Using business registry data from China, we show that internal capital markets in business groups can propagate corporate shareholders' credit supply shocks to their subsidiaries. An average of 16.7% local bank credit growth where corporate shareholders are located would increase subsidiaries...

With a large sample from Japan during the period of 1990-2012, we find firms that belong to business groups (“keiretsu”) pay more cash dividends when the affiliated dividend-receiving firms have better investment opportunities, are in financial distress, or have a stronger linkage to the...

Examining a large sample of firms with ownership information from Japan, we find firms that belong to business groups (“keiretsu”) pay more cash dividends than non-keiretsu firms, especially when the affiliated dividend-receiving firms have better investment opportunities, are in financial...

A large discrepancy exists on the use of the investment–cash flow sensitivity as a measure of financing constraints of firms. We examine this discrepancy by considering business group affiliated firms in Pakistan. The study includes 58 group affiliated firms and 32 non-group affiliated firms...