Business groups, financing constraints, and investment: the case of India

Shubashis Gangopadhyay, Robert Lensink and Remco van der Molen
Additional contact information
Remco van der Molen: Groningen University

No 02E02, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)

Abstract: We examine the effect of business group affiliation on corporate investment behavior in India. We use a data set containing 684 Indian listed companies for the 1989-1997 period. We estimate a simple investment equation and find evidence that cash flow has a positive effect on investment spending of stand-alone firms, whereas for group affiliates cash flow is either insignificant or has a much lower coefficient. This suggests that business group affiliates have better access to external funds than stand-alone firms.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://irs.ub.rug.nl/ppn/238280365 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://irs.ub.rug.nl/ppn/238280365 [302 Found]--> https://irs.ub.rug.nl/ppn/238280365 [302 Found]--> https://www.rug.nl/research/portal/publications/pub(7908dc71-4b04-4b78-b515-5b5158a0c261).html [301 Moved Permanently]--> https://research.rug.nl/en/publications/pub(7908dc71-4b04-4b78-b515-5b5158a0c261).html)

Related works:
Journal Article: Business groups, financing constraints and investment: the case of India (2003)
Working Paper: Business groups, financing constraints, and investment: the case of India (2001)
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:gro:rugsom:02e02

Access Statistics for this paper

More papers in Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management) Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling ().