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

R Lensink*, R Van der Molen, S Gangopadhyay

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

50 Citaten (Scopus)


We examine the effect of business group affiliation on corporate investment behaviour in India. More specifically, we test whether group affiliation reduces financing constraints for the affiliated firms. We use a data set containing 694 listed Indian companies for the 1989-97 period. We estimate a simple investment equation and find evidence that the investment-cash flow sensitivity is much lower for group affiliates. This suggests that business group affiliates have better access to external funds than stand-alone firms.

Originele taal-2English
Pagina's (van-tot)93-119
Aantal pagina's27
TijdschriftJournal of Development Studies
Nummer van het tijdschrift2
StatusPublished - dec-2003

Citeer dit