원문정보
초록
영어
This paper evaluates whether a stock exchange targeted specifically at SMEs—namely, the SME exchange—functions as a “growth market” by capitalizing industry growth opportunities into stock prices. To this end, we examine the correlation between the SME exchange prices—aggregated up to the industry level—and private-firm growth, a relationship that can arise only to the extent that the prices contain aggregate-level information. Using data from Korea whose SME exchange is one of the largest in the world, we find that the SME exchange prices are positively correlated with the growth of private firms, especially when they belong to a growing industry or their growth is funded by equity. In the same regression, the main board stock prices are correlated with the liability-funded growth of private firms in a stable industry. Taken together, our results suggest that the SME exchange plays a positive and complementary role in the economy by embodying the type of industry growth opportunities that are not readily represented by the main board stock prices.
목차
Abstract
1. Introduction
2. Sample and data
3. Correlation between SME exchange prices and private-firm growth
3.1. Main results
3.2. Sub-sample analysis
4. Correlation by funding sources of private-firm growth
4.1. Full-sample estimation
4.2. Sub-sample analysis
5. Robustness checks
5.1. Correlation between SME exchange prices and lead growth of private firms
5.2. Comovement among private firms and aggregate volatility
6. Conclusions
References