• Journal of Distribution Science
• /
• v.19 no.1
• /
• pp.27-35
• /
• 2021

Purpose: This study is to investigate the effect of managerial ownership level in distribution and service companies on the stock price crash. The managerial ownership level affects the firm's information disclosure policy. If managers conceal or withholds business-related unfavorable factors over a long period, the firm's stock price is likely to plummet. In a similar vein, management's equity affects information opacity, and information asymmetry affects stock price collapse. Research design, data, and methodology: A regression analysis is conducted using the data on companies listed on the Korea Composite Stock Price Index (KOSPI) between 2012-2017 to examine the effect of the managerial ownership level on stock price crash risks. Results: Logistic and regression results indicate that the stock price crash risk was reduced as managerial ownership levels are increased. The managerial ownership level has a significant negative coefficient on stock price crash risk, negative conditional return skewness of firm-specific weekly return distribution, and asymmetric volatility between positive and negative price-to-earnings ratios. Conclusions: As the ownership and management align, the likeliness of withholding business-related information is reduced. This study's results imply that the stock price crash risk reduces as the managerial ownership level increases because shareholder and manager interests coincide, thereby reducing information asymmetry.

• Asia Marketing Journal
• /
• v.15 no.3
• /
• pp.53-77
• /
• 2013

As advertising and promotions are categorized as operating expenses, managers tend to reduce marketing budget to improve their short term profitability. Gauging the value and accountability of marketing spending is therefore considered as a major research priority in marketing. To respond this call, recent studies have documented that financial market reacts positively to a firm's marketing activity or marketing related outcomes such as brand equity and customer satisfaction. However, prior studies focus on the relation of marketing variable and financial market variables. This study suggests a channel about how marketing activity increases firm valuation. Specifically, we propose that a firm's marketing activity increases the level of the firm's product market information and thereby the dispersion in financial analysts' earnings forecasts decreases. With less uncertainty about the firm's future prospect, the firm's managers and shareholders have less information asymmetry, which reduces the firm's cost of capital and thereby increases the valuation of the firm. To our knowledge, this is the first paper to examine how informational benefits can mediate the effect of marketing activity on firm value. To test whether marketing activity contributes to increase in firm value by mitigating information asymmetry, this study employs a longitudinal data which contains 12,824 firm-year observations with 2,337 distinct firms from 1981 to 2006. Firm value is measured by Tobin's Q and one-year-ahead buy-and-hold abnormal return (BHAR). Following prior literature, dispersion in analysts' earnings forecasts is used as a proxy for the information gap between management and shareholders. For model specification, to identify mediating effect, the three-step regression approach is adopted. All models are estimated using Markov chain Monte Carlo (MCMC) methods to test the statistical significance of the mediating effect. The analysis shows that marketing intensity has a significant negative relationship with dispersion in analysts' earnings forecasts. After including the mediator variable about analyst dispersion, the effect of marketing intensity on firm value drops from 1.199 (p < .01) to 1.130 (p < .01) in Tobin's Q model and the same effect drops from .192 (p < .01) to .188 (p < .01) in BHAR model. The results suggest that analysts' forecast dispersion partially accounts for the positive effect of marketing on firm valuation. Additionally, the same analysis was conducted with an alternative dependent variable (forecast accuracy) and a marketing metric (advertising intensity). The analysis supports the robustness of the main results. In sum, the results provide empirical evidence that marketing activity can increase shareholder value by mitigating problem of information asymmetry in the capital market. The findings have important implications for managers. First, managers should be cognizant of the role of marketing activity in providing information to the financial market as well as to the consumer market. Thus, managers should take into account investors' reaction when they design marketing communication messages for reducing the cost of capital. Second, this study shows a channel on how marketing creates shareholder value and highlights the accountability of marketing. In addition to the direct impact of marketing on firm value, an indirect channel by reducing information asymmetry should be considered. Potentially, marketing managers can justify their spending from the perspective of increasing long-term shareholder value.

• 한국전산유체공학회:학술대회논문집
• /
• 2011.05a
• /
• pp.58-64
• /
• 2011

The objective of this paper is to investigate the gravity effect on the shape characters of natural supercavity. A finite difference solver along with an implicit, dual time, preconditioned, three-dimensional algorithm has been used to solve the two-phase Navier Stokes equations. Numerical solutions were performed for natural supercavitating flow past a disk for different cavitation and Froud numbers. The numerical results were compared with corresponding analytical results in quantitative manner and it was found that the shape of supercavity was reasonably predicted Numerical results indicated that the gravity effect can induce the asymmetry of supercavity. The asymmetry was apparent when the froud number was smaller so that for constant cavitation number when we reduced the froud number the opt of the axis of supercavity increased. Moreover, for specific froud number a decrease in cavitation number resulted in an increase in the offset of the supercavity Numerical results revealed that for froud number greater than 25 the gravity effect is negligible.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2004.10a
• /
• pp.582-586
• /
• 2004

The purpose of this study is to examine the lead-lag relationship between volatility and returns in high frequency stock market data to see the validity of two hypotheses that explain volatility asymmetry. Specifically, wavelet analysis is applied to decompose the volatility process into permanent and transitory components and then each component is investigated in conjunction with returns. The results from cross-correlation analysis between volatility and returns support the leverage effect hypothesis rather than the volatility feedback hypothesis in all cases.

