The Efficiency of Internal Capital Markets around Financial Crises

Dr Zhou, Xianming   (Principal Investigator (PI))

30

2011-09-30

338059

The Efficiency of Internal Capital Markets around Financial Crises

conglomerates, financial crises, Internal capital markets

Finance

Business Studies (B)

HKU 759111B

General Research Fund (GRF)

2011

Completed

1) To examine whether or how internal capital markets work differently during crisis years from during non-crisis years. To address this issue, I will examine the size of internal capital markets and the mechanisms of internal fund transfer between the business segments within the conglomerate firm. 2) To examine the effect of internal capital markets on the value of conglomerate firms and how this effect differs between crisis and non-crisis periods. To address this issue, I will examine both the absolute value and the relative value of conglomerate firms. A conglomerate’s relative value is defined as relative to that of its comparable stand-alone companies.