Author: Narahari Hansoge
Publisher:
ISBN:
Category :
Languages : en
Pages : 63
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Book Description
In this paper, we attempt to understand whether business group affiliation continues to create value with improvements in institutional environment, especially with increased product market competition. This question comes at a time when there is growing awareness that business groups dominate product markets even in developed economies (Boutin et al., 2013) and their existence is not limited to poor institutional environments (Khanna and Palepu, 2000). Such evidence calls for revisiting the Institutional Voids theory that attributes business group dominance to lack of institutional development. Our paper aims to extend this stream of the literature by focusing on how business groups respond to institutional development. The question that is still wide open is how business groups transform their structure and continue to dominate the corporate landscape. Given that most of the emerging economies are going through significant institutional development and domestic business groups are transforming into global leaders, a deeper understanding of the business group model dominance and corresponding consumer welfare is much needed. We develop a simple theoretical model and set up a novel empirical methodology to examine this issue. Using Indian data of around 36,500 firm year observations spanning 23 years (1990-2012), we find that 1) Business group affiliation continues to create value against standalone firms even with institutional development. However, affiliation gains are relatively lower in the post-reform regime. 2) Business groups that expand through horizontal integration lose market value in the post-reform regime. This result is consistent with our theoretical model. 3) In the post-reform regime, vertical integration increases business group affiliation value only when business groups have deep pockets. This is consistent with Boutin et.al. (2013). In other words, deep pockets are required more when competition is high and not when it is low as predicted by the Institutional Voids Hypothesis. Our overall results suggests that, as markets develop, business group expansion strategy and their capacity to fund from their deep pockets become more critical for their sustainability. Our results highlight the need to look beyond Institutional Voids theory for existence of business groups.
Author: Laszlo Tihanyi
Publisher: Emerald Group Publishing
ISBN: 1780529090
Category : Business & Economics
Languages : en
Pages : 498
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Book Description
Part of "Advances in International Management" series, this title presents contemporary research by leading and emerging scholars working on institutional theory. It also presents theoretical frameworks of institutions and proposes interesting ideas that provide the foundation for doctoral dissertations and research projects.
Author: Asli M. Colpan
Publisher: Oxford Handbooks Online
ISBN: 019955286X
Category : Business & Economics
Languages : en
Pages : 828
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Book Description
This handbook provides a comprehensive analysis of business groups around the world. It focuses on the adaptive and competitive capabilities of business groups and their evolutionary dynamics, as well as considering the historical and theoretical contexts of business groups.
Author: Michael Carney
Publisher: Elsevier
ISBN: 1780632398
Category : Business & Economics
Languages : en
Pages : 341
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Book Description
The Asian economic landscape is dominated by various types of business group. Asian Business Groups provides a comprehensive review and introduction to the different types of business group. The origins and founding context of groups from particular national settings form the basic structure of the book. Emphasis is given to both the similarities and differences in group governance and performance and the implications for Asian international competitiveness are addressed. Multidisciplinary framework that integrates managerial, sociological, and economic perspectives on business groups and permits analysis of both their positive and negative aspects Comprehensive survey of empirical findings on the financial and market performance Sensitivity to the changing historical context and major events that have shaped business group development and dynamics
Author: Alvaro Cuervo-Cazurra
Publisher: Cambridge University Press
ISBN: 1107064538
Category : Business & Economics
Languages : en
Pages : 345
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Book Description
This book offers the latest analytical thinking on emerging market multinationals (EMNCs) and identifies key issues for research by scholars and consultants.
Author: Tarun Khanna
Publisher:
ISBN:
Category :
Languages : en
Pages : 32
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Book Description
Emerging markets like India have poorly functioning institutions, leading to severe agency and information problems. Business groups in these markets have the potential to offer benefits to member firms, but they also have potential to destroy value. We analyze the performance of affiliates of diversified Indian business groups relative to unaffiliated firms. We find that accounting and stock market measures of firm performance initially decline with group diversification and subsequently increase once group diversification exceeds a certain level. Stock market measures suggest that, unlike U.S. conglomerates' lines of business, and similar to the affiliates of U.S. LBO associations, affiliates of the most diversified business groups outperform unaffiliated firms.
