Owner-managers and firm performance during the asian and global financial crises: evidence from Korea

We examine the performance of the Korean owner-managers during the 1997-1998 Asian financial crisis and the 2008-2009 global financial crisis to establish whether they overcome the unexpected exterior shocks better than employed managers. We find that the owner-managers record a significantly greater performance during the crises, and especially during the latter period. Moreover, our results suggest that such a tendency comes from the owner-managers' superior investment decisions. Our paper thus highlights the role of owner-managers by studying their performance during the Korean economic crisis periods. (JEL G01, G32, G34)