The role of internal capital markets during financial crises: Evidence from Korean chaebols
研究韩国财阀集团在金融危机期间如何通过内部资本市场重新配置资金，降低附属企业破产概率并提升集团整体业绩。
Abstract We examine the effective contribution of internal capital markets (ICMs) within business groups during financial crises, focusing on Korean chaebols. Using panel data on Korean firms, we first confirm that chaebol‐affiliated firms show a lower probability of bankruptcy than stand‐alone firms during crises. We also find that chaebol‐affiliated firms with low bankruptcy risk are more likely to be capital providers, while firms with high growth opportunities but higher bankruptcy risks tend to be receivers in ICMs. Moreover, this capital reallocation contributes to improving post‐crisis group‐level performance. Overall, our study highlights the importance and effectiveness of ICMs for Korean business groups during financial crises.