Cover IMF Working Papers
Buy Book in Print
Corporate Restructuring and Its Macro Effects
Author:
Mr. Jongsoon Shin
Search for other papers by Mr. Jongsoon Shin in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2017: Issue 017
Language:
English
Publication Date:
27 Jan 2017
DOI:
https://doi.org/10.5089/9781475572438.001
ISBN:
9781475572438
ISSN:
1018-5941
Pages:
26
Keywords:
WP; firm; debt; restructuring dummy; bank; corporate; Corporate debt; restructuring; macro effects; investment; unemployment; debt restructuring; shipping firm; firm structuring; debt-distressed firm; Debt restructuring; Capital productivity; Creditor bail-in; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.4 MB) Download Epub
This paper describes issues in Korea’s corporate sector, the need for restructuring, and the authorities’ initiatives and challenges. It then identifies lessons from other countries’ experience and conducts an econometric analysis based on cross-country aggregate data, compared with previous studies which mostly use firm-level data. This analysis finds that restructuring episodes, while sometimes challenging in the short term, have typically been associated with more rapid economic growth afterward. Corporate restructuring could have a negative effect on the labor and the financial markets in the short term, but is associated with positive growth through increased investment and capital productivity in the medium term, outpacing the negative effects.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund