Professor Kim Woosung from Silla University Business Administration Publishes Sole-Authored Paper in International Journal 'China Finance Review International'

A sole-authored paper by Kim Woosung, a professor in the Department of Business Administration at Silla University (President Heo Namsik), has been published in the international academic journal 'China Finance Review International'.

Professor Woosung Kim, Department of Business Administration, Silla University. Provided by Silla University

Professor Kim Woosung of Silla University's Department of Business Administration published a paper titled 'Hybrid Securities and Firm Performance: Evidence from Korean Small and Medium-sized Firms', which analyzes the impact of hybrid securities such as convertible bonds, bonds with warrants, and exchangeable bonds on the short-term and long-term stock performance of 204 KOSDAQ-listed small and medium-sized enterprises from 2016 to 2020.

According to this paper, short-term performance was measured through cumulative abnormal returns around the disclosure date, while long-term performance was measured through buy-and-hold abnormal returns. The study also reported that reflecting the differences by type of hybrid securities can enhance the precision of the analysis.

The research results showed that immediately after disclosure, short-term abnormal returns were observed due to positive investor reactions. However, in the long term, the stock prices of companies issuing bonds with warrants and exchangeable bonds showed significant declines over two to three years, suggesting that management may use periods of market overvaluation to raise funds, and that firm value may fall short of expectations.

The study also revealed that stock performance varies depending on characteristics such as growth opportunities, participation of financial investors, and corporate governance.

Professor Kim's paper is indexed in SCOPUS and ESCI, and has been published in the latest 2025 issue of 'China Finance Review International', an international journal that broadly covers topics such as Asian financial markets, corporate finance, and policy issues.

Professor Kim Woosung of Silla University's Department of Business Administration stated, "I am very honored that this paper has been published in China Finance Review International, an international Q1 journal," and added, "I would like to express my deep gratitude to President Heo Namsik and all members for their continuous support and encouragement that made this research possible. I will continue to do my best in research and education to have a positive impact on students."

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