Sharif Digital Repository

Objective: Business groups that create pyramidal ownership structures are a common form of corporate ownership in developing countries such as India, Chile, and Iran. These groups, along with the benefits they create, separate voting rights from cash flow rights; As a result, the ultimate owner will control them while having a small share of the cash flows of the companies in the lower layers of the group. This phenomenon provides tunneling motivation for controlling owners; incentivizing them to transfer resources and assets of their subsidiary companies (transferring resources from companies with less cash flow rights to companies with more cash flow rights) to gain private benefits at the... 

There are different kinds of ownership structures. In every economy special kinds of these structures are common. These structures include Pyramidal ownership, cross-ownership, etc. These structures empower shareholders to make a gap between their cash flow right and ownership right in a special firm so they could control more firms with the same capital. These structures have their pros and cons, like the internal capital market and tunneling. Of important factors affecting these structures are Legal protection of minor shareholders, shareholder concentration, and largest shareholder. In this research, we find that, unlike most countries, there is a negative relationship between a firm's... 

Using the data of the Tehran Stock Exchange, we analyze the characteristics and explanatory factors of major intra-group and out-of-group transactions and test the tunneling hypothesis in intra-group transactions. We find that out-of-group transactions can be largely explained by changes in control or management, firm size, and the type of the firm. However, intra-group transaction properties mostly depend on the difference between the parent company's cash flow rights in the buyer and seller companies. Also, in the final analysis, we conclude that many intra-group transactions are made to change the structure of the business groups, especially when investment companies buy shares of listed... 

Economic growth and development are among the most critical challenges for policymakers in developing countries. The evolution of companies, especially large companies, has always been one of the main factors of economic growth in many studies on economic growth. Many developing countries have policies in place to support business groups. Still, these firms stop growing after they have grown to a certain extent and do not have technological innovation capability. In Iran, various policies have been adopting to support the growth of companies. However, only a handful of companies have achieved this capability. This study aims to understand the factors that have led Mapna Business Group in the... 

Studies of the ownership structure of companies in different countries demonstrates that pyramidal ownership structures and business groups are present and even dominant in many countries. This type of structure allows the ultimate owners to leverage their capital and control more capital in the economy. Studies related to this type of ownership structure, scrutinize various motivations that have caused the formation of this type of ownership structure. Some studies emphasize the destructive role of business groups, such as tunneling and creating monopolies through common ownership in competing companies, and as a result, consumers and small shareholders are expropriated. Others, relying on...