Korean Banks Research Articles

Returns to Acquirers and Competition in the Acquisition Market: The Case of Banking

In this paper we examine the effect of competition in the market for bank acquisitions on the acquirers' stock returns. Bank acquisitions are examined because federal and state regulations greatly facilitate the identification of potential bidders and alternative targets in an acquisition. We find that the gain to acquirers is positively related to the number of alternative target firms available and negatively related to the number of other potential bidders. These results provide some insights into the sources of gains from bank acquisitions.

Foreign direct investments by Korean firms: An analysis with FDI theories

This paper analyzes data on foreign direct investment (FDI) by Korean firms in the light of eight propositions drawn from the literature on FDI which includes both the theoretical and empirical findings of studies on FDI by Third World Multinational Corporations (MNCs). The data concern FDI in manufacturing, natural resources, construction, banking and other industries. The propositions examined include the nature of ownership advantages, the trade-orientation of FDI, and motivations behind the overseas expansion of Korean banks. In addition, the geographical distribution and ownership patterns which arise as a result of these variables are also examined. The findings are generally consistent with many of those in previous theoretical and empirical studies and suggest that an eclectic approach, incorporating many explanatory variables, could adequately explain the patterns in Korean outward FDI.

Korean Bank in the Continental Policy

Korean Bank in the Continental Policy