Valuation Effects of Winner-Picking and Coinsurance Internal Capital Allocation Practices, and the Contingent Role of Corporate Control
學年 113
學期 2
發表日期 2025-07-06
作品名稱 Valuation Effects of Winner-Picking and Coinsurance Internal Capital Allocation Practices, and the Contingent Role of Corporate Control
作品名稱（其他語言）
著者 Ching-Yuan Hsiao
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出版者
會議名稱 Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference 2024
會議地點 Brisbane, Australia
摘要 By analyzing the sample of non-financial firms in Taiwan, this study reveals that both winner-picking and coinsurance internal capital allocation practices increase firms’ valuation. Moreover, among top-performing firms, corporate control strengthens the value-enhancing effect of winner-picking practice as controlling shareholders are more incentivized to use their power to direct the internal capital to boost firm value and their private benefits. On the contrary, among poorly-performing firms, the positive effect of coinsurance practice on firm value is pronounced only when corporate control level is low. As controlling shareholders are unlikely to benefit from poorly-performing firms’ operations, the entrenchment concern arising from increased corporate control may lead to the misuse of internal capital, and thus weakened the value-enhancing effect of coinsurance practice. Collectively, our study documents the valuation effects of internal capital allocation practices, and the divergent contingent role of controlling shareholders’ corporate control over firms regarding these allocation practices.
關鍵字 Winner-picking, Coinsurance, Internal capital markets, Tobin’s Q, Controlling shareholders, Corporate control
語言 zh_TW
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會議性質 國際
校內研討會地點 無
研討會時間 20250706~20250708
通訊作者
國別 TWN
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