Research on the legal system facilitating ESG ‘Stewardship Code’ of institutional investors in South Korea

2021 ◽  
Vol 11 (1) ◽  
pp. 65-104
Author(s):  
Kiwoong Baek
Keyword(s):  
South Korea ◽  
Legal System ◽  
Institutional Investors

scholarly journals Dividends and institutional investors activism: Pressure resistant or pressure sensitive?

2008 ◽  
Vol 6 (1) ◽  
pp. 38-43 ◽  
Author(s):  
José María Diez-Esteban ◽  
Óscar López-de-Foronda
Keyword(s):  
Corporate Governance ◽  
Legal System ◽  
Institutional Investors ◽  
Dividend Policy ◽  
Civil Law ◽  
Insurance Companies ◽  
Agency Conflicts ◽  
Anglo Saxon ◽  
Investment Funds ◽  
Different Characteristics

This paper provides new international evidence on the relationship between dividend policy and institutional ownership by analysing a sample of US and UK and Irish firms characterised by an Anglo-Saxon tradition and a matching sample of other EU companies from Civil Law legal systems. We hypothesize that, due to the different characteristics of both the legal system and the nature of agency conflicts in firms from those countries, the type of institutional investors and their role in corporate governance is different and so the use of dividend policy to solve the conflict of corporate governance problem differs in each legal system. We find that while in firms from Anglo-Saxon tradition the relation between dividends and institutional investors, pension and investment funds, is possitive, in Civil Law countries the relation is negative where investors are banks or insurance companies with other private interest inside the firm. These results are consistent with our hypotheses and breed new insights into the role of dividend policy as a disciplining mechanism in firms from different legal system with an important presence of institutional investors

Iran’s Commanding Heights

2019 ◽  
pp. 363-399
Author(s):  
Kevan Harris
Keyword(s):  
South Africa ◽  
Political Economy ◽  
South Korea ◽  
Institutional Investors ◽  
Stock Exchange ◽  
Business Groups ◽  
Business Group ◽  
Organizational Form ◽  
Economic Sectors ◽  
Islamic Republic Of Iran

Who owns the commanding heights in the Islamic Republic of Iran? Examining the top 300 firms on the Tehran Stock Exchange, this chapter finds a diverse set of ownership categories existing across economic sectors, associated with public, parastatal, pension, and provincial institutional investors. The main similarity between investors is the form through which ownership took place: the diversified business group. The persistence of the diversified business group is not unique to Iran. Instead, diversified business groups profitably thrive in Turkey and the Gulf emirates, as they do in liberalized economies such as South Korea, Israel, Mexico, and South Africa. As foreign capital comes to Iran, new cleavages will likely appear in the economic commanding heights. Many existing business groups will shrink or change ownership. But the organizational form of the diversified conglomerate will likely persist and remain dominant in Iran’s political economy through the next wave of business restructuring and beyond.

scholarly journals Investors’ trading and relative performance of analysts during the crisis period

2014 ◽  
Vol 11 (2) ◽  
pp. 697-707 ◽  
Author(s):  
Omar Farooq
Keyword(s):  
Financial Crisis ◽  
South Korea ◽  
Institutional Investors ◽  
Asian Financial Crisis ◽  
Superior Performance ◽  
Individual Investors ◽  
Sample Period ◽  
Foreign Investors ◽  
Emerging Stock Markets ◽  
The Relationship

This paper documents the relationship between foreign and local analysts’ recommendations and subsequent trades done by different investor groups – foreign investors, local institutional investors, and local individual investors. Using analysts’ recommendations and investors’ trading data from South Korea, we show that foreign analysts’ buy recommendations and local analysts’ sell recommendations generate significantly more subsequent trade than their respective counterpart recommendations (i.e. local analysts’ buy and foreign analysts’ sell recommendations) during the Asian financial crisis of 1997-98. We argue that the ability of foreign analysts’ buy recommendations and local analysts’ sell recommendations to generate trade is responsible for superior performance foreign analysts’ buy recommendations and local analysts’ sell recommendations in emerging stock markets. We also show that earlier explanations proposed to explain the asymmetric performance of foreign and local analysts’ recommendations do not hold in our sample period.

scholarly journals The Impact of ESG Management on Investment Decision: Institutional Investors’ Perceptions of Country-Specific ESG Criteria

2021 ◽  
Vol 9 (3) ◽  
pp. 48
Author(s):  
So Ra Park ◽  
Jae Young Jang
Keyword(s):  
South Korea ◽  
Institutional Investors ◽  
Investment Decision ◽  
Investment Decisions ◽  
Specific Model ◽  
Country Level ◽  
Unstable Environment ◽  
Specific Factors ◽  
The Impact ◽  
Country Specific

Existing global ESG models are limited in terms of applicability and predictability, especially in countries with an unstable environment. On the other hand, utilizing internally made or privately sourced ESG models have caused issues relating to generalizability, comparability, and continuity. In our research, we present an ESG framework that is specific to South Korea, which has both global and country-specific factors in all three categories. The AHP model is used to determine how the three categories’ materiality would be viewed by institutional investors as well as how country-specific factors rank against global factors. The results of this study show that institutional investors place more importance on environmental and governance factors compared to social factors. Factors including shareholders’ rights, pollution and waste, greenhouse gas emissions, and risk and opportunity management are found to have greater influences on investors’ investment decisions. In addition, it was confirmed that both of the country-specific variables for South Korea, partnership with subcontractor and CEO reputation, have a significant influence on investment decisions. By having the ESG model validated by institutional investors, who are the main users of ESG disclosures of corporations, our methodology of presenting a country-specific model can be benchmarked by studies on other emerging markets with a variety of country-level specificities.

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