Successors' discretion and corporate restructuring in family firms in South Korea: from an institutional perspective. Issue 1 (1st January 2022)

• Record Type: Journal Article
• Authors: Han, JungYun
• Is Part Of: Asia Pacific business review. Volume 28:Issue 1(2022)
• Page Start: 38
• Page End: 64
• Publication Date: 2022-01-01
• Subjects: Business group -- Confucianism -- corporate restructuring -- discretion -- family business -- succession -- South Korea; Asia -- Commerce -- Periodicals; 338.095
• DOI: 10.1080/13602381.2021.1970320
• Languages: English
• ISSNs: 1360-2381

Abstract

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.