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The Impact of Foreign Corporate Ownership on Downsizing and Labour Cost

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  • Chai, D.H.

Abstract

This study examines the impact of foreign ownership on the firm's labour cost using a panel data of 496 publicly traded Korean companies during the post Asian financial crisis period of 1998-2003. It shows that foreign ownership is positively related to labour cost but this positive effect is significantly weaker for firms with weak financial performance than those with strong financial performance. These results provide support to the view that foreign investors take both monitoring and disciplinary roles for publicly traded firms.

Suggested Citation

  • Chai, D.H., 2010. "The Impact of Foreign Corporate Ownership on Downsizing and Labour Cost," Working Papers wp402, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp402
    Note: PRO-2
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    File URL: https://www.jbs.cam.ac.uk/cbrwp402/
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    Cited by:

    1. D Reshma & Sudharani R & Suresh N, 2022. "A Study on Impact of Downsizing on Profitability of Construction Industries listed in Bombay Stock Exchange (BSE) India," Papers 2207.11546, arXiv.org.

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    More about this item

    Keywords

    Corporate Governance; Restructuring; Downsizing; Labour Cost; Foreign Ownership.;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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