Affiliated firms and financial support: Evidence from indian business groups.

摘要: Abstract We investigate the functioning of internal capital markets in Indian Business Groups. document that intragroup loans are an important means transferring cash across group firms and typically used to support financially weaker firms. Evidence suggests reason for providing may be avoid default by a firm consequent negative spillovers rest group. Consistent with such spillovers, first bankruptcy is followed significant drops external financing, investments profits other increase their probability.