Does group affiliation increase firm value for diversified groups? New evidence from Indian companies

Robert Lensink*, Remco van der Molen

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

12 Citaten (Scopus)


This article studies the impact of group affiliation on the performance of firms in India during 1996-2001, with the goal of determining whether the positive valuation effects of group affiliation depend on the degree of group diversification. The results from this study indicate that prior support for that hypothesis actually is fragile and highly influenced by extreme outliers. The authors also provide preliminary evidence for the hypothesis that group affiliation is particularly beneficial for firms that suffer financial constraints. (C) 2009 Elsevier B.V. All rights reserved.

Originele taal-2English
Pagina's (van-tot)332-344
Aantal pagina's13
TijdschriftJournal of Empirical Finance
Nummer van het tijdschrift3
StatusPublished - jun-2010

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