Earticle

초록

영어

This paper evaluates whether a stock exchange targeted specifically at SMEs—namely, the SME exchange—functions as a “growth market” by capitalizing industry growth opportunities into stock prices. To this end, we examine the correlation between the SME exchange prices—aggregated up to the industry level—and private-firm growth, a relationship that can arise only to the extent that the prices contain aggregate-level information. Using data from Korea whose SME exchange is one of the largest in the world, we find that the SME exchange prices are positively correlated with the growth of private firms, especially when they belong to a growing industry or their growth is funded by equity. In the same regression, the main board stock prices are correlated with the liability-funded growth of private firms in a stable industry. Taken together, our results suggest that the SME exchange plays a positive and complementary role in the economy by embodying the type of industry growth opportunities that are not readily represented by the main board stock prices.

목차

Abstract
Abstract
1. Introduction
2. Sample and data
3. Correlation between SME exchange prices and private-firm growth
3.1. Main results
3.2. Sub-sample analysis
4. Correlation by funding sources of private-firm growth
4.1. Full-sample estimation
4.2. Sub-sample analysis
5. Robustness checks
5.1. Correlation between SME exchange prices and lead growth of private firms
5.2. Comovement among private firms and aggregate volatility
6. Conclusions
References

키워드

저자

• Hee Jung Choi [ National Pension Services - NPRI, Jeonju, Korea 54870 ]
• Dong Wook Lee [ Korea University Business School (KUBS), Seoul, Korea 02841 ] Corresponding author

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간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330