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...

We demonstrate that business groups use financial intermediaries to boost the stock prices of affiliated firms in initial public offerings (IPO). Using a complete sample of all IPOs and all mutual funds in Israel during a four-year period, we find that the participation of mutual funds...