• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.129-139
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• 2021

The aim of this study is to provide insight into tax avoidance through planning and management, and its investment consequences in financially constrained and unconstrained firms, as well as to empirically examine the interrelationships between the variables studied. Data was extracted from the financial statement analysis of non-financial companies listed on the Pakistan stock exchange (PSX) published by the State Bank of Pakistan, covering ten major manufacturing sectors. KZ index and WW index are used to identify financially constrained and unconstrained firms. Tax avoidance is measured by using GETR and LETR. All the equations are estimated through panel data regression models using common, fixed, and random effects. The empirical investigation of the role of tax avoidance in all firms collectively and constrained and unconstrained firms separately showed that the tax avoidance behavior of these firms is translated into investments by these firms. The study will help policymakers in strategy formulation and implementation related to tax planning and investment decisions in constrained and unconstrained firms to overcome their financial constraints and to optimize their investment decisions for value maximization. This will substantially increase the investment in the country by providing growth opportunities and lowering the tax rates.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.4
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• pp.299-306
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• 2022

Entrepreneurs with behavioral finance biases are more likely to make irrational or financially detrimental decisions. Understanding financial behavior biases can assist in making sound financial decisions. Behavioral finance is a new topic that can assist researchers in better understanding investor behavior and preferences while purchasing and selling stocks. Using measures such as independent t-tests and average Likert five-point scale scores, this study seeks to determine how entrepreneurs make investment decisions and whether gender makes a difference. The study is empirical, and data from 1000 entrepreneurs were collected through convenience sampling. The study's main findings show that there are numerous factors to consider while investing in stocks, including family planning, children's education, investment security, and recurring income. Both men and women attempt to invest in many asset classes, but certain investments are extremely risky, while others are low risk. As a result, investors should assess risk based on their age and experience rather than their gender; this indicates that an investment in venture capital has nothing to do with gender but everything to do with the investor's age.

• Journal of Technology Innovation
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• v.12 no.1
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• pp.1-24
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• 2004

This paper analyses the effects of R＆D investment on patent in Korean manufacturing firms during the period 1984-99. The data contains 140 companies which listed in Korea Stock Exchange(KSE). We observed that the relative shares of R＆D investments and patent applications are much higher in scientific firms than in the other firms. The regression results show that R＆D investment has significantly positive effects on the growth of patent application and registration. And the effects of R＆D on patent turns out to be stronger in scientific firms than the other firms. The firm size and the capital intensity also have an important effect on the propensity to patent.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2008.10a
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• pp.520-524
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• 2008

This research verifies the phenomenon of which the Momentum and Reversal effect of stock price would depend on the subject of investment in the point of view of the Behavior Finance hypothesis. For the experiment, this paper uses the KOSPI200 daily data and Net Investment Flow from Jan. 1999 to Dec. 2006. And we analyze the marginal profit and loss with foreigners, individual investors, and institutions. We verify the response of the subjects of investment based on the CAR for 3 days after more than 3 percent rising or drop. We also verify the response with respect to the ascending and descending trend based on the profit trend and subjects' behaviors a week before the drop.

• Journal of the Korean Home Economics Association
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• v.49 no.10
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• pp.1-13
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• 2011

This paper examined how men and women differ in the attitude and behaviour of financial risk tolerance. The results showed that women were less risk seeking than men in financial risk tolerance. The results of the investment simulation indicated that men invested in higher risk assets like stock. In contrast, women prefered to invest in lower risk assets like real estate. The results of multiple regression analysis showed that if investors have the propensity to take more risk they allocated their money to higher risk assets in the simulation. This analysis also showed that the surveyed respondents invested in risky assets if they had experience in high risk investment in the past.

• Asian Journal of Innovation and Policy
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• v.5 no.2
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• pp.129-145
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• 2016

This is a case study to analyze the role of technology licensing or transfer office (TLO) as factors of success for the spin-off from government research lab. The case company is a research lab startup, which is a joint venture through technology investment by a government research lab or university in the designated R&D parks and cash investment by the partner company. The case company listed on the stock market in 2015 reaching a market capitalization of US$ 1.2 billion. We confirm the success factors of startups pointed out in many studies: original technology, good understanding of core technology and production technology, technological competitiveness in the market. However, there is an important factor not well discussed in the previous studies, the role of TLO. TLO guided the company ownership, management, technology, and solved problems that pause business itself. The case became the sample of research lab startup and technology investment in Korea.

