Valuation and performance of firms in complex ownership structures : an application to Korean chaebols
Data(s) |
18/11/2014
18/11/2014
30/05/2007
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Resumo |
We propose several new metrics to describe the complex ownership structure of business groups, and provide simple formulas and algorithms to compute these metrics. We use these measures to describe in detail the ownership structure of Korean chaebols in the period of 2003 to 2004. In addition, we validate the usefulness of our new metrics by showing empirically that they are important for understanding the valuation and performance of group firms. In particular, we show evidence that firms that are central to the control structure of the chaebol (central firms), firms in cross-shareholdings, and firms that are placed at the bottom of the group (i.e., with lower ultimate ownership) have lower profitability than other group firms. The valuation results suggest that central firms and firms in cross-shareholding loops have lower valuations than other public Chaebol firms. The lower valuation of these firms is not explained by variation in measures of ownership concentration and separation between ownership and control. |
Identificador | |
Idioma(s) |
en_US |
Publicador |
Escola de Pós-Graduação em Economia da FGV |
Relação |
Seminários de pesquisa econômica da EPGE |
Direitos |
Todo cuidado foi dispensado para respeitar os direitos autorais deste trabalho. Entretanto, caso esta obra aqui depositada seja protegida por direitos autorais externos a esta instituição, contamos com a compreensão do autor e solicitamos que o mesmo faça contato através do Fale Conosco para que possamos tomar as providências cabíveis. |
Palavras-Chave | #Business groups #Family firms #Firm performance #Pyramids #Cross-shareholdings #Parent company discount #Administração de empresas #Empresas familiares #Economia |
Tipo |
Working Paper Working Paper |