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Comparison Study on Shareholder Wealth and Ownership Structure in China and Korea

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Listed:
  • Jae-Seung Baek
  • Tianshu Liu

Abstract

Ownership structure which is the base of corporate governance is mainly related to two aspects, concentration of ownership and composition of ownership. Ownership structure determines concentration of ownership and roles of different share owners thereby influences economic behaviors of share owners and behavior effects. Ownership structure directly influences inter surveillance mechanisms. In this paper, we examine the effect of governance variables and firm characteristics such as ownership structure, leverage, size on the firm value (stock return) and the determinants of the change of firm value during post-crisis down period in Korea and China. And as a result, we find that ownership structure can be the main force to the changes in firm value in emerging markets. Our results will support the relationship between corporate governance and firm value in East Asia such as China and Korea. JEL classification: G14, G15, G21, G32, G33

Suggested Citation

  • Jae-Seung Baek & Tianshu Liu, 2008. "Comparison Study on Shareholder Wealth and Ownership Structure in China and Korea," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 11(2), pages 3-32, September.
    • Handle: RePEc:sae:intare:v:11:y:2008:i:2:p:3-32
    DOI: 10.1177/223386590801100201
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    References listed on IDEAS

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    More about this item

    Keywords

    Shareholder wealth; Ownership structure; Corporate governance; Firm Value; Stock return; Korea; China; Emerging Market;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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