The Effect of Management and Ownership Share by Family Governance on the Credit Ratings of Corporate Bonds

가족지배에 의한 경영과 소유지분이 회사채신용등급에 미치는 영향

Kim, Seon-Gu

  • Received : 2019.01.18
  • Accepted : 2019.04.20
  • Published : 2019.04.28


The purpose of this study is to test whether credit rating agencies highly evaluate the credit ratings of corporate bonds based upon management participation and ownership share by family governance in ownership structure forms. The samples of this study for empirical analysis were 1,449 non-financial companies listed on Korean Exchange from 2011 to 2016, over whose firm/year data this study conducted regression analysis. The results of empirical analysis in this study are as follows. First, family businesses had positive effects on the evaluation of corporate credit ratings. Second, if the ownership share of family businesses was higher, corporate credit ratings were higher. This result means that high ownership share in family businesses has very positive effects on the credit ratings of related businesses. It is meaningful that this study tested the effect that family businesses can alleviate agency problems and reduce information asymmetry. Furthermore, it is also academically meaningful that this study can contribute to future studies on the role of ownership structure.


corporate governance;family businesses;credit ratings;corporate bonds;ownership share


Supported by : 한세대학교