The Role of Second-Tier Exchange in Corporate Valuation: Evidence from Korea*The Role of Second-Tier Exchange in Corporate Valuation: Evidence from Korea
- Other Titles
- The Role of Second-Tier Exchange in Corporate Valuation: Evidence from Korea
- Authors
- Choi, H.; Lee, D.W.
- Issue Date
- 2021
- Publisher
- John Wiley and Sons Inc
- Keywords
- Growth; Intangibles; Korea; Second-tier exchange; Valuation
- Citation
- Asia-Pacific Journal of Financial Studies, v.50, no.6, pp.623 - 658
- Indexed
- SSCI
SCOPUS
KCI
- Journal Title
- Asia-Pacific Journal of Financial Studies
- Volume
- 50
- Number
- 6
- Start Page
- 623
- End Page
- 658
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/138454
- DOI
- 10.1111/ajfs.12353
- ISSN
- 2041-9945
- Abstract
- Using data from Korea, we show that the second-tier exchange—also known as the entrepreneurial market—assigns higher valuations to growth-oriented (i.e. small yet intangibles-rich) companies despite their low profitability. Such “growth” valuation is most pronounced among companies in an earlier stage of their life cycle as proxied by dividend payments (i.e. dividend non-payers). Further analysis confirms that the valuation in the second-tier exchange facilitates access to capital and investments—especially in intangible assets—by the early-stage growth companies who would not have made it to public equity markets without the second-tier exchange. © 2021 Korean Securities Association
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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