Control-Ownership Disparity and R＆D Investment

Choi, Hyang Mi; Cho, Young-Gon

doi:10.5762/kais.2011.12.12.5558

Journal of the Korea Academia-Industrial cooperation Society

2011

DOI: 10.5762/kais.2011.12.12.5558

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Control-Ownership Disparity and R＆D Investment

Hyang Mi Choi¹,

Young-Gon Cho²

Abstract: Using longitudinal data of 108 firms in large business conglomerates from 2001 to 2009, this study examines the impact of controlling shareholders' control-ownership disparity on R&D investment. The study finds that control-ownership disparity is negatively related to R&D intensity. This empirical result suggests that controlling shareholders' control rights in excess of ownership rights incent controlling shareholders' expropriation for their private interests, leading to decreased R&D investment which enhanc… Show more

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A Study of the Relationship between Corporate Governance and Non-business Real Estate

전¹,

최²

2021

Korean J Financ Stud

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Corporate non-business real estate can be used for the private benefits of controlling shareholders, but is also likely to enhance shareholder wealth. This study explores the impact of corporate governance to address this contradiction, particularly the ownership-control disparity on non-business real estate. We further examine the moderating effect of foreign blockholders on the relationship, then conduct additional analyses on the relationship between non-business real estate and firm value. The results are as follows. First, the disparity has a consistently positive relationship with non-business real estate, which implies that corporate non-business real estate can be utilized for expropriation for the benefit of controlling shareholders. Second, the relationship between the disparity and non-business real estate is mitigated by foreign blockholders. Third, we find that non-business real estate has a negative relationship with firm value. This result implicates the inefficiency of non-business real estate and the possibility of agency problem. Forth, investment in non-business real estate is likely to decrease firm value, compared with investment in core business. This study revisits and extends corporate governance research in terms of non-business real estate by identifying the presence of agency problems and monitoring effects of outside blockholders.

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A Study of the Relationship between Corporate Governance and Non-business Real Estate

전¹,

최²

2021

Korean J Financ Stud

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Control-Ownership Disparity and R＆D Investment

Cited by 1 publication

References 30 publications

A Study of the Relationship between Corporate Governance and Non-business Real Estate

A Study of the Relationship between Corporate Governance and Non-business Real Estate

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