Paligorova, Teodora; Xu, Zhaoxia - In: Journal of Corporate Finance 18 (2012) 4, pp. 701-716
This paper explores pyramidal firms and their motivations for the use of debt financing. We find that pyramids have significantly higher leverage than non-pyramids and that the use of debt in pyramids is associated with the risk of expropriation. We do not find evidence for the...