| Author: | Kim, Hyun Wook |
| Title: | Empirical research on pyramidal ownership structure and agency problem in Korea |
| Degree: | D.B.A. |
| Year: | 2021 |
| Subject: | Family-owned business enterprises -- Korea (South) Industrial management -- Korea (South) Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | 66 pages : illustrations |
| Language: | English |
| Abstract: | This paper focuses on empirical analysis for family-owned firms located in the lower layer of pyramidal ownership structure in Korea. Our empirical analysis finds that wealth effects of dividend change announcements are significantly greater for family-owned firms located in the lower layer of pyramidal ownership structure than its peers directly owned by controlling shareholders, which implies that dividend change announcements convey information about conflict between controlling shareholders and minority shareholders and pyramidal ownership structure escalates the level of conflict between them. This paper also finds that the wedge between voting right (VR) and cash flow right (CR) accelerates rent extraction of minority shareholders as controlling shareholders have incentives to maximize cash flows of firms (within pyramidal layers) where they have the largest cash flow rights by inter-company transactions. In addition, this research focuses on a holding company structure and finds that a discrepancy between voting right and cash flow right following a shift to a holding company structure should create the incentive for controlling shareholders to seek other types of compensation rather than paying out prorate dividends. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 6009.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.13 MB | Adobe PDF | View/Open |
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