• The Journal of Information Technology
• /
• v.7 no.3
• /
• pp.19-36
• /
• 2004

This study examines the relation between accruals components of earnings and stock return. Earnings are decomposed into four components: discretionary accruals, nondiscretionary accruals, nondiscretionary income and cash flow from operations. Because reported earnings in financial statement consist of cash flow from operations plus total accruals. We decompose total accruals into a discretionary accruals and a nondiscretionary accruals separately. This paper examines the incremental informational content of discretionary accruals and nondiscretionary accruals components of net income by regressing return on earnings' components in multivariate models. The empirical analysis is conducted on a sample of 1,580 firm-years comprising 158 firms during 1991-2003. discretionary accruals are obtained by decomposing total accruals into discretionary and nondiscretionary accruals conponents, using a pooled variation of the Jones model(1991). These findings suggest that the discretionary accruals(measured using a variation the Jones model) is priced by the stock market. Specifically, the discretionary accruals and cash flow from operations are positively associated with the stock return, and also nondiscretionary income, discretionary accruals are positively associated with the stock return. While this result is consistent with the market prices the discretionary accruals because it captures value-relevant information. Additional test report evidence consistent with nondiscretionary accruals conveying information about the stock return.

• Management & Information Systems Review
• /
• v.33 no.3
• /
• pp.167-187
• /
• 2014

While Korean GAAP had detailed regulations for the measurement and disclosure of operating income in the past, K-IFRS did not provide specific rules for operating income until 2011. Some firms that adopted K-IFRS before 2011 did not disclose or calculated operating income in an inconsistent manner although operating income is usually considered as one of the core information items to assess firm valuation. Inconsistency in firms' treatment of operating income invoked much criticism from diverse users of financial statement. The Korean Accounting Institute (KAI hereafter) revised the K-IFRS rules relevant to operating income in September 2010 in response to the voices raised by the business community, whereby the operating income number is allowed to be calculated in conformity with the previous K-GAAP. This study was motivated by the revision of K-IFRS and aims to provide a clue on the validity of such policy decision. To achieve the research objective, we test the relative value relevance of the alternative operating income numbers under K-IFRS versus K-GAAP. Our main findings are as follows. The value relevance of operating income reported before K-IFRS is proved to be higher than after K-IFRS. K-IFRS operating income adjusted to the previous K-GAAP has greater explanatory power for market values relative to one calculated under the K-IFRS regime. In an additional analysis, the sample was decomposed according to whether the operating income under K-IFRS is greater than under K-GAAP. The difference in the value relevance of K-IFRS versus K-GAAP operating income is significant only in the subsample consisting of firms which reports higher operating income under K-IFRS compared to K-GAAP. Also, the firms which would have reported negative operating income on a consecutive basis are more likely to have chosen K-IFRS, resulting in higher numbers than otherwise. It is likely that firms facing the threat of delisting due to consecutive operating loss reporting are more likely to have adopted K-IFRS disclosure rules by which they could report higher operating income numbers. To sum up, these results corroborate the limitation inherent in the K-IFRS regarding operating income disclosures. This paper suggests that the recent revision of K-IFRS implemented by KAI is likely to mitigate some of afore-mentioned limitations effectively.

• Environmental and Resource Economics Review
• /
• v.7 no.2
• /
• pp.87-109
• /
• 1998

