This paper investigates the role of internal networks on long-term borrowing in large business groups. In line with the network-assisted resource-based hypothesis, our findings suggest that firms associated with big business groups tend to use their internal networks for raising long-term borrowings. These findings indicate that an association with a business group increases the ease of access to debt capital within their internal networks.
Financial Engineering
BUSINESS GROUPS AFFILIATION AND LONG-TERM BORROWING FROM INTERNAL NETWORKS: AN EMPIRICAL STUDY
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