首页 | 本学科首页   官方微博 | 高级检索  
     


Product Market Competition and the Ownership Choice of Business Groups: Evidence from Korean Chaebols
Authors:Hee Sub Byun  Kyung Suh Park
Affiliation:1. Department of Finance, College of Business, Hallym University, Chuncheon, Gangwon-Do, Korea;2. Korea University Business School, Seongbuk-gu, Seoul, Korea
Abstract:This study investigates the effect of product market competition on the ownership choice of controlling shareholders in the Korean business groups known as chaebols. We find that member firms in more competitive markets have less disparity between the control and cash flow rights of controlling shareholders. The adjustment in ownership due to product market competition is implemented mainly through an adjustment in the ownership of affiliates rather than in the direct ownership of controlling shareholders. The disciplinary effect of product market competition is observed only in member firms with lower market power in their own industries. The result implies that product market competition works as a disciplinary mechanism that reduces the incentive of chaebols’ controlling shareholders to pursue the private benefits of control.
Keywords:business group  controlling shareholder  disparity  private benefit of control  product market competition
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号