Abstract We examine the effect of business group affiliation on corporate investment behavior in India. We use a data set containing 684 Indian listed companies for the 1989-1997 period. We estimate a simple investment equation and find evidence that cash flow has a positive effect on investment...

This paper analyzes an asymmetric information model where the financing needs of entrepreneurs are obtained from two sources. We show that adverse selection is only important if the credit constraint of banks is not too tight. Next, we show that banks can induce a pattern of corporate ownership,...

We examine the effect of business group affiliation on corporate investment behaviour in India. More specifically, we test whether group affiliation reduces financing constraints for the affiliated firms. We use a data set containing 694 listed Indian companies for the 1989-97 period. We...

In this paper, we provide an empirical analysis of the impact of monitoring and social ties within group lending programs on moral hazard behavior of its participants, based on data from an extensive questionnaire held in Eritrea among participants of 102 groups. We find support for the fact...

Claessens, et al. (2001) empirically investigate the impact of foreign bank entry on domestic banking markets. They show that foreign bank entry reduces income, profits and costs of domestic banks. They conclude that foreign entry improves the functioning of national banking markets through...