S-Space College of Business Administration/Business School (경영대학/대학원) Dept. of Business Administration (경영학과) Seoul Journal of Business Seoul Journal of Business Volume 04, Number 1 (1998)
The Association of Firm Risk Measures and Accounting Information in the Korean Capital Market
- Lee, ChangWoo; Kim, Kapsoon
- Issue Date
- Seoul Journal of Business, Vol.4 No.1, pp. 57-78
- The purpose of this study is to investigate and document an empirical
relation between the risk of a firm and firm-specific information such as
financial leverage and other variables in the Korean capital market.
The results indicate that in the Korean capital market, the working
capital position and firm size are positively associated with various risk
measures. For the financial leverage variable, we observe inconsistent
results with respect to different risk measures; financial leverage and
total risk are positively associated, while financial leverage and
systematic risk are negatively associated. It is interesting, therefore,
that the Korean market exhibits somewhat different features from those
found in U.S. empirical results and in the theory of finance.