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korean management review - Vol. 50, No. 2

[ Article ]
korean management review - Vol. 50, No. 2, pp.383-404
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 30 Apr 2021
Received 18 Aug 2020 Revised 30 Nov 2020 Accepted 14 Dec 2020

A Study on the Relationship Between Investor Recognition and Firm Value: Based on the Effect of Switching of Stock Listing from KONEX to KOSDAQ Market
Kyu Sung Lee ; Hyunchul Chung
(First Author) Hanyang University (
(Corresponding Author) Hanyang University (

투자자인지(Investor Recognition)와 기업가치와의 관계 연구: 코넥스기업의 코스닥 이전상장 효과를 중심으로

This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.
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This study examines the relationship between investor recognition and firm value by looking at the process of KONEX-listed companies switching to the KOSDAQ market.

According to this study, the stock price showed a statistically significant rise due to the expected positive effect of transferring the listing of its stocks even before the announcement date of its decision to transfer, whereas the stock price actually declined when it was really transferred to KOSDAQ market. These results are similar to those of previous researches at home and abroad. In particular, given that the share price increase shown when the switching decision was announced was offset by the share price drop after the actual switching, the transfer of the listing of the company did not lead to an increase in the firm value due to the expansion of the investor recognition claimed by Merton (1987). This study made a contribution to expand the domestic research limited to the study of transfer of exchange listing from KOSDAQ to KOSPI, giving us an opportunity to look at the effect of transfer across all markets of KONEX, KOSDAQ and KOSPI.

Keywords: Investor recognition, KOSDAQ, KONEX, Stock market switching


This work was supported by the research fund of Hanyang University(HY-201900000001384).

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∙The author Kyu Sung Lee is a Ph.D. Candidate of Finance at Hanyang University. He received his M.A. in Finance from Hanyang University. He worked for National Pension Research Institute and Korea Insurance Research Institute, and is currently working at Korea Institute of Finance as a Researcher. His main areas of interest are Finance, Insurance Industry.

∙The author Hyunchul Chung is currently a professor of finance at School of Business, Hanyang University. He received his Ph.D. in finance from McGill University. His research interests lie in domestic and international capital markets and investment, corporate finance, and behavioral finance.