• Management & Information Systems Review
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• v.37 no.2
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• pp.259-281
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• 2018

Advocates of mandatory IFRS adoption claim that IFRS increase financial statement comparability, which in turn leads to greater cross-border investment(Securities and Exchange Commision, 2008). The notion is that improved financial statement comparability reduces the information acquisition costs of global investors and thereby increase their investment in foreign firms. The purpose of this study is to examine this assertion by examining whether the K-IFRS adoption rusults in improved comparability that leads to increased investment by foreign investment. We also examined whether the relation between comparability and foreign investment has strengthen after adoption of K-IFRS. To achieve the purpose of our study, we measure Korean firms comparability using stock price model, stock return model and cash flow from operation model by Barth et al.(2012). We use both foreign ownership in the end of year and average during the year for dependent variables were to reduce bias. We test our hypothesis using 1,817 firm-year observation of KOSPI firms during the period of our analysis, 2011-2015. Consistent with our hypothesis, we find K-IFRS adoption results in a greater increase in foreign investment in firms with high comparability firms. This result indicate that the adoption of K-IFRS intends to achieve the international accounting convergence as stated in the roadmap and to reduce the Korea Discount.

• Communications for Statistical Applications and Methods
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• v.27 no.1
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• pp.79-95
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• 2020

The globalization of financial markets has broadened investment opportunities. International investors' investment portfolios consist of financial instruments from various countries; consequently, the risks associated with economic dependence among countries should be carefully considered. Step-down equity-linked securities (ELS) are a structured financial product that have recently become popular among Korean investors. Payoffs are based on two or three stock indices from different regions; therefore, dependence between the indices should be reflected in the risk analysis. In this study, we consider a regime-switching copula model to describe the joint behavior of two stock indices- the Eurostoxx50 and the Hang Seng China Enterprises Index (HSCEI). These indices are commonly used as underlying assets of step-down ELS. Using historical data, we analyze the risk associated with step-down ELS through the probabilities of early redemption. A regime-switching copula model can accommodate complicated dependence. Thus, it should be considered in the risk analysis of step-down ELS.

• Industrial Engineering and Management Systems
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• v.15 no.1
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• pp.63-76
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• 2016

Multiperiod portfolio selection problem attracts more and more attentions because it is in accordance with the practical investment decision-making problem. However, the existing literature on this field is almost undertaken by regarding security returns as random variables in the framework of probability theory. Different from these works, we assume that security returns are uncertain variables which may be given by the experts, and take absolute deviation as a risk measure in the framework of uncertainty theory. In this paper, a new multiperiod mean absolute deviation uncertain portfolio selection models is presented by taking transaction costs, borrowing constraints and threshold constraints into account, which an optimal investment policy can be generated to help investors not only achieve an optimal return, but also have a good risk control. Threshold constraints limit the amount of capital to be invested in each stock and prevent very small investments in any stock. Based on uncertain theories, the model is converted to a dynamic optimization problem. Because of the transaction costs, the model is a dynamic optimization problem with path dependence. To solve the new model in general cases, the forward dynamic programming method is presented. In addition, a numerical example is also presented to illustrate the modeling idea and the effectiveness of the designed algorithm.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.153-158
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• 2021

Convergence is the process of gradual adoption of a certain accounting standard issued by different regulatory bodies. The aim is to achieve uniformity and standardization across borders to open opportunities for international investment and collaboration. The implementation of IFRS, in theory, encourages more transactions by presenting financial statements in a simple and understandable manner for all investors and other businesses interested in the company. Using event study methodology, this study investigates whether Malaysian companies' adoption of IFRS is recognized by the investment community. A total of 89 public listed companies in Bursa Malaysia are involved in this study. The results show that about 62.8 percent of the companies that adopted IFRS-based financial statements experienced an increase in their average abnormal return after the announcement. However, the paired sample test results show that only 5.6 percent out of 89 companies studied experience a significant difference in abnormal return before and after the announcement. The inexistence of the average abnormal return difference between before and after the announcement may indicate that IFRS-based financial statements do not have any new market informational content. This study found little evidence to show that convergence with IFRS affects the company's stock price in Malaysia.