Business Groups in India
The business group as an organizational form is one of the many special business structures that exist in the global economy. Literature aimed at understanding whether group-affiliated firms function differently from standalone companies, more so with respect to basic corporate finance decisions like investing, financing and reporting has stayed scarce. It is in this context that we, through three observed essays based on India, aim to understand and provide answers to some unresolved questions related to how group-affiliated firms differ from standalone firms when making corporate finance determinations. Business groups in India are a predominant economic force particularly and have been so historically. About 31 per cent of firms in India belong to business groups but this 31 per cent accounts for nearly 59 per cent of total assets held by all firms in India. This emphasises the economic significance of business groups in India context and makes it imperative to understand how the...