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Korean Journal of Financial Studies 2015;44(1):1-24.
Published online February 28, 2015.
A Study on the Effectiveness of Regulating Intra-Group Transaction of Large Business Groups
Shan Yue Jin, Kang Heum Yon
대규모기업집단 소속 상장회사에 대한 내부거래 규제의 실효성
김산월, 연강흠
Abstract
The designation criterion for large business group changed from a total asset of 2 trillion won to 5 trillion won in 2009. This study compared the effects of the characteristics of listed companies and business partners that had conducted intra-group product transaction before and after 2009 on the performance of listed companies. In addition, the study extracted listed companies and business partners that changed their status from large business group in 2008 to small and medium business group in 2009 due to the relaxed criterion, and analyzed its effect on the performance of listed companies before and after status change. The results suggest that performance was positively affected when the industry relation between affiliates after the relaxation of the criterion for large business group was high. On the other hand, performance was negatively affected when business partners belonged to the industry which is doubtful about intra-group transaction such as SI, construction, logistics and advertisement. Performance was also negatively affected by debt ratio. These indicate that the sectors with the high industry relation between affiliates have efficiently utilized intra-group transaction since the relaxation of the criterion for large business groups, which was the target of regulation on intra-group transaction. These also suggest that tunneling and propping activities became more common when business partners belonged to certain industries and their debt ratio was high. Consequently, the government needs to regulate companies individually according to their characteristics, rather than uniformly regulate them by deciding that all intra-group transactions are inefficient. In addition, the scope of regulation should be extended from large business groups to include small and medium business groups. It is also considered that prior regulation is more desirable than ex ante regulation.
Key Words: 내부상품거래,대규모기업집단 지정기준,일반기업집단,터널링,효율성,Efficiency,Intra Product Transaction,Large Business Group,Small and Medium Business Group,Tunneling


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