THE DETERMINANTS OF PBR AND THE ROLE OF OWNERSHIP CONCENTRATION: A SHAPLEY DECOMPOSITION APPROACH
DOI:
https://doi.org/10.33736/ijbs.14468.2026Keywords:
Chaebol, Korea discount, Ownership concentration, PBR, Shapley decompositionAbstract
This study examines how ownership concentration influences firm valuation by decomposing the price-to-book ratio (PBR) into four financial components: market valuation (P/E ratio), profitability (net income/total revenue), operational efficiency (total revenue/total assets), and leverage (total assets/total equity). Using Shapley value decomposition and firm-level panel data from Korean listed companies (2014–2023), we evaluate the relative explanatory power of each component and analyze how the impact of ownership concentration on firm value varies by chaebol affiliation. The results show that PER and REV/ASSET account for a greater share of PBR variance than profitability or leverage, particularly in non-chaebol firms. Ownership concentration enhances profitability but diminishes asset efficiency, leading to a net adverse effect on firm value. These effects are more pronounced in non-chaebol firms, whereas chaebol-affiliated companies exhibit no significant relationship between ownership and firm value. By combining structural decomposition with corporate governance analysis, this study provides new insights into the drivers of firm value and the persistence of the Korea discount.
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