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@article{ART002025688},
author={LEE JI HYE and Hee Sub Byun},
title={Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2015},
volume={26},
number={3},
pages={95-139}

TY - JOUR
AU - LEE JI HYE
AU - Hee Sub Byun
TI - Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets
JO - Journal of Insurance and Finance
PY - 2015
VL - 26
IS - 3
PB - Korea Insurance Research Institute
SP - 95
EP - 139
SN - 2384-3209
AB - This paper investigates how the competitive threat affects the relation between the ownership of controlling shareholders and corporate risk-taking behavior. Empirically, we confirm that the ownership of controlling shareholders has significantly negative effect on the level of corporate risk-taking. This result means that controlling shareholders change corporate risk-taking behavior based on their incentive structure from stock ownership. However, this relationship is not observed in more competitive product markets, while it appears in less competitive product markets. Thus, competitive threat can be considered as an external control mechanism to discipline the incentive of controlling shareholders, who want to pursue the private benefits. Meanwhile, the disciplinary effect of competitive threat is mainly observed in firms with weak internal corporate governance. This result implies that the weakness of internal control mechanisms is significantly complemented by product market competition.
KW - Ownership of Controlling Shareholders;Incentive Structure;Risk-Taking Behavior;Product Market Competition;Internal Corporate Governance
DO -
UR -
ER -

LEE JI HYE and Hee Sub Byun. (2015). Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets. Journal of Insurance and Finance, 26(3), 95-139.

LEE JI HYE and Hee Sub Byun. 2015, "Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets", Journal of Insurance and Finance, vol.26, no.3 pp.95-139.

LEE JI HYE, Hee Sub Byun "Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets" Journal of Insurance and Finance 26.3 pp.95-139 (2015) : 95.

LEE JI HYE, Hee Sub Byun. Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets. 2015; 26(3), 95-139.

LEE JI HYE and Hee Sub Byun. "Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets" Journal of Insurance and Finance 26, no.3 (2015) : 95-139.

LEE JI HYE; Hee Sub Byun. Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets. Journal of Insurance and Finance, 26(3), 95-139.

LEE JI HYE; Hee Sub Byun. Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets. Journal of Insurance and Finance. 2015; 26(3) 95-139.

LEE JI HYE, Hee Sub Byun. Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets. 2015; 26(3), 95-139.

LEE JI HYE and Hee Sub Byun. "Ownership of Controlling Shareholders and Corporate Risk-Taking Behavior: Disciplinary Effect of Competitive Threat in Product Markets" Journal of Insurance and Finance 26, no.3 (2015) : 95-139.