haku: @author Chu, W. / yhteensä: 8
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| Tekijä: | Chu, W. |
| Otsikko: | Are group-affiliated firms really more profitable than nonaffiliated? |
| Lehti: | Small business economics
2004 : JUN, VOL. 22:5, p. 391-405 |
| Asiasana: | Profitability Finance Small business Companies Asia |
| Vapaa asiasana: | SME |
| Kieli: | eng |
| Tiivistelmä: | In influencing the economic performance of business units the role of corporate center has been a central research topic in the industrial organization and strategic management literature. A common finding is the limited corporate and business group effects. Recently, studies argue that the market inefficiencies and institutional voids in emerging markets can be overcome more efficiently by large diversified business groups than by non-group small firms. Some empirical evidence also shows that non-group small firms are significantly less profitable than group-affiliated firms. This paper raises this issue by empirically investigating the influence of group affiliation on the return on assets and Tobin's q of 340 group-affiliated firms versus 423 non-group firms in Taiwan, during the period of 1997-1999. The statistical results show that group affiliation can not always create value for member firms. The size of the business group matters. When affiliated with the largest business groups, member firms indeed show improved stock market performance, but when firms are affiliated with small- and medium-sized groups, their accounting performance suffers. Findings of this paper suggest a threshold effect and a U-shape relationship btw. group affiliation and profitability in emerging economies. |
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