Business groups and financial constraints: evidence from Pakistani group affiliated firms

Abubakr Saeed () and Muhammad Sameer
Additional contact information
Abubakr Saeed: COMSATS Institute of Information Technology, Pakistan
Muhammad Sameer: University of Bedfordshire, UK

Journal of Developing Areas, 2015, vol. 49, issue 2, 355-361

Abstract: We test whether group affiliation reduces the financial constraints for the affiliated firms in Pakistan. Results reveal that group affiliated firms are not financially constrained. Further, we find evidence for an internal capital market in business groups that reduces the financing constraints of the affiliated firms. Surprisingly, positive effect of business affiliation is limited only to firms affiliated to twenty largest business groups.

Keywords: financial constraints; business groups; internal capital market; investment (search for similar items in EconPapers)
JEL-codes: E22 G32 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing_areas/v049/49.2.saeed.html

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.49:year:2015:issue2:pp:355-361

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().