%0 Journal Article %1 Gonenc2007 %A Gonenc, Halit %A Kan, Ozgur B. %A Karadagli, Ece C. %D 2007 %J Emerging Markets Finance and Trade %K diversificacion emergentes turquia %N 2 %P 63-81 %T Business Groups and Internal Capital Markets %V 43 %X We compare the performance of firms affiliated with diversified business groups with the performance of unaffiliated firms in Turkey, an emerging market. We address the question of whether group-affiliated firms create internal capital markets or control large cash flows. Our findings indicate that group affiliation improves a firm's accounting performance, but not stock market performance. Deviation of cash-flow rights from voting rights has a negative but insignificant effect on accounting performance, but a significant effect on market performance. We also find that a firm's accounting, but not stock market, performance increases with the level of group diversification. Our results show that internal capital markets play an important role for the existence of business groups in an emerging market context.

@article{Gonenc2007, abstract = {We compare the performance of firms affiliated with diversified business groups with the performance of unaffiliated firms in Turkey, an emerging market. We address the question of whether group-affiliated firms create internal capital markets or control large cash flows. Our findings indicate that group affiliation improves a firm's accounting performance, but not stock market performance. Deviation of cash-flow rights from voting rights has a negative but insignificant effect on accounting performance, but a significant effect on market performance. We also find that a firm's accounting, but not stock market, performance increases with the level of group diversification. Our results show that internal capital markets play an important role for the existence of business groups in an emerging market context.}, added-at = {2011-11-13T04:52:20.000+0100}, author = {Gonenc, Halit and Kan, Ozgur B. and Karadagli, Ece C.}, biburl = {https://www.bibsonomy.org/bibtex/2ed8ac2eb068bc4674447614e84e94a44/edwardyanquen}, interhash = {ed0e099ed23a02d1118a82e77c4bf065}, intrahash = {ed8ac2eb068bc4674447614e84e94a44}, journal = {Emerging Markets Finance and Trade}, keywords = {diversificacion emergentes turquia}, note = {Keywords: Accounting; Capital; Firm; Firms; Geographic Descriptors: Turkey; Geographic Region: Europe; Publication Type: Journal Article; Update Code: 200705; Copyright: Copyright of Emerging Markets Finance \& Trade is the property of M.E. Sharpe Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.}, number = 2, pages = {63-81}, timestamp = {2011-11-13T04:52:21.000+0100}, title = {Business Groups and Internal Capital Markets}, volume = 43, year = 2007 }