Government-owned Bank Relationships and Firm Performance

정부소유 은행관계와 기업 경영성과

This paper examines the relationships between the Korean government-owned banks and the firm performance. We investigates this empirical analysis using a data set containing virtually all Korean publicly listed firms for the period of 2004-2006. We find the negative relationships between government-owned banks and firm performance. The strong relationships between the Korean government-owned banks and the Korean listed firms may lower firm performance. The Hold up costs may be present in the government-owned bank relationships. The government-owned bank relationships in the Korean listed firms may could shape the negative management decisions and firm performance. On the lines of concerns on the impact of government banks, this paper will provide new evidences on the impact of government-ownership of banks on the Korean Economy. Particularly, empirical analyses in this paper revealed new evidences on the recent firm-bank relationship or government banks researches.