Sources of Corporate Financing and Economic Crisis in Korea: A Micro-evidence / Youngjae Lim.

Format:

Book

Author/Creator:

Lim, Youngjae.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w9575.

NBER working paper series no. w9575

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Sources of Corporate Financing and Economic Crisis in Korea

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2003.

Summary:

Using the firm-level data set, the paper attempts to examine the dynamic patterns in the allocation of credit across firms in recent Korea. In particular, the paper examines the dynamic patterns in the allocation of credit across large and small firms before and after the crisis. The data suggest that large firms, to some extent, are leaving banks and going to the capital market for their financing after the crisis. The data also suggest that profitable small firms are gaining easier access to the credit from financial institutions after the crisis. Is this shift (in the allocation of bank credit from large firms to small firms) due to lenders' choice or due to borrowers' changed incentives? The paper suggests that the improved lending practices of banks, at least partially, contributed to this shift of bank credit from large firms to small firms.

Notes:

Print version record

March 2003.