• Title/Summary/Keyword: Business index

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Key Audit Matters Readability and Investor Reaction

  • CHIRAKOOL, Wichuta;POONPOOL, Nuttavong;WANGCHAROENDATE, Suwan;BHONGCHIRAWATTANA, Utis
    • Journal of Distribution Science
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    • v.20 no.9
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    • pp.73-81
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    • 2022
  • Purpose: This study aimed to examine whether key audit matters (KAMs) readability influences investor reaction. Research design, data, and methodology: The signaling theory was applied to explain the behavior of investors when they receive useful information for their decisions. Data were collected from 1,866 firm-year observations from Thai listed companies in both the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (MAI) for the fiscal years of 2016-2019. The study was based on secondary data, which were collected from the SET Market Analysis and Reporting Tool (SETSMART) database and the Stock Exchange of Thailand's website (www.set.or.th). A statistical regression method was used with panel data analysis to evaluate possible associations between KAMs readability and investor reaction. The study relied on popular readability measures (Fog Index). Moreover, investor reaction was measured by absolute cumulative abnormal return and abnormal trading volume. Results: It was found that the KAMs readability has positive significance on both absolute cumulative abnormal return and abnormal trading volume. Conclusion: This study showed a significant contribution to the implication of KAMs in an emerging economy. The results reveal that more readable KAMs disclosure distributed new insights and useful information to investors and led to reducing the information gap between auditors and investors.

The Relationship Between Government Size, Economic Volatility, and Institutional Quality: Empirical Evidence from Open Economies

  • MUJAHID, Hira;ZAHUR, Hafsah;AHMAD, Syed Khalil;AYUBI, Sharique;IQBAL, Nishwa
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.5
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    • pp.19-27
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    • 2022
  • The size of the government is one of the most fundamental debates of open economies. In any economy, government plays an important role, but a pertinent level of economic prosperity has never been obtained in history without government. Therefore, the objective of this paper investigates the association of government size, economic volatility, and institutional quality for 182 economies from the time period 1996-2016 is collected from the World Bank database. GE is defined as the General government's final consumption expenditure. Health expenditure is represented by HE. Government expenditure on education is denoted by EDUEXP. The economic volatility is measured by the rolling standard deviation of GDP per capita growth rate, Population growth, Trade openness, GINI represented Gini index which measures the degree to which the income distributed or consumption expenses among citizens deviates from a perfectly equal distribution. The results proposed that economic volatility has a significant effect on government size and institutional qualities. Moreover, the paper extends the investigation by finding the link between economic volatility with government health and education expenditure separately. The policy implication drawn from this analysis is that controlling economic volatility may reduce the size of government and also significantly affect health and education expenditures.

A Study on Scor model and BSC to estimate SCM Performance in Textile and Fashion Business (섬유패션기업의 SCM 성과 측정을 위한 Scor Model과 BSC 연구)

  • Shin, Sang-Moo;Choi, Jin-Hyuk
    • Journal of Fashion Business
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    • v.14 no.4
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    • pp.10-22
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    • 2010
  • To survive competitive global market, textile and fashion business incorporated Supply Chain Management strategy to make product and information flows fast and correct. Especially textile and fashion industry involves many complicated channels from up stream, middle stream, to down stream for delivering their production. Evaluating SCM performance is very critical to make better business profit model. Representative Scor model and BSC method are well fitted into textile and fashion business because of distributional complexity, non-financial factors to be considered, and innovative product characteristics. But there was little study to compare these two methods for textile and fashion business. Therefore, the purpose of this study was to investigate the Scor model and BSC method based upon review of literatures. The results of this study were as follows: Scor model had some strengths which were availability to apply for various industries due to standardized process, operation process emphasized, various customizable factors to compose for the company, and premise on SCM strategic execution. BSC method had some strengths which were the balance including financial and non-financial factors, qualitative analysis, and considering the goal and vision to convey organically from top to bottom of organization. The main differences between them were different scope to deal with performance estimating index from qualitative to quantitative analysis, the scope of human resources to manage, and possibility of performance comparison among companies.