1989년 미국 환경청(Environmental Protection Agency : EPA)은 유독물질통제법(Toxic Substances Control Act : TSCA)에 의해 석면을 함유하고 있는 일부 제품의 제조, 수업, 가공 및 판매를 세 단계로 나누어 금지하였다. 본 논문은 석면규제를 금지여부결정과 금지우선순위결정으로 구분하여 각 결정에 내재된 EPA의 의사결정요인들을 추론한다. 특히 본 논문은 Magat et al.(1986), Asch and Seneca(1989), Cropper et al.(1992)이 EPA의 의사결정요인들로 제시한 내부신호(internal signals, 비용과 편익의 추정치)와 외부신호(external signals, 외부집단의 참여)를 석면규제에 적용하여 이들의 역할을 고찰한다. 한편 본 논문은 규제에 의해 영향을 받는 이익집단들이 EPA의 의견수렴기간(comment period) 동안에 제출한 의견서(written comments)가 외부신호를 나타낸다고 가정한다. Probit 모형으로 추정된 금지여부결정에 있어 EPA는 TSCA의 규정을 준수하여 비용과 편익을 균형하였고, 기업과 환경보호단체의 참여도 EPA의 의사 결정에 영향을 미쳤다. 즉, 어떤 제품의 금지에 소요되는 비용이 많으면 그 제품이 금지될 확률이 작았고, 그 제품의 금지를 반대하는 기업의 의견서가 많으면 그 제품이 금지될 확률이 작았다. 그러나 외부신호가 포함된 모형에서 내부 신호의 통계적 유의성이 낮아지는 문제가 나타났다. 한편 추정결과는 금지로 인해 감소된 암 한 건에 대한 EPA의 암묵적인(implicit) 평가가 5,000만 달러가 넘는다는 것을 보여 준다. Ordered Probit 모형으로 추정된 금지우선순위결정에 있어, 편익의 단위당 비용이 작을수록, 그리고 그 제품의 금지를 찬성하는 환경보호단체의 의견서가 많을수록 그 제품은 보다 이른 단계에서 금지되었다. 이 경우 외부신호의 계수의 통계적 유의성은 높은 반면 내부신호의 계수의 통계적 유의성은 상대적으로 낮았다.

• Korean Journal of Culture and Social Issue
• /
• v.21 no.1
• /
• pp.67-96
• /
• 2015

Do cultural differences affect moral decisions? Two studies were conducted to investigate whether attitudes of individualism vs. collectivism have an impact on ethical decision making. Study 1 (N=92) showed that utilitarianism was preferred in a situation, in which an intervention resulted in the best outcome (i.e., saving more people's lives), while deontology was preferred in a situation, in which the focus was on negative consequences of the intervention (i.e. personal sacrifices). Additionally, there were differences between the idiocentrics and the allocentrics groups regarding morality aspects. In the idiocentrics group, harm and fairness were regarded as more important than other moral aspects, while in the allocentrics group, not only harm and fairness, but also ingroup and authority were perceived as critical moral aspects. In Study 2 (N=30), after lexical decision tasks were conducted for culture priming, the mouse tracking method was used to explore response dynamics of moral decision processes, while judging appropriateness of interventions in moral dilemmas. In Study 2, in a condition, in which the small number of victims were focused upon, there were more maximal deviations and higher X_flips in the individualism priming group than in the collectivism priming group, which showed that the participants in the individualism condition had more deliberative processes before choosing their answers between utilitarianism and deontology. In addition, the participants in the individualism priming condition showed more maximal deviations in the mouse trajectories regarding ingroup related interventions in moral dilemmas than those in the collectivism priming condition. These results implicated the possibilities that the automatic emotional process and the controlled deliberative process in moral decision making might interact with cultural dispositions of the individuals and the focus of situations.

• Management & Information Systems Review
• /
• v.34 no.3
• /
• pp.125-140
• /
• 2015

KOSDAQ market reorganized their division system from two types to four types of division departments such as blue chip, venture, medium, and technology development departments in 2011. However, under the current new division system, financially unhealthy firms attempting to take advantage of the classifying opportunity of blue chip department are likely to engage in pernicious earnings management. The objective of this study is to investigate the earnings management behavior surrounding the time of KOSDAQ firms entering the blue chip department via new division system. More specifically, we test whether the firms classified blue chip department tend to engage in upward earnings management using accruals and real activities before and after they achieve blue chip status. In this study, we analyzed 111 firms classified blue chip department in 2011 according to new division system in KOSDAQ market. Major test results indicate that firms entering the blue chip department according to current KOSDAQ division system in general, tend to inflate reported earnings by means both of accruals and real activities right before the entering year. This result suggests that the firms classified blue chip department engage in opportunistic earnings management with a view to uplifting their market values. Our study is expected to provide clues useful for searching policy directions which intend to ameliorate adverse side effects of the current KOSDAQ division system. In sum, the regulatory authorities and enforcement bodies need to exercise caution in deliberating more stringent review procedures so that financially healthy and promising candidates are properly segregated from their poor and risky counterparts, thus enhancing the beneficial effects, while mitigating adverse side effects of the system.

