Professor Park Heung-joo won the Maekyung New Scientist's Paper Award at the 22nd Korea Management Association Convergen
- 경영대학
- Hit437
- 2020-10-06
◆ Park Heung-joo, a professor at Sungkyunkwan University, in the Korea Management Association, Maekyung Outstanding Paper Award / New Scientist's Paper Award ◆
Professor Park Heung-joo of Sungkyunkwan University, along with Oh Seung-jun, a professor at Beijing University, and Kelly Ding, a Ph.D. student at Beijing University, won this year's Maekyung New Journal Award for his thesis "Cross-Listing, Foreign Independent Directors and Firm Value."
Professor Park said, "With the growing interest in Chinese companies' investment, financing, and cross-listing overseas, the research began to find out how the composition of the board of directors changes when corporate governance and legal systems cross-listed in advanced countries and how the changed board affects corporate value." "In the case of Chinese companies, increasing the number of 'Quality Foreign Outside Directors' who have abundant experience such as financing from advanced countries has positive effects on overseas sales, financing, and governance improvement of companies," he said. "I think this research can give implications to domestic companies that want to raise funds and expand their business networks in addition to cross-listing abroad."
Park's team used data from listed companies released by the Chinese authorities as basic data for the research. It analyzed the experience and nationality of members of the board of directors by selecting Chinese companies that cross-listed overseas, confirming that companies significantly increased the number of foreign outside directors after cross-listed overseas. The research team then came up with results that the existence of 'Quality foreign outside directors' is related to the market capitalization of the companies that are studied, value, and amount of foreign operations.
Professor Park explained, "After examining the nationality and personal experience of foreign directors of quality, we judged them based on standards such as the World Bank's annual corporate governance index."
Regarding the study, Park said, "The cross listing abroad could be a breakthrough for Korean companies that are thirsty for financing due to the Corona 19 scandal."
Source: https://www.mk.co.kr/news/business/view/2020/08/880867/