%0 Journal Article %1 Bae2007 %A Bae, Kee-Hong %A Jeong, Seok Woo %D 2007 %J Journal of Business Finance and Accounting %K accionistas corea ingresos %N 5-6 %P 740-766 %T The Value-Relevance of Earnings and Book Value, Ownership Structure, and Business Group Affiliation: Evidence from Korean Business Groups %V 34 %X 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.

@article{Bae2007, 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.}, added-at = {2011-11-13T04:52:20.000+0100}, author = {Bae, Kee-Hong and Jeong, Seok Woo}, biburl = {https://www.bibsonomy.org/bibtex/2d39cc6362ab4f22bfea4eeef2c35fb4d/edwardyanquen}, interhash = {040803708f6bfd7866bd938497a5699d}, intrahash = {d39cc6362ab4f22bfea4eeef2c35fb4d}, journal = {Journal of Business Finance and Accounting}, keywords = {accionistas corea ingresos}, note = {Keywords: Accounting; Earnings; Firm; Firms; Ownership Structure; Ownership; Shareholder; Geographic Descriptors: S. Korea; Geographic Region: Asia; Publication Type: Journal Article; Update Code: 200709}, number = {5-6}, pages = {740-766}, timestamp = {2011-11-13T04:52:20.000+0100}, title = {The Value-Relevance of Earnings and Book Value, Ownership Structure, and Business Group Affiliation: Evidence from Korean Business Groups}, volume = 34, year = 2007 }