Pension Fund Monitoring and Corporate Debt Policy: Evidence from the Korean Market*

Wonseok Choi, Chune Young Chung, Jongchan Park

Research output: Contribution to journalArticlepeer-review

Abstract

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.

Original languageEnglish
Pages (from-to)210-237
Number of pages28
JournalAsia-Pacific Journal of Financial Studies
Volume50
Issue number2
DOIs
StatePublished - Apr 2021

Keywords

  • Blockholding
  • Institutional monitoring
  • Korean market
  • Korean National Pension Service
  • Target capital structure

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