In Business Groups We Trust

In Business Groups We Trust

Despite the prevalence of business groups around the world, the debate about the explanations for their existence is far from settled. We investigate the impact of trust on the prevalence of business groups. Using firm-level information on group affiliation, we perform estimations on a large sample...

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Bibliographic Details
Main Authors: Hamelin, Anaïs, Lefebvre, Vivien, Weill, Laurent
Format: Article ou chapitre numérique
Language:Français
Published: 2025
Subjects:
business groups
informal institutions
organizational structure
trust
Online Access:Accès Université d'Orléans et IFPM
Accès Université d'Orléans et IFPM
id cairn-FINA_PR_044
record_format cairn
spelling cairn-FINA_PR_044FINAFinance https://shs.cairn.info/journal-finance-2025-3-page-68?lang=en https://doi.org/10.3917/fina.pr.044 In Business Groups We Trust Hamelin, AnaïsLefebvre, VivienWeill, Laurent2025 business groupsinformal institutionsorganizational structuretrustfre Finance | 46 | 3 | 2025-11-17 | p. 68-102 | 0752-6180 FINA_46345 Despite the prevalence of business groups around the world, the debate about the explanations for their existence is far from settled. We investigate the impact of trust on the prevalence of business groups. Using firm-level information on group affiliation, we perform estimations on a large sample of 259,919 companies from twenty-five European countries. We find that higher trust is associated with a lower probability to be affiliated to a business group. Our findings accord with the hypothesis that higher trust diminishes the incentives for a firm to internalize transactions through the emergence of a business group. JEL Classification: L2, Z13Malgré la prévalence des groupes d’entreprises dans le monde, le débat sur les raisons de leur existence est loin d’être clos. Nous étudions l’impact de la confiance sur la prévalence des groupes d’entreprises. En utilisant des informations au niveau de l’entreprise sur l’affiliation à un groupe, nous effectuons des estimations sur un large échantillon de 259 919 entreprises de vingt-cinq pays européens. Nous constatons qu’une confiance accrue est associée à une probabilité plus faible d’être affilié à un groupe d’entreprises. Nos résultats concordent avec l’hypothèse selon laquelle une confiance accrue diminue les incitations d’une entreprise à internaliser les transactions par le biais de l’émergence d’un groupe d’entreprises.Cairn restricted access
language Français
format Article ou chapitre numérique
building 0/Bibliothèque numérique/
1/Bibliothèque numérique/Cairn/
topic business groups
informal institutions
organizational structure
trust
spellingShingle business groups
informal institutions
organizational structure
trust
Hamelin, Anaïs
Lefebvre, Vivien
Weill, Laurent
In Business Groups We Trust
topic_facet business groups
informal institutions
organizational structure
trust
description Despite the prevalence of business groups around the world, the debate about the explanations for their existence is far from settled. We investigate the impact of trust on the prevalence of business groups. Using firm-level information on group affiliation, we perform estimations on a large sample of 259,919 companies from twenty-five European countries. We find that higher trust is associated with a lower probability to be affiliated to a business group. Our findings accord with the hypothesis that higher trust diminishes the incentives for a firm to internalize transactions through the emergence of a business group. JEL Classification: L2, Z13
author Hamelin, Anaïs
Lefebvre, Vivien
Weill, Laurent
author_facet Hamelin, Anaïs
Lefebvre, Vivien
Weill, Laurent
author_sort Hamelin, Anaïs
title In Business Groups We Trust
title_short In Business Groups We Trust
title_full In Business Groups We Trust
title_fullStr In Business Groups We Trust
title_full_unstemmed In Business Groups We Trust
title_sort in business groups we trust
publishDate 2025
container_title
container_issue
url https://ezproxy.univ-orleans.fr/login?url=https://shs.cairn.info/journal-finance-2025-3-page-68?lang=en
https://ezproxy.univ-orleans.fr/login?url=https://doi.org/10.3917/fina.pr.044
_version_ 1877245917113876480

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