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http://dx.doi.org/10.15207/JKCS.2018.9.11.353

The Relationship between Real Estate Holdings and Firm's Value : Comparisons between KOSPI and KOSDAQ Companies  

Lee, Chan-Ho (Dept. of Business Administration, Pusan National University)
Publication Information
Journal of the Korea Convergence Society / v.9, no.11, 2018 , pp. 353-361 More about this Journal
Abstract
The purpose of this study is to analyze how Corporate Real Estate Ratio affects Firm's Value for KOSPI Companies and KOSDAQ Companies. The period of analysis is the period of the Financial Crisis (2007-2008), the period immediately after the Financial Crisis (2009-2011), and the period following the introduction of IFRS (2012-2016). The samples of 2761 KOSPI Companies years and 3719 KOSDAQ Companies years are used in this study. The result of Regression Analysis shows that the higher Corporate Real Estate Ratio is, the more negative Firm's Value is. In the comparison of markets, both KOSPI Companies and KOSDAQ Companies had no statistically significant effects during the Financial Crisis. Although KOSDAQ Companies had a greater negative effect on the Firm's Value than KOSPI Companies right after the Financial Crisis, KOSPI Companies have had a greater negative influence on the Firm's Value than KOSDAQ Companies since the introduction of IFRS. Therefore, each corporation should pay more attention to identifying the appropriate amount of their Corporate Real Estate Ratio and should continue to analyze and make decisions on the most efficient use of real estate which is owned by each company. This study shows speciality in dividing into three period, such as the period of the Financial Crisis, the period immediately after the Financial Crisis, and the period following the introduction of IFRS and comparing the degree of influence on the KOSPI Companies and KOSDAQ Companies for the each period. I hope to study the factors that affect the company's real estate policy.
Keywords
Corporate Real Estate Ratio; Firm's Value; Market to Book Value Ratio; KOSPI Companies; KOSDAQ Companies; Regression Analysis;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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