• The Korean Journal of Financial Management
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• v.21 no.1
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• pp.59-86
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• 2004

This study analyzed the effects of M&A announcement before and after the 1998 amendments of 'Securities and Exchange Act' through the event study. The M&A firms turned out to gain the abnormal returns during the entire periods. The cumulative average abnormal returns of M&A firms was 1.38%(market adjusted model) or 5.37%(industry-adjusted model) higher after the 1998 amendments than before. The differences of performance of M&A were significant also in case of the related M&A, vertical or horizontal M&A, M&A in booms. In regression analysis, the 1998 amendments of Act was the significant factor to explain the cumulative abnormal returns.

• The Korean Journal of Financial Studies
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• v.4 no.1
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• pp.93-122
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• 1998

본 연구는 1988년부터 1990년까지 공개한 249개 제조업을 대상으로 기업공개를 전후하여 사기업이 공개기업으로 전환하는 과정에서의 변화를 분석하였다. 즉, 공개 전후의 재무적 특성, 영업성과, 소유구조, 배당정책의 변화를 분석하였다. 또한 상장 후 장기주가행태를 살펴보고 영업성과와의 관련성도 분석하였다. 249개 공개기업 중 상장 3년 후에는 오직 71%의 기업만이 정상적인 영업을 할 정도로 영업성과는 악화되었다. 상장년도의 총자산영업이익률과 자기자본순이익률은 기업공개와 함께 급감하며 이후에도 계속 하락하였다. 부채비율은 상장년도에 크게 감소하나 이후 점진적으로 증가하여 5년 후에는 상장 1년 전의 수준으로 증가하였다. 대주주 1인 지분율은 공개 이후 점진적으로 하락하며 지분을 변화는 상장직전의 지분을, 신주모집비율, 자본금 증가와 부의 관계를 갖는다. 공개 전에 배당성향은 매우 낮고 현금배당을 지급한 기업수가 작으나, 상장 이후에는 배당성향이 증가하고 차등배당을 실시하는 기업의 수가 증가하였다. 또한 공개 전에 대주주에게 과도한 배당금을 지급한다는 증거는 없었다. 상장 후 60개월의 누적평균초과수익률은 -15%이며, 산업별로 큰 차이가 나타난다. 기간별 누적초과수익률은 기간별 영업성과의 변화와 정의 유의적인 관계를 갖는 것으로 나타났다.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.6
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• pp.133-145
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• 2023

This paper examines whether investors have adapted to the venture capital(VC) investment style. VC firms invest in privately held companies and generate returns by selling them after the lock-up period expires. We analyze the impact on stock prices before and after the lock-up period expiration, and compare the Cumulative Abnormal Return(CAR) between the past period(2015-2017) and the recent period(2020-2022) to investigate the effect of the second venture boom. The main findings are as follows. First, unlike in the past, stock price returns around the lock-up period expiration have been lower than the KOSDAQ index in recent years. Second, the impact on stock prices is significant for both 1-month and 12-month lock-up periods. Specifically, it is confirmed that stocks held by venture capital and professional investors with a 1-month lock-up period respond in advance to their information after the second venture boom. Finally, we find that there is a difference in CAR depending on whether or not the company received VC investment after the second venture boom. Based on our findings, we suggest that VC firms need to revise their exit strategies to improve performance. This includes finding ways to reduce information asymmetry and fees, as well as developing strategies to mitigate market volatility. Additionally, the current lock-up period for VCs should be reconsidered as it may increase the risk of stock price decline. We recommend that the government revise the scope and duration of lock-up periods to protect investors after IPO.

• The Korean Journal of Financial Management
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• v.23 no.2
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• pp.27-56
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• 2006

This paper analyzes whether corporations which have done capital reduction fulfill the objectives of their capital reduction as planned and also asks how did the capital reduced corporations fare in terms of stock returns, by investigating the capital reduced corporations on the Exchange and the Kosdaq between 2000 and 2004. Most capital reduced companies aim to improve their capital structure. Debt to Equity ratio among financial ratios has improved significantly after capital reduction, yet the profitability of corporations wasn't up to expectations. The analysis of cumulative abnormal returns (CARs) indicates that the CARs were below '0' during whole investigation period. Besides, the CARs of companies listed on the Kosdaq have plummeted to -53.5%. Half of the companies on the Kosdaq in this sample which have reduced their capital to avoid delisting have been eventually delisted after capital reduction. This Study concludes that simple capital reduction without having value-added projects is not beneficial to shareholders.

• Korea Trade Review
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• v.41 no.1
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• pp.67-90
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• 2016

This study examines whether there is any significant relation between executive compensation and future firm performance for the Korean export manufacturing small and medium-sized firms. We sorted the whole sample firms into the sub-groups of 10 deciles by firm size and the KSIC standard. We found the following empirical results. First, Korean export manufacturing small and medium-sized firms typically showed lower or even negative profitability in terms of return on equity and operating profit ratio to sales. Foreign equity ownership is very low with an average of 3.77%. Second, for the firms with higher ratio of excess executive compensation to asset had lower future firm performance. It implies that the typical owner-manager in Korean export manufacturing SMEs earns excess pay, but do not contribute much to firm performance. Third, as for future cumulative abnormal returns for future one- and three-year periods, firms with higher owner-executive pay had lower returns compared with firms with lower pay. So the stock market investors set a lower value on them. Fourth, there is a positive relation between excess executive pay and executive overconfidence, and it implies that owner-CEOs with higher pay may become overconfident, thereby lowering future firm performance somehow.

