주식담보대출과 보유현금가치

초록

[Purpose] According to the prior studies, share pledging is associated with the agency problems. Thus, share pledging lead a decline in corporate value and the risk of stock price crashes. This study examines how corporate value changes as share pledging is disclosed with the Korean firms. In particular, we measure the value of cash holdings and examine how share pledging may have effects on the value of cash holdings. Since the cash holding decision is made by managers, the value of cash holdings is the result of corporate governance. [Methodology] We collect the share pledging data from 2011 and 2019. Although the disclosure of share pledging was mandated back in 2009, our data period begins 2011 because of the adoption of IFRS in Korea. The data period also ends in 2019 because of the COVID－19 pandemic. With the 13,820 firm－year observations, we adopted the cash holding model presented by Faulkender and Wang(2006) and conducted the regression analysis. [Findings] We find that there is a significant negative relationship between share pledging and the value of cash holdings. As the ratio of share pledging increases, the excess value of additional cash holdings decreases. This means that the market penalizes excess cash holdings when there is share pledging. Our findings confirm the results of prior studies. [Implications] To our best knowledge, this is the first study to examine the association between share pledging and the value of cash holdings with the Korean firms. This study confirms that the effects of share pledging on the firm value in the Korean stock market are similar to those of overseas. As share pledging becomes popular practices in Korea, we provide initial perspectives of the effects of share pledging on the firm characteristics including firm value and corporate governance. Further study should focus on other characteristics of the firms that may have been impacted by the share pledging practices.

키워드