Disparity between control and ownership rights gives rise to the risk of tunneling by the controlling shareholder. This disparity is prevalent in many emerging market economies and present in some developed countries. This paper studies whether and how the degree of control-ownership disparity...

Disparity between control and ownership rights gives rise to the risk of tunneling by the controlling shareholder, and is prevalent in many emerging market economies and present in some developed countries. At the same time, international investors come from different countries whose home...

This paper investigates whether foreign institutional investors in emerging markets can enhance shareholder value. We pay special attention to two dimensions of investor heterogeneity: whether an investor declares itself as an activist, and whether an investor comes from a country with a strong...

In this paper, we attempt to make two major contributions to the literature that studies the determinants of controlling-minority ownership structure (determinants-of-disparity studies). First, we introduce the concept of group control motive and empirically show that this motive greatly shapes...

We examine a number of factors that determine the decision of firms to manage their foreign exchange risk in an emerging market setting. Using survey data on the foreign exchange risk management practices of 223 non-financial firms in Korea, we find that firm size, a proxy for the cost of...

We examine a number of firm- and group-level factors that shape the ownership structure of business conglomerates, which can include both public and non-public firms. Using an exclusive set of 1997-2002 data on the intra-group shareholdings of 46 of Korea's largest conglomerates, or chaebols, we...

The paper attempts to shed light on how group-affiliated firms make their decision on initial public offerings. In particular, we highlight the importance of group-level factors. From our ex ante analysis, using a sample of chaebol affiliated firms in Korea, we find that firms are more likely to...