Publication Type

Journal Article

Publication Date

11-2007

Abstract

Using analysts' forecast error and forecast dispersion of firms covered by the I/B/E/S database, this study examines the change in information asymmetry of Korean firms around the financial crisis of 1997. Results show that the information asymmetry of Korean firms is lower after the financial crisis than before, implying that corporate transparency did, in effect, improve with the change in business environment. In addition, this study finds that chaebol firms have higher information asymmetry than non-chaebol firm, and also that the corporate transparency improvement of chaebol firms is not higher than that of non-chaebol firms in the post-crisis period despite the reforms particularly targeted to chaebol firms after the financial crisis.

Keywords

Asian financial crisis, analyst forecast error, analyst forecast dispersion, chaebol, information asymmetry, corporate transparency

Discipline

Asian Studies | Finance and Financial Management | Portfolio and Security Analysis

Research Areas

Corporate Reporting and Disclosure

Publication

Corporate Governance: An International Review

Volume

15

Issue

6

First Page

1144

Last Page

1167

ISSN

1467- 8683

Identifier

10.1111/j.1467-8683.2007.00637.x

Publisher

Wiley

Additional URL

http://doi.org./10.1111/j.1467-8683.2007.00637.x

Share

COinS