Using data from 44 countries, we document a new channel through which a family business group's internal capital market supports its members. We find that groups use internal capital to incubate difficult-to-finance projects, making it feasible for them to rapidly scale up, thus facilitating...

Using a carefully-constructed global dataset of family business groups, we show that group affiliation moderates corporate investment declines experienced in the 2008 Global Financial Crisis. During this period, group internal capital market activity intensifies. The investment activity of group...