We examine the joint dynamics of stocks and bonds in the Japanese marker by computing the prices of risks and their relationship in stock and bond factors. We deconstruct market factors into industry factors and incorporate bond factors such as the level. Slope, and curvature of yield curves. This paper contributes to the: literature by identifying the risk-return relationship in Japanese financial market in explaining the cross-sectional variations of stock returns in consideration of the bond market, and illustrating the importance of macro information in stock returns. Our approach and results provide practical implications to hedge fund managers, mutual fund managers, and basket traders.
This article reviews corporate governance literture of family firms and business groups which is relevant to Korean conglomerates. We summarize major issues on corporate governance for Korean conglomerates and classify studies according to those issues: existence of controlling shareholder. deviation from the one share-one vote principle, family members' participation in management, succession of control to family members, and the relationship between financial and industrial capital within business groups. Existing literacure shows chat firms with controlling shareholders are common globally. While many factors related to corporate governance impact firm value, they create both positive and negative ramifications in a nuanced manner. Also, corporate governance endogenously emerges under different circumstances-law, degree of market development, or management-union relations across countrics. Thus, there is no strict standard corporate governance system that can apply to all family business groups in different countries. Proper frameworks for policy makers and managers will arise only in the particular contexts in which family business groups operate.
This paper suggests ways to develop healthy industrial relations at foreign-invested enterprises after M&A by studying Oriental Brewery Co., Ltd (“OBC”) case. OBC has the unique feature of being a foreign private-equity-fund (KKRKohlberg Kravis Roberts) invested company with dual unions. It is the only consumer product company in Korea that has regained the number one position in 2011 after 15 years of a continuous drop from the once dominant position with up to 70% of market share in the early 1990s. We have identified the contributing factors of such success from the perspective of union-management relationship before and after the M&A.