Abstract
This study examines the relation between ownership structure and firm performance for firms belonging to Korean Business Groups, which are known as ‘chaebols’. Using firm data during 2004-2009, we investigate the impact of the largest shareholders’ ownership on the operating performance of the firms. We find that the relation between the largest shareholders’ equity holdings and firm performance is non-monotonic and that the negative effects of the largest holdings on performance are stronger for publicly traded firms. Also, the firms completely held by one shareholder exhibit higher operating performance. Overall, our results suggest that agency problem is less severe in the firms held privately but not completely by one shareholder.
| Translated title of the contribution | Ownership Structure and Firm Performance: Empirical Evidence from Korean Business Groups |
|---|---|
| Original language | Korean |
| Pages (from-to) | 2209-2232 |
| Number of pages | 24 |
| Journal | 대한경영학회지 |
| Volume | 25 |
| Issue number | 4 |
| State | Published - Jul 2012 |