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Family ownership and risk taking

Title
Family ownership and risk taking
Author
이은정
Keywords
Family firm; Controlling shareholder; Risk taking; CORPORATE GOVERNANCE; PERFORMANCE EVIDENCE; FIRM PERFORMANCE; BOARDS; DIVERSIFICATION; CRISIS; IMPACT
Issue Date
2017-11
Publisher
ACADEMIC PRESS INC ELSEVIER SCIENCE
Citation
FINANCE RESEARCH LETTERS, v. 25, Page. 69-75
Abstract
We study the relation between a controlling family's ownership and their company's risk taking behavior. By investigating comprehensive ownership data in Korea where most companies have controlling families, we find that non-linear U-shaped relation exists between family ownership and a firm's risk taking. Our results are robust in various tests considering endogeneity problems and with different proxies. We argue that a family with less ownership takes less risk for pursuing their private benefit, while a family with more ownership aligns their interest with their company's by taking more value enhancing risky projects.
URI
https://www.sciencedirect.com/science/article/pii/S154461231730404Xhttps://repository.hanyang.ac.kr/handle/20.500.11754/72578
ISSN
1544-6123; 1544-6131
DOI
10.1016/j.frl.2017.10.010
Appears in Collections:
COLLEGE OF BUSINESS AND ECONOMICS[E](경상대학) > BUSINESS ADMINISTRATION(경영학부) > Articles
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