Internal Transaction and Firm Value with Governance and Diversification Perspectives

• 발행기관: 한국자료분석학회
• 저자명: Jangwoo Lee Su-Hui Nam
• 간행물 정보: 『Journal of The Korean Data Analysis Society (JKDAS)』Vol.12 No.4, 1775~1784쪽, 전체 10쪽
• 주제분류: 자연과학 > 통계학
• 파일형태: PDF
• 발행일자: 2010.08.30

영문 초록

Internal transactions prohibit competitive market pricing mechanism and pervert efficient allocation of corporate resources, and consequently hurt firm value. Most extant theories or empirical researches advance concordant evidence. We test if internal transaction - whether it is financial or physical - hurts firm value. What is unique with our approach is that we divide internal transactions into two categories: financial vs. physical transactions. We focus on highly diversified firms, which are mostly chaebol affiliated firms in Korea. Our results show that internal transaction, especially physical internal transaction, is significantly and negatively related to firm value, supporting our hypothesis. Financial internal transaction shows no significance against firm value. Further, diversification is shown to be adversely associated with firm value.

목차

Ⅰ. Introduction and Motivation

Ⅱ. Literature Review and Building Testable Hypotheses

Ⅲ. Data and Test Methodology

Ⅳ. Empirical Analysis and Results

Ⅴ. Conclusion and Discussion

References

키워드

financial internal transaction physical internal transaction firm value Tobin s Q chaebol affiliation diversification