Earticle

초록

영어

Using Korean stock market data, we document evidence that firm age is a key determinant of firm value. Specifically, firm value (measured by the market-to-book equity ratio) has a downward sloping relation with firm age (measured by the number of years since IPO). We also find that profitability and capital expenditures decline as firms age, suggesting that firms may become less valuable with age as they become less profitable and run out of investment opportunities. Our evidence also suggests that firms conduct IPOs by taking advantage of a small window of opportunity for listing during which their profitability is temporarily at its peak. Because this profitability is not sustainable, IPO issuers experience sharp drop in profitability, contributing to a negative relation between firm value and age in the post-IPO period. The learning hypothesis of Pástor and Veronesi (2003) is unable to explain the negative firm agevalue relation in the Korean stock market, given that uncertainty does not decline with age and that the negative relation is almost non-existent among dividend-non-payers.

목차

Abstract
 1. Introduction
 2. Data and methodology
 3. Empirical results
  3.1. Descriptive statistics
  3.2. Graphical illustration
  3.3. Regression results
  3.4. Extended sample period (1981-2011) and a variety of robustness checks
  3.5. Firm value and profitability in the pre-IPO years
 4. Concluding remarks
 Appendix
 References
 Table

키워드

저자

• J. B. Chay [ Sungkyunkwan University (SKKU), Seoul, 110-745 Korea ]
• Heuijung Kim [ Sungkyunkwan University (SKKU), Seoul, 110-745 Korea ]
• Jungwon Suh [ Sungkyunkwan University (SKKU), Seoul, 110-745 Korea ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330