Abstract
Multinomial Asian Financial Crises are said to happen because of financial mismanagement due to post Bretton Woods era financial liberalization, enhancement in private sector debt, currency crises, investor panic as well as inept attitude of the governments in these countries after start of the crises. Since Taiwan is the only country that was not hit as hard as the other countries in the region due to the brunt of these crises we decided to analyze its firm structure to unfold the causes of its survival. Our analysis reveal evidence that manager operated firms finances their growth through external finance without taking into account the profitability of the firm. Contrary to this, the owner operated firms finance their growth from earned profits. This is a possible explanation of why Taiwan was not affected seriously due to 1997 Asian financial crisis because most Taiwanese firms are operated by owners or managers who are loyal to the business of the family.
Keywords
Owner-controlled firms; Management-controlled firms; Control type; Financial crisis
DOI
https://doi.org/10.54784/1990-6587.1169
Journal of Economic Literature Subject Codes
C31, C40, D92
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Kiani, K. M. (2009). Asian financial crisis 1997: An empirical investigation. Business Review, 4(1), 133-142. Retrieved from https://doi.org/10.54784/1990-6587.1169
Submitted
February 24, 2021
Published
January 01, 2009
Included in
Publication Stage
Published
