Pyramidal Business Groups and Asymmetric Financial Frictions
Given capital market imperfections, an entrepreneur can alleviate financial frictions by creating a pyramidal business group in which a parent firm offers its subsidiary firm internal finance. This endogenous creation of pyramidal business groups can beget asymmetric financial frictions between busi...
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| Format: | Article |
| Language: | English |
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Korea Development Institute
2019-08-01
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| Series: | KDI Journal of Economic Policy |
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| Online Access: | https://doi.org/10.23895/kdijep.2019.41.3.1 |