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Corporate group
About: Corporate group is a research topic. Over the lifetime, 1747 publications have been published within this topic receiving 46868 citations.
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01 Aug 2017
TL;DR: In this paper, the effects of group affiliation on capital structure decisions of Pakistani firms were investigated and the determinants of capital structure of group affiliated firms with those of independent firms were compared.
Abstract: The purpose of this study is not only to test the effects of group affiliation on capital structure decisions of Pakistani firms but also to compare the determinants of capital structure of group's affiliated firms with those of independent firms. This study also investigates the differences in the financial decision of both group affiliates and independent firms during the period of the energy crisis.Using the 2-step GMM method, this study finds that business group affiliated firms use relatively more debt financing as compared to independent firms in Pakistan. Overall, this study verifies the existence of standard determinants as suggested by capital structure theories. However, practical differences exist regarding the determinants (e.g., firm size, firm growth, firm profitability and firm tangibility) between both group's affiliated firms and independent firms specially. Moreover, larger and more profitable groups are using more debt financing, while the highly leveraged and diversified groups have a limited access to debt financing.The findings also suggest a high level of accessibility to the debt financing for the group affiliates as compared to independent firms without a significant shift in the firm level determinants of capital structure during the energy crisis. It is the group's overall risk that appears to be an important attribute for the external finance providers during the energy crisis.
5 citations
Journal Article•
TL;DR: In this article, the authors examined the structural changes in Polish exports to the European Union (EU-27) in the period 2001-2011 in terms of the revealed comparative advantages (RCA) and technological intensity (shifts in shares of mid-tech and high-tech industries).
Abstract: The paper addresses the issue of structural changes in Polish exports to the European Union (EU-27) in the period 2001-2011 in terms of the revealed comparative advantages (RCA) and technological intensity (shifts in shares of mid-tech and high-tech industries) taking into account the context of the growing openness of the Polish economy and the substantial orientation to European markets. The principal aim of the research is thus an empirical examination by making use of trade data on the 4-digit level of desaggregation of the Harmonised System and whether the technological intensity of Polish exports was consistent with the evolution of comparative advantages and which of the mid-tech and high-tech sectors became the biggest winners (also losers) in the integration processes within the European common market.The results suggest a strong dependency of Polish mid-tech and high-tech exports to the EU-27 on the activity of foreign investors (multinational companies) and their technologies being transferred to Poland. This proves to some extent the validity, utility and explanatory potential of the research paradigm of corporate (neo)colonialism and raises a great deal of questions and doubts related to the sustainability of revealed comparative advantages in the sectors covered by the research. One of the serious risk factors is whether and how successful will be the attempts aimed at preserving preferences for international business and developing new, attractive ones as well as still keeping labour costs (wages) at a relatively lower level. These dilemmas may also suggest that the Polish economy is in a position in the near future to take up developmental challenges characteristic of the phenomenon of the middle income trap. However the prospects of a dynamic and effective structural catching-up process seem to be unlikely.Keywords: exports, international trade, international competitiveness, technological intensity, Poland.JEL codes: F10, F14, F23, 033.Bartosz MICHALSKI*Introductory remarksThe first decade of the 21 st century has been the period when the Polish economy experienced both dynamic as well as moderate rates of economic growth (Figure 1). Observed changes in the economic cycles were brought about to a great extent by the integration processes with the European Union, i.e. the strategic perspective of membership (pre-accession period) and the formal joining into this integration grouping. The constantly growing openness of the Polish economy, growth of the trade volume and value, the inflow of foreign direct investments (FDIs) accompanied by the transfer of knowledge and technology in the context of internationalisation generally speaking generated a great deal of positive structural changes.Analysing the fluctuations of GDP, exports and imports between 2001-2011 (see again Figure 1) leads to an observation that the dynamics of Polish exports were more sustained in comparison with imports. It may suggest that a certain group of companies selling their products abroad experienced expected gains from their restructuring. They resulted in their greater resilience to the impact of negative external factors (e.g. weaker global consumption), thus proving to some extent their higher competitiveness. On the other hand one has to take into account following facts:- Polish mid-tech and high-tech exports are highly dependent on the activity of foreign companies operating in Poland which means as well a high dependency on the inflow of FDI's and imports of advanced technological knowledge.- The geographic structure of Polish exports in the period covered by the research was and still is highly concentrated on European markets (about 90%) which together with the macroeconomic situation, especially in the European Union, clearly determines the dynamics of Polish economic growth and development (Figure 2).1. Research goals and methodological aspectsHaving said that, the aim of the research and paper was to empirically examine to what extent the evolution of technological sophistication (capital-intensity) of Polish exports to the European Union (EU-27) in the years 2001-2011 were convergent with the changes of revealed comparative advantages (RCA). …
5 citations
15 Sep 2021
TL;DR: The rationale for setting up a headquarter company is based on economic and structural needs of the group in which the headquarter companies is to be set up as discussed by the authors, however, it is also common cause that the decision to set up a HCC is, more often than not, influenced by the need to take advantage of tax instruments available in the particular jurisdiction.
Abstract: Headquarter companies are generally interposed between the ultimate holding company and the operating subsidiaries of a group of companies. The functions of a headquarter company are mainly to manage investments and to centralize the income of the group prior to remittance to the ultimate holding company. Therefore, generally, the rationale for setting up a headquarter company is based on economic and structural needs of the group in which the headquarter company is to be set up. However, it is also common cause that the decision to set up a headquarter company is, more often than not, influenced by the need to take advantage of tax instruments available in the particular jurisdiction. This allows the group to reduce its overall tax liability and therefore increase its after tax earnings.
5 citations
Journal Article•
TL;DR: In this article, the authors have studied Indian corporate practices in terms of corporate governance with Board of Directors parameters and evaluating the same with the international Board and discussed some important mandatory compliance and disclosure that corporate must disclose and comply with to upgrade it as per the international corporate governance standards.
Abstract: Indian corporate sector needs to work on international corporate governance pattern and for that they need to comply with the norms of international standards with respect to corporate governance.. BoDs are the most important people of corporate who are responsible for proper governance of their corporate. BoD must try to act proactively towards managing their corporate with best corporate governance principles. After 1992 CG has emerged as the most essential system in each corporate. This research aims at studying Indian corporate practices in terms of corporate governance with Board of Directors parameters and evaluating the same with the international Board. Further it talks about the some important mandatory compliance and disclosure that corporate must disclose and comply with to upgrade it as per the international corporate governance standards. This research tries to aims at checking effectiveness of governance among sample Indian companies which has major stake in the capital market and there by researcher would like to find the governance pattern among Indian corporate sector.
5 citations
TL;DR: Eisenberg as mentioned in this paper pointed out the subversion of shareholder voting rights that can occur if some of the major transactions of these subsidiaries need be approved only by the board of directors of the parent.
Abstract: Professor Eisenberg describes the recent growth of massive subsidiary corporations and the legal and economic reasons behind this develonnent. He then points out the subversion of shareholder voting rights that can occur if some of the major transactions of these subsidiaries need be approved only by the board of directors of the parent. His conclusion is that the right to vote the subsidiary's stock in these transactions either inheres in the parent and is exercisable by the body of the parent's shareholders or passes through the parent directly to the parent's shareholders.
5 citations