Changes in chaebol firms’ overinvestment after the Asian financial crisis: a long-term perspective

Jaimin Goh; Wonwook Choi; Jungeun Cho

doi:10.1080/16081625.2014.983632

Changes in chaebol firms’ overinvestment after the Asian financial crisis: a long-term perspective

Jaimin Goh, Wonwook Choi, Jungeun Cho

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

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	https://doi.org/10.1080/16081625.2014.983632
Publication status	Published - 2016 Jan 2

Bibliographical note

Publisher Copyright:
© 2014 City University of Hong Kong and National Taiwan University.

All Science Journal Classification (ASJC) codes

Accounting
Finance
Economics and Econometrics

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Changes in chaebol firms’ overinvestment after the Asian financial crisis: a long-term perspective

Abstract

Bibliographical note

All Science Journal Classification (ASJC) codes

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