Conglomerate entrenchment under optimal financial contracting

American Economic Review

Volumn 95, Issue 3, 2005, Pages 850-861

  Faure Grimaud, Antoine ^a,b   Inderst, Roman ^a,c  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

^b CEPR   (United Kingdom)

^c INSEAD   (France)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 30844460369     PISSN: 00028282     EISSN: None     Source Type: Journal    
DOI: 10.1257/0002828054201260     Document Type: Review

References (17)

1. Benoit, Jean-Pierre. "Financially Constrained Entry in a Game with Incomplete Information." RAND Journal of Economics, 1984, 15(4), pp. 490-99.
2. Bianco, Magda and Nicodano, Giovanna. "Business Groups and Debt." Unpublished Paper, 2002.
3. Bolton, Patrick and Scharfstein, David S. "A Theory of Predation Based on Agency Problems in Financial Contracting." American Economic Review, 1990, 80(1), pp. 93-106.
4. Comment, Robert and Jarrell, Gregg A. "Corporate Focus and Stock Returns." Journal of Financial Economics, 1995, 37(1), pp. 67-87.
5. Deily, Mary E. "Exit Strategies and Plant-Closing Decisions: The Case of Steel." RAND Journal of Economics, 1991, 22(2), pp. 250-63.
6. Diamond, Douglas W. "Financial Intermediation and Delegated Monitoring." Review of Economic Studies, 1984, 51(3), pp. 393-414.
7. Fazzari, Steven M.; Hubbard, Robert Glenn and Petersen, Bruce C. "Financing Constraints and Corporate Investment." Brookings Papers on Economic Activity, 1988, 0(1), pp. 141-95.
8. Fluck, Zsuzsanna and Lynch, Anthony W. "Why Do Firms Merge and Then Divest? A Theory of Financial Synergy." Journal of Business, 1999, 72(3), pp. 319-46.
9. Ghemawat, Pankaj and Nalebuff, Barry J. "The Devolution of Declining Industries." Quar-terly Journal of Economics, 1990, 105(1), pp. 167-86.
10. Inderst, Roman and Müller, Holger M. "Internal versus External Financing: An Optimal Contracting Approach." Journal of Finance, 2003, 58(3), pp. 1033-62.
11. Khanna, Naveen and Tice, Sheri. 'The Bright Side of International Capital Markets." Journal of Finance, 2001, 56(4), pp. 1489-1528.
12. Kovenock, Dan and Phillips, Gordon M. "Capital Structure and Product Market Behavior: An Examination of Plant Exit and Investment Decisions." Review of Financial Studies, 1997, 10(3), pp. 767-803.
13. Maksimovic, Vojislav and Phillips, Gordon M. "Do Conglomerate Firms Allocate Resources Inefficiently across Industries? Theory and Evidence." Journal of Finance, 2002, 57(2), pp. 721-67.
14. Rajan, Raghuram; Servaes, Henri and Zingales, Luigi. "The Cost of Diversity: The Diversification Discount and Inefficient Investment." Journal of Finance, 2000, 55(1), pp. 35-80.
15. Scharfstein, David S. and Stein, Jeremy C. "The Dark Side of Internal Capital Markets: Divisional Rent-Seeking and Inefficient Investment." Journal of Finance, 2000, 55(6), pp. 2537-64.
16. Stein, Jeremy C. "Internal Capital Markets and the Competition for Corporate Resources." Journal of Finance, 1997, 52(1), pp. 111-33.
17. Telser, Lester G. "Cutthroat Competition and the Long Purse." Journal of Law and Economics, 1966, 9, pp. 259-77.