Relationship between Related Party Transactions and the Social Contribution Activities of South Korean Chaebol Companies

Corporate social responsibility (CSR) encompasses activities through which a firm ultimately achieves sustainable management by improving the society and environment. Contrary to general perception that CSR can improve only enterprise value (EV), they also be strategically deployed based on agency problems (situational factors). Specifically, focusing nature of related party transactions exhibit high tendencies introduce problems, this study analyzes whether South Korean firms engage in such perform more actively than those do not. The empirical analysis reveals increased activity scores, indicating managers are likely deploy as tool for managing their image concealing or embellishing illicit corporate transactions. Hence, undertaken at expense shareholders may opportunistically exploited positively firm’s image. However, it is observed chaebol companies not exploit activities, despite being engaged Thus, registered with large business group under supervision system government unlikely activities.