earticle

영어

The purpose of this research is to analyze empirically the effect of the working capital management on firm value after the Korea-US FTA, using a sample of listed on Korea Exchange from 2010 to 2016 by the methods of Panel GLS. I think that the decreased tariff resulting from FTA induces more competitive market environment and that the degree of tariff reduction is related to the degree of competition. so, I classify firms into a lower-tariff-group and the other group by the Dummy variable. The main results and implications of this study are as follows. The working capital has significant and positive effect on firm value in lower-tariff-group. And the marginal value of working capital has significant and positive effect on firm value in lower-tariff-group. This result implies that working capital of firms in lower-tariff-group, which faces the intensifying market competition has positive effect on firm value.