Bae, Gil S.; Cheon, Youngsoon S.; Kang, Jun-Koo - In: Review of Financial Studies 21 (2008) 5, pp. 2015-2060
Using earnings announcement events made by firms belonging to Korean chaebols, we examine propping within a chaebol. Consistent with the market's ex ante valuation of intragroup propping, we find that the announcement of increased (decreased) earnings by a chaebol-affiliated firm has a positive...