EconPapers    
Economics at your fingertips  
 

Family Business Groups and Tunneling Framework: Application and Evidence from Pakistan

Atif Ikram and Syed Ali Asjad Naqvi ()
Additional contact information
Atif Ikram: LUMS

Microeconomics Working Papers from East Asian Bureau of Economic Research

Abstract: In Pakistan there is a ubiquity of firms in which there exists a controlling shareholder, usually in the form of the family. By and large this control is maintained via crossshareholding and inter-locked directorships which in turn is facilitated by the pyramidal organization of these firms. Moreover, these controlling families have often been alleged of tunneling resources from firms in which they have few cash flow rights to ones in which they have more cash flow rights. This paper attempts to quantify the extent of tunneling prevalent in Pakistani family business groups. The framework that is adopted is one that has been presented by Mullainathan et al. (2000) : we use the responses of different firms to performance shocks and map out the flow of resources within a group of firms to quantify the extent to which the marginal rupee is tunneled. We apply this technique to data on Pakistan business groups.

Keywords: Pakistan; tunneling; business groups; crossshareholding (search for similar items in EconPapers)
JEL-codes: D10 (search for similar items in EconPapers)
Date: 2005-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.eaber.org/node/22263 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.eaber.org/node/22263 [301 Moved Permanently]--> https://www.eaber.org/node/22263 [301 Moved Permanently]--> https://eaber.org/node/22263)

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:eab:microe:22263

Access Statistics for this paper

More papers in Microeconomics Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().

 
Page updated 2021-10-19
Handle: RePEc:eab:microe:22263