콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Industry and Technology Entrepreneurship

Print

Changing corporate governance in Korea : Rise of a market for corporate control or the strategic adaptation of chaebol?

Related Document
Frame of Image
  • Changing corporate governance in Korea
  • Seoul National University(Institute for Social Development and Policy Research, Center for Social Sciences)


link
Title Changing corporate governance in Korea
Similar Titles
Sub Title

Rise of a market for corporate control or the strategic adaptation of chaebol?

Material Type Articles
Publisher

[Seoul]:Seoul National University(Institute for Social Development and Policy Research, Center for Social Sciences)

Date 2003-12
Journal Title; Vol./Issue Development and Society:vol. 32(no. 2)
Pages 18
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Industry and Technology < Entrepreneurship
Holding Seoul National University

Abstract

The Asian crisis at the end of the 20th century has brought many changes in the Korean economy and business organizations. In this paper, we focused on corporate acquisitions during the period 1997-2000. We draw theoretical insights from institutional theory, network theory, resource dependence, and financial economics. Taking advantage of detailed event-level data of mergers and acquisitions between 1997 and 2000, we apply hazard rate models to explain correlates of major acquisition offers. We were able to identify substantial amount of heterogeneity in the corporate acquisitions, and drew two major division lines for different types of acquisitions depending on who made offers: foreign/domestic and member/non-member of business group. Model estimation results show that the sets of variables affecting acquisition offers differ by the types of acquisitions. Acquisitions by business group members depend less on the market evaluation of target firms when compared to the acquisitions by foreign firms. Foreign firms are more likely to follow rules of market for corporate control in making decisions on acquisitions. These results provide partial support for the theoretical insights we examined in this paper.