%0 Journal Article %1 Bae2008 %A Bae, Gil S. %A Cheon, Youngsoon S. %A Kang, Jun-Koo %D 2008 %J Review of Financial Studies %K corea diversificacion finanzas ingresos %N 5 %P 2015-2060 %T Intragroup Propping: Evidence from the Stock-Price Effects of Earnings Announcements by Korean Business Groups %V 21 %X Using earnings announcement events made by firms belonging to Korean chaebols, we examine propping within a chaebol. Consistent with the market's ex ante valuation of intragroup propping, we find that the announcement of increased (decreased) earnings by a chaebol-affiliated firm has a positive (negative) effect on the market value of other nonannouncing affiliates. The sensitivity of the change in the market value of nonannouncing affiliates to abnormal returns for the announcing firms is higher if the cash flow right of the announcing firm's controlling shareholder is higher. The sensitivity is also higher if the announcing firm is larger, performs well, and has a higher debt guarantee ratio.

@article{Bae2008, abstract = {Using earnings announcement events made by firms belonging to Korean chaebols, we examine propping within a chaebol. Consistent with the market's ex ante valuation of intragroup propping, we find that the announcement of increased (decreased) earnings by a chaebol-affiliated firm has a positive (negative) effect on the market value of other nonannouncing affiliates. The sensitivity of the change in the market value of nonannouncing affiliates to abnormal returns for the announcing firms is higher if the cash flow right of the announcing firm's controlling shareholder is higher. The sensitivity is also higher if the announcing firm is larger, performs well, and has a higher debt guarantee ratio.}, added-at = {2011-11-13T04:52:20.000+0100}, author = {Bae, Gil S. and Cheon, Youngsoon S. and Kang, Jun-Koo}, biburl = {https://www.bibsonomy.org/bibtex/26a52ce21e17bfd0e568b4bbf59e21705/edwardyanquen}, interhash = {3b9db2fba833f354231d5352185ad35f}, intrahash = {6a52ce21e17bfd0e568b4bbf59e21705}, journal = {Review of Financial Studies}, keywords = {corea diversificacion finanzas ingresos}, note = {Keywords: Earnings; Firm; Firms; Shareholder; Geographic Descriptors: S. Korea; Geographic Region: Asia; Publication Type: Journal Article; Update Code: 200811}, number = 5, pages = {2015-2060}, timestamp = {2011-11-13T04:52:20.000+0100}, title = {Intragroup Propping: Evidence from the Stock-Price Effects of Earnings Announcements by Korean Business Groups}, volume = 21, year = 2008 }