• Journal of the Korean Operations Research and Management Science Society
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• v.41 no.1
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• pp.55-69
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• 2016

In response to drastic environmental changes, companies have been continuously rebalancing their resources and capabilities to sustain their competitive status or to survive difficult times. The aim of this study is to analyze the effect of sudden environmental changes on the competitive status of a firm and to identify the internal factors that differentiate sustainer and non-sustainer groups. To achieve this goal, we selected 85 representative IT and non-IT companies from the S&P 500 companies and investigated them with respect to the change in their five-year competitive status since the 2008 global financial crisis. As a concrete performance measure, the concept of perceived competitive status (PCS) was introduced, and four distinct PCS categories were identified by using the stock price changes during the selected period. The four distinct PCS categories are "sustaining," "drifting," "deep sunken," and "bouncing back." Discriminant analysis was performed on these four distinct PCS categories. The empirical study conducted showed that revenue and cost efficiency are the most discriminating factors, especially in the economic recovery period. In particular, stronger financial liquidity was observed in high-performing "bouncing back" companies than in the other category companies.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.33-42
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• 2020

The paper investigates the mechanism through which corporate credit ratings affect dividend payments by decomposing the mean difference of dividends into a part that is explained by the determinants of dividends and a residual part that is contributed by the pure credit group effect, in the framework of the traditional dividend model of Fama and French (2001). Historically, better credit rated firms have shown consistently higher propensity to pay dividends especially during the economic crisis period. According to the counter-factual decomposition technique of Jann (2008), better rated firms are more responsive to the firm characteristics that have positive impact on dividends and poor rated firms are more responsive to the negative dividend predictors. As a result, good (bad) credit ratings make corporate managers become more bold (timid) in their dividend payments and they tend to pay more (less) dividends than what their firm characteristics prescribe. The degree of information asymmetry increases for the poor group firms during crisis periods and they attempt to reserve more cash in preparation for future investments. The decomposition results suggest that the credit group effect can potentially exceed the effect of firm characteristics because firms of different credit ratings can respond to the very same firm characteristics in a different manner.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.2
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• pp.257-267
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• 2019

The paper aims to test long-term and short-term causality from four exchange rates, the Korean won/$US, the Korean won/Euro, the Korean won/Japanese yen, and the Korean won/Chinese yuan, to the Korea Composite Stock Price Index in the presence of several macroeconomic variables using monthly data from January 1986 to June 2018. The results of Johansen cointegration tests show that there exists at least one cointegrating equation, which indicates that long-run causality from an exchange rate to the Korean stock market will exist. The results of vector error correction estimates show that: for long-term causality, the coefficient of the error correction term is significant with a negative sign, that is, long-term causality from exchange rates to the Korean stock market is observed. For short-term causality, the coefficient of the Japanese yen exchange rate is significant with a positive sign, that is, short-term causality from the Japanese yen exchange rate to the Korean stock market is observed. The coefficient of the financial crises i.e. 1997-1999 Asian financial crisis and 2007-2008 global financial crisis on the endogenous variables in the model and the Korean economy is significant. The result indicates that the financial crises have considerably affected the Korean economy, especially a negative effect on money supply.

• International conference on construction engineering and project management
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• 2015.10a
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• pp.736-737
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• 2015

In these days, international construction market including construction companies has much grown due to globalization and economic boom in the mid 2000's. The size of international construction market, measured with overseas revenue of 225 construction firms, has expanded 2.7 times from 2003 to 2008 according to the ENR. However, after the global financial crisis of 2008 it has faced condition of low growth. In this research, major changes of international construction market and top contractors have been studied. In this study, changes of international construction market have been analyzed in the aspect of region and product including general buildings, transportation, petroleum, etc. Then, in order to find the changes of top contractors which obtained good accomplishment, business performance of companies have been examined by the compound annual growth rate, profit margin and international revenue by comparing the data before 2008 and after. The purpose of the study is to understand major changes of international construction market. Also, strategy changes of top contractors against market stagnation, profit depreciation, high competition have been inferred through the study. The result of the study would contribute to analyzing the strategies of construction companies in international market.

• Journal of Digital Convergence
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• v.20 no.5
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• pp.239-251
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• 2022

This study tried to understand the structural relationship between public crisis communication, emotional influence, and behavioral intention in a national crisis/risk situation. Based on the results of previous studies and empirical studies, the results of crisis/threat type, crisis/threat response, sentiment (crisis/risk responsibility, strategic risk/risk reflective response), and action intention For tourists who visit tourist destinations, as well as the relationship between crisis and risk communication at the tourist destination and one of the unique emotions of Koreans (crisis threat responsibility, strategic response, and reflective response to crisis threat) The relationship between the outcome variable, behavioral intention, was identified. A theoretical study was conducted on each research concept to achieve the proposed research purpose. Based on this, a questionnaire was drawn up and empirical research was conducted in parallel. Three hypotheses were established, and meaningful results were confirmed according to the results of the hypotheses. When a risky situation occurs, the government, business, and local community will actively respond and respond to it as an opportunity to offset the risk of crisis.

