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The effects of marginal changes of ownership on multi‐level objectives in corporate groups
Author(s) -
Kornbluth J. S. H.,
Salkin G. R.
Publication year - 1994
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090150105
Subject(s) - group (periodic table) , corporate group , marginal cost , affect (linguistics) , economics , microeconomics , business , industrial organization , econometrics , corporate governance , finance , psychology , chemistry , organic chemistry , communication
Changes in the intra‐group linkages affect the ownership of members of the group by their parents and can have different effects on the various objectives of the group. This paper shows how one can use the standard formula for calculating ownership in a group of companies to derive a linear approximation to the marginal changes in the group structure as the result of changes in intra‐group linkages. These marginal effects can be used in linear multi‐objective and/or decentralized planning systems in the group. An example is provided on some tax‐planning effects of marginal changes of intra‐group ownership.