The industrial organization of developing countries is characterized by the pervasive use of subcontracting arrangements among small, financially constrained firms. This paper asks whether vertical integration relaxes those financial constraints. It shows that vertical integration trades off the...

Standard finance theory was born from the rib of neoclassical economics. Notwithstanding some assumptions have been modified or relaxed, this neoclassical finance theory (NFT) is still based upon: (1) methodological individualism; (2) the fully rational homo economicus; and (3) the capital...

This article examines how heterogeneous features among business groups influence the corporate diversification – firm performance relationship. The study classifies heterogeneity along three dimensions: group size, group diversity, and share ownership. Using a sample of firms from India, the...

Higher commodity prices, and higher currency and commodity price volatility have combined with challenging economic circumstances to make for very challenging economics within many industries today. These factors introduce risk to both top line revenue as well as the cost structure to wreak...

Corporate-risk has a very different nature from Market-risks: M-risks are generally exogenous so that they cannot be crafted, while C-risk is instead endogenous being the result of a continuous - time managerial process crafting inputs (e.g. specific risks) in order to let firm survive that is...