Not all subsidiaries are treated equally
Peer-Reviewed Publication
Updates every hour. Last Updated: 5-Nov-2025 19:11 ET (6-Nov-2025 00:11 GMT/UTC)
Metin Sengul, professor of management at Texas McCombs, wondered why some companies structure themselves with a gap or “wedge” between their control rights and rights to the subsidiary’s earnings.
In new research, he finds two internal factors that influence those decisions:
Relatedness: how closely the subsidiary’s operations relate to the other businesses the parent operates, such as all being in segments of the auto industry.
Multimarket contact: the degree to which the parent and subsidiary face the same competitors in multiple geographic or product markets.
The stringent environmental regulations in China could potentially be enhancing productivity in the new energy sector, research from Harbin University of Science and Technology and Edith Cowan University (ECU) has found.
This study explores the effectiveness of pair trading strategies within the cryptocurrency market, focusing on three key statistical methods: distance, cointegration, and a novel hybrid approach combining both. Using high-frequency and daily trading data from the top 50 cryptocurrencies on Binance during bullish, stable, and bearish periods from 2020 to 2022, the research conducts a rigorous sensitivity analysis of entry and exit thresholds, as well as portfolio size. The findings demonstrate that pair trading yields substantial profitability, especially on shorter time frames such as 15- and 5-minute intervals. Fixed entry thresholds outperform dynamic ones, while the hybrid approach significantly improves pair selection efficiency. These results offer practical, data-driven guidance for traders, portfolio managers, and fintech professionals seeking to capitalise on the inefficiencies and volatility of the crypto market.
An analysis of reporting from five major companies as cryptocurrency went on a popularity rollercoaster between late 2018 and the so-called "crypto winter" of late 2022 showed firms increased the frequency and readability of their crypto disclosures when cryptocurrency was riding high but reduced them when markets were less favourable.