JIN CHANG, Sea <br/><br/>
How much does the business group matter in Korea 

 -  2002 
<br/><br/> We partition the variances of profits of the companies associated with Korean business groups into business group-specific effects, industry effects, and affiliate company-specific effects, which roughly math corporate-parent effects, industry effects and business unit effects, respectively, in the extant literature. We find substantial corporate-parent effects (here, business group effects) along with industry effects and business unit effects (here, affiliate, company-specific effects). This finding may indicate that business groups play an important role in developing countries by circumventing market inefficientcies. Our results also suggest that these effects tend to be smaller in larger business groups and to decrease over time 
<br/><br/><label>Subjects--Topical Terms: </label><br/>Corporate Strategy<br/>Corporate Effects<br/>Business Groups<br/>Variance Component Analysis<br/>Emerging Markets