This paper provides a theory-based empirical framework for understanding the risk and return on productive capital assets and their allocation across activities in an economy characterized by idiosyncratic and aggregate risk and thin formal markets for real and financial assets. We apply our...

A large fraction of business groups around the world are run by families. In this paper, we analyze how the structure of the families behind these business groups affects the groups' organization, governance and performance. To address this question, we constructed a unique data set of the...

The Thai economy has been underperformed during the last decade. The average annual GDP growth during 2007-2016 was merely 3.2 percent. Not only was this growth rate one of the lowest among all of the economies in Southeast Asia, it was also far below what Thailand experienced during the...

This study looks at capitalism in Southeast Asia through the lenses of modern corporate finance, based on contract and ownership theories of the firm. The paper limits its survey to recent literature that uses firm-level micro data of Southeast Asia corporate firms. Three major common issues of...

This paper extends a structural model of investment with costly external finance to firms in business groups, derives an empirical regression counterpart, and uses it to test for the existence of internal capital markets in business groups and various characteristics of a group that tend to...