À繫¿¬±¸ Á¦ ±Ç È£ (2016³â 5¿ù)
Asian Review of Financial Research, Vol., No..
pp.317~362
pp.317~362
Country-specific growth opportunities, within-country heterogeneity, and the role of financial globalization
Dong Wook Lee Korea University Business School, Seoul, Korea, The Ohio State University, Columbus, OH, USA
Lingxia Sun Korea University Business School, Seoul, Korea
Using data for 53,365 firms from 40 countries over the period of 1991-2012, we examine the extent to which a firm¡¯s growth opportunities are country-specific, with particular focus on its cross-firm difference within a country. We find that country-specific growth opportunities (CSGOs) are much more pronounced in small companies than in large firms. We also find that the CSGOs -- especially those for small firms -- decrease as the country becomes more open financially. The exact opposite pattern exists in the industry-specific components in corporate growth options, as they increase with the country¡¯s financial openness, especially for small firms. The results indicate that financial globalization helps corporate growth opportunities to be priced globally than locally and reduces the within-country heterogeneity.
Dong Wook Lee
Lingxia Sun
Using data for 53,365 firms from 40 countries over the period of 1991-2012, we examine the extent to which a firm¡¯s growth opportunities are country-specific, with particular focus on its cross-firm difference within a country. We find that country-specific growth opportunities (CSGOs) are much more pronounced in small companies than in large firms. We also find that the CSGOs -- especially those for small firms -- decrease as the country becomes more open financially. The exact opposite pattern exists in the industry-specific components in corporate growth options, as they increase with the country¡¯s financial openness, especially for small firms. The results indicate that financial globalization helps corporate growth opportunities to be priced globally than locally and reduces the within-country heterogeneity.