Ownership Volatility and Firm Performance: Evidence from the Korean Firms
Abstract
This paper investigates the relationship between ownership volatility and firm performance in Korea. Using the five year ownership volatility variables from 2005 till 2009, the paper shows a positive relationship between foreign ownership volatility and the firm performance of sample firms in Korea. Further, we perform a factor analysis out of ownership volatility variables and investigate the relationship between the common factors of ownership volatility variables and the firm performance of sample firms in Korea. We find a positive relationship between the common factors and the firm performance. The paper contributes to the prior literature by investigating the role of ownership volatility on firm performance.
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