Peng, Winnie Qian; Wei, K.C. John; Yang, Zhishu - In: Journal of Corporate Finance 17 (2011) 2, pp. 306-325
Friedman et al. (2003) develop a model in which, in equilibrium, controlling shareholders may choose either tunneling or propping of their listed companies depending on the magnitude of an adverse shock and the magnitude of the private benefits of control. In this paper, we employ connected...