[2013년 제 1차] Firm Age and Valuation: Evidence from the Korean St
작성자 : 관리자
조회수 : 1057
게시일 :
2013-04-09
Using Korean stock market data over the period 2000-2011, we document evidence that firm value, as measured by the market-to-book equity ratio, has a downward sloping relation with firm age. The data suggest that profitability and capital expenditures also decline as firms age, suggesting that firms may become less valuable with age because they become less profitable and run out of investment opportunities. However, the negative firm age-value relation remains significant after controlling for these effects, suggesting that there is more than the maturity story behind this negative relation. Interestingly, according to our evidence, the learning hypothesis of Pastor and Veronesi (2003) would be unable to explain the negative firm age-value relation in the Korean stock market, given that uncertainty does not decline with age and that the negative relation is almost non-existent among dividend-non-paying firms.