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How much does the business group matter in Korea?

Chang, Sea Jin, Hong, Jaebum·2002·Strategic Management Journal

Abstract

We partition the variances of profits of the companies associated with Korean business groups into business group‐specific effects, industry effects, and affiliate company‐specific effects, which roughly match corporate‐parent effects, industry effects and business unit effects, respectively, in the extant literature. We find substantial corporate‐parent effects (here, business group effects) along with industry effects and business unit effects (here, affiliate company‐specific effects). This finding may indicate that business groups play an important role in developing countries by circumventing market inefficiencies. Our results also suggest that these effects tend to be smaller in large business groups and to decrease over time. Copyright © 2002 John Wiley & Sons, Ltd.

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Metadata

Authors
Chang, S. J., & Hong, J.
Venue
Strategic Management Journal
Publisher
Wiley
Published
2002-01-16
Volume
23
Issue
3
Pages
265-274
ISSN
  • 0143-2095 (ISSN-L)
  • 1097-0266
OpenAlex
W2139047515
Cited by
244
References
2
FWCI
13.04
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: How much does the business group matter in Korea? https://app.cochat.ai/papers/10.1002/smj.224
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Chang, S. J., & Hong, J. (2002). How much does the business group matter in Korea? Strategic Management Journal. https://doi.org/10.1002/smj.224

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