Transforming Korean business? Foreign acquisition, governance and management after the 1997 Asian crisis

Cross-Market Herding: Do ‘Herds’ Herd with Each Other?

“…If so, and given retail traders' noise trading tendencies, this may imply greater potential for herding (particularly so in emerging markets -see the discussion in the previous section). In addition, many of our sample markets tend to accommodate concentrated corporate structures in the form e.g., of interfirm networks (keiretsu) in Japan (Kim and Nofsinger, 2001) or conglomerates (chaebol) in South Korea (Fitzgerald and Kang, 2022) and this may prompt greater response to foreign markets' signals, if news related to those corporate formations' sectors arrives from overseas markets (and potentially foments cross-market herding in their stock markets).…”

May intellectual capital and corporate governance reduce the probability of financial distress?

“…Intellectual capital is strategically increases growth opportunities and creates corporate value (Sardo et al, 2018;Xu & Liu, 2020). Companies technically use IC to create innovations that enable companies to outperform competitors and improve financial performance (Fitzgerald & Kang, 2022). IC exponentially increasescorporate value by responding to customer needs exploring, and taking advantage of market opportunities (Ibrahim, 2019).…”