Do Business Groups Harm Capital Allocation Efficiency Outside the Business Group?
Series number :
- business group •
- Internal capital market •
- Capital allocation efficiency •
- Financialsector development •
- investor protection •
- Asian financial crisis
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 of large business groups (LBG) per industry.