FIRM GROWTH OF VALUE VERSUS GLAMOUR FIRMS -KOREAN EXPERIENCE

摘要

Using a sample of Korean firms, this paper investigates whether there is a "corporate finance"basis in the different performance of value versus glamour stocks. Confirming earlier empiricalfindings, this paper finds that corporate growth, as measured by 1-year and 3-year future growthin total assets and in sales, is negatively affected by leverage for glamour (high market-to-book)firms but not for value (low market-to-book) firms. There is also evidence of a size effect, whilethere is not a clear difference between value and glamour firms in the relationship between cashflow and corporate growth or the relationship between corporate investments and corporategrowth.