Investors in South Korea’s family-run conglomerates, known as
chaebol,
are calling for larger dividend payouts,
the
Financial Times
reported.
“Equity analysts say they hear constant complaints from investors who feel the largest South Korean companies have reached a level of development where they can afford to boost returns to shareholders…,” the article said. “Scrutiny is growing as cash piles up on the balance sheets of the companies….”
The article noted that
chaebol
are marked by a complex web of cross-shareholdings that enable the founding families to maintain control and prevent outside investors from challenging management. A few activist investors are challenging this approach, the article said. (Source:
Financial Times,
Jan. 22, 2013.)
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