• The Journal of Asian Finance, Economics and Business
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• 제7권4호
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• pp.29-39
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• 2020

The purpose of this study is to investigate the determinants of blockholder presence in the Korean stock market. This study examines previous theories and studies, points that previous studies did not examine, and proposes two hypotheses. To verify two hypotheses, fundamental data were collected from firms listed on Korea Exchange from 2005 to 2017. As explanatory variables, we use the factors and characteristics of the firms used in the previous studies. Logistic regression analysis was conducted to test the determinants of blockholder presence. We find that firm size is the most distinctive factor determining the presence of blockholder, and firm idiosyncratic risk is the most similar factor determining the existence of each blockholder. Tobin Q shows significant value in family and government, and R&D intensity appears to be a negative related to the presence of blockholder in financial institutions. We also find that the determinant of blockholder presence differs from the mechanisms that govern each individual blockholder type when all blockholders grouped together. This suggests that there is blockholder heterogeneity within Korea listing firms. Our findings contribute to investors and policy makers who interested in the determinants of the presence of blockholder and blockhoder heterogeneity in Korea stock market.

• The Journal of Asian Finance, Economics and Business
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• 제8권3호
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• pp.287-296
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• 2021

This paper investigates the relationship between the ownership of the largest family blockholders and corporate risk. We also examine whether firms that belong to 30 main Chaebol groups lower corporate risk. We use panel analysis for companies listed on the Korea Exchange from 2005 to 2017. We use beta, volatility, and idiosyncratic risk as a proxy for corporate risk. We employ both the ownership of the largest family blockholders and firms that belong to 30 main Chaebol groups as a major independent variable. The results show that the ownership of the largest family blockholders is associated with low beta. In terms of the effects of the ownership of the largest family blockholders on beta, we find that a firm that belongs to the 30 main Chaebol group reinforces the lower beta. These results suggest that the ownership of the largest family blockholders and firms that belongs to 30 main Chaebol groups may be associated with low systematic risk in the Korean stock market. Our findings can provide meaningful information to investors and field officers who are interested in the relationship between firm risk and both the largest family blockholders' ownership and firms that belong to 30 main Chaebol groups.