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dc.contributor.authorMin, Byung-Seong
dc.contributor.authorCashel-Cordo, Peter
dc.contributor.authorC. Rhim, Jong
dc.date.accessioned2017-07-05T04:55:51Z
dc.date.available2017-07-05T04:55:51Z
dc.date.issued2015
dc.identifier.issn2384-1648
dc.identifier.doi10.17549/gbfr.2015.20.2.35
dc.identifier.urihttp://hdl.handle.net/10072/101855
dc.description.abstractThis study empirically investigates whether the introduction of a new corporate governance system in the Korean economy (where controlling shareholders dominate business groups and corporate-bank relationships are prominent) affects corporate leverage strategies. We find evidence suggesting that improved corporate governance, measured by appointments of outside directors and controlling shareholder’s ownership, constrains corporate borrowing. Chaebol firms, on average, have higher levels of borrowing than stand-alone firms. However, the largest chaebols, who are heavily involved in multinational ventures, showed the opposite trend, ostensibly due to more diversified business opportunities and sources of financing available in international markets. This suggests that government policies designed to improved corporate governance among “average” chaebols may be ineffective (or only partially effective), because such policies do not account the heterogeneity that exists across chaebols. Lastly, we find that intragroup transactions among affiliates increase corporate borrowing, but they are not consistently related to chaebol borrowing as a whole.
dc.description.peerreviewedYes
dc.languageEnglish
dc.language.isoeng
dc.publisherPeople and Global Business Association
dc.relation.ispartofpagefrom35
dc.relation.ispartofpageto48
dc.relation.ispartofissue2
dc.relation.ispartofjournalGlobal Business and Finance Review
dc.relation.ispartofvolume20
dc.subject.fieldofresearchBanking, Finance and Investment not elsewhere classified
dc.subject.fieldofresearchBanking, Finance and Investment
dc.subject.fieldofresearchcode150299
dc.subject.fieldofresearchcode1502
dc.titleCorporate leverage strategy in an emerging market
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
dc.description.versionVersion of Record (VoR)
gro.facultyGriffith Business School, Department of International Business and Asian Studies
gro.rights.copyright© 2015 University of Southern Indiana. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
gro.hasfulltextFull Text
gro.griffith.authorMin, Byung-Seong S.


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