Document Type
Article
Source of Publication
Journal of Risk and Financial Management
Publication Date
2-1-2026
Abstract
We examine how family ownership shapes overall corporate transparency by analyzing both firm-level and market-level transparency. Drawing on data from Korean-listed companies between 2001 and 2007, we construct separate indices measuring voluntary disclosure by firms, information quality as assessed by market participants, and overall transparency combining both dimensions. Our analysis uncovers a striking paradox: while family ownership positively correlates with firm-initiated disclosure efforts, it negatively relates to market participants’ assessment of information quality. These opposing forces result in no significant relationship between family ownership and aggregate transparency. However, when we partition our sample by ownership levels, firms with family stakes below 30% show significantly positive transparency associations, while those above this threshold exhibit no significant relationship. We interpret these patterns as reflecting a genuine commitment by family owners to enhanced disclosure that is systematically discounted by markets, with this skepticism becoming more pronounced as family control intensifies.
DOI Link
ISSN
Publisher
MDPI AG
Volume
19
Issue
2
Disciplines
Business
Keywords
agency, concentrate ownership, corporate transparency, earning quality, family ownership, market scrutiny
Scopus ID
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Choi, Euikyu; Choi, Jongmoo Jay; and Kim, Moo Sung, "The Effect of Family Ownership on Overall, Firm-Level, and Market-Level Corporate Transparency" (2026). All Works. 7925.
https://zuscholars.zu.ac.ae/works/7925
Indexed in Scopus
yes
Open Access
yes
Open Access Type
Hybrid: This publication is openly available in a subscription-based journal/series