• Journal of the Korean Geographical Society
• /
• v.44 no.5
• /
• pp.647-660
• /
• 2009

Although tourism has been quite popular as development strategy, the outcomes may vary dependent upon managing stakeholders involved. Thus, stakeholder management has been the subject of growing research interests recently. Collaboration theory was suggested as an alternative to this question; however, collaboration theory may provide potential benefits, it lacks in consideration into stakeholder power relations. The purpose of this paper is two foleded. One is to examine critically collaboration theory in the context of tourism development, and address the necessity of stakeholder analysis framework, and the other is to provide the framework. This paper argues that careful analysis of stakeholders from diverse perspectives should be done in advance, and presents stakeholder analysis framework which consists of six analysis indicators: interest, perspective, power base(resource), involvement, influence, and legitimacy. The framework consists of three stages: (1) identifying stakeholder, (2) assessing stakeholder, and (3) establishing strategies. It is argued that the framework in this paper can be useful to analyze stakeholders and to set up strategy for more collaborative tourism development.

• Korean Journal of Culture and Social Issue
• /
• v.24 no.4
• /
• pp.541-562
• /
• 2018

Conflict of interest (COI) is one of the dominant circumstantial factors of moral corruption across various fields. Several management strategies have been proposed to prevent self-interested decision making in COIs. Among these strategies, message persuasion has been considered as a practical and effective approach. Prior studies have found that framing and repetition are two of the major factors in the persuasion effect of message. However, their effect on moral decision making in COI has not been well explored. The purpose of this study was to compare the differential effects of positively framed message and negatively framed message, and secondly, to investigate how the effectiveness of persuasive message changes through repetitive exposures. A total of 63 participants were randomly assigned to one of 3 framing conditions: positive framing, negative framing, and no-message condition. Prior to the on-line experiment involving a consultation task, differently framed persuasive message were presented to the participants. This process was repeated four times in a row. The results showed that participants with positive-framing message were less likely to provide self-interested consultation than participants in the no-message condition. Also, a U-shaped quadric relation between repetition and self-interest consultation was found. Implications and limitations are further discussed.

• The Korean Journal of Financial Management
• /
• v.25 no.1
• /
• pp.177-196
• /
• 2008

The megatrend of convergence in finance, telecommunication, and service industries is being spread over the whole industry. It has generated various kinds of contractual alliance or joint venture. Our paper builds a theoretical model for the profit sharing between two firms that participate in a joint venture. The model shows how the profit sharing rule affects the incentives of the participants, and, eventually, the efficiency. We derive the first-best solution of the profit sharing, where no incentive distortion exists. Then, we compare the incentive-affecting cases with the first best outcome, and assess the efficiency and the fairness of distribution. Our analysis shows that if we properly design the decision-making structure on transfer price and production quantity, we can reach the socially optimal efficiency.

• Journal of Digital Convergence
• /
• v.15 no.1
• /
• pp.209-216
• /
• 2017

The merits and demerits of the chaebol in Korea has been subjected to considerable debate in recent years. In accounting research, many papers have been concentrating on tunneling that be designated as expropriation of minority shareholders by controlling shareholders. Although majority previous paper suggested related-party transaction has a negative effect to firm value, some research on related-party transaction argued it has a positive effect, also. We assume that they can't consider compositive meaning of related-party transaction and result of prior studies are mixed. In this setting, we investigate the relation between earnings management and related-party transaction which be known as strategy for tunneling by considering controlling shareholder's ownership.

• International Area Studies Review
• /
• v.16 no.3
• /
• pp.269-291
• /
• 2012

Analyzing EU trade laws and institutional systems, the trade policy of EU has been founded, undoubtedly, on common interests for EU members. EU trade policy leaves room for 'Collective Protectionism' by permitting legal persona or interesting group to raise anti-dumping procedures. The anti-dumping policy of EU has shown a protectionism itself and has been affected by political motives. Investigation against anti-dumping can easily open and also there exists a wide range of political involvements. Furthermore, anti-dumping policy could be misused for protecting declining industries, which lost comparative advantage in global market. Economic theories show that anti-dumping measures divert import from outsider into insider members, which finally results in increasing intra-production of EU. This is exactly the reason why the anti-dumping policy has become attractive trade policy.