Using profits to re-estimate efficiency of internal capital markets

IF 1.7 Q3 MANAGEMENT

IIMB Management Review Pub Date : 2023-09-01 DOI:10.1016/j.iimb.2023.07.003

Debarati Basu , Arnab Adhikari

引用次数: 0

Abstract

Internal capital markets (ICM) are fundamental to conglomerates and business groups across developed and developing economies. ICM can be opportunistic or benevolent, but its efficiency assessment remains a pressing question. We focus on measuring the profit efficiency of giver firms using a novel methodology based on data envelopment analysis (DEA). We also explore heterogeneity across group firms based on ownership and governance. Overall, ICM investments are efficiency-reducing, more so for firms with higher outsider ownership. Monitoring reduces inefficiency. These findings have strong methodological, policy, and financing implications and call for caution from lenders and investors of diversely held group firms.

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利用利润重新评估内部资本市场效率

内部资本市场(ICM)是发达国家和发展中国家企业集团和商业集团的基础。ICM可以是机会主义的，也可以是仁慈的，但其效率评估仍然是一个紧迫的问题。本文采用一种基于数据包络分析(DEA)的新方法来研究给予企业的利润效率。我们还探讨了基于所有权和治理的集团公司的异质性。总的来说，ICM投资降低了效率，对于拥有较高外部所有权的公司来说更是如此。监控可以降低效率。这些发现具有很强的方法论、政策和融资意义，并呼吁多元化控股集团公司的出借人和投资者保持谨慎。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

IIMB Management Review MANAGEMENT-

CiteScore

3.20

自引率

5.90%

发文量

审稿时长

68 days

期刊介绍： IIMB Management Review (IMR) is a quarterly journal brought out by the Indian Institute of Management Bangalore. Addressed to management practitioners, researchers and academics, IMR aims to engage rigorously with practices, concepts and ideas in the field of management, with an emphasis on providing managerial insights, in a reader friendly format. To this end IMR invites manuscripts that provide novel managerial insights in any of the core business functions. The manuscript should be rigorous, that is, the findings should be supported by either empirical data or a well-justified theoretical model, and well written. While these two requirements are necessary for acceptance, they do not guarantee acceptance. The sole criterion for publication is contribution to the extant management literature.Although all manuscripts are welcome, our special emphasis is on papers that focus on emerging economies throughout the world. Such papers may either improve our understanding of markets in such economies through novel analyses or build models by taking into account the special characteristics of such economies to provide guidance to managers.