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Pension Fund Monitoring and Corporate Debt Policy: Evidence from the Korean Market *
Author(s) -
Choi Wonseok,
Chung Chune Young,
Park Jongchan
Publication year - 2021
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.12331
Subject(s) - pension , business , national pension , shareholder , pension fund , debt , service (business) , finance , financial system , accounting , corporate governance , marketing
We investigate whether the Korean National Pension Service, a corporate watchdog and major long‐term investor in South Korea, positively affects corporate financial policy. The Korean National Pension Service is less likely to influence corporate financial policy even among firms with high uncertainty and information opacity, which increases the importance of large shareholders’ monitoring role. Additionally, ownership by the Korean National Pension Service has statistically insignificant effects on firms’ performance and financial soundness.