Define holding company. holding company synonyms, holding company pronunciation, holding company translation, English dictionary definition of holding company. n. A company controlling partial or complete interest in another company or other companies. A
company, the priority right to seize the assets of the subsidiary company in the event of a default. This structure allows the company to protect the interest of its shareholders over the interest of creditors. It is for this reason, that this structure has been considered to be controversial...
Related to holding company:Personal Holding Company A corporation that limits its business to the ownership of stock in and the supervision of management of other corporations. A holding company is organized specifically to hold the stock of other companies and ordinarily owns such a dominant interest...
Moreover, unlike a parent company, subsidiaries typically pay federal taxes on their total income rather than only on their profits. Another drawback is the possibility of double taxation—as would occur, for instance, if both a parent company and its subsidiary were required to pay taxes on ...
We will discuss here the key advantages of the holding company structure: Limits Liability Usually, the holding company takes ownership of all the assets of the subsidiaries. It then leases those assets to its subsidiaries. If a subsidiary goes bankrupt or faces a lawsuit, the assets are secure...
aWe examine the U.S. bank holding companies rather than the subsidiary commercial banks because banks’ strategic decisions such as capital structure and new activities like brokerage and advisory services are likely made at the level of entire institution. 我们审查美国。 银行控股公司而不是辅助商业银...
Capital StructureInformation AsymmetryA subsidiary failure may deteriorate the bank holding company's (BHC) financial conditions. BHCs' managers possess better knowledge than market investors concerdoi:10.2139/ssrn.3018101Hung, Chi-Hsiou DanielLiu, Hong...
subsidiary companies as part of the accounting results for the group of companies. In addition, the holding company may own between 20% and 50% of the voting shares of anASSOCIATED COMPANY, which will continue to produce its own annual accounts and retain a degree of independence, though ...
This way, it provides the structure to create a corporate group. Holding companies will either own the majority of shares in a subsidiary or, in some circumstances, fully owns all shares in a company. Either way, they will hold control over a subsidiary company. Consequently, they can ...
Consequently, as an asset protection strategy, a parent corporation might structure itself as a holding company, while creating subsidiaries for each of its business lines. For example, one subsidiary may own the parent corporation’s brand name and trademarks, while another subsidiary may own its ...