ABSTRACT
Although a successor’s discretion is a key factor in facilitating corporate restructuring, little is known about the source of discretion, particularly about national culture. From an institutional perspective, we argue that when a successor is legitimized by the norms and expectations embedded in national culture, the successor is likely to implement corporate restructuring. Using data of family-run business groups in South Korea, where Confucianism is a dominant value system, we find that when a successor is the first-born child and male in the family, the business group is likely to spin-off, and this effect becomes stronger with the number of siblings.
