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Business Group Spillovers / S. Lakshmi Naaraayanan, Daniel Wolfenzon.
- Format:
- Book
- Author/Creator:
- Naaraayanan, S. Lakshmi.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w31107.
- NBER working paper series no. w31107
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2023.
- Summary:
- We compare the investment of standalone firms across regions after a positive shock to the investment opportunities generated by a large-scale highway development project. We show that the standalones' investment sensitivity is lower in regions with a higher density of business groups in the local area. We investigate mechanisms driving our results and find support for a financing mechanism whereby banks allocate capital preferentially to group-affiliated firms in responding to the increase in credit demand. Overall, our study documents that business groups have spillover effects on standalone firms.
- Notes:
- Print version record
- April 2023.
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