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http://dx.doi.org/10.5762/KAIS.2021.22.4.563

A Study on the Foreign Ownership and Firm Value of ICT Companies in KOSDAQ Market  

Byun, Ji-Yeon (Department of Business Administration, Jeonbuk National University)
Im, In-Seob (Department of Business Administration, Jeonbuk National University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.22, no.4, 2021 , pp. 563-569 More about this Journal
Abstract
This is a study on the relationships between foreign ownership and the firm value of Korean-listed ICT companies in the KOSDAQ market. The data based on 752 firm-year observations during the sample period from 2001 to 2018 was utilized to analyze the impact of foreign ownership in terms of the firm value. As a result of this analysis, more foreign ownership has positive effects on the firm value. An analysis of the effects of the interaction between foreign ownership and the debt ratio on the firm's value found that the interaction between foreign ownership and debt ratio had a positive effect on the firm's value. On the other hand, this interaction effect was less significant than the relationship between foreign ownership and the firm value. This is because foreign investors are already performing the role of monitoring and disciplining the use of debt to some extent. Therefore, the interaction effect was relatively small.
Keywords
Debt Ratio; Disciplining; Firm Value; Foreign Ownership; Interactive Effect; Monitoring;
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