Successors’ discretion and corporate restructuring in family firms in South Korea: from an institutional perspective
Journal
Asia Pacific Business Review
Journal Volume
28
Journal Issue
1
Pages
38-64
Date Issued
2022
Author(s)
Abstract
Although a successor’s discretion is a key factor in facilitating corporate restructuring, little is known about the source of discretion, particularly about national culture. From an institutional perspective, we argue that when a successor is legitimized by the norms and expectations embedded in national culture, the successor is likely to implement corporate restructuring. Using data of family-run business groups in South Korea, where Confucianism is a dominant value system, we find that when a successor is the first-born child and male in the family, the business group is likely to spin-off, and this effect becomes stronger with the number of siblings. ? 2021 Informa UK Limited, trading as Taylor & Francis Group.
Subjects
Business group
Confucianism
corporate restructuring
discretion
family business
South Korea
succession
business development
corporate strategy
firm ownership
industrial practice
industrial production
industrial restructuring
Type
journal article