In contrast to the popular assumption of independence made in the classic corporate finance literature, many companies around the world are linked through common ownership to form business groups. This paper reviews the growing literature on the consequences of business group membership. The...

This paper estimates the impact of judicial decisions, mainly the prosecution and court sentencing of controlling shareholders' corporate crime, embezzlement, and breach of fiduciary duty, on the market value of a firm. The indictment or imprisonment of controlling shareholders in Korean large...

This paper estimates the impact of criminal justice process, mainly the indictment and conviction of controlling shareholders duty, on the market value of a firm. The indictment or imprisonment of controlling shareholders in Korean large business groups, chaebols, provides an opportunity for...

This study examines whether business group affiliation weakens the sensitivity of income tax expense to pretax income, while external monitoring mechanisms mitigate the effect of group affiliation. We find that this sensitivity is weaker for Chinese listed firms affiliated with a top 500...

Using a unique sample of Chinese business group firms required by the government to disclose double financial statements for the parent and its subsidiaries, we examine the impact of a decentralized decision structure on executive compensation and further tests its mechanism. Our findings show...