Earticle

초록

영어

This paper empirically examines the hypothesis that the stock price of publicly traded companies serves as a common signal to privately held firms and contribute to aggregate fluctuations by creating commonalities among private firms. Using data from Korea for the period of 2000-2015, we find evidence for the hypothesis with industry-level aggregate volatility and the stock price of small-size public companies. Specifically, a positive cross-sectional relation exists between the volatility of an industry and the presence of small—but not large—public firms in the industry. Further, the positive relation is attributable to the commonality in private firms’ growth around the stock price of small— but not large—public industry peers. We also find that the industry volatility that is related to the stock price of small public firms is the one that is unique to the industry and unrelated to marketwide movements. Our results suggest that small-size public companies play a unique role in aggregate fluctuations by making private firms cohesive within an industry but distinct across industries. In short, small-size public companies serve as a counterbalance to larger public firms who impose market-wide shocks across companies in different industries.

목차

Abstract
 1. Introduction
 2. Sample and data
 3. Empirical results
  3.1. Industry volatility and public companies – within-industry analysis
  3.2. Panel regressions with firm-year observations
  3.3. Volatility-sorted sub-samples
  3.4. Robustness
  3.5. Financing of asset growth
 4. Conclusions
 References

키워드

저자

• Hee Jung Choi [ Korea University Business School (KUBS) ]
• Dong Wook Lee [ Korea University Business School (KUBS) ] Corresponding author

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330