콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Industry and Technology Entrepreneurship

Print

Characteristics and economic efficiency of the venture companies in Korea : Comparison with the Chaebols and other traditional firms

Related Document
Frame of Image
  • Characteristics and economic efficiency of the venture companies in Korea
  • Lee, Keun; Kim, Sungsoo
  • Seoul Journal of Economics


link
Title Characteristics and economic efficiency of the venture companies in Korea
Similar Titles
Sub Title

Comparison with the Chaebols and other traditional firms

Material Type Articles
Author(English)

Lee, Keun; Kim, Sungsoo

Publisher

[Seoul]:Seoul Journal of Economics

Date 2000
Journal Title; Vol./Issue Seoul Journal of Economics:vol. 13(no. 3)
Pages 26
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Industry and Technology < Entrepreneurship
Holding Seoul National University

Abstract

This paper focuses on the emergence of a new style of firms in the Korean economy, so-called venture companies, and provides a comparative analysis of the behavior and economic efficiency of the venture companies relative to chaebols and other old firm s listed in the Korea Stock Exchange. The paper employs an econometric technique to compare the productive efficiency of ventures, chaebols and non-chaebol firms in Korea, using panel data covering the 1996-9 period. The paper finds that the average level of productive efficiency of the ventures is the highest among the four types of firms compared, such as chaebols and non-chaebols in the KSE, and non-ventures in the Kosdaq market. The efficiency comparison suggests the following order of efficiency among the four subgroups of firms from the best to the worst; ventures, non-ventures, non-chaebols, and chaebols. The paper also finds that the estimated productive efficiency is an important determinant of profitability. When we control for productive efficiency, the capital-labor ratio, the debt-equity ratio, and asset growth, ventures' profitability is shown to be significantly higher than that of others firms.