Pramuan Bunkanwanicha, Jyoti Gupta, Yupana Wiwattanakantang Family Business Groups and Organizational Structure: A Study of Bank Pyramidal Ownership in Thailand (01 Jul 2014) Available at ECGI: http://ecgi.global/working-paper/family-business-groups-and-organizational-structure-study-bank-pyramidal-ownership
This paper investigates how banks and finance companies operate in a family business
group. Using uniquely detailed ownership data from Thailand, we find that the controlling
families extensively use pyramids to control banks and finance companies and assign
different lending strategies across pyramidal tiers.
Lower-tier banks tend to extend loans more aggressively and perform more poorly, while upper tier banks carry out more pro?table investments. After the crisis hit, upper-tier banks survived and almost all lower-tier banks went bankrupt. Our results suggest that the multilayer organizational structure of bank ownership can affect a bank´s lending behavior and its resistance to economic shocks.
Using a newly assembled 50 country firm-level database spanning 19 years, we document that business group affiliated firms display substantially less pronounced fluctuations in employment than unaffiliated firms in...Read more
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Conglomerates, multinational corporations and business groups are non-exclusive forms of complex firms. Often organized as corporate networks, complex firms control a myriad of entities connected through ownership links. We investigate whether...Read more