The Role of Asset Tangibility on Corporate Investment Under Financial Constraints in Korea PDF Download

Author: Jin Woong Kim
Publisher:
ISBN: 9788959923557
Category :
Languages : en
Pages : 35

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Author: Jinwoong Kim
Publisher:
ISBN:
Category :
Languages : en
Pages : 34

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This paper investigates the possible role of asset tangibility on corporate's investment decision. As Almeida and Campello (2007) suggest, firm's asset tangibility could promote firm's borrowing ability by providing more collateral to financial intermediaries, reduce financial restriction, and thus allow further investment. For this reason, we analyze corporate investment behavior in Korea by estimating firm's investment function incorporating asset tangibility, based on the endogenous switching regression model using firm-level data. Our empirical results suggest that the corporate investment behavior in the 2000s became different from that in the 1990s in terms of asset tangibility. In particular, asset tangibility played a more important role on the decision of a firm's investment in 2000s. Also, the effects of asset tangibility are different by firm-size, implying that if a small to medium-sized firm has the same conditions as a large firm, the investment effects of asset tangibility or cash flow in the small to medium-sized firm would be lower. It implies that asset tangibility could be considered an one of factors that caused a shrinkage movement of corporate investment of Korea in 2000s.

Author: Yong-Doo Cho
Publisher:
ISBN:
Category : Capital investments
Languages : en
Pages : 230

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Investigates the impact of financial factors on corporate investment in Korea

Author: Joon Nak Choi
Publisher: Routledge
ISBN: 1351183001
Category : Business & Economics
Languages : en
Pages : 235

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Export-oriented industrialization has transformed the Korean economy so profoundly that it has become known as the "Miracle on the Han." Yet, this industrial model has become fragile, as Korea’s chaebols are being challenged by Chinese competitors. Attempts to seek out new engines of economic growth have failed, or remain underdeveloped, while a looming demographic crisis threatens to exacerbate Korea’s problems. This book outlines a blueprint for overcoming these challenges, moving beyond the business strategies, government policies, and socio-cultural patterns established under export-oriented industrialization. Written by a stellar line-up of international contributors, its central proposition is that social change is needed to support the strategic and operational transformation of the chaebol and SMEs. Specifically, it stresses the need for an appreciation of the gender, national, and ethnic diversity emerging within the Korean workplace today. If properly leveraged, such diversity has the potential to reduce the groupthink that hampers the creativity and responsiveness of Korean firms today, as well as facilitating greater success in overseas markets. Taking an interdisciplinary approach, this book will be useful to students and scholars in Korean Studies, as well as those studying business, economics, and sociology more broadly in East Asia.

Author: Ms.Yu Shi
Publisher: International Monetary Fund
ISBN: 1498316352
Category : Business & Economics
Languages : en
Pages : 39

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Using business registry data from China, we show that internal capital markets in business groups can propagate corporate shareholders’ credit supply shocks to their subsidiaries. An average of 16.7% local bank credit growth where corporate shareholders are located would increase subsidiaries investment by 1% of their tangible fixed asset value, which accounts for 71% (7%) of the median (average) investment rate among these firms. We argue that equity exchanges is one channel through which corporate shareholders transmit bank credit supply shocks to the subsidiaries and provide empirical evidence to support the channel.

Author: Adrian Alter
Publisher: International Monetary Fund
ISBN: 1475560494
Category : Business & Economics
Languages : en
Pages : 49

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Corporate debt in emerging markets has risen significantly in recent years amid accommodative global financial conditions. This paper studies the relationship of leverage growth in emerging market (EM) firms to U.S. monetary conditions, and more broadly, to global financial conditions. We find that accommodative U.S. monetary conditions are reliably associated with faster EM leverage growth during the past decade. Specifically, a 1 percentage point decline in the U.S. policy rate corresponds to an appreciable increase in EM leverage growth of 9 basis points, on average (relative to the sample average leverage growth of 35 basis points per year). This impact is more pronounced for sectors dependent on external financing, for SMEs, and for firms in more financially open EMs with less flexible exchange rates. The findings suggest that global financial conditions affect EM firms’ leverage growth in part by influencing domestic interest rates and by relaxing corporate borrowing constraints.

Author: Mr.Angel J. Ubide
Publisher: International Monetary Fund
ISBN: 1451844646
Category : Business & Economics
Languages : en
Pages : 67

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After years of strong performance, Korea’s economy entered a crisis in 1997, owing largely to structural problems in its financial and corporate sectors. These problems emerged in the second half of that year, when the capital inflows that had helped finance Korea’s growth were reversed, as foreign investors—reeling from losses in other Southeast Asian economies—decided to reduce their exposure to Korea. This paper focuses on the sources of the crisis that originated in the financial sector, the measures taken to deal with it, and the evolution of key banking and financial variables in its aftermath.

Author: Mr. Eduardo Borensztein
Publisher: International Monetary Fund
ISBN: 1451891636
Category : Business & Economics
Languages : en
Pages : 39

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This paper analyzes some of the structural problems associated with the Korean financial sector, and investigates whether the financial system has allocated credit in an efficient way over the past three decades. Using data for 32 manufacturing sectors, we find no evidence that credit flows were directed to the relatively more profitable sectors, either before or after the financial reforms. We also find that the flow of credits did not contribute to improve the economic performance of the favored industries over time.

Author: World Bank
Publisher: World Bank Publications
ISBN: 1464814414
Category : Business & Economics
Languages : en
Pages : 241

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Seventeen in a series of annual reports comparing business regulation in 190 economies, Doing Business 2020 measures aspects of regulation affecting 10 areas of everyday business activity.

Author:
Publisher: World Bank Publications
ISBN:
Category : Corporations
Languages : en
Pages : 36

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