Article ID Journal Published Year Pages File Type
5092493 Journal of Comparative Economics 2011 19 Pages PDF
Abstract
► The diversified structure of emerging economy business groups facilitates expropriation of minority shareholders by controlling insiders through tunneling. ► We provide evidence of this using firm level panel data from India. ► Firms with ownership-control wedge lower, ownership opacity higher, than a group's core are likelier in activities unrelated to the core. ► Our findings are strengthened by evidence of tunneling in the same direction. ► Taken together this suggests an expropriation motive for diversification.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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