We examine the knock-on effect of credit rating changes in Korean Chaebol. We show that credit rating changes of chaebol-affiliated firm share the effect of credit rating change with related affiliates because: (1) chaebol affiliates share their internal capital markets and (2) chaebol...

This study examines the impacts of business group affiliation, ownership disparity, and corporate governance on cash holdings and the value of excess cash of firms, using business group data from Korea, where such organizations are called “chaebols.” We find that Korean chaebol-affiliated...

We investigate 589 production suspension announcements during from 2000 to 2015 in Korea to identify determinants of production suspension, event, operating and financial characteristics. We find that restructuring announcements have negative impact on stock returns while other reasons such as...

We test the biasedness of unsolicited ratings relative to solicited ratings using the ex post firm performance measured by the long-run stock performance of firms following rating announcements and changes. We find that the announcements of new unsolicited ratings are followed by negative...

This study investigates the cultural determinant of board structure by examining the impact of the geographic divergence of gambling preference induced by religion. Using the county's Catholic-to-Protestant ratio to proxy for gambling preference, we find that firms headquartered in...

This study empirically analyzes the effects of political corruption on corporate cash holdings policy and the impact of cash holdings on firm performance using 97 multinational data. We find that there is a nonlinear cubic function relationship between the political corruption and corporate cash...

The SEC’s NRSRO designation for Japanese credit rating agencies is suitable for examining certification and monitoring effects, as Japanese domestic bond markets are not subject to SEC regulations. We find that the certification increased the market share of new NRSROs (R&I and JCR) compared...

This paper attempts to investigate linkages that a firm affiliated in a business group utilizes to prosper even in adverse financial environmental conditions. The study focuses on identifying the impact from business group association on cost of debt of an affiliated firm utilizing network...

Using a sample of chaebol groups in Korea, we investigate the impact of outside directors who had been public officials on the firm's performance. We find that chaebol-affiliated firms prefer to co-opt the outside directors who had positions of higher public rank than the other outside directors...

We test the biasedness of unsolicited ratings relative to solicited ratings using the ex post firm performance measured by the long-run stock performance of firms following rating announcements and changes. We find that the announcements of new unsolicited ratings are followed by negative...