Article ID Journal Published Year Pages File Type
975775 Pacific-Basin Finance Journal 2007 24 Pages PDF
Abstract

We review the ownership structure of 15 Korean chaebols (conglomerates) using data from published combined financial statements to determine whether, as commonly believed, controlling family ownership in private firms is higher compared with public firms within the same chaebol. We then examine whether firms with high family ownership and lower outside investor participation shift wealth from firms with lower family ownership, which would support the assumption that private firms outperform public firms. Our results do not support either assumption. First, we show that the simple average of family ownership is lower for the private firms than the public firms within the same chaebol. Second, we find no relation between controlling family ownership and the performance of a firm.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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