1,392 research outputs found
Compensation structure of family business groups
No full textWe examine executive compensation structures with a focus on family business groups in Korea. Our results show that Korean family business groups provide 60% more total compensation to CEOs who are family members than to professional CEOs. This excessive increment is not based on performance-contingent payments, but on fixed payments. Our propensity score matching and difference-in-differences analyses robustly support these results. Further, we find that operation of internal capital markets, CEO talents, CEO stock ownership, and family board membership do not explain the excessive compensation of family CEOs in family business groups. The evidence indicates rent extraction through executive compensation in family business groups.
Ownership Structure and the Survival of Listed Firms: Evidence from Korean Reverse Mergers
No full textWe examine the impact of ownership structure on the post-performance of Korean firms that go public as the result of a reverse merger. Although a reverse-merger announcement has positive cumulative abnormal returns (CARs), we find that 24.8% of reverse-merged firms become delisted because of poor post-performance, seemingly due to the agency problem. We also find that expected changes in management after a reverse merger positively affect the CARs of public target firms around the time of the reverse-merger announcement. However, the post-performance of reverse-merged firms is relatively poor compared to firms that undertake regular initial public offerings. Further, we find that ownership concentration alleviates poor performance following a reverse merger
Adoption and Adaptation of the Anglo-American Model of Corporate Governance: Evidence from Korea
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