Detailed Information
Cited 0 time in 
Cited 0 time in 
Cited 0 time in
Metadata Downloads
Financialization and the Slowdown in Korean Firms' R&D Investment
- Authors
- Seo, Hwan Joo; Kim, Han Sung; Kim, Yoo Chan
- Issue Date
- Oct-2012
- Publisher
- MIT Press
- Keywords
- CAPITAL ACCUMULATION; FINANCIALISATION; SHAREHOLDER VALUE; CORPORATE GOVERNANCE
- Citation
- Asian Economic Papers, v.11, no.3, pp 35 - 49
- Pages
- 15
- Indexed
- SSCI
SCOPUS
- Journal Title
- Asian Economic Papers
- Volume
- 11
- Number
- 3
- Start Page
- 35
- End Page
- 49
- ISSN
- 1535-3516
1536-0083
- Abstract
- This study investigates the effects of financialization on research and development (R&D) investment by nonfinancial corporations (NFCs) in Korea from 1994 to 2009. The results indicate that increased dividend payments and stock buybacks impeded R&D investment by reducing internal funds and planning horizons. In addition, increased financial investment and profit opportunities crowded out R&D investment by influencing managers' incentives. Further, estimation results obtained by dividing the sample period into before and after the 1997-98 Asian financial crisis (AFC) indicate that the progress of financialization had a negative effect on R&D investment only after the AFC.
- Files in This Item
- Go to Link
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.
Related Researcher
- SEO, Hwan Joo
- COLLEGE OF BUSINESS AND ECONOMICS (DIVISION OF BUSINESS ADMINISTRATION)