Publication Type

Journal Article

Publication Date

12-2007

Abstract

We examine the effect of business group membership on firm value in each pre-and postcrisis Korea. Consistent with prior studies, results show that group affiliated chaebol firms suffer value discount relative to non-chaebol firms in the precrisis period. However, we also find that chaebol firms experience an improvement in firm value relative to non-chaebol firms after the financial crisis. These findings imply that the value discount of business groups reported in prior studies is not an inevitable consequence of diversification, but can be alleviated or overcome by structural reforms in business practices or economic conditions.

Keywords

Asian financial crisis, business group, Chaebol, Diversification, firm value

Discipline

Asian Studies | Finance and Financial Management

Research Areas

Corporate Reporting and Disclosure

Publication

Hitotsubashi Journal of Economics

Volume

48

Issue

2

First Page

159

Last Page

184

Identifier

10.15057/15180

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org./10.15057/15180

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