The Role of Asset Tangibility on Corporate Investment under Financial Constraints in Korea
The purpose of this paper is to investigate the possible role of asset tangibility (mainly
collateral) on corporate’s investment decision. To satisfy the purpose, we highlight the
differences of corporate investment behaviors between the 1990s and the 2000s considering
its financial phase. The empirical analysis is mainly based on the endogenous switching
regression model using firmlevel panel data from 1994 to 2009 in Korea.