Resource Allocation within Firms and Financial Market Dislocation: Evidence from Diversified Conglomerates
in The Review of Financial Studies
April 2014; p ublished online February 2014 .
Journal Article. Subjects: Intertemporal Choice and Growth; Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Economics; Corporate Governance; Firm Objectives, Organization, and Behaviour. 21150 words.
We argue and demonstrate that resource allocation within firms' internal capital markets provides an important force countervailing financial market dislocation. We estimate a structural...