KJCKorea
Journal Central

@article{ART001835113},
author={CHANG SOO KIM},
title={Determinants on the Workings of Internal Capital Market and Their Effects},
journal={Journal of Regional Studies and Development},
issn={1738-3846},
year={2013},
volume={22},
number={2},
pages={127-164}

TY - JOUR
AU - CHANG SOO KIM
TI - Determinants on the Workings of Internal Capital Market and Their Effects
JO - Journal of Regional Studies and Development
PY - 2013
VL - 22
IS - 2
PB - Institute for Poverty Alleviation and International Development: IPAID
SP - 127
EP - 164
SN - 1738-3846
AB - Unlike the existing studies that provide indirect evidence on the workings of internal capital markets, this paper provides direct evidence using the cases that the Fair Trade Commission adjudicated to be unfair trading. The regression analysis shows that differences in total assets, liquidity, information asymmetry, leverage, profitability, and cash flows are the statistically significant determinants of share ownership of the largest shareholder. The largest shareholders invest in firms that are relatively bigger and have less information asymmetry and a higher profitability. They also tend to invest in firms with a higher leverage and lower liquidity and cash flows. The analysis of the change in the largest shareholder’s portfolio suggests that in the years of unfair trading the largest shareholders tried to protect the marginal returns by reducing investments in the beneficiary firms with a lower profitability. However, they do not increase investments in firms with a long-term growth potential, which implies that the largest shareholders pursue a rent-seeking. At the same time, they invest in small beneficiary firms with a high information asymmetry in an attempt to increase firm value by reducing costs of capital.
KW - Currency Crisis;Internal Capital Market;Fair Trade Commission;Largest Shareholding;Judgement
DO -
UR -
ER -

CHANG SOO KIM. (2013). Determinants on the Workings of Internal Capital Market and Their Effects. Journal of Regional Studies and Development, 22(2), 127-164.

CHANG SOO KIM. 2013, "Determinants on the Workings of Internal Capital Market and Their Effects", Journal of Regional Studies and Development, vol.22, no.2 pp.127-164.

CHANG SOO KIM "Determinants on the Workings of Internal Capital Market and Their Effects" Journal of Regional Studies and Development 22.2 pp.127-164 (2013) : 127.

CHANG SOO KIM. Determinants on the Workings of Internal Capital Market and Their Effects. 2013; 22(2), 127-164.

CHANG SOO KIM. "Determinants on the Workings of Internal Capital Market and Their Effects" Journal of Regional Studies and Development 22, no.2 (2013) : 127-164.

CHANG SOO KIM. Determinants on the Workings of Internal Capital Market and Their Effects. Journal of Regional Studies and Development, 22(2), 127-164.

CHANG SOO KIM. Determinants on the Workings of Internal Capital Market and Their Effects. Journal of Regional Studies and Development. 2013; 22(2) 127-164.

CHANG SOO KIM. Determinants on the Workings of Internal Capital Market and Their Effects. 2013; 22(2), 127-164.

CHANG SOO KIM. "Determinants on the Workings of Internal Capital Market and Their Effects" Journal of Regional Studies and Development 22, no.2 (2013) : 127-164.