Earticle

초록

영어

This paper provides new evidence on the relationship between internal capital markets and corporate investment by exploiting an exogenous event and an unique empirical setting. Specically, we compare the investment behavior of Korean business group (e.g., chaebol ) rms with non-chaebol Korean rms in the aftermath of the 1997 Asian nancial crisis. Korean chaebol provide a unique setting for the study of internal capital markets, since they comprise a large number of legally independent rms in several dierent industries, which are ultimately controlled by a family owner. Our empirical methodology employs a dierence-in-dierences matching estimator to ensure that chaebol rms (those in the treated group) and non-chaebol rms (those in the control group) are as similar as possible in all observable dimensions other than chaebol membership. The results show that chaebol rms invest signi cantly more than rms in the control group, in the aftermath of the crisis. This dierence in investment behavior does not hold for other, normal periods. In addition, we show that chaebol rm post-crisis investment is positively associated with variables that proxy for the availability of internal capital markets, including industry diversication within a chaebol and chaebol liquidity. Our evidence also suggests that chaebol 's internal capital markets performed ecient capital reallocation following the crisis. Chaebol rms with greater investment opportunities increased investment the most in the aftermath of the crisis, while in the control group investment opportunities were negatively related to post-crisis changes in investment. Finally, chaebol rm protability increased relative to control rms in the years following the crisis. Overall, our results suggest that Korean chaebol were able to use their internal capital markets to mitigate the negative eects of the Asian crisis on corporate investment.

목차

Abstract
 I Introduction
 II Existing Literature
 III Empirical Strategy
  1 Matching estimators
  2 The 1997 Asian Financial Crisis
  3 Data and Variables
 IV Empirical Results
  1 Descriptive Statistics
  2 The Eects of the 1997 Crisis
  3 Do Internal Capital Markets Explain the Lower Decline in Invesmtents for chaebol Firms?
  4 Do chaebol allocate capital to the right rms?
  5 Evidence on Post-Crisis Protability
  6 Robustness
 V Concluding Remarks
 References
 Table
 Figure

키워드

저자

• Heitor Almeida [ The University of Illinois at Urbana-Champaign. ]
• Chang Soo Kim [ Yonsei University. ] Corresponding author,

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330