With globalization and liberalization companies started going global. While most of the countries relaxed its investment and trade policy opening doors for foreign players, they also enhanced legal framework under their respective corporate laws to determine liability of different group of...

Parent guarantees to subsidiary bond issues can circumvent restrictive covenants on parent debt, and transfer wealth from bond- to equity-holders or maximize parent managers' private benefits. We find that parent firms expecting stringent covenants on their own debt more likely guarantee...

This paper offers a structural tool for examining various parental liability approaches for the externalities of its subsidiaries, meaning in the context of this paper, the negative environmental impact of their operations. In order to conclude that the parent is liable for externalities of...