ABSTRACT: (THE DISADVANTAGES OF HOLDING GROUPS: CRITICAL CONSIDERATIONS) The aim of the present paper is to highlight the disadvantages of pyramidal business groups as organizational forms of enterprise. More specifically, holding groups are here in conceived of groups of legal subjects controlled – through their participation to capital – by single stakeholders operating towards a unitary purpose. The study about disadvantages of holding groups is very innovative because it have been rarely explored, as they are usually underestimated only superficially dealt with by scholars. This work starts from the analysis of the literature in the field and on the critical review of the contents. The work is completed with original thoughts and with a schematization useful for the complete analysis of the phenomenon. Accordingly, the following types of disadvantages have been identified and herein illustrated: (a) conflicts between enterprises within the group; (b) ineffective production coordination; (c) cost diseconomies; (d) negative effects of pyramidal level and leverage; (e) lack of protection of outside stakeholders and their creditors; (f) other disadvantages due to the fact that several legal subjects are involved.
KEYWORDS: holding groups, pyramidal business groups, advantages and disadvantages
