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Propping: Evidence from new share issues of Turkish business group firms

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  • Gonenc, Halit
  • Hermes, Niels

Abstract

This article investigates propping in Turkish business group firms for the period 1991-2003. We claim that patterns in the use of offering cash rights share issues may indicate that controlling shareholders prop up funds in firms. The results of our empirical analysis provide indicative evidence for the existence of propping during the period 1991-1999, which was a period of moderate negative growth.

Suggested Citation

  • Gonenc, Halit & Hermes, Niels, 2008. "Propping: Evidence from new share issues of Turkish business group firms," Journal of Multinational Financial Management, Elsevier, vol. 18(3), pages 261-275, July.
    • Handle: RePEc:eee:mulfin:v:18:y:2008:i:3:p:261-275
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    References listed on IDEAS

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    Cited by:

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    2. Mengdie Hai & Ziwei Fang & Zhaohua Li, 2022. "Does Business Group’s Conscious of Social Responsibility Enhance its Investment Efficiency? Evidence from ESG Disclosure of China’s Listed Companies," Sustainability, MDPI, vol. 14(8), pages 1-18, April.
    3. Yogesh Maheshwari & Pankaj Gupta, 2019. "Propping in Business Groups: Prediction Efficacy of Earnings Announcements," Global Business Review, International Management Institute, vol. 20(4), pages 981-995, August.
    4. Halit Gonenc, 2009. "How do business group firms utilize internal capital markets?," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 5(4), pages 360-375, September.
    5. Fernando Lefort & Rodrigo Gonzalez, 2011. "Holding Company Discounts and Business Groups Optimal Bailout of Subsidiaries," Working Papers 34, Facultad de Economía y Empresa, Universidad Diego Portales.
    6. Gam, Yong Kyu & Gupta, Paramita & Im, Jieun & Shin, Hojong, 2021. "Evasive shareholder meetings and corporate fraud," Journal of Corporate Finance, Elsevier, vol. 66(C).
    7. Mario García Molina, 2010. "Crisis y diversificación de los grupos empresariales colombianos a finales de los noventa," Documentos de Trabajo, Escuela de Economía 7571, Universidad Nacional de Colombia, FCE, CID.

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