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
Citation
CHANG, James Jinho; CHO, Young Jun; KANG, Won; and SHIN, Hyun-Han.
Value discount of business groups surrounding the asian financial crisis: Evidence from korean chaebols. (2007). Hitotsubashi Journal of Economics. 48, (2), 159-184.
Available at: https://ink.library.smu.edu.sg/soa_research/1573
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
http://doi.org./10.15057/15180