Foreign investor behavior in Korea after the 1997 Asian financial crisis
- Authors
- 조용민
- Issue Date
- 12월-2017
- Publisher
- ACADEMIC PRESS INC ELSEVIER SCIENCE
- Keywords
- 1997 Asian financial crisis; Foreign investors; Investment pattern; Investment performance; Size cutoff
- Citation
- JOURNAL OF THE JAPANESE AND INTERNATIONAL ECONOMIES, v.46, pp.69 - 78
- Indexed
- SSCI
SCOPUS
- Journal Title
- JOURNAL OF THE JAPANESE AND INTERNATIONAL ECONOMIES
- Volume
- 46
- Start Page
- 69
- End Page
- 78
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/139801
- DOI
- 10.1016/j.jjie.2017.10.002
- ISSN
- 0889-1583
- Abstract
- In this study, we investigate the behavior of foreign investors in the Korean stock market after the 1997 Asian financial crisis (1999-2014). We analyze the industrial distribution of foreign ownership and find that foreign investors hold fewer stocks in the manufacturing sectors than in the non-manufacturing sectors. We also find that foreign equity investments are concentrated in firms above a certain size. Moreover, foreign investors show a preference for large, profitable, highly liquid, and growth firms, as well as firms with large boards. However, after controlling for other firm-specific factors, we find that chaebol (Korean business group) firms are not more attractive to foreign investors than non-chaebol firms. Finally, we show that foreign investors achieve success as financial investors in Korea. (JEL F21, G11, G15)
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Collections - College of Global Business > Division of Convergence Business > 1. Journal Articles
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