Agency Costs of Socialistic Internal Capital Markets: Empirical Evidence from China

• Main Authors: WANG, Jiwei, Ye, Kangtao
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2007
• Subjects: Agency costs; Managerial compensation; Conglomerate; Business group; Socialistic internal capital markets; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/231
• Institution: Singapore Management University

This study provides empirical evidence of agency costs in socialistic internal capital markets. Listed Chinese companies are required to disclose the amount of resources that are reallocated to other firms of the parent company, which provides us with a direct measure of the socialistic subsidizatio...