Ki Beom Binh

Call Timing of Callable Non-Convertible Bonds: A Survival Analysis

We empirically analyze the factors affecting corporate decisions to call non-convertible bonds using survival analysis. The results show that firms tend to defer calling non-convertible bonds in order to mitigate agency costs of debt (including under-investment and risk-shift); that calling is significantly more intense if positive information is revealed; that non-refundability clauses are binding on call decisions; that firms are more likely to redeem bonds to refund if market interest rates fall dramatically; and that this interest effect is stronger as the transaction costs of refunding decrease. Also, this paper shows that call intensity monotonically decreases after call protection periods expire.

The Effect of Transparency Policies on Shadow Economy: Measurement and Evidence from Korea

This paper provides a new and simple methodology to examine the relative size of the shadow economy to the official one using the classical money...

: (Investor's Deposits of Securities Accounts in Korea: Simulation on Performances of Diversified and Unified Deposit Scheme)

English Abstract: 투�?�?예�?금(舊 고�?예�?금)�?� 금융투�?�?품�?� 매매 �? 관련 거래를 위해 투�?�?들�?� 투�?매매업�? 혹�?� 투�?중개업�?(舊 �?권회사, 선물회사)�?게 예치한 현금�?�다. 투�?�?예�?금�?� 정보 비대칭성으로 �?�한 투�?매매업�? 혹�?� 투�?중개업�?�?� 잠재�? �?��?��? 해�?�와 �?기실현�?(self-fulfilling prophecies) 예금 �?�출 등과 같�?� 금융기관�?� 위기나 파산으로부터 반드시 보호�?�어야 한다. 미국, �?국 등�?� �?�함한 금융선진국과 마찬가지로 우리나�?��?� 투�?�?예�?금�?� 별�?�예치제�?�를 채�?하고 있다. 하지만, 투�?�?예�?금�?� 별�?�예치�?는 거�?� �?�견�?� 있기 어려우나, 현재 우리나�?� 법제�? 단�?�기관 집중예치방안�? 관해서는 �?�행�?� 신�?계정 �?는 신�?회사�? 분산하여 예치하는 것�?� 허용하�?는 분산예치방안�?� 종종 제시�?�고 있다. 본 연구는 모�?�실험�?� 결합한 실�?분�?�?� 통해 분산예치제�?�와 집중예치제�?�를 운용수�?�측면�?서 �?�가하는�?� 목�?�?� �?고 있다. 분�? 결과 집중예치 방�?�?� 분산예치 방�?보다 운용성과가 우월함�?� 발견하였다. English Abstract: The investor’s deposit is “cash�? that she/he put into an investment trader or investment broker to trade securities listed in Korea Exchange. The investor’s deposit should be protected from bankruptcies of investment business companies such as potential moral hazard and self-fulfilling prophecies arisen from information asymmetry. Korea including advanced countries, U.S., U.K, etc, also adopted separated deposit system. Such system in Korea is generally agreed but recently the new plan that the diversified deposit system by several trust institutions such as banks instead of unified deposit system into a single institution should be allowed is on the floor often. This study focuses on the comparison of performance for deposit management between focused and diversified investors deposit by simulation technique and regression methodologies separately. The result showed performance of focused investors deposit management is superior to that of diversified investors deposit management with no exception.

Managerial Entrenchment and the Valuation Effects of Toehold Acquisitions

This paper examines the market reactions to toehold acquisitions to determine whether and under what circumstances the formation of a new large outside shareholder contributes to the shareholder value of the firm. We argue that although toehold acquisitions signal imminent challenges to the control of the management of the target firms, the challenges do not necessarily contribute to the shareholder value if the management is likely to resist ferociously. We find that while voting premium increases in response to toehold acquisitions for the entire sample, it depends on firm characteristics such as dual class stocks and the asset size whether shareholder value increases. Dual class targets exhibit a positive market reaction only if the controlling shareholders do not have sufficient corporate resources under their control, whereas single class targets show a significantly positive cumulative abnormal return regardless of the asset size. The results are consistent with the hypothesis that dual-class stocks are an outcome of the managerial incentives for entrenchment.