Roles of ownership structure and investment opportunities in directing internal capital allocation within groups
學年 114
學期 1
出版（發表）日期 2025-09-16
作品名稱 Roles of ownership structure and investment opportunities in directing internal capital allocation within groups
作品名稱（其他語言）
著者 Ching-Yuan Hsiao, Yung-Ming Shiu
單位
出版者
著錄名稱、卷期、頁數 European Journal of Finance
摘要 By employing regression analyses on matched samples formed by propensity score matching to investigate the factors driving internal capital allocation decisions, this study reveals a negative relationship between net capital inflows via related-party borrowing and sales, implying that resources within groups are circulated rather than allocated in a unidirectional way. After controlling for net capital inflows via related-party sales (borrowing) and other covariates within each year and industry, we find that the negative relationship between profitability and net capital inflows via related-party borrowing is concentrated among the firms in which controlling shareholders have large ownership and a high level of corporate control in terms of voting rights and board control. These findings suggest that the linkage between controlling shareholders’ private benefits and firms and controlling shareholders’ influence on managerial decisions drives the coinsurance or cross-subsidization function of internal capital markets within groups.
關鍵字 Related-party transactions; internal capital markets; internal capital allocation; coinsurance; winner picking; controlling shareholders; corporate control; investment opportunities
語言 en
ISSN 1466-4364
期刊性質 國外
收錄於 SSCI Scopus ABS*
產學合作
通訊作者 Yung-Ming Shiu
審稿制度 1
國別 GBR
公開徵稿
出版型式 ,電子版