Economics & Finance / Business & Management / Corporate Strategy & Governance
Why Korean Chaebol Owners Dump Stocks Before a Crash (and What It Means for You)
Think ownership structure drives performance? Think again. This video breaks down a landmark study by Professor Sea Jin Chang from the Academy of Management Journal (2003). Using data from 419 Korean chaebol-affiliated firms (1986-1996), it reveals a shocking truth: performance drives ownership, not the other way around. Controlling families exploit insider info to pile into winners and flee losers, while tunneling profits through cross-shareholding and debt guarantees. Discover how this expropriation of minority shareholders works in emerging markets, and why it challenges classic agency theory. A must-watch for anyone investing in family-controlled conglomerates.
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