대규모 기업집단의 기업소유구조가 내부거래에 미치는 영향과 외국인투자자의 조절효과

The Impact of Ownership Structure on Internal Business Transactions and the Moderating Effect of Foreign Investors

This study aims to explore the relationship of large business conglomerates in Korea betweencorporate governance and internal business transactions as well as the moderating effect offoreign block ownership. Using sample firms with internal business transactions with affiliatesin large business conglomerates, this study examined the impact of corporate governancefactors including controlling shareholders' ownership and control-ownership disparity oninternal transactions. This study focused on the role of foreign block shareholders in particularas outside monitor in order to investigate their moderating impact on internal businesstransactions. The empirical result shows that controlling shareholders' ownership has a positiveeffect on internal transactions while control-ownership disparity has a negative effect. Foreignblock ownership is likely to negatively moderate the positive relationship between controllingshareholders' ownership and internal transactions and to positively moderate the negativerelationship between control-ownership disparity and internal transactions, suggesting thatexpropriation of wealth by controlling shareholders is mitigated by the impact of foreign blockshareholders. The empirical findings of this study imply that sound corporate governancedecreases the likelihood of tunnelling which could be induced by controlling shareholders'opportunities for wealth transfer.