Abstract
Korean chaebol firms, characterized by excessive debt financing and overinvestment, experienced restructuring after the 1997 crisis. By reducing debt financing and thus overinvestment, they tried to reorganize financing structure and ownership structure. Chaebols’ debt reduction turns out to have improved performance. However, polarization between chaebol and non-chaebol firms has become more significant. Even after the crisis, firms that give higher cash flows to a controlling shareholder take more capital investment, indicating that agency problems still exist within chaebols. Chaebol-affiliated firms continue to be more active in R&D than non-chaebol firms. However, the pattern is limited to the group of top 10 chaebols after the crisis. Abbreviations: KFTC: Korea Fair Trade Commission.
Original language | English |
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Pages (from-to) | 147-161 |
Number of pages | 15 |
Journal | China Economic Journal |
Volume | 10 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2017 May 4 |
Bibliographical note
Publisher Copyright:© 2017 Informa UK Limited, trading as Taylor & Francis Group.
All Science Journal Classification (ASJC) codes
- Cultural Studies
- Sociology and Political Science
- General Economics,Econometrics and Finance