New Issues in Emerging Markets: Determinants, Effects, and Stock Market Performance of IPOs in Korea

Stephen Smith and Hesuk Chun

Journal of Emerging Market Finance, 2003, vol. 2, issue 3, 253-285

Abstract: This article investigates why Korean companiesgo public and their subsequent performance. Ex ante and ex post evidence suggests firms do notgo public to fund investment in fixed assets. Financially marginal firms are more likely to go public to take advantage of windows of opportunity. Financially healthier independents also go public to rebalance their portfolios. Chaebol (conglomerate) subsidiaries apparently use initial public offerings (IPOs) to fund equity investments and take advantage of windows of opportunity. Buy- and-hold returns show Korean IPOs outperformed the stock market—with the divergence widening over time—in contrast to developed markets.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/097265270300200301 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:emffin:v:2:y:2003:i:3:p:253-285

DOI: 10.1177/097265270300200301

Access Statistics for this article

More articles in Journal of Emerging Market Finance from Institute for Financial Management and Research
Bibliographic data for series maintained by SAGE Publications ().