Purpose: The purpose of this paper is to investigate how the venture capital industry evolves in Korea. The paper also compares the venture capital industry growth of Korea with that of the USA. Design/methodology/approach: This paper forecasts the growth of the Korean venture capital industry...

We provide evidence on whether zero-leverage firms make unique acquisition decisions in line with their unique leverage policies. We show that zero-leverage firms are more likely to acquire targets with low or zero leverage than they are to acquire other targets in order to maintain zero...

This study investigates firms' capital structure decisions around significant drops in stock price. We present evidence that firms usually repurchase equity to boost stock prices following these shocks, rather than retiring debt to rebalance their capital structures, even though buybacks cause...

Contrary to a commonly-held view in the corporate governance literature, I argue theoretically that the optimal pay-performance sensitivity (PPS) should be smaller in the presence of board monitoring for a risk-averse CEO. My model is based on a simple adaptation of Holmstrom and Milgrom...

This study investigates the production of information by multiple rating agencies when the value of information to buyers is heterogeneous. We modelled that an entrant may coexist with a monopoly incumbent by providing coarser and more economical ratings than the incumbent. Such a strategy can...

We examine how corporate cash holdings have evolved over time and how they have been valued by shareholders after the unexpected exogenous shocks caused by the COVID-19 pandemic. Consistent with the precautionary motive of cash, we find that firms reserve more cash and the marginal value of cash...

Purpose: The authors present the results of a survey on how Korean firms evaluate new projects and estimate their capital costs. The authors report how Korean firms’ capital budgeting practices compare to other developed countries and to best practices in the field of finance....

Purpose: The purpose of this paper is to examine the effect of controlling shareholders’ ownership of firms on the firms’ financial constraints in 22 economies for the 1982-2009 period. Design/methodology/approach: The authors employ a generalized method of moments-based instrumental...

Purpose: The purpose of this paper is to provide a survey of recent studies on Korean firms’ financial policies and their interactions with financial markets, and suggest directions for future research. Design/methodology/approach: The authors review the finance research on Korean firms and...