Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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A Study on the Relationship between the Strengthen Non Financial Performance and Shareholder Return

기업의 비재무적 성과와 주주환원의 관계에 대한 연구

  • Kim, Jong-Hee (Economics College of Commerce, Jeonbuk National University)
  • Received : 2022.08.17
  • Accepted : 2022.09.28
  • Published : 2022.09.30
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Abstract

Purpose - The purpose of this study was to examine the relationship between firm's non financial performance and its shareholder return by analyzing PCA while focusing on the classifying all the variables into three categories such as financial, characteristics, and non financial factors of the firms. Design/methodology/approach - By exploring the pattern of self tender from the 801 firms in KOSPI while focusing on the objective of stock disposal, this paper analyzes the change of shareholder return of the firm. Findings - First, the higher major ownership, the lower self tender gets, whereby the higher ownership by foreigners, the ratio of self tender is higher. Secondly, cash dividend has not significant impact on the disposal of self stock, and the high ratio of ownership by foreigners leads to the high probability of retirement rather than the general disposal. In contrast, the major ownership has a negative impact on the general disposal as well as retirement. Thirdly, the score of non financial factors such as Environment(E), Social responsibility(S), and Governance(G) shows the high value in case of the firms with self tender. More specifically, the firms with retirement has the highest value of ESG while it has the lowest value in case of the firms with general disposal. Research implications or Originality - The retirement which means the active shareholder return is strongly affected by the non financial factors. Specifically, the probability of retirement increases in case of the firms with retirement, and even such a tendency is found to the case of the firms with general disposal.

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