Skip to main content
SpringerLink
Log in

Corporate Governance and Investment in R&D in South Korea

  • Chapter
Innovation and Technology in Korea

  • 1038 Accesses

The Korean experience has produced a large academic literature. For an early contribution, see Dornbusch and Park (1987) and the references therein.

See Young (1995), who documents the fundamental role played by factor accumulation in explaining the extraordinary postwar growth of Hong Kong, Singapore, South Korea, and Taiwan. He shows that participation rates, educational levels, and (except in Hong Kong) investment rates have risen rapidly in all four economies.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Bond S, Harhoff D, Van Reenen J (1999) Investment, R&D and financial constraints in Britain and Germany. Institute for Fiscal Studies WP 99/05

    Google Scholar 

  • Branch B (1974) Research and development activity and profitability: a distributed lag analysis. Journal of Political Economy 82:999–1011

    Article  Google Scholar 

  • Campbell II TL, Keys PY (2002) Corporate governance in South Korea: the chaebol experience. Journal of Corporate Finance 8:373–91

    Article  Google Scholar 

  • Chang CS, Choi U (1988) Strategy, structure and performance in Korean business groups: A transactions cost approach. Journal of Industrial Economics 37:141–58

    Article  Google Scholar 

  • Chang SJ, Hong J (2000) Economic performance of group-affiliated companies in Korea: intragroup resource sharing and internal business transaction. Academy of Management Journal 43:429–448

    Article  Google Scholar 

  • Chirinko RS (1993) Business fixed investment spending: modeling strategies, empirical results, and policy implications. Journal of Economic Literature 31:1875–1911

    Google Scholar 

  • Cho S, Lee KH, Kwang SW, Kwon OB (1999) A study of rational R&D policy in IT industry. KISDI 99-01

    Google Scholar 

  • Choi JP, Cowing TG (1999) Firm behavior and group affiliation: the strategic role of corporate grouping for Korean firms. Journal of Asian Economics 10:195–209

    Article  Google Scholar 

  • Claessens S, Fan JPH, Lang LHP (2002) The benefits and costs of group affiliation: evidence from East Asia. WP, University of Amsterdam

    Google Scholar 

  • Claessens S, Djankov S, Lang LHP (2000) The separation of ownership and control in East Asian corporations. Journal of Financial Economics 58:81–112

    Article  Google Scholar 

  • Dornbusch R, Park YC (1987) Korean Growth Policy. Brookings Papers on Economic Activity 2:389–454

    Article  Google Scholar 

  • Elliott JW (1971) Funds flow vs. expectational theories of research and development expenditures in the firm. Southern Economic Journal 37:409–422

    Article  Google Scholar 

  • Fazzari SM, Hubbard RG, Petersen B (1988) Financing constraints and corporate investment. Brookings Papers on Economic Activity 2:141–195

    Article  Google Scholar 

  • George R, Kabir R, Qian J (2004) Is investment-cash flow sensitivity a good measure of financing constraints? WP Tilburg University

    Google Scholar 

  • Grabowski H (1968) The determinants of industrial research and development A study of the chemical, drug and petroleum industries, Journal of Political Economy 76:292–306

    Article  Google Scholar 

  • Gugler K, Mueller DC, Yurtoglu BB (2005) Corporate governance and determinants of investment. WP, ECGI

    Google Scholar 

  • Hall B (1992) Investment and research and development at the firm level: does the source of financing matter? NBER WP 4096

    Google Scholar 

  • Hall B, Mairesse J, Branstetter L, Crepon B (1999) Does cash flow cause investment and R&D: an exploration using panel data for French, Japanese and United States Scientific Firms. in D. Audretsch and A. R. Thurik (eds.), Innovation, Industry Evolution and Employment, Cambridge University Press

    Google Scholar 

  • Harhoff D (1998) Are there financing constraints for R&D and investment in German manufacturing firms? Annales d’Economie et de Statistiques 49–50:421–56

    Google Scholar 

  • Himmelberg C and Petersen B (1994) R&D and internal finance: a panel study of small firms in high-tech industries. Review of Economics and Statistics 76:38–51

    Article  Google Scholar 

  • Hoshi T, Kashyap A, Scharfstein D (1991) Corporate structure, liquidity, and investment: Evidence from Japanese industrial groups. Quarterly Journal of Economics 106:33–60

    Article  Google Scholar 

  • Hubbard RG (1998) Capital market imperfections and investment. Journal of Economic Literature 36:193–225

    Google Scholar 

  • Joh SW (2003) Corporate governance and firm profitability: evidence from Korea before the economic crisis. Journal of Financial Economics 68:287–32

    Article  Google Scholar 

  • Kamien MI, Schwartz NL (1982) Market structure and innovation. Cambridge: Cambridge University Press

    Google Scholar 

  • Kaplan SN, Zingales L (1997) Do investment-cash flow sensitivities provide useful measures of financing constraints? Quarterly Journal of Economics 112:169–215.

