A Study on the Effect of the Korean Securities Market on Industrial Structure Evolution after the Asian Financial Crisis
|Keywords||Securities Market Industrial Structure Empirical Research the Asian Financial Crisis|
Securities market is one of the important financial markets, and plays a very important role for the country’s economic growth and industrial growth. Securities market has established some strict regulatory regime to regulate listed companies, such as the strict listing system, delisting system, information disclosure system. At present listing is still a relatively scarce resources, so generally speaking, the listed company is relatively good company in every industry. Securities markets promote industrial development and industrial structure change by supporting the growth of listed companies. Securities market with perfect mechanism can help investors and state to choose listed companies and industries, promote the assets reorganization of listed companies, accelerate the adjustments of equity structure and financing structure, improve the company’s corporate governance structure, so as to promote the optimization of industrial organization and industrial structure.After the East Asian financial crisis, South Korea reformed the financial and other departments, tightened monetary policy, and established a market-oriented financial mechanism. The scale and proportion of the securities financing had expanded, and avoided excessive dependent on bank financing before the financial crisis. After the East Asian Financial crisis, the international degree, the size of the market, liquidity and transparency of South Korean securities market had a very significantly improvement than before. It has become a mature effective securities market, to promote the evolution of industrial structure.This paper studies the industries distribution of Korean securities market and IPO financing. It is found that the companies listing in recent ten years focused on the advanced manufacturing and new services industries. South Korean stock market has the significant effect on upgrading of the industrial structure. And the empirical results of industry and service show that South Korean securities market provided more support for industry than services. Maybe it is because that the Korea’s reform of the financial industry led to a marked decline in stock size. But the supports of South Korean securities market to other financial industry and other services are also quite obvious, which promote the diversification of the Korean financial industry and service industry.