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Controlling Shareholders` Propping and Corporate Value in Korean Firms
| Content Provider | Semantic Scholar |
|---|---|
| Author | Kim, Dong-Wook Jung, Mingue Kim, Byounggon |
| Copyright Year | 2016 |
| Abstract | This study aims to examine propping by the controlling shareholders and the corporate value of Korean firms with agency problems and propping perspectives. Propping refers to a transfer of resources from a higher ownership firm to a lower ownership firm, in order to prevent the latter from going bankrupt. This study used a sample of 4,077 companies listed on the KRX data exchange from 2004 to 2014. We used proxy variables such as long-term supply contracts, asset and business sales, credit facilities, loans, and equity investments to affiliates as wealth transfer instruments of the controlling shareholders. We found that propping occurred by the equity investment of affiliates in Korean firms. Also, we found that the Korean firm's value was decreased by the affiliate equity investment. |
| Starting Page | 112 |
| Ending Page | 119 |
| Page Count | 8 |
| File Format | PDF HTM / HTML |
| DOI | 10.5762/KAIS.2016.17.9.112 |
| Volume Number | 17 |
| Alternate Webpage(s) | http://jkais99.org/journal/Vol17No09/p14/vol17no9p14.pdf |
| Alternate Webpage(s) | https://doi.org/10.5762/KAIS.2016.17.9.112 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
