The “Cinderella” Effect in Business Groups: Choosing Which Subsidiary is the Princess

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F25%3A43926827" target="_blank" >RIV/62156489:43110/25:43926827 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.1016/j.irfa.2025.104649" target="_blank" >https://doi.org/10.1016/j.irfa.2025.104649</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.irfa.2025.104649" target="_blank" >10.1016/j.irfa.2025.104649</a>

Result language
angličtina
Original language name
The “Cinderella” Effect in Business Groups: Choosing Which Subsidiary is the Princess
Original language description
This study examines the nature of financial distress for firms within business groups distributed across twenty-five European countries from 2000 to 2018. We show that business group membership and a firm's importance within the group explain both the incidence and resolution of financial distress. We find that critical subsidiaries have a negligible chance of default and bankruptcy. Less critical firms, however, are more likely to default and liquidate. It suggests that the future resolution of financial distress could be decided during the group formation and the subsidiary's positioning. We also show the persistent effect of national legal regimes.
Czech name
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Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50206 - Finance

Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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