Author: Thomas Clarke
Publisher: SAGE
ISBN: 1446263827
Category : Business & Economics
Languages : en
Pages : 681
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Book Description
The urgent and sustained interest in corporate governance is unprecedented, with the connections between corporate governance and economic performance being emphasized by the World Bank, the IMF and others in the global economic community. In this timely and definitive intellectual analysis of a key discipline, The SAGE Handbook of Corporate Governance offers a critical overview of the key themes, theoretical controversies, current research and emerging concepts that frame the field. Consisting of original substantive chapters by leading international scholars, and examining corporate governance from an inter-disciplinary basis, the text highlights how governance issues are critical to the formation, growth, financing, structural development, and strategic direction of companies and how corporate governance institutions in turn influence the innovation and development of industrial and economic systems globally. Comprehensive, authoritative and presented in a highly-accessible framework, this Handbook is a significant resource to those with an interest in understanding this important emerging field.
Author: Junji Nakagawa
Publisher: Routledge
ISBN: 113422558X
Category : Business & Economics
Languages : en
Pages : 320
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Book Description
Globalization in the 1990s provided both opportunities and challenges for developing and transition economies. Though for some, it offered the chance to achieve economic growth through active involvement in the integrated and liberalized world economy, it also increased their vulnerability to external shocks and volatility. As a consequence, stakeholders at every level of the development and transition process – international organizations, national governments and the private sector – had to review their strategies in order to adjust to the new world economic environment. As the Mexican peso crisis of 1994-1995 and the Asian financial crisis of 1997-1998 showed dramatically, the cost of maladjustment was not only very high but it also affected many more stakeholders than before, due to the contagious effects of crises. This revealing book analyzes the different methods employed to manage globalization and development. Bringing together an international team of contributors, including Barbara Stallings, Alicia Giron and J. C. Ferraz, it will prove to be a valuable resource for those involved in the fields of development economics and political economy.
Author: World Bank
Publisher: World Bank Publications
ISBN: 9780195216073
Category : Developing countries
Languages : en
Pages : 196
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Book Description
'Institutions fix the confines of and impose form upon the activities of human beings.' --Walton Hamilton, 'Institutions', 1932. The 'World Development Report 2002: Building Institutions for Markets' undertakes the complex issue of the basic institutions needed for markets to function properly. This year's 'World Development Report' goes beyond a simple examination of institutional structure and explores the functions of institutions. Recognizing that one size does not fit all, the report asks what do all institutions which support markets do? The answer is simple: Institutions channel information, define and enforce property rights, and increase or prevent competition. Understanding the functions that current institutions and their proposed replacements would provide is the first step. The report contends that once you have identified the institutional functions that are missing, you can then build effective institutions by following some basic principles: - Complement what exists already - in terms of other supporting institutions, human capacities, and technology. - Innovate to suit local norms and conditions. Experimenting with new structures can provide a country with creative solutions that work. - Connect communities of market players through open information flows and open trade. Open trade and information flows create demand for new institutions and improve the functioning of existing structures. - Compete among jurisdictions, firms, and individuals. Increased competition creates demand for new institutions as old ones lose their effectiveness. It also affects how people behave - improving institutional quality. These broad lessons and careful analyses, which links theory with pertinent evidence, are provided in the report. 'World Development Report 2002: Building Institutions for Markets' contains selected 'World Development Indicators'.
Author: Asli M. Colpan
Publisher: Oxford University Press
ISBN: 0198717970
Category : Business & Economics
Languages : en
Pages : 586
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Book Description
This volume aims to explore the evolution of large enterprises in today's developed economies in the West. It focuses on the economic institution of the business group and understanding the factors behind its rise, growth, resilience, and/or fall; its behavioural and organizational characteristics; and its contributions to economic development.
