| Article ID: | iaor20103041 |
| Volume: | 34 |
| Issue: | 4 |
| Start Page Number: | 501 |
| End Page Number: | 510 |
| Publication Date: | Jun 2009 |
| Journal: | Journal of the Korean O.R. and MS Society |
| Authors: | Park Chan-Kyoo, Kim Dae Lyong |
| Keywords: | management, programming: integer |
Circular shareholdings among three companies are formed when company A owns stock in company B, company B owns stock in company C, and company C owns stock in company A. Since circular shareholdings among large family-controlled firms are used to give the controlling shareholder greater control or more opportunities to expropriate minority investors, the government has encouraged large business groups to gradually remove their circular shareholdings.