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@article{ART001284771},
author={Sunghoon Hong},
title={Divestment of Foreign Operations by Korean Listed Manufacturing Firms},
journal={Studies in Humanities and Social Sciences},
issn={1598-4230},
year={2008},
volume={1},
number={20},
pages={39-67},
doi={10.17939/hushss.2008.1.20.002}

TY - JOUR
AU - Sunghoon Hong
TI - Divestment of Foreign Operations by Korean Listed Manufacturing Firms
JO - Studies in Humanities and Social Sciences
PY - 2008
VL - 1
IS - 20
PB - Institute of Humanities and Social Sciences
SP - 39
EP - 67
SN - 1598-4230
AB - Although Korean firms have been highly successful in overseas manufacturing, it was reported that some of them had divested foreign manufacturing subsidiaries partially or completely. This study investigates several important factors that are believed to have influenced the decision makings of Korean firms to divest their manufacturing facilities in the foreign market during the period of 1986-2004. As expected, international manufacturing experiences of parent firms and economic growth rates of host countries tend to reduce the probability of divestment. The international experiences of parents are considered to reduce the exit rates of subsidiaries by facilitating the transfer of core competence between parents and subsidiaries. The economic growth of host countries seems to be particularly influential in the cases of complete divestment and technologically intensive manufacturing. This implies the importance of considering the general economic environment of host markets to divest subsidiaries. Nevertheless, some empirical findings are against our expectation. Chaebol-affiliated firms are found to divest their subsidiaries more frequently than their counterparts. In particular, chaebol-affiliated firms with international experiences are more likely to transfer financial resources between subsidiaries and/or rearrange the locations of subsidiaries to pursue their strategies on a global basis. As this study suggests empirical findings that are partially different from previous ones, it will be necessary to undertake further research by using more extensive data in the future.
KW - divestment;foreign subsidiary;Korean listed company;foreign direct investment
DO - 10.17939/hushss.2008.1.20.002
ER -

Sunghoon Hong. (2008). Divestment of Foreign Operations by Korean Listed Manufacturing Firms. Studies in Humanities and Social Sciences, 1(20), 39-67.

Sunghoon Hong. 2008, "Divestment of Foreign Operations by Korean Listed Manufacturing Firms", Studies in Humanities and Social Sciences, vol.1, no.20 pp.39-67. Available from: doi:10.17939/hushss.2008.1.20.002

Sunghoon Hong "Divestment of Foreign Operations by Korean Listed Manufacturing Firms" Studies in Humanities and Social Sciences 1.20 pp.39-67 (2008) : 39.

Sunghoon Hong. Divestment of Foreign Operations by Korean Listed Manufacturing Firms. 2008; 1(20), 39-67. Available from: doi:10.17939/hushss.2008.1.20.002

Sunghoon Hong. "Divestment of Foreign Operations by Korean Listed Manufacturing Firms" Studies in Humanities and Social Sciences 1, no.20 (2008) : 39-67.doi: 10.17939/hushss.2008.1.20.002

Sunghoon Hong. Divestment of Foreign Operations by Korean Listed Manufacturing Firms. Studies in Humanities and Social Sciences, 1(20), 39-67. doi: 10.17939/hushss.2008.1.20.002

Sunghoon Hong. Divestment of Foreign Operations by Korean Listed Manufacturing Firms. Studies in Humanities and Social Sciences. 2008; 1(20) 39-67. doi: 10.17939/hushss.2008.1.20.002

Sunghoon Hong. Divestment of Foreign Operations by Korean Listed Manufacturing Firms. 2008; 1(20), 39-67. Available from: doi:10.17939/hushss.2008.1.20.002

Sunghoon Hong. "Divestment of Foreign Operations by Korean Listed Manufacturing Firms" Studies in Humanities and Social Sciences 1, no.20 (2008) : 39-67.doi: 10.17939/hushss.2008.1.20.002