Ownership structure and operational efficiency in emerging market: the case of Korea
by Jayoun Won; Sang-Lyul Ryu
International Journal of Trade and Global Markets (IJTGM), Vol. 10, No. 1, 2017

Abstract: This paper explores the relationship between the ownership structure and operational efficiency in Korean manufacturing firms for 2002-2013. Korea experienced the 2008 world economic crisis during this period. We break the sample period down into three sub-periods: Pre-crisis (2002-2007), mid-crisis (2008-2010), and post-crisis (2011-2013). The main results in this study are summarised as follows. First, operational efficiency was higher during the post-crisis period than in the pre-crisis period. Second, we observe that equity ownerships by the largest shareholder and board members are positively related to operational efficiency across the whole sample period. Third, manufacturing firms with more highly concentrated ownership had higher efficiency scores during the pre-crisis period. Fourth, firms with higher board member shareholdings were dedicated to improving operational efficiency during the crisis. Fifth, we discovered that foreign investors have positively influenced firms' operational efficiency after the 2008 economic crisis.

Online publication date: Tue, 21-Feb-2017

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Trade and Global Markets (IJTGM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com