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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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    5. Oh, Donghyun & Heshmati, Almas & Lööf, Hans, 2014. "Total factor productivity of Korean manufacturing industries: Comparison of competing models with firm-level data," Japan and the World Economy, Elsevier, vol. 30(C), pages 25-36.
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    13. Iwasaki, Ichiro, 2014. "Global financial crisis, corporate governance, and firm survival:," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 178-211.
    14. Hildebrandt, Peter & Oehmichen, Jana & Pidun, Ulrich & Wolff, Michael, 2018. "Multiple recipes for success – A configurational examination of business portfolio restructurings," European Management Journal, Elsevier, vol. 36(3), pages 381-391.
    15. Saehwa Hong & Hyung-Deok Shin, 2021. "Organizational slack and innovativeness: the moderating role of institutional transition in the Asian financial crisis," Asian Business & Management, Palgrave Macmillan, vol. 20(3), pages 370-389, July.
    16. Choi, Young Rok & Yoshikawa, Toru & Zahra, Shaker A. & Han, Bong H., 2014. "Market-oriented institutional change and R&D investments: Do business groups enhance advantage?," Journal of World Business, Elsevier, vol. 49(4), pages 466-475.
    17. Joonho Shin & Xavier Mendoza & Changbum Choi, 2022. "Do internationalizing business group affiliates perform better after promarket reforms? Evidence from Korean SMEs," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 805-841, June.
    18. Adegbite, Emmanuel, 2015. "Good corporate governance in Nigeria: Antecedents, propositions and peculiarities," International Business Review, Elsevier, vol. 24(2), pages 319-330.
    19. Min, Byung S. & Smyth, Russell, 2014. "Corporate governance, globalization and firm productivity," Journal of World Business, Elsevier, vol. 49(3), pages 372-385.
    20. 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.
    21. 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.
    22. 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.
    23. Claessens, Stijn & Yurtoglu, B. Burcin, 2013. "Corporate governance in emerging markets: A survey," Emerging Markets Review, Elsevier, vol. 15(C), pages 1-33.
    24. Shin, Donghoon & Seidle, Russell & Okhmatovskiy, Ilya, 2016. "Making the foreign familiar: The influence of top management team and board of directors characteristics on the adoption of foreign practices," Journal of World Business, Elsevier, vol. 51(6), pages 937-949.

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