    Article  Google Scholar 

  • Khanna T, Palepu K (1997) Why focused strategy may be wrong in emerging markets. Harvard Business Review 75:41–51

    Google Scholar 

  • Kim DY, Lee YS (1993) A study of corporate R&D investment model in Korea. Economic Study 41:141–159

    Google Scholar 

  • Kyong-ae C (2005) Korea tops in R&D investment growth. The Korea Times (10-24-2005).

    Google Scholar 

  • Lee MH, Hwang J (2003) Determinants of corporate R&D investment: an empirical study comparing Korea’s IT Industry with its non-IT Industry. ETRI Journal 25:258–265

    Google Scholar 

  • Mueller DC (1967) The firm’s decision process: an econometric investigation. Quarterly Journal of Economics 81:58–87

    Article  Google Scholar 

  • Mueller DC (2003) The corporation: investment growth, and mergers. Routledge

    Google Scholar 

  • Perotti E, Gelfer S (2001) Red barons or robber barons? governance and financing in Russian FIGs. European Economic Review 45:1601–1617

    Article  Google Scholar 

  • OECD (2002) Economic Survey of Korea

    Google Scholar 

  • Scherer FM (1965) Firm size, market structure, opportunity, and the output of patented inventions. American Economic Review 55:1097–1125.

    Google Scholar 

  • Schiantarelli F (1996) Financial constraints and investment: Methodological issues and international evidence. Oxford Review of Economic Policy 12:70–89

    Article  Google Scholar 

  • Sigelman L, Zeng L (1999) Analyzing censored and sample-selected data with tobit and heckit models. Political Analysis 8:167–182

    Google Scholar 

  • Singh A, Zammit A (2006) Corporate governance, crony capitalism and economic crisis: should the US business model replace the Asian way of “doing business”? Corporate Governance: An International Review 14:220–233

    Article  Google Scholar 

  • Shin HH, Park YS (1999) Financial constraints and internal capital markets: evidence from Korean chaebols, Journal of Corporate Finance 5:169–91

    Article  Google Scholar 

  • Switzer L (1984) The determinants of industrial R&D: a funds flow simultaneous equation approach. Review of Economic and Statistics 66:163–168

    Article  Google Scholar 

  • Walker M (2001) Internal capital markets and investment efficiency: evidence from Japanese groups. WP Krannert School of Management Purdue University

    Google Scholar 

  • Wiwattanakantang Y (forthcoming) The equity ownership structure of thai firms. in Fan JPH, Hanazaki M, Teranishi J (Eds.), Designing financial systems in East Asia and Japan-toward a twenty-first century paradigm, Routledge

    Google Scholar 

  • Yeh YH, Lee TS, Woidtke T (2001) Family control and corporate governance: evidence from Taiwan, International Review of Finance 2:21–48

    Article  Google Scholar 

  • Young A (1995) The tyranny of numbers: confronting the statistical realities of the East Asian growth experience, Quarterly Journal of Economics 110:641–80

    Article  Google Scholar 

  • Yurtoglu BB (2006) Firm-level profitability, liquidity, and investment. in Altug S, Filiztekin A (Eds) The Turkish Economy: The Real Economy, Corporate Governance, and Reform, 172–198, RoutledgeCurzon Studies on Middle Eastern Economics

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, University of Vienna, Austria

    B. Burcin Yurtoglu (Associate Professor)

Authors
  1. B. Burcin Yurtoglu
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Austrian Economic Chamber, Wiedner Hauptstraße 63, 1045, Vienna, Austria

    Jörg C. Mahlich

  2. East Asian Economic Studies, University of Duisburg-Essen, Forsthausweg 2, Gebäude LE 705, 47048, Duisburg, Germany

    Werner Pascha

Rights and permissions

Reprints and permissions

Copyright information

© 2007 Physica-Verlag Heidelberg

About this chapter

Cite this chapter

Yurtoglu, B.B. (2007). Corporate Governance and Investment in R&D in South Korea. In: Mahlich, J.C., Pascha, W. (eds) Innovation and Technology in Korea. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-1914-4_6

Download citation

Publish with us

Policies and ethics

Search

Navigation