• The Korean Journal of Financial Management
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• v.12 no.1
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• pp.187-210
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• 1995

본고(本槁)에서는 영국기업의 최초공모주를 이용하여 최초공모주(最初公募株) 시장(市場)에 나타나는 3가지 이례현상(異例現象) 즉 단기(短期)에 있어 최초공모주의 저가발행현상(低價發行現象), 장기(長期)에 있어 최초공모주의 저성과현상(低成果現象) 그리고 hot issue market 존재를 분석하고 있다. 이러한 분석은 주로 미국(美國) 발행시장(發行市場)을 대상으로 이루어져 왔는바, 시장의 효율성 측면에서 비슷한 수준을 유지하고 있는 영국(英國)의 증권시장(證券市場)에서도 이러한 현상이 나타나는지를 조사해보는 것은 의미가 있을 뿐만아니라 이러한 현상이 다른 시장에서도 통상 나타나는 현상인지를 밝히는데도 의의가 있다고 보여진다. 영국(英國)의 최초공모주(最初公募株) 시장(市場)에서의 3가지 이례현상(異例現象)을 분석하기 위해 우선 거래 첫날의 시장조정수익률(市場調整收益率)을 계산하여 신규공모주가 시장가격에 비해 할인(割引)되어 발행되는지를 조사한 결과 시장가격에 비해 12.88% 정도 할인발행되고 있음이 밝혀졌다. 단기의 저가발행현상(低價發行現象)과는 달리 신규공모주가 시장에 상장된지 3년이 경과한 후 추정된 장기투자수익률(長期投資收益率)은 12.05%의 부(負)의 누적초과수익률(累積超過收益率)을 시현하고 있는데 이는 과잉반응가설(過剩反應假說)에 의해 설명되고 있다. 끝으로 1987년의 최초공모주가 다른 연도에 비해 다섯배 정도로 저가발행되고 있음을 밝힘으로써 영국발행시장(英國發行市場)에도 hot issue market 현상이 나타남을 분석하고 있다.

• The Journal of Information Technology
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• v.7 no.1
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• pp.1-22
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• 2004

This study examine the effects of changes in the dividend income tax rates, the corporate dividend policy, and the ownership structure on the stock valuation. The empirical findings indicate that : (1)firm's ownership structure is positively correlated with stock return ; (2) the interaction of firm's ownership structure and the dividend policy is positively correlated with stock return ; (3) the interaction of the changes in the dividend income tax rates and dividend policy is correlated with stock return ; (4) the interaction of the changes in the dividend income tax rates and firm's ownership structure is correlated with stock return ; (5) the interaction of the increases in the dividend income tax rates, firm's ownership structure, and the dividend policy is positively correlated with stock return. This suggests that non-taxing of capital gains provide tax shelters to individual investors and investors prefer non-taxing income to dividend income.

• Management & Information Systems Review
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• v.28 no.1
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• pp.25-44
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• 2009

This study examines long term performance of initial public offerings(IPO) after book building was introduced in KOSDAQ market. We use event time portfolio approach and calendar time portfolio approach to test if the performance of IPO is fair or not in long term. We estimate the performance by using the BHAR(buy and hold abnormal return), CAR(cumulative abnormal return), WR(wealth relatives) model in event time portfolio approach. And we calculate the performance by using Fama-French three factor model, CTAR(calendar time abnormal return), RATS(Return Across Time and Securities approach) model in calendar time portfolio approach. This study shows that the long term performance of IPO is positive with statistical significance as the results of the analysis through the various research method and all windows in all kinds of firms and total firms.

• Management & Information Systems Review
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• v.28 no.4
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• pp.155-174
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• 2009

The purpose of this paper is to analyze the stock market performances CAR of reorganized firms and study the disclosure effect of completion of reorganization to examine whether there exists significant economic merit for the institutionalized continuation of unprofitable firms. The main results of this paper can be summarized as follows. First, the average stock market performances for +12 months after the completion of reorganization compared to those for -6 months before the proposal of reorganization show consistently negative returns. Second, to see whether there exist significant differences between the stock market performances of reorganized firms and those of normal firms with similar characteristics, CAR's measured from -6 months before the proposal of reorganization to +12 months after the completion of reorganization are statistically tested, which results in significantly negative values starting +5 months after the completion of reorganization. Finally, to see the disclosure effect of the news of completion of reorganization, daily CAR's are measured and tested, which shows positive values only for -20 days and -19 days before the disclosure, and shows negative values for the whole periods up to +20 days after the disclosure. The results of the paper imply consistently that the reorganized firms have no better performances compared to the similar normal firms, and the performances do not improve even after the completion of reorganization, which casts serious doubts upon the current forms of the institutionalized continuation of unprofitable firms.

• The Korean Journal of Financial Management
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• v.20 no.1
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• pp.233-260
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• 2003

This paper compares the underpricing of IPOs listed on KOSADQ with that of IPOs listed on KSE. When we consider the last day of upper price limit of IPOs, IPOs on KSE show higher initial excess return than IPOs on KOSDAQ. And AR2 which is the abnormal return based on the stock price of the last day recording upper limit after listing, IPOs on KOSDAQ exhibit larger abnormal return than IPOs on KSE. Our study also reports that the long-term performance of IPOs in two markets does not show any difference. That is, IPOs of both markets under performed in the long-run. The wealth relatives of IPOs are a little higher than market portfolio. We explored the reasons of the underpricing of IPOs in both markets through the multiple regression analysis. The business history is examined asstatistically significant variable to explain the underpricing.