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Corporate governance, regulatory changes, and corporate restructuring in Korea, 1993-2004

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  • Park, Choelsoon
  • Kim, Seonghoon

Abstract

What has triggered the big wave of corporate restructuring around the world since the 1980s? The dominant explanations have attributed it to the changes in corporate governance and business environments. Based on these research streams, we investigated the roles of governance factors, such as business group affiliation, domestic institutional ownership, and foreign ownership in corporate restructuring of Korean firms, and continued to examine the effects of changes in regulatory environments regarding corporate governance after the financial crisis. We argue that the effectiveness of governance factors on firms' activities is bound to the institutional context created by government regulations. An empirical study was conducted on a panel of 251 Korean firms during 1993-2004. Results show that institutional ownership and regulatory changes in corporate governance had significantly influenced Korean firms' restructuring. Regulatory changes have positively moderated the relationship between business group affiliation and restructuring, and between institutional ownership and restructuring.

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  • Park, Choelsoon & Kim, Seonghoon, 2008. "Corporate governance, regulatory changes, and corporate restructuring in Korea, 1993-2004," Journal of World Business, Elsevier, vol. 43(1), pages 66-84, January.
    • Handle: RePEc:eee:worbus:v:43:y:2008:i:1:p:66-84
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    13. Iwasaki, Ichiro & 岩﨑, 一郎 & イワサキ, イチロウ, 2012. "Global Financial Crisis, Corporate Governance, and Firm Survival: The Case of Russia," RRC Working Paper Series 37, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    14. Iwasaki, Ichiro & 岩﨑, 一郎, 2013. "Global Financial Crisis, Corporate Governance, and Firm Survival: The Russian Experience," RRC Working Paper Series 37_v2, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    15. Hüttenbrink, Alexander & Oehmichen, Jana & Rapp, Marc Steffen & Wolff, Michael, 2014. "Pay-for-performance – Does one size fit all? A multi-country study of Europe and the United States," International Business Review, Elsevier, vol. 23(6), pages 1179-1192.
    16. Amon Chizema & Jootae Kim, 2010. "Outside Directors on Korean Boards: Governance and Institutions," Journal of Management Studies, Wiley Blackwell, vol. 47(1), pages 109-129, January.
    17. Angélica María Sánchez-Riofrío & Luis Ángel Guerras-Martín & Francisco Javier Forcadell, 2015. "Business portfolio restructuring: a comprehensive bibliometric review," Scientometrics, Springer;Akadémiai Kiadó, vol. 102(3), pages 1921-1950, March.
    18. Behrouz Zarei & Yahya Chaghouee & Fereshteh Ghapanchi, 2014. "Organizational Diagnosis in Project-Based Companies," SAGE Open, , vol. 4(2), pages 21582440145, May.
    19. Hitt, Michael A. & Li, Dan & Xu, Kai, 2016. "International strategy: From local to global and beyond," Journal of World Business, Elsevier, vol. 51(1), pages 58-73.
    20. Lee, Ji-Hwan & Gaur, Ajai S., 2013. "Managing multi-business firms: A comparison between Korean chaebols and diversified U.S. firms," Journal of World Business, Elsevier, vol. 48(4), pages 443-454.
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