Impact of Financial Performance on Ethical Outcomes: Evidence from Korea's Public Enterprises and Their Subsidiaries

被引:0
作者
Yu, Seungwon [1 ]
Sim, Yeonwoo [2 ]
Kim, Suhee [3 ]
机构
[1] Korean Natl Police Univ, Dept Publ Adm, Asan, South Korea
[2] Hong Kong Univ Sci & Technol, Innovat Policy & Entrepreneurship Thrust, Guangzhou, Peoples R China
[3] Univ Seoul, Dept Urban Adm, 163 Seoulsiripdaero, Seoul 02504, South Korea
关键词
Public enterprise; subsidiary; financial performance; ethics; L2; L3; CORPORATE; INFORMATION; ORGANIZATIONS; COMMITMENT; STANDARDS; STRATEGY; FIRMS; BASES;
D O I
10.1080/1540496X.2025.2477741
中图分类号
F [经济];
学科分类号
02 ;
摘要
This study investigates an underexamined dimension in public enterprise: impact of financial performance on ethical outcomes, thereby inverting the conventional research focus on ethics as a determinant of financial outcomes. By conducting a comprehensive analysis of Korean public enterprises and employing robust fixed and random effects models to address endogeneity concerns, we identify several significant findings: results reveal a consistent negative relationship between the financial performance of parent enterprises and the ethical performance of both the enterprises and their subsidiaries, highlighting that greater financial success may lead to the deprioritization of ethics. Additionally, financial disparities between enterprises and their subsidiaries correlate with heightened ethical standards in the parent enterprises, reflecting the significant role of financial control and resource allocation. Drawing upon theoretical frameworks encompassing public accountability, political influence, and multiple principal-agent dynamics, this study offers valuable implications for policymakers and administrators in emerging markets, emphasizing the need to balance financial goals with ethical standards.
引用
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页数:18
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