To Be or Not To Be: Corporate Groups as a Firm or as a Collection of Firms? A Sociological Approach

Catel Duet, Aurélie

To Be or Not To Be: Corporate Groups as a Firm or as a Collection of Firms? A Sociological Approach - 2008.


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In the last few years, firms have increasingly chosen to organize and conduct their business as corporate groups. However, we do not know much about the relationship between the parent company and the subsidiary. There are financial links between firms, but corporate groups have no clear legal status: each company is defined as a single corporate body. This paper demonstrates that corporate groups “play” with this duality. They can be considered either as a single firm or as a set of independent firms, depending on the circumstances. It appears that corporate groups allow some reversibility in their decisions.

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