Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/147598
Title: CORPORATE GOVERNANCE ISSUES OF CIRCULAR-SHAREHOLDING AND DEBT PRICES: EVIDENCE FROM KOREA
Authors: KIM KYUNGMOOK
Keywords: Ownership structure, Corporate governance, Conglomerate, Debt price, cross-holding, circular-holding
Issue Date: 2015
Citation: KIM KYUNGMOOK (2015). CORPORATE GOVERNANCE ISSUES OF CIRCULAR-SHAREHOLDING AND DEBT PRICES: EVIDENCE FROM KOREA. ScholarBank@NUS Repository.
Abstract: This paper investigates the impact of circular-holding ownership structure on debt prices, taking advantage of the new rule in Monopoly Regulation and Fair Trade Act (MRFTA), which prohibits additional circular financing, as a natural experiment. The empirical methodology adopts difference-in-difference analysis with matching techniques. The result shows the policy has had no significant impact on bond returns of affected firms, suggesting that bondholders are indifferent to the circular-holding structure itself. The paper attributes the apparent ineffectiveness of the policy to the lack of sophistication in targeting specific corporate governance issues created by the circular-holding model
URI: http://scholarbank.nus.edu.sg/handle/10635/147598
Appears in Collections:Bachelor's Theses

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