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題名 Group firms’ access to internal capital markets: The contingent roles of group resources and affiliates’ financial weakness
作者 許永明
Shiu, Yung-Ming;Hsiao, Ching-Yuan
貢獻者 風管系
關鍵詞 Capital structure; Capital adjustment channels; Internal capital markets; Group resources; Financial weakness
日期 2021-03
上傳時間 12-Jun-2024 14:42:09 (UTC+8)
摘要 This study investigates how group’s value maximization considerations determine affiliates’ access to internal capital. Previous studies have indicated that both the amount of group resources and affiliates’ financial weakness are relevant to internal capital allocation decisions. Our study investigates how these two factors jointly affect affiliates’ access to internal capital. By analyzing the effects of capital shortage on various financing channels in the context of insurance groups, we reveal that financially-weak firms’ capital shortage positively affects the receipt of internal capital when groups own abundant resources. Conversely, when the amount of group resources is limited, those affiliates enjoying better financial conditions receive more internal capital to manage their capital shortage, and financially-weak ones do not; thus, such financially-weak firms exhibit increased tendency to use costly external capital to manage their capitalization. Our findings indicate that groups with less abundant resources tend to engage in “winner-picking” allocation decisions to maximize value.
關聯 Economic Modelling, Vol.96, pp.135-156
資料類型 article
DOI https://doi.org/10.1016/j.econmod.2021.01.002
dc.contributor 風管系
dc.creator (作者) 許永明
dc.creator (作者) Shiu, Yung-Ming;Hsiao, Ching-Yuan
dc.date (日期) 2021-03
dc.date.accessioned 12-Jun-2024 14:42:09 (UTC+8)-
dc.date.available 12-Jun-2024 14:42:09 (UTC+8)-
dc.date.issued (上傳時間) 12-Jun-2024 14:42:09 (UTC+8)-
dc.identifier.uri (URI) https://nccur.lib.nccu.edu.tw/handle/140.119/151685-
dc.description.abstract (摘要) This study investigates how group’s value maximization considerations determine affiliates’ access to internal capital. Previous studies have indicated that both the amount of group resources and affiliates’ financial weakness are relevant to internal capital allocation decisions. Our study investigates how these two factors jointly affect affiliates’ access to internal capital. By analyzing the effects of capital shortage on various financing channels in the context of insurance groups, we reveal that financially-weak firms’ capital shortage positively affects the receipt of internal capital when groups own abundant resources. Conversely, when the amount of group resources is limited, those affiliates enjoying better financial conditions receive more internal capital to manage their capital shortage, and financially-weak ones do not; thus, such financially-weak firms exhibit increased tendency to use costly external capital to manage their capitalization. Our findings indicate that groups with less abundant resources tend to engage in “winner-picking” allocation decisions to maximize value.
dc.format.extent 109 bytes-
dc.format.mimetype text/html-
dc.relation (關聯) Economic Modelling, Vol.96, pp.135-156
dc.subject (關鍵詞) Capital structure; Capital adjustment channels; Internal capital markets; Group resources; Financial weakness
dc.title (題名) Group firms’ access to internal capital markets: The contingent roles of group resources and affiliates’ financial weakness
dc.type (資料類型) article
dc.identifier.doi (DOI) 10.1016/j.econmod.2021.01.002
dc.doi.uri (DOI) https://doi.org/10.1016/j.econmod.2021.01.002