Spillover Effects Within Business Groups: The Case of Korean Chaebols

Published Online:https://doi.org/10.1287/mnsc.2016.2596

References

  • Adams Z, Füss R, Gropp R (2014) Spillover effects among financial institutions: A state-dependent sensitivity value-at-risk approach. J. Financial Quant. Anal. 49(3):575–598.CrossrefGoogle Scholar
  • Almeida H, Kim CS, Kim HB (2015) Internal capital markets in business groups: Evidence from the Asian financial crisis. J. Finance 70(6):2539–2586.CrossrefGoogle Scholar
  • Bae G, Cheon Y, Kang J (2008) Intragroup propping: Evidence from the stock-price effects of earnings announcements by Korean business groups. Rev. Financial Stud. 21(5):2015–2060.CrossrefGoogle Scholar
  • Bae KH, Kang JK, Kim JM (2002) Tunneling or value added? Evidence from mergers by Korean business groups. J. Finance 57(6):2695–2740.CrossrefGoogle Scholar
  • Baek JS, Kang JK, Lee I (2006) Business groups and tunneling: Evidence from private securities offerings by Korean chaebols. J. Finance 61(5):2415–2449.CrossrefGoogle Scholar
  • Baek JS, Kang JK, Park KS (2004) Corporate governance and firm value: Evidence from the Korean financial crisis. J. Financial Econom. 71(2):265–313.CrossrefGoogle Scholar
  • Bereskin F, Kim B, Oh FD (2015) Do credit rating concerns lead to better corporate governance? Evidence from Korea. Pacific-Basin Finance J. 35(PB):592–608.CrossrefGoogle Scholar
  • Brown S, Warner J (1985) Using daily stock returns. J. Financial Econom. 14(1):3–31.CrossrefGoogle Scholar
  • Chang S, Hong J (2000) Economic performance of group-affiliated companies in Korea: Intragroup-resource sharing and internal business transactions. Acad. Management J. 43(3):429–448.CrossrefGoogle Scholar
  • Dichev I, Piotroski J (2001) The long run stock returns following bond ratings changes. J. Finance 56(1):173–203.CrossrefGoogle Scholar
  • Ferreira M, Gama P (2007) Does sovereign debt ratings news spill over to international stock markets? J. Banking Finance 31(10):3162–3182.CrossrefGoogle Scholar
  • Gande A, Parsley D (2005) News spillovers in the sovereign debt market. J. Financial Econom. 75(3):691–734.CrossrefGoogle Scholar
  • Griffin P, Sanvicente A (1982) Common stock returns and rating changes: A methodological comparison. J. Finance 37(1):103–119.CrossrefGoogle Scholar
  • Hahm J-H (1999) Financial system restructuring in Korea: The crisis and its resolution. Masuyama S, Vandenbrink D, Yue CS, eds. East Asia’s Financial Systems: Evolution and Crisis (Institute of Southeast Asian Studies, Singapore, and Nomura Research Institute, Tokyo).Google Scholar
  • Hand J, Holthausen R, Leftwich R (1992) The effect of bond rating agency announcements on bond and stock prices. J. Finance 47(2):733–752.CrossrefGoogle Scholar
  • Hertzel M, Officer M (2012) Industry contagion in loan spreads. J. Financial Econom. 103(3):493–506.CrossrefGoogle Scholar
  • Hertzel M, Li Z, Officer M, Rodgers K (2008) Inter-firm linkages and the wealth effects of financial distress along the supply chain. J. Financial Econom. 87(2):374–387.CrossrefGoogle Scholar
  • Holthausen R, Leftwich R (1986) The effect of bond rating changes on common stock prices. J. Financial Econom. 17(1):57–89.CrossrefGoogle Scholar
  • Ismailescu I, Kazemi H (2010) The reaction of emerging market credit default swap spreads to sovereign credit rating changes. J. Banking Finance 34(12):2861–2873.CrossrefGoogle Scholar
  • Joh SW (2003) Corporate governance and firm profitability: Evidence from Korea before the economic crisis. J. Financial Econom. 68(2):287–322.CrossrefGoogle Scholar
  • Jorion P, Zhang G (2007) Good and bad credit contagion: Evidence from credit default swaps. J. Financial Econom. 84(3):860–883.CrossrefGoogle Scholar
  • Jorion P, Zhang G (2009) Credit contagion from counterparty risk. J. Finance 64(5):2053–2087.CrossrefGoogle Scholar
  • Jorion P, Zhang G (2010) Information transfer effects of bond rating downgrades. Financial Rev. 45(3):683–706.CrossrefGoogle Scholar
  • Kahneman D, Tversky A (1979) Prospect theory: An analysis of decision under risk. Econometrica 47(2):263–292.CrossrefGoogle Scholar
  • Khanna T, Rivkin J (2001) Estimating the performance effects of business groups in emerging markets. Strategic Management J. 22(1):45–74.CrossrefGoogle Scholar
  • Lang L, Stulz R (1992) Contagion and competitive intra-industry effects of bankruptcy announcements. J. Financial Econom. 32(1):45–60.CrossrefGoogle Scholar
  • Lee S, Park K, Shin H (2009) Disappearing internal capital markets: Evidence from diversified business groups in Korea. J. Banking Finance 33(2):326–334.CrossrefGoogle Scholar
  • Lemmon ML, Lins KV (2003) Ownership structure, corporate governance, and firm value: Evidence from the East Asian financial crisis. J. Finance 58(4):1445–1468.CrossrefGoogle Scholar
  • Lim K (2006) Implementing the external credit assessment institution of the Basel II accord in Korea. Report, Korea Development Institute, Sejong-si, Korea.Google Scholar
  • Morck R, Wolfenzon D, Yeung B (2005) Corporate governance, economic entrenchment, and growth. J. Econom. Literature 43(3):655–720.CrossrefGoogle Scholar
  • Norden L, Weber M (2004) Informational efficiency of credit default swap and stock markets: The impact of credit rating announcements. J. Banking Finance 28(11):2813–2843.CrossrefGoogle Scholar
  • O’Brien RM (2007) A caution regarding rules of thumb for variance inflation factors. Quality Quantity 41(5):673–690.CrossrefGoogle Scholar
  • Oh FD (2014) Assessing competitive conditions in Korea’s credit rating industry after the 1997 financial crisis. Econom. Bull. 34(2):1114–1121.Google Scholar
  • Pinches G, Singleton J (1978) The adjustment of stock prices to bond rating changes. J. Finance 33(1):29–44.CrossrefGoogle Scholar
  • Shin H, Park Y (1999) Financing constraints and internal capital markets: Evidence from Korean “chaebols.” J. Corporate Finance 5(2):169–191.CrossrefGoogle Scholar
  • Slovin MB, Sushka ME, Polonchek JA (1999) An analysis of contagion and competitive effects at commercial banks. J. Financial Econom. 54(2):197–225.CrossrefGoogle Scholar
  • Song K, Mantecon T, Altintig Z (2012) Chaebol-affiliated analysts: Conflicts of interest and market responses. J. Banking Finance 36(2):584–596.CrossrefGoogle Scholar
  • Soroka S (2006) Good news and bad news: Asymmetric responses to economic information. J. Politics 68(2):372–385.CrossrefGoogle Scholar
  • Ungson G, Steers R, Park S (1997) Korean Enterprise (Harvard Business School Press, Boston).Google Scholar
  • Yoo S, Lee S (1987) Management style and practice of Korean chaebols. Calif. Management Rev. 29(4):95–110.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.