Abstract:
This paper gives information about financial characteristics of holding companies, moreover information is given on how the holding company owns the control package of banks, firms and enterprises, controls and manages their activities, and for what purpose the excess profit is used. It is connected through ownership, each subsidiary's finances, obligations, and liabilities are separate. Holding companies allow shareholders to gain control of businesses in cost-efficient ways and allows their subsidiary businesses to access more capital than they would be able to on their own. The benefits of this relationship for both holding companies and their subsidiaries are numerous but complex.
|