• Transactions of the Korean Society of Mechanical Engineers B
• /
• v.27 no.10
• /
• pp.1450-1456
• /
• 2003

Three-dimensional pipe flows with elbows, tees and headers in three different pipe systems are calculated to estimate the effect of asymmetry of axial velocity profile and swirl on measuring accuracy of an orifice flowmeter. It is evaluated how the pressure difference across the orifice is dependent on the upstream straight pipe length and how swirl intensity, swirl angle, and axial velocity distribution affect the measuring error of the orifice flowmeter. From the results, it is found that variation of the pressure difference across the orifice is negligible in case that maximum swirl angle is less than 2$^{\circ}$, and also that the pressure difference across the orifice is more sensitive to the asymmetry of axial velocity profile rather than the swirl intensity.

• Journal of Advanced Marine Engineering and Technology
• /
• v.22 no.3
• /
• pp.303-310
• /
• 1998

We report on the analytical results of examination of fully developed asymmetric flow and heat transfer between parallel plane plates. The asymmetry was introduced by roughening one of the plane while the other was left smooth. The integral method together with a turbulence model based on modified Prandtl's mixing length theory for the rough was used to determine the velocity distribution and friction. The temperature distrtibution is then predicted and heat transfer coefficients are calculated. The present paper shows that the heat transfer increases more than the friction factor for a given roughness structure. Generally the results show the strong effect of asymmetry on engineering parameters. Furthermore it is the roughness structure which influences the nature of asymmetry and heat transfer.

• Environmental Engineering Research
• /
• v.19 no.4
• /
• pp.369-373
• /
• 2014

In view of the problem of the invalidity of the incentive mechanism of the ecological subsidies, which is due to the information asymmetry between the government's supervision and the enterprise endeavor to fulfill their ecological responsibilities, this paper attempts to analyze the supervision of ecological subsidies based on the Principal-agent Model. Two conclusions are drawn: firstly, the government's supervision regarding the effect of the enterprises' fulfilling the ecological responsibilities can significantly reduce the information asymmetry; secondly, the government's incentive strength and the enterprises' endeavor level of fulfilling the ecological responsibilities are both improving the surveillance dynamics. Here is the suggestion: with the increasing of the surveillance dynamics of the government and the transparency of the enterprises' fulfilling the ecological responsibilities, the government should meanwhile increase the subsidies incentive strength, therefore, to promote the effort level of the enterprises' fulfilling the ecological responsibilities to approach to the Pareto optimal value.

• Journal of the Korean Society of Physical Medicine
• /
• v.7 no.3
• /
• pp.303-308
• /
• 2012

Purpose : The purpose of this study is to define the change of lumbar asymmetry multifidus muscles when upper extremity PNF pattern. Methods : For this research, twenty-nine asymptomatic participants were voluntary attended. Under the identical conditions, Multifidus muscles were measured standing position and on L4,L5 vertebral level by MyLabOne (ESAOTE, Netherland with a 3.5MHz covex array transducer). The upper extrimity PNF pattern used to activate the multifidus ipsilateral and cotralateral. Results : Results of analysis showed that at the L4, L5 vertebral level, healthy asymtomativ subjects had asymmetry multifidus muscles size. The depth of the multifidus muscles were significantly increased at contralateral upper extrimity PNF pattern, but no significant differences were comparison ipsilateral with contralateral. Conclusion : The multifidus muscle in asymptomatic subjects clinical significance asymmetry. Contralateral upper extrimity PNF pattern seems to be the most suitable exercise for strenthen the smaller size of the multifidus. This study will be used as a prevention method of LBP.

• Korean Journal of Cleft Lip And Palate
• /
• v.15 no.1
• /
• pp.1-10
• /
• 2012

Parry-Romberg syndrome(PRS) is a degenerative disease characterized by progressive hemifacial atrophy. A 10-year-old girl who had been treated for linear scleroderma at the dermatologic department visited the orthodontic department. The frontal facial photograph showed mild facial asymmetry. On the left side, mild atrophy of soft tissue, enophthalmos, cheek depression, and dry skin with dark pigmentation were observed. The radiograph showed the hypoplasia of both the maxilla and mandible on the left side. This case report describes the treatment of a patient with PRS for 7 years. To minimize the effect of progressive atrophy on the facial growth, a hybrid appliance was used. The facial photos and radiographic records were periodically taken to analyze the progression of PRS. Although it is impossible to prevent the progression of facial asymmetry, it appears to be possible to limit the atrophic effect. After the stabilization of PRS, the orthodontic treatment by the fixed appliance was performed. Additionally, autologous fat graft was performed three times at 6 month intervals. After the treatment, the patient had a confident smile and facial asymmetry was improved.

• The Journal of Korean Physical Therapy
• /
• v.18 no.4
• /
• pp.27-40
• /
• 2006

Purpose: This study was to investigate the effect of an arm sling on gait with hemiparesis. Methods: Fifteen patients(8 male, 7 female) with hemiparesis participated in this study and walked self-selected speed over 10m walkway, randomly without arm sling, with Single strap hemisling and Rolyan humeral cuff sling. It were filmed by 5 video camera and used with 3-dimensional motion analyzer system. The following gait variables were analyzed: temporo-spatial parameters, kinematic parameters. Results: In the comparison of temporo-spatial parameters each trial, walking velocity and single support time on affected side was significantly increased and step length on affected side, step length asymmetry ratio, single support time asymmetry ratio was significantly decreased in the Single strap hemisling and Rolyan humeral cuff sling. In the comparison of kinematic parameters each trial, maximal angle of the hip flexion on affected side was significantly increased in the Single strap hemisling and Rolyan humeral cuff sling and maximal angle of the knee flexion on affected side was significantly increased in the Rolyan humeral cuff sling and maximal angle of the ankle dorsiflexion on affected side was significantly increased in the Single strap hemisling. Conclusion: An arm sling improved walking velocity and decreased asymmetry and increased maximal angle of hip, knee, ankle flexion on affected side with hemiparesis caused by stroke.