Do Stakeholder Relations Matter for Chaebol Companies? Evidence from Korean Product Market Supply Contracts
| Autor: | Kyoung-min Kwon, Hojin Jung |
|---|---|
| Rok vydání: | 2022 |
| Předmět: | |
| Zdroj: | Korean Journal of Financial Studies. 51:359-381 |
| ISSN: | 2713-5543 2005-8187 |
| DOI: | 10.26845/kjfs.2022.06.51.3.359 |
| Popis: | In this study, we investigate the effect of supply contracts signed with Chaebol companies in order to analyse the certification effect of trading relationships with Chaebols on suppliers. We find that the suppliers suffering from information asymmetry can sacrifice the direct profits gained from a supply contract with a Chaebol group member contractee while pursuing certification for further growth. The valuation of suppliers with a Chaebol group member as the contractee is lower when the suppliers’ information asymmetry is higher. The results also show that the operational margins of the suppliers deteriorate after obtaining a supply contract with a Chaebol group member, whereas the sales increase significantly more than the contract amount. These results imply that the Chaebol groups play a role in the certification of the product market and help quality suppliers achieve greater recognition. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|