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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