Business Groups

Working Paper

01 September 2014

Revisiting Executive Pay in Family-Controlled Firms: Family Premium in Large Business Groups

According to the prior literature, family executives of family-controlled firms receive lower compensation than non-family executives. One of the key driving forces behind this is the existence of family members who are not involved...

Juyoung Cheong | Woochan Kim
01 July 2016

Do Business Groups Harm Capital Allocation Efficiency Outside the Business Group?

This study investigates whether business groups can harm the capital allocation efficiency of non-business group firms. From a sample of Korean firms (1987 to 2010), we compute an annual index of the collective strength and dominance...

Yunxiao Liu | Woochan Kim | Taeyoon Sung
01 November 2016

Insurance Between Firms: The Role of Internal Labor Markets

We investigate how internal labor markets (ILMs) affect labor adjustments and performance in business groups. We show that group-affiliated units faced with positive shocks to growth opportunities rely on the ILM to ensure swift...

Giacinta Cestone | Chiara Fumagalli | Francis Kramarz | Giovanni Pica
16 August 2017

Why Do Family Business Groups Expand by Creating New Public Firms? The Role of Internal Capital Markets

We document a new channel through which a family business group's internal capital market supports its members. Using data from 44 countries, we provide evidence that groups use internal capital to incubate difficult-to-finance...

Ronald Masulis | Peter Kien Pham | Jason Zein
01 July 2014

Family Business Groups and Organizational Structure: A Study of Bank Pyramidal Ownership in Thailand

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...

Pramuan Bunkanwanicha | Jyoti Gupta | Yupana Wiwattanakantang