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http://dx.doi.org/10.5762/KAIS.2017.18.3.518

Pecking Order Theory and Korean Family Firms: Effect of Ownership and Governance Characteristics  

Jung, Mingue (Department of Venture Business, Gyeongnam National University of Science and Technology)
Kim, Dongwook (Research and Analysis Team, Busan Economic Promotion Agency)
Kim, Byounggon (Department of Business Administration, Changwon National University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.18, no.3, 2017 , pp. 518-526 More about this Journal
Abstract
This study analyzed the impact of family firms and their characteristics on how they use debts to analyze the decision-making process of Korean family firms. For analysis, we classified the characteristics of family firms into three categories, through the influence of the relationship between the lack of funds and net debt issuance, which was confirmed as the 'packing order theory' of family firms. There was a total of 4,503 enterprises in the Korean Exchange (KRX). The period of analysis was 10 years, between 2004 and 2014. To summarize, Shyam-Sunder and Myers (1999) validated the packing order theory by presenting a model of family businesses that showed greater applicable to higher packing order theory than a model of non-family businesses. Moreover, the results also confirmed the application of the packing order theory by the family stronger corporate governance and ownership structure. The ownership and governance characteristics of the ruling family has also shown the applicability of higher packing order theory.
Keywords
Family Firms; Capital Structure; Corporate Governance; Ownership Structure; Panel Data Analysis; Endogenous Switching Regression Mode;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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