Premium
Determinants of Shareholder Activism of the National Pension Fund of Korea
Author(s) -
Lee Jaehyun,
In Francis,
Khil Jaeuk,
Park Young S.,
Wee Kyeong Woo
Publication year - 2018
Publication title -
asia‐pacific journal of financial studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.375
H-Index - 15
eISSN - 2041-6156
pISSN - 2041-9945
DOI - 10.1111/ajfs.12238
Subject(s) - chaebol , shareholder , pension , business , position (finance) , voting , event study , stock (firearms) , pension fund , accounting , financial system , corporate governance , finance , political science , law , mechanical engineering , paleontology , context (archaeology) , politics , biology , engineering
Abstract This paper identifies the determinants of shareholder activism of the National Pension Fund of Korea ( NPF ), and investigates its stock market reaction. In the case of article amendments, the NPF exercises its voting right actively when the firm has concentrated ownership, and does not belong to chaebols . The NPF is active when the firm has diffused ownership, and is not a chaebol affiliate if the agenda up for vote is auditor appointments. The event studies show that a long position in the NPF “Yes” vote stocks and a short position in the “No” vote stocks produce positive abnormal returns.