This paper presents a formal model of tunneling and propping in a pyramidal ownership structure. Tunneling refers to … controlling shareholders shifting funds from one firm to another in the same pyramid. Propping is tunneling that is done to save … which shifting funds between firms is not possible. We show that tunneling may justify the pyramidal structure only with …

This paper presents a formal model of tunneling and propping in a pyramidal ownership structure. Tunneling refers to … controlling shareholders shifting resources from one firm to another in the same pyramid. Propping is tunneling that is done to …, in which shifting resources between firms is not possible (i.e. illegal). We show that tunneling may justify the …

tunneling resources from firms in which they have few cash flow rights to ones in which they have more cash flow rights. This … paper attempts to quantify the extent of tunneling prevalent in Pakistani family business groups. The framework that is …

that tunneling is not an important factor driving the valuation and profitability effect of group affiliation. …