Earticle

초록

영어

Using a large sample of Korea firms, we examine the impact of employee share ownership on future stock price crash risk. We document a significant and negative relationship between employee ownership levels and the likelihood of future stock price crashes. In particular, we find this relationship is only observed for firms listed on KOSDAQ market. Given the voluntary adoption of preferential allocation of employee share ownership for KOSDAQ-listed firms, we interpret that voluntary employee ownership can enhance information transparency. These results hold across different specifications, as well as when using several tests to address the potential endogeneity issue. In addition, we find that the predictive power of employee ownership is enhanced for firms in volatile industries, with high information opacity and low ownership of the largest shareholders in KOSDAQ market. These empirical findings provide strong support for the argument that employee share ownership mitigates the extent to which employees have the potential to extract above-market rents from firms.

목차

Abstract
1. Introduction
2. Literature review and hypothesis
2.1. Literature review on stock price crash risk
2.2. Institutional Background on employee stock ownership in Korea
2.3. Literature on employee ownership
3. Research design
3.1 Sample selection
3.2 Model Specification
4. Empirical results
4.1 Descriptive statistics
4.2. Main regression analysis for H1
4.3. Endogeneity concerns
4.4. Regression analysis for H2
5. Additional Analysis
5.1 The impact of industry volatility
5.2 The impact of accounting information opacity
5.3 The impact of largest shareholder’s ownership
6. Conclusion
Reference
Table
Appendix

저자

• 한국재무학회 [ 한국재무학회 ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330