Abstract
This paper examines chaebol firms’ overinvestment practices before and after a financial crisis in Korea. In comparison to non-chaebol firms, chaebol firms significantly reduced overinvestment after the Asian financial crisis. Also, chaebol firms were less inclined to engage in earnings management for overinvestment after the financial crisis. The results suggest that governance and financial reforms focusing on chaebol firms and emphasizing long-term firm value after the crisis discouraged chaebol firms’ overinvestment practices, bringing about a sharp rebound in their business performance.
| Original language | English |
|---|---|
| Pages (from-to) | 75-111 |
| Number of pages | 37 |
| Journal | Asia-Pacific Journal of Accounting and Economics |
| Volume | 23 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2016 Jan 2 |
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All Science Journal Classification (ASJC) codes
- Accounting
- Finance
- Economics and Econometrics
Cite this
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Changes in chaebol firms’ overinvestment after the Asian financial crisis : a long-term perspective. / Goh, Jaimin; Choi, Won W.; Cho, Jungeun.
In: Asia-Pacific Journal of Accounting and Economics, Vol. 23, No. 1, 02.01.2016, p. 75-111.Research output: Contribution to journal › Article
TY - JOUR
T1 - Changes in chaebol firms’ overinvestment after the Asian financial crisis
T2 - a long-term perspective
AU - Goh, Jaimin
AU - Choi, Won W.
AU - Cho, Jungeun
PY - 2016/1/2
Y1 - 2016/1/2
N2 - This paper examines chaebol firms’ overinvestment practices before and after a financial crisis in Korea. In comparison to non-chaebol firms, chaebol firms significantly reduced overinvestment after the Asian financial crisis. Also, chaebol firms were less inclined to engage in earnings management for overinvestment after the financial crisis. The results suggest that governance and financial reforms focusing on chaebol firms and emphasizing long-term firm value after the crisis discouraged chaebol firms’ overinvestment practices, bringing about a sharp rebound in their business performance.
AB - This paper examines chaebol firms’ overinvestment practices before and after a financial crisis in Korea. In comparison to non-chaebol firms, chaebol firms significantly reduced overinvestment after the Asian financial crisis. Also, chaebol firms were less inclined to engage in earnings management for overinvestment after the financial crisis. The results suggest that governance and financial reforms focusing on chaebol firms and emphasizing long-term firm value after the crisis discouraged chaebol firms’ overinvestment practices, bringing about a sharp rebound in their business performance.
UR - http://www.scopus.com/inward/record.url?scp=84953835309&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84953835309&partnerID=8YFLogxK
U2 - 10.1080/16081625.2014.983632
DO - 10.1080/16081625.2014.983632
M3 - Article
AN - SCOPUS:84953835309
VL - 23
SP - 75
EP - 111
JO - Asia-Pacific Journal of Accounting and Economics
JF - Asia-Pacific Journal of Accounting and Economics
SN - 1608-1625
IS - 1
ER -