Click here for search results
Financial policy and corporate investment in imperfect capital markets : the case of Korea, Volume 1
 
Author:Dailami, Mansoor; Collection Title:Policy, Research and External Affairs working papers ; no. WPS 409
Country:Korea, Republic of; Date Stored:1990/04/01
Document Date:1990/04/30Document Type:Policy Research Working Paper
SubTopics:Environmental Economics & Policies; International Terrorism & Counterterrorism; Economic Theory & Research; Banks & Banking Reform; Financial IntermediationLanguage:English
Major Sector:FinanceRegion:East Asia and Pacific
Report Number:WPS409Sub Sectors:Capital Markets Development
Volume No:1  

Summary: Central to the effectiveness of financial policies geared towards promoting real business investment is the interaction between corporations' financing and investment decisions. The objectives of this paper are twofold : 1) develop an integrated approach towards the problem of optimal corporate real investment and finance in the context of a financial model of a developing economy characterized by credit rationing, controlled banking sector and an organized equity market; and 2) apply the model to the nonfinancial corporate sector of the economy. The paper is organized as follows : Section I is the introduction; Section II describes the theoretical model of companies' optimal investment and financing behavior ( Tobin's Q approach ), but extended to incorporate some important tax and financial features of the economy; Section III discusses the estimation of the model, with annual data from 1963 to 1986; Section IV concludes with a brief discussion of some relevant policy implications and lessons.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 40 pagesOfficial version*2.8 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/QT5NJ4ZZR1