Doctoral project in the field of corporate finance.

Small and medium-sized firms (sme’s) are an essential part of the European economy. For instance in Belgium they account for 99.8% of all companies, creating 66.9% of employment and 57.7% of the value added. Given their high impact, it is crucial that the financial system stimulates their growth. An important way in which this growth can be realized is through acquiring the necessary financing. Although the latter is a major problem for some sme’s, for at least 30% of all European small and medium firms this is less of an issue as they are part of a business group that creates ties between firms through certain ownership structures. As a result all members of the group can make use of an internal capital market between members.  Little is known about these types of organizations, not withstanding their importance. This doctoral project investigates the functioning of business groups, in particular how it affects financing and efficiency/restructuring.