This suggests that business group affiliates have better access to external funds than stand-alone firms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Development Studies.
Volume (Year): 40 (2003)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.tandfonline.com/FJDS20
Other versions of this item:
- Gangopadhyay, Shubashis & Lensink, Robert & Molen, Remco van der, 2001. "Business groups, financing constraints, and investment: the case of India," CCSO Working Papers, University of Groningen, CCSO Centre for Economic Research 200116, University of Groningen, CCSO Centre for Economic Research.
- Gangopadhyay, Shubashis & Lensink, Robert & Molen, Remco van der, 2002. "Business groups, financing constraints, and investment : the case of India," Research Report 02E02, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Saibal Ghosh, 2010.
"Affiliation And Firm Performance: Evidence From Indian Business Groups,"
University of Manchester, vol. 78(3), pages 183-200, 06.
- Ghosh, Saibal, 2010. "Affiliation and Firm Performance: Evidence from Indian Business Groups," MPRA Paper 24291, University Library of Munich, Germany.
- Audretsch, David B. & Weigand, Jurgen, 2005. "Do knowledge conditions make a difference?: Investment, finance and ownership in German industries," Research Policy, Elsevier, Elsevier, vol. 34(5), pages 595-613, June.
- Kang Kook Lee & Md. Rabiul Islam, 2009.
"Financial Development And Financing Constraints In A Developing Country - The Case Of Bangladesh,"
Development Research Unit Working Paper Series
09-09, Monash University, Department of Economics.
- Lee, Kang-Kook & Islam, Md. Rabiul, 2011. "Financial Development and Financing Constraints in a Developing Country: The Case of Bangladesh," Indian Economic Review, Department of Economics, Delhi School of Economics, Department of Economics, Delhi School of Economics, vol. 46(1), pages 41-67.
- Rashid Ameer, 2013. "Financial liberalization and firms’ capital structure adjustments evidence from Southeast Asia and South America," Journal of Economics and Finance, Springer, Springer, vol. 37(1), pages 1-32, January.
- Zia, Bilal H., 2008. "Export incentives, financial constraints, and the (mis)allocation of credit: Micro-level evidence from subsidized export loans," Journal of Financial Economics, Elsevier, Elsevier, vol. 87(2), pages 498-527, February.
- George, Rejie & Kabir, Rezaul & Qian, Jing, 2011. "Investment-cash flow sensitivity and financing constraints: New evidence from Indian business group firms," Journal of Multinational Financial Management, Elsevier, Elsevier, vol. 21(2), pages 69-88, April.
- Gautam, Vikash, 2011. "Evidence on the dynamics of investment-cash flow sensitivity," MPRA Paper 35431, University Library of Munich, Germany, revised Dec 2011.
- Chinmay Pattnaik & James Chang & Hyun Shin, 2013. "Business groups and corporate transparency in emerging markets: Empirical evidence from India," Asia Pacific Journal of Management, Springer, Springer, vol. 30(4), pages 987-1004, December.
- Gopalan, Radhakrishnan & Nanda, Vikram & Seru, Amit, 2007. "Affiliated firms and financial support: Evidence from Indian business groups," Journal of Financial Economics, Elsevier, Elsevier, vol. 86(3), pages 759-795, December.
- Sumit Majumdar & Kunal Sen, 2007. "The debt wish: Rent seeking by business groups and the structure of corporate borrowing in India," Public Choice, Springer, Springer, vol. 130(1), pages 209-223, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.