Earticle

초록

영어

In this paper, we examine the existence and the role of the soft budget constraints (SBC) in the Korean economy. Particular attention is given to the pre-financial crisis period of 1997 on firm level data when the Korean banking sector generated inefficient credit allocation. We report that Korean business group (chaebol) firms have more severe SBC problems, especially in long-term loans, and that there exist severe adverse effects on the profitability of loans to SBC firms compared to nonchaebol firms. It appears that the significant negative effects of loans to SBC firms on profitability before and during the crisis are mainly driven by the inefficient use of funds by chaebol firms.

목차

Abstract
 1. Introduction
 2. Data
 3. Empirical Tests
  3.1. Bank Loans, Profitability and SBC
  3.2. The Existence of SBC – Ex Ante
  3.3. Effects of SBC on Profitability
 4. Conclusion
 References

키워드

저자

• Sunghwan Kim [ Marketing Business Group, KT Corporation, Sungnam City, Korea. ] Corresponding Author
• Kwangwoo Park [ KAIST Graduate School of Finance, Seoul, Korea. ]
• Byungmoon Seol [ School of Business Administration, Kyungpook National University, Daegu City, Korea ]

참고문헌

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간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330