This paper provides new evidence on the relationship between internal capital markets and corporate investment by … exploiting an exogenous event and an unique empirical setting. We do so by comparing the investment behavior of Korean business … than non-chaebol firms in the control group in the aftermath of the crisis. This difference in investment behavior does not …

It is well understood that investment serves as a shock absorber at the time of crisis. The duration of the drag on … investment, however, is perplexing. For the nine Asian economies we focus on in this study, average investment/GDP is about 6 … between the sustained reserve accumulation and the persistent and significantly lower levels of investment in the region. Put …