Article
Can We Learn From Lessons of the Past? A Closer Examination of the Corporate Policy Response of Asian Firms Around the Asian Financial Crisis
SSRN
ORCID Identifiers
Document Type
Article
Publication Date
1-1-2020
Abstract
Using a sample of firms from 8 East Asian countries, we document the corporate policy (cash holding, investment, financing, and payout) response to the Asian Financial Crisis of 1997-1998. Following the crisis, we find significant evidence of a build-up of cash holdings, a fall in capital spending, decreases in sourcing funds from capital markets, and a reduction in dividend payout offset with an increase in the use of repurchases. Our results suggest that such corporate policies used by Asian firms were designed to improve their financial strength by increasing financial flexibility.
DOI Link
Disciplines
Keywords
- Asian Financial Crisis,
- Emerging countries,
- Financing constraints,
- Cash reserve policy,
- Investment decisions,
- Financing decisions,
- Payout policy
Indexed in Scopus
No
Open Access
No
https://doi.org/10.2139/ssrn.3517205
Citation Information
Jin Young Yang and Reuben Segara. "Can We Learn From Lessons of the Past? A Closer Examination of the Corporate Policy Response of Asian Firms Around the Asian Financial Crisis" SSRN (2020) Available at: http://works.bepress.com/jin-young-yang/11/