Corporate Governance in Business Groups

Daphne W. YIU, Xing CHEN, Yuehua XU

Research output: Book Chapters | Papers in Conference ProceedingsBook ChapterResearchpeer-review

Abstract

Whether a large business group is multinational or not, it needs to form distinct governance mechanisms in order to govern its affiliates. In this chapter, certain issues related to these mechanisms are addressed. The chapter identifies horizontal and vertical governance mechanisms that are usually found in business groups and stresses that business groups also experience significant governance problems, such as mutual entrenchment and cross-subsidization. The chapter also examines in detail the way governance structures and related governance outcomes differ among state-owned, family-controlled, and widely held business groups.
Original languageEnglish
Title of host publicationThe Oxford Handbook of Corporate Governance
EditorsMike WRIGHT, Donald S. SIEGEL, Kevin KEASEY, Igor FILATOTCHEV
Place of PublicationOxford
PublisherOxford University Press
Pages465-488
Number of pages24
ISBN (Electronic)9780191649363
ISBN (Print)9780199642007, 9780198708810
DOIs
Publication statusPublished - Mar 2013
Externally publishedYes

Publication series

NameOxford Handbooks
PublisherOxford University Press

Keywords

  • business groups
  • governance mechanisms
  • governance problems
  • governance structures
  • mutual entrenchment
  • cross-subsidization

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