This study aims at disentangling the decision of interlocking directors along the hierarchy of business groups. Considering boards as information-processing groups and grounded in agency theory and resource dependence theory, the monitoring and advising functions in the relationship between...

Using business registry data from China, we show that internal capital markets in business groups can play the role of financial intermediary and propagate corporate shareholders’ credit supply shocks to their subsidiaries. An average of 16.7% local bank credit growth where corporate...

We suggest a unified framework to explain the following stylized pattern in the development of contractual governance and industrial organization. Contractual governance in many emerging economies is characterized by relational contracting. Coincident with relational contracts are large,...