Financial crisis and relative productivity dynamics in Korea: evidence from firm-level data (1992–2003)

Rhee, Keun Hee; Pyo, Hak K.

doi:10.1007/s11123-010-0177-z

Cited by 10 publications

(3 citation statements)

References 28 publications

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“…A second unique characteristic of Korean firms regarding multinationality is that Korea experienced a turbulent currency crisis in 1997 and 1998 and a global financial crisis in 2008, and many firms went bankrupt during this period. In particular, after the currency crisis, Korean firms had considerable productivity growth because they employed efficiency-oriented strategies, and the export-oriented firms achieved more growth than the domestic firms (Rhee and Pyo, 2010). Ahn et al (2005) find that internationalization has a positive association with productivity growth.…”

Section: The Multinationality Of Korean Firmsmentioning

confidence: 99%

Value Relevance of Multinationality: Evidence from Korean Firms

Lee

Kim

Davidson

2015

Financ Manag Account

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The purpose of this study is to examine the valuation effects of multinationality in Korean firms and to identify the role of multinationality in internalization theory. We hypothesize that the market positively values the multinational activities of Korean firms, which are operating in a small open economy in which firms have strong motivations for internationalization. We use Ohlson's (1995, Contemporary Accounting Research, 11, 661) value model and document the positive effect for multinational firms compared to domestic firms, as well as the positive effect of multinationality on firm value. These results are robust across studies, as indicated by Tobin's q measure, as well as across years. We also hypothesize that multinationality mediates or moderates the relationship between intangibility and firm value that is proposed in internalization theory. We do not find supporting evidence for a mediated influence of intangibility through multinationality on firm value nor for a moderated influence of intangibility on firm value. We find that multinationality and intangibility directly and independently influence firm value, without any interference from each other. These results are also robust across studies, as indicated by Tobin's q measure. Finally, we find that multinationality in Korean firms has never lost its importance, even during the global financial crisis in the year 2008.

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Section: The Multinationality Of Korean Firmsmentioning

confidence: 99%

Value Relevance of Multinationality: Evidence from Korean Firms

Lee

Kim

Davidson

2015

Financ Manag Account

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“…It must be admitted that the issues and problems related to the labour productivity in various eras of economic cycle (for example, in the post-crisis period) are relatively uncovered topic in economic literature. Most of the studies devoted to post-crisis effects are devoted to the Asian economic crisis (as Rhee & Pyo (2010) on Korea's crisis) or the Russian crisis (as Ahrend (2006)). It is most noticeable when specific countries are being investigated regarding the more recent economic crisis.…”

Section: Introductionmentioning

confidence: 99%

Labour Productivity and Economic Growth in the Eu in Post-Crisis Period

Auziņa-Emsiņa

2014

ecoman

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Labour productivity and economic growth are the major factors to sustain and improve the performance and competitiveness of countries. The paper is devoted to the analysis of recent trends of labour productivity and economic growth in the European Union (EU) countries in post-crisis period in comparison with the trends in pre-crisis and crisis periods. The paper analyses the impact of changes in labour productivity and the effect on the macroeconomic indicators. The research focuses on the European Union countries that experienced the most severe crisis and afterwards the most rapid recovery in post-crisis period (as Latvia, Lithuania, and Estonia). The research findings argue that there are weak or no relations between productivity increase and economic growth in pre-crisis period and the first phase of post-crisis period; however, the increase of productivity during the crisis is a significant driver of the economy after a period of time. The research covers the time period from 2004 to 2012 that can be subdivided into three periods -2004-2007 (precrisis), 2008-2010 (crisis) and starting from 2011 (post-crisis). It should be stressed that "precrisis" period is defined only for research purposes (to compare pre and post-crises periods) and it is not an official definition of this time period, as well economic cycles strongly vary amid the countries.

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“…Companies have substantially reduced their investments in the aftermath of the crisis, such as research and development (R&D) spending, logistics costs, and administrative expenditures. However, the dynamics of the corporate-level performance growth can reflect the pattern of the firms' reaction at the financial crisis moment (Rhee and Pyo 2010). The R&D investment has been considered a crucial ingredient in developing the productivity growth and new competitive advantages (Gupta et al 2007).…”

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confidence: 99%

Financial crisis and the relative productivity dynamics of the biotechnology industry: Evidence from the Asia-Pacific countries

Lü¹,

Shun-Ching²,

Yuan³

2017

AGR ECON-CZECH

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Th e dynamics of the corporate-level performance growth can refl ect the pattern of the fi rms' reaction at the fi nancial crisis moment. We employed the generalized metafrontier Malmquist productivity index to measure the impact of the fi nancial crisis on the productivity of the biotechnology industry by using 68 biotechnology fi rms in the Asia-Pacifi c countries during [2001][2002][2003][2004][2005][2006][2007][2008][2009]. Th e empirical results showed that the fi nancial crisis did not signifi cantly impact productivity changes in the biotechnology industry in the Asia-Pacifi c region. Th is was primarily due to the improvements in effi ciencies of scale and factor inputs reducing the overall impact. We observed a signifi cant decreasing trend for technical changes in developed countries after the fi nancial crisis. Th erefore, how corporations enhance their technical innovation ability is relatively critical. Th e technological catch-up, the potential technological relative change, and the change in technical effi ciency in less-developed countries were poor after the fi nancial crisis. Th is suggests that less-developed countries should improve their technical and effi ciency levels to enhance productivity.

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Financial crisis and relative productivity dynamics in Korea: evidence from firm-level data (1992–2003)

Abstract: Relative TFP, Decomposition of TFP growth, Perpetual Inventory Method, D24, E22, O47,

Cited by 10 publications

References 28 publications

Value Relevance of Multinationality: Evidence from Korean Firms

Value Relevance of Multinationality: Evidence from Korean Firms

Labour Productivity and Economic Growth in the Eu in Post-Crisis Period

Financial crisis and the relative productivity dynamics of the biotechnology industry: Evidence from the Asia-Pacific countries

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