Antecedents of Disclosure on Internal Control and Earnings Management

  • ZULFIKAR, Rudi;MILLATINA, Firda;MUKHTAR, Mukhtar;ASTUTI, Kurniasih Dwi;ISMAIL, Tubagus;MEUTIA, Meutia;FAZRI, Edward
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.3
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    • pp.391-397
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    • 2021
  • This study examines the effect of independent commissioners and the Audit Committee on internal control disclosure and its implications for earnings management in the banking industry listed on the Indonesia Stock Exchange for the period 2016-2018. In this study, a purposive sampling technique was used, combined with two multiple regression analysis models. The final sample for this study comprised 30 companies over the three years of observation, such that there were 90 observations in total. This study indicates that independent commissioners, as measured by their composition, do not affect the disclosure of internal control. However, as measured by the number of members, the Audit Committee had a positive effect on internal control disclosures. This study also indicates that the disclosure of internal control as measured by the Internal Control Disclosure index affects reducing the negative practice of earnings management. This study proves that the Audit Committee's role is very dominant in assisting the Board of Commissioners in supervising internal control. This has implications for reducing earnings management practices. However, the Independent Commissioner's role in the Indonesian banking industry has not been optimal in carrying out the supervisory function in this study.

An Intelligent Decision Support System for Selecting Promising Technologies for R&D based on Time-series Patent Analysis (R&D 기술 선정을 위한 시계열 특허 분석 기반 지능형 의사결정지원시스템)

  • Lee, Choongseok;Lee, Suk Joo;Choi, Byounggu
    • Journal of Intelligence and Information Systems
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    • v.18 no.3
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    • pp.79-96
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    • 2012
  • As the pace of competition dramatically accelerates and the complexity of change grows, a variety of research have been conducted to improve firms' short-term performance and to enhance firms' long-term survival. In particular, researchers and practitioners have paid their attention to identify promising technologies that lead competitive advantage to a firm. Discovery of promising technology depends on how a firm evaluates the value of technologies, thus many evaluating methods have been proposed. Experts' opinion based approaches have been widely accepted to predict the value of technologies. Whereas this approach provides in-depth analysis and ensures validity of analysis results, it is usually cost-and time-ineffective and is limited to qualitative evaluation. Considerable studies attempt to forecast the value of technology by using patent information to overcome the limitation of experts' opinion based approach. Patent based technology evaluation has served as a valuable assessment approach of the technological forecasting because it contains a full and practical description of technology with uniform structure. Furthermore, it provides information that is not divulged in any other sources. Although patent information based approach has contributed to our understanding of prediction of promising technologies, it has some limitations because prediction has been made based on the past patent information, and the interpretations of patent analyses are not consistent. In order to fill this gap, this study proposes a technology forecasting methodology by integrating patent information approach and artificial intelligence method. The methodology consists of three modules : evaluation of technologies promising, implementation of technologies value prediction model, and recommendation of promising technologies. In the first module, technologies promising is evaluated from three different and complementary dimensions; impact, fusion, and diffusion perspectives. The impact of technologies refers to their influence on future technologies development and improvement, and is also clearly associated with their monetary value. The fusion of technologies denotes the extent to which a technology fuses different technologies, and represents the breadth of search underlying the technology. The fusion of technologies can be calculated based on technology or patent, thus this study measures two types of fusion index; fusion index per technology and fusion index per patent. Finally, the diffusion of technologies denotes their degree of applicability across scientific and technological fields. In the same vein, diffusion index per technology and diffusion index per patent are considered respectively. In the second module, technologies value prediction model is implemented using artificial intelligence method. This studies use the values of five indexes (i.e., impact index, fusion index per technology, fusion index per patent, diffusion index per technology and diffusion index per patent) at different time (e.g., t-n, t-n-1, t-n-2, ${\cdots}$) as input variables. The out variables are values of five indexes at time t, which is used for learning. The learning method adopted in this study is backpropagation algorithm. In the third module, this study recommends final promising technologies based on analytic hierarchy process. AHP provides relative importance of each index, leading to final promising index for technology. Applicability of the proposed methodology is tested by using U.S. patents in international patent class G06F (i.e., electronic digital data processing) from 2000 to 2008. The results show that mean absolute error value for prediction produced by the proposed methodology is lower than the value produced by multiple regression analysis in cases of fusion indexes. However, mean absolute error value of the proposed methodology is slightly higher than the value of multiple regression analysis. These unexpected results may be explained, in part, by small number of patents. Since this study only uses patent data in class G06F, number of sample patent data is relatively small, leading to incomplete learning to satisfy complex artificial intelligence structure. In addition, fusion index per technology and impact index are found to be important criteria to predict promising technology. This study attempts to extend the existing knowledge by proposing a new methodology for prediction technology value by integrating patent information analysis and artificial intelligence network. It helps managers who want to technology develop planning and policy maker who want to implement technology policy by providing quantitative prediction methodology. In addition, this study could help other researchers by proving a deeper understanding of the complex technological forecasting field.

