Holding companies, which play an important role in corporate finance in Belgium and in other Continental European countries, often trade at a discount to their estimated net asset value (NAV). First, we discuss possible explanations for this discount: holding company destroys value, NAV...

Ondernemingsgroepen komen overal ter wereld voor maar de opvatting, het doel en de werking ervan kunnen heel uiteenlopend zijn. Met deze paper willen we een overzicht geven van de bestaande literatuur over ondernemingsgroepen, met specifieke aandacht voor Europese en voor Belgische...

In Belgian corporate groups, complex pyramidal structures and interlocking ownership lead to separation of ownership and control. This may generate incentives for the controlling shareholder to divert resources within the group through intragroup equity sales. This in turn could lead to...

Several studies find that business groups create value for affiliated companies in developing countries, which are characterized by weak institutions and poorly functioning markets. In these countries, business groups can act as an intermediary between imperfect markets and individual...