We investigate whether the Korean National Pension Service, a corporate watchdog and major long-term investor in South Korea, positively affects corporate financial policy. The Korean National Pension Service is less likely to influence corporate financial policy even among firms with high uncertainty and information opacity, which increases the importance of large shareholders’ monitoring role. Additionally, ownership by the Korean National Pension Service has statistically insignificant effects on firms’ performance and financial soundness.
|Number of pages||28|
|Journal||Asia-Pacific Journal of Financial Studies|
|State||Published - Apr 2021|
- Institutional monitoring
- Korean National Pension Service
- Korean market
- Target capital structure