An Empirical Analysis on the Relationship between Stock Price, Interest Rate, Price Index and Housing Price using VAR Model (VAR 모형을 이용한 주가, 금리, 물가, 주택가격의 관계에 대한 실증연구)

  • Kim, Jae-Gyeong
    • Journal of Distribution Science
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    • v.11 no.10
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    • pp.63-72
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    • 2013
  • Purpose - This study analyzes the relationship and dynamic interactions between stock price index, interest rate, price index, and housing price indices using Korean monthly data from 2000 to 2013, based on a VAR model. This study also examines Granger causal relationships among these variables in order to determine whether the time series of one is useful in forecasting another, or to infer certain types of causal dependency between stochastic variables. Research design, data, and methodology - We used Korean monthly data for all variables from 2000: M1 to 2013: M3. First, we checked the correlations among different variables. Second, we conducted the Augmented Dickey-Fuller (ADF) test and the co-integration test using the VAR model. Third, we employed Granger Causality tests to quantify the causal effect from time series observations. Fourth, we used the impulse response function and variance decomposition based on the VAR model to examine the dynamic relationships among the variables. Results - First, stock price Granger affects interest rate and all housing price indices. Price index Granger, in turn, affects the stock price and six metropolitan housing price indices. However, none of the Granger variables affect the price index. Therefore, it is the stock markets (and not the housing market) that affects the housing prices. Second, the impulse response tests show that maximum influence on stock price is its own, and though it is influenced a little by interest rate, price index affects it negatively. One standard deviation (S.D.) shock to stock price increases the housing price by 0.08 units after two months, whereas an impulse shock to the interest rate negatively impacts the housing price. Third, the variance decomposition results report that the shock to the stock price accounts for 96% of the variation in the stock price, and the shock to the price index accounts for 2.8% after two periods. In contrast, the shock to the interest rate accounts for 80% of the variation in the interest rate after ten periods; the shock to the stock price accounts for 19% of the variation; however, shock to the price index does not affect the interest rate. The housing price index in 10 periods is explained up to 96.7% by itself, 2.62% by stock price, 0.68% by price index, and 0.04% by interest rate. Therefore, the housing market is explained most by its own variation, whereas the interest rate has little impact on housing price. Conclusions - The results of the study elucidate the relationship and dynamic interactions among stock price index, interest rate, price index, and housing price indices using VAR model. This study could help form the basis for more appropriate economic policies in the future. As the housing market is very important in Korean economy, any changes in house price affect the other markets, thereby resulting in a shock to the entire economy. Therefore, the analysis on the dynamic relationships between the housing market and economic variables will help with the decision making regarding the housing market policy.

A Study on the Measurement of Startup and Venture Ecosystem Index (창업·벤처 생태계 측정에 관한 연구)

  • Kim, Sunwoo;Jin, Wooseok;Kwak, Kihyun;Ko, Hyuk-Jin
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.