Value discount of business groups surrounding the asian financial crisis: Evidence from korean chaebols

• Main Authors: CHANG, James Jinho, CHO, Young Jun, KANG, Won, SHIN, Hyun-Han
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2007
• Subjects: Asian financial crisis; business group; Chaebol; Diversification; firm value; Asian Studies; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/1573; https://ink.library.smu.edu.sg/context/soa_research/article/2600/viewcontent/HJeco0480201590__1_.pdf
• Institution: Singapore Management University

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 exp...