Work

The Change in Corporate Transparency of Korean Firms After the Asian Financial Crisis: an analysis using analysts' forecast data

Year: 2007

Type: article

Abstract: Using analysts' forecast error and forecast dispersion of firms covered by the I/B/E/S database, this study examines the change in information asymmetry of Korean firms around the financial crisis of 1997. Results show that the information asymmetry of Korean firms is lower after the financial crisis than before, implying that corporate transparency did, in effect, improve with the change in business environment. In addition, this study finds that chaebol firms have higher information asymmetry than non‐chaebol firm, and also that the corporate transparency improvement of chaebol firms is not higher than that of non‐chaebol firms in the post‐crisis period despite the reforms particularly targeted to chaebol firms after the financial crisis.

Source: Corporate Governance An International Review

DOI: 10.1111/j.1467-8683.2007.00637.x

Authors: Jinho Chang, Young Jun Cho, Hyun‐Han Shin

Institutions: Yonsei University, Cornell University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

Funder: Yonsei University