Corporate group

About: Corporate group is a research topic. Over the lifetime, 1747 publications have been published within this topic receiving 46868 citations.

Defying isomorphism in foreign-location choice: The role of business group-level international experience in Korean MNCs

Abstract: This study contributes to our understanding of how institutions shape the internationalization processes of Asian multinational corporations (MNCs). I explore how business-group affiliation affects the ability of MNCs to escape isomorphic pressures in overseas location choices. From a sample of Korean MNCs, I find that this ability increases with the levels of firm-specific advantages and international experience held by the respective MNC and that international experience within the same business group of the MNC also mediates this ability. This article contributes to the institution-based view of international strategy and business by identifying mechanism through which business-group affiliation, a common characteristic of Asian business systems, affects MNC decision making.

Female directors on German supervisory boards and firms’ financial performance

Abstract: This study examines the relationship between gender diversity on supervisory boards in a two-tier board structure with firms’ financial performance. The sample was taken out of the group of companies that are classified as “large corporations” by German law and therefore consists of solely German corporations. The relationship was explored, using financial accounting performance data for the years 2009 and 2013 (return on assets and return on equity), stock performance data and the average percentage of women directors in 108 German “large corporations” over the years 2012 and 2013. The analysis is controlled by several industry, financial, organizational variables and one diversity variable, namely the directors’ nationality. Furthermore a robustness check was conducted, using stock price performance as a financial indicator. The correlation and regression analyses did not show enough evidence to indicate a significant relationship between gender diversity and firms’ financial performance.

Explaining the shape of corporate law: the role of competition

Abstract: This paper reviews the effects of competition among jurisdictions for corporate chartering business on the shape of corporate law in the USA. It finds that competition has led to substantial uniformity, tempered by a dynamic process that introduces innovations from multiple jurisdictions. The speed with which changes are adopted depends on the identity of the sponsoring interest group. Corporate lawyers play a major role in the US corporate law production, but are hampered by collective action problems that are somewhat ameliorated by sponsorship of model legislation by the American Bar Association. Corporate managers appear to be the most effective sponsors, because changes they sponsor are adopted at a more rapid rate. The paper concludes that this competition for charters, influenced both by efficient capital markets and a desire to retain local chartering business, tends to compete away special interest benefits in corporate law. A comparison of the shape of corporate laws in Europe, where no competition exists, with US laws shows that groups such as management, labor and creditors have obtained significantly more benefits than in the USA. © 1997 John Wiley & Sons, Ltd.

Effect of Group Affiliation on Investments: Evidence from the Global Economic Crisis*

Abstract: This paper investigates the impact of business group structure on investment activities by group-affiliated companies. Using data on Korean business groups called chaebols we compare changes in investments across chaebol and control firms throughout the global economic crisis. To control for confounding effects, we applied an empirical strategy that identified a group of the most comparable control firms in terms of observables and eliminated the selection bias caused by unobservables. We found that during the global economic crisis, chaebol-affiliated firms increased investments, whereas control firms significantly decreased their investments. The investments of chaebol member firms were financed not through internal capital markets but through external capital markets. However, the relatively greater decreases in Tobin’s Q for chaebol firms suggest that investment efficiency of group-affiliated firms is worse than that of control firms.