콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Financial Policy
Industry and Technology Entrepreneurship

Print

What determines the ownership structure of business conglomerates? : On the cash flow rights of Korea's chaebol

Related Document
Frame of Image n exclusive set of 1997-2002 data on the intra-group shareholdings of 46 of Korea’s largest conglomerates, or chaebols, we show that the contribution of individual firms to group control and profitability are important determinants of ownership structure in Korea’s chaebol: the controlling shareholder’s cash flow rights in a group-affiliated firm increases with the firm’s contribution to group control and profitability. We also find that the level of disparity between voting and cash flow rights is significantly higher than the levels previously reported in the literature on Korean firms, which makes use of only public firms, indicating that non-public firms play a substantial role in increasing the disparity. Key words: ownership structure, business conglomerate, chaebol, voting rights, cash flow rights, disparity JEL classification: G32, G34
Associate Professor of Finance, KDI School of Public Policy and Management, Chongryangri-Dong, Dongdaemun-Ku, Seoul, Korea 130-868. Tel: (+82-2) 3299-1030, fax: (+82-2) 968-5072, e-mail: wc_kim@kdischool.ac.kr ∗∗ Fellow, Korea Development Institute, Chongryangri-Dong, Dongdaemun-Ku, Seoul, Korea 130-012, email: yjlim@kdi.re.kr *** Assistant Professor, KAIST Graduate School of Management, Chongryangri-Dong, Dongdaemun-Ku, Seoul, Korea 130-722. Tel: (+82-2) 958-3535, fax: (+82-2) 958-3604, e-mail: econsung@kgsm.kaist.ac.kr (Correspondence should be addressed to this address).
*
1.
Introduction
Empirical research on corporate ownership is


Full Text
Title What determines the ownership structure of business conglomerates?
Similar Titles
Sub Title

On the cash flow rights of Korea's chaebol

Material Type Reports
Author(English)

Kim, Woochan; Lim, Young-Jae; Sung, Taeyoon

Publisher

[Seoul]:KDI school of Public Policy and Management

Date 2004
Series Title; No Working papers
Pages 54
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Financial Policy
Industry and Technology < Entrepreneurship
Holding KDI school of Public Policy and Management

Abstract

We examine a number of firm- and group-level factors that shape the ownership structure
of business conglomerates, which can include both public and non-public firms. Using
an exclusive set of 1997-2002 data on the intra-group shareholdings of 46 of Korea’s largest
conglomerates, or chaebols, we show that the contribution of individual firms to group
control and profitability are important determinants of ownership structure in Korea’s
chaebol: the controlling shareholder’s cash flow rights in a group-affiliated firm increases
with the firm’s contribution to group control and profitability. We also find that the level
of disparity between voting and cash flow rights is significantly higher than the levels
previously reported in the literature on Korean firms, which makes use of only public
firms, indicating that non-public firms play a substantial role in increasing the disparity.