← Search

Journal of Financial Stability Vol. 73 2024

Corporate disclosure behavior during financial crises: Evidence from Korea

Yeonghyeon Kim1; Junyong Lee2,3; Kyounghun Lee3; Frederick Dongchuhl Oh4

1 Financial Engineering Center, Korea Asset Pricing, 11th floor, 75 Yulgok-Ro, Jongno-Gu, Seoul 03058, South Korea · 2 Kookmin University · 3 Korea Institute of Finance · 4 Seoul National University

Abstract

We examine corporate disclosure patterns according to changes in firm states during financial crises in Korea. Using panel data on Korean listed firms from 1995 to 2019, we first confirm that they transparently (opaquely) disclose information when the change in return on assets is positive (negative) during crises. Moreover, we check that these disclosure patterns increase debt financing but are ineffective for equity financing. Finally, for chaebols with internal capital markets, we find that internal capital receivers provide transparent (opaque) disclosure of negative (positive) changes in their states. By contrast, providers show the opposite patterns.

DOI
10.1016/j.jfs.2024.101298
Volume
73
Pages
101298
Language
en
Sources
openalex crossref bibtex:phds-export.bib

Cite