The Impacts of Multi-blockholder Contestability and Coalition on the Risk of Korean Companies

We examine the relationship between multi-blockholder contestability and coalition firm risk using an unbalanced panel of 646 Korean non-financial firms with 7,582 firm-years from 2010 to 2017 (8 years). For contestability, we use second-to-first blockholder index second-and third-to-first index. The Herfindahl-Harshman Index Concentration Difference are used for a coalition. Using different measures show that among multiple blockholders is negatively related beta. It also shown probability (variance) forming dominant This suggests reduce corporate risk. study expands on existing literature ownership. shows may be one factor determining company. Our findings will contribute policymakers investors who interested in dispersion stock market.