The Value‐relevance of Earnings and Book Value, Ownership Structure, and Business Group Affiliation: Evidence From Korean Business Groups
研究韩国企业集团（财阀）中盈余和账面价值的信息质量，发现集团附属公司的这两项指标价值相关性更低，且交叉持股（代理问题）有负面影响，而外资持股（监督效应）有正面影响。
Abstract: We investigate the quality of two primary accounting summary measures, i.e., earnings and book value, provided by firms belonging to Korean business groups (chaebols). We find that the value‐relevance of earnings and book value is significantly smaller for firms affiliated with business groups. We also find that cross‐equity ownership (a proxy for the agency problem between controlling and minority shareholders) negatively affects value‐relevance, while foreign equity ownership (a proxy for the monitoring effect) positively affects value‐relevance. This evidence is consistent with the view that the poor quality of earnings and book value provided by chaebol‐affiliated firms is due to the inherently poor governance structure of chaebols.