• Journal of Electrical Engineering and Technology
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• v.5 no.3
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• pp.379-388
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• 2010

The Korea Electric Power Corporation (KEPCO) recorded 2.9 trillion won deficit in the aftermath of the world financial crisis. KEPCO is trying to escape from the business crisis in every way; however, it is impossible to make huge profit by selling electricity alone. Overseas electrical utilities make profits by selling gas and heat along with electricity. However, it is difficult for KEPCO to enter the gas and the heat selling market because other public companies are already dealing with them. In this situation, improving the business is possible when KEPCO develops a new business model and creates added value using Korean advanced Power IT combined with electricity. This study shows a new business model using Power IT, based on a survey targeting managers in KEPCO branch office and electrical engineers in the field. We hope the new business model suggested in this study is adapted to the real field to create high value in the future.

• The Journal of Industrial Distribution & Business
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• v.12 no.7
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• pp.27-39
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• 2021

Purpose: The researchers reviewed the previous studies on the psychological anxiety and economic damage during the recent COVID-19 pandemic to understand the satisfaction, awareness and attitude of the residents in Jeju, Korea. Research design, data and methodology: 215 samples based on self-reported survey were collected for path analysis focused on controlling variables in demographic characteristics in PLS-SEM using Smart PLS 3.0. Results: The researchers found the Satisfaction with COVID-19 Prevention Measures and the Awareness of Tourism Crisis affect Attitude toward Tourism of the residents with the explanatory power (R² = 0.209). Age was found to be the only significant controlling variable in this model for the Awareness of Tourism Crisis to Attitude toward Tourism. Conclusions: The attitude toward tourism is influenced by the level of satisfaction of the prevention service for COVID-19 as well as the awareness of the crisis. Residents have different level of the tourism crisis awareness by the status of their economic activities while there is no differences in all age groups for satisfaction in the quarantine service. The study suggests that the importance of the public health service should be preferentially concerned for residents to have stable economic activities where the tourism is the major industry.

• The Journal of Industrial Distribution & Business
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• v.9 no.5
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• pp.37-46
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• 2018

Purpose - This paper explores the determinants of bank lending to firms during and after the global financial crisis using firm- and bank-level data to answer the questions what caused the contraction of lending to firms despite the loosening monetary policy during this crisis period. Research design, data, and methodology - We investigate the effects of the monetary policy that followed the global financial crisis on firms borrowing. We use a dynamic panel model to address how firms lending respond to monetary policy. The data are obtained from CRETOP and we consider the manufacturing sector for the analysis to control for unobserved heterogeneity such as industry-specific shocks. Results - The findings from the empirical analysis suggest that both bank- and firm-level characteristics are significant determinants of bank lending. Especially, we find that corporate risk, measured by default risk, is one of the key factors that led to a decline in lending during the crisis. Conclusions - This paper shows that companies borrow more from liquid banks, and high bank capital can also contribute to an increase in a firm's borrowing from banks. Especially, the results confirm that the default rate measured at the firm level has increased during and after the global financial crisis, which implies that default risk interplays with other firm and bank-level characteristics.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.759-770
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• 2021

Using a DCC - GARCH model analysis, this paper examines the existence of financial contagion from the U.S. stock market to the Vietnamese and the Philippine stock markets during the global financial crisis and the COVID-19 pandemic crisis. We use daily data from the S&P 500 (U.S.), VN-Index (Vietnam), and the PSEi (the Philippines). As a result, there is no evidence of contagion from the U.S stock market to the Philippine stock market that can be found during global financial crisis, while the Vietnamese market is influenced by this effect. Besides, both these developing stock markets (the Vietnamese and Philippine stock markets) are influenced by the contagion effect in COVID-19 pandemic crisis. Another finding is that the contagion effect during the coronavirus pandemic crisis in Vietnam is smaller than that during the global financial crisis, however, the opposite is the case for the Philippines. It is noticed that the Philippines seems to be more affected by the contagion effect from the COVID-19 pandemic than Vietnam at the time of this study. Because financial contagion is important for monetary policy, asset pricing, risk measurement, and portfolio allocation, the findings in this paper may give some useful information for policymakers and investors.

• Journal of Korea Port Economic Association
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• v.29 no.1
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• pp.67-76
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• 2013

It has been more than four years since the outbreak of global financial crisis. However, the world economy continues to be challenged with new crisis such as the European debt crisis and the fiscal cliff issue of the U.S. The global economic environment remains fragile and prone to further disappointment, although the balance of risks is now less skewed to the downside than it has been in recent years. It's no wonder that maritime business will be bearish since the global business affects the maritime business directly as well as indirectly. This paper, hence, aims to predict the Baltic Dry Index representing the shipping business using the ARIMA-type models and Hodrick-Prescott filtering technique. The monthly data cover the period January 2000 through January 2013. The out-of-sample forecasting performance is measured by three summary statistics: root mean squared percent error, mean absolute percent error and mean percent error. These forecasting performances are also compared with those of the random walk model. This study shows that the ARIMA models including Intervention-ARIMA have lower rmse than random walk model. This means that it's appropriate to forecast BDI using the ARIMA models. This paper predicts that the shipping market will be more bearish in 2013 than the year 2012. These pessimistic ex-ante forecasts are supported by the Hodrick-Prescott filtering technique.