An equity market perspective on the Korean financial crisis

Title: An equity market perspective on the Korean financial crisis
Creator: Sohn, Wook; Choi, Bobae
Relation: Global Economic Review Vol. 39, Issue 1, p. 83-90
Publisher Link: http://dx.doi.org/10.1080/12265081003696403
Publisher: Routledge
Resource Type: journal article
Date: 2010
Description: We examine the movement of Korean stock prices before and after the 1997 financial crisis. Unlike in Japan, as documented by Hamao et al. (Journal of Money, Credit and Banking, 39, pp. 901-923, 2007), we find an increase in firm-level volatility in Korea, which may make it easier for investors to distinguish low-quality from high-quality firms and thus encourage "cleansing" during recessions. The result appears to derive from government efforts to restructure the corporate sector, which targeted highly leveraged firms and chaebol affiliates immediately after the market crash.
Subject: stock market volatility; financial crisis; corporate restructuring; Korea
Identifier: http://hdl.handle.net/1959.13/929516
Identifier: uon:10605
Identifier: ISSN:1226-508X
Language: eng
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