Corporate group

About: Corporate group is a research topic. Over the lifetime, 1747 publications have been published within this topic receiving 46868 citations.

The Importance of Corporate Models: Economic and Jurisprudential Values and the Future of Corporate Law

Abstract: This article argues that the debate concerning the nature of the corporation is not finished and nor a mere intellectual exercise for interested legal academics. The current model of the corporation as an economic entity - the firm - has a number of imbedded value assumptions. Given the common territory between corporate law and economics, some scholars have come to identify the two as equal partners striving for the same ends. This is a serious error which has had and continues to have significant negative consequences for both the economic situation of the majority and justice in society. These value assumptions are being seriously brought into question in light of developing economic experience and analysis. In light of experience, the values are far from being universally accepted. Furthermore, they do not promote a just society. Models of the corporation are fundamental to the debate because models are both descriptive and prescriptive. For society to develop on just lines, the debate of the fundamental values needs to be brought into the open and brought under closer scrutiny.

The Taxation of Corporate Groups under Consolidation: An International Comparison

Abstract: The rise of corporate groups in the last century dictates a shift in the income tax law: instead of treating each company as a separate taxpayer, the tax consolidation regime is increasingly common. Antony Ting presents the first comprehensive comparative study of eight consolidation regimes in Australia, France, Italy, Japan, the Netherlands, New Zealand, Spain and the USA. In the study, he critically analyses and compares alternative policy options with respect to ten key structural elements. The study improves understanding of the design and implementation of consolidation regimes and sets the stage for the search for a model. It provides valuable information with respect to the best practices, as well as the pitfalls, in the design of a consolidation regime. The book is essential to countries contemplating the introduction of a new consolidation regime and offers important insights into the management of such a complex structure through careful policy-orientated choices.

State Enterprise Groups in Vietnam Following Accession to the WTO

Abstract: The state enterprise group (hereafter, SOE group) in Vietnam is classified into two broad types of groups. One is the vertically organized general corporation 91(GC91) which was established on the basis of the Prime Minister’s Decision No. 91 relating to the reorganization of state-owned enterprise (hereafter, SOE) to an experimental SOE group involving key industrial areas, and the other is the horizontally organized General Corporation 90(GC90) which was established on the basis of the Prime Minister’s Decision No. 90, which is the SOE group for all of those industries not included in the key areas of Decision No. 90. Following the enacting of the Company Law of 2005 (which was the integrated common company law for both domestic and foreign-invested companies), the “Business Group” (“tap doan kinh te” in Vietnamese) was added to SOE groups as a new type of SOE group. A part of GC91 and the state insurance enterprise group have now changed their group organization into a business group. It appears that the reorganization of the SOE group led by state policies since 1994 has been affected by the East Asian-style business groups such as the “Keiretsu” of Japan, “Chaebol” of Korea, and the business groups in China, organized following the experience of Japan and Korea (Keister 2000).

Expanding Multinationals - Conglomerate M&A and Activity-Basket Proximity

Abstract: This paper analyzes how multinational firms (MNEs) expand the spectrum of their activities via Mergers & Acquisitions (M&A). While international trade studies systematically focus on horizontal versus vertical motives for foreign direct investment (FDI), I document that over 46% of both domestic and cross-border M&A deals done worldwide by MNEs areconglomerate, i.e., neither horizontal nor vertical. Literature to date fails to explain this puzzling stylized fact. What are conglomerate M&A and what are their drivers? Why do MNEs acquire firms in industries distinct from their own? The present study argues that conglomerate M&A represent a tool for multinationals to expand the spectrum of their activities towards industries that are closely related to their own range of occupations. The approach looks at MNEs from a multi-product perspective. It introduces a series of measures of "distance" between firms based on their respective activity-baskets. These are built relying on industry task intensities and the product space tools. The results show that despite the absence of direct horizontal or vertical linkages, conglomerate M&A appear to occur between firms relatively closely related in terms of their activity-mix. Further, the study investigates how the shape of activity basket of corporate group evolves with the acquiror?s subsequent transactions. The degree of compactness of corporate activity decreases over time. MNEs also seem to expand their activity mostly radially, towards multiple direction, rather than linearly.