Please use this identifier to cite or link to this item: https://doi.org/10.1016/j.jbankfin.2007.12.044
DC FieldValue
dc.titleTunneling and propping: A justification for pyramidal ownership
dc.contributor.authorRiyanto, Y.E.
dc.contributor.authorToolsema, L.A.
dc.date.accessioned2011-05-03T08:10:11Z
dc.date.available2011-05-03T08:10:11Z
dc.date.issued2008
dc.identifier.citationRiyanto, Y.E., Toolsema, L.A. (2008). Tunneling and propping: A justification for pyramidal ownership. Journal of Banking and Finance 32 (10) : 2178-2187. ScholarBank@NUS Repository. https://doi.org/10.1016/j.jbankfin.2007.12.044
dc.identifier.issn03784266
dc.identifier.urihttp://scholarbank.nus.edu.sg/handle/10635/22449
dc.description.abstractThis paper links existence of the pyramidal ownership structure to tunneling and propping. Tunneling refers to a transfer of resources from a lower-level firm to a higher-level firm in the pyramidal chain, whereas propping concerns a transfer in the opposite direction intended to bail out the receiving firm from bankruptcy. We show that tunneling alone cannot justify the pyramidal structure unless outside investors are myopic, since rational outside investors anticipate tunneling and adjust their willingness-to-pay for the firm's shares accordingly. With propping, however, they may be willing to be expropriated in exchange for implicit insurance against bankruptcy. © 2008 Elsevier B.V. All rights reserved.
dc.description.urihttp://libproxy1.nus.edu.sg/login?url=http://dx.doi.org/10.1016/j.jbankfin.2007.12.044
dc.sourceScopus
dc.subjectBusiness groups
dc.subjectOwnership structure
dc.subjectPropping
dc.subjectPyramids
dc.subjectTunneling
dc.typeArticle
dc.contributor.departmentECONOMICS
dc.description.doi10.1016/j.jbankfin.2007.12.044
dc.description.sourcetitleJournal of Banking and Finance
dc.description.volume32
dc.description.issue10
dc.description.page2178-2187
dc.description.codenJBFID
dc.identifier.isiut000259909400016
Appears in Collections:Staff Publications

Show simple item record
Files in This Item:
There are no files associated with this item.

SCOPUSTM   
Citations

70
checked on May 22, 2022

WEB OF SCIENCETM
Citations

60
checked on May 13, 2022

Page view(s)

399
checked on May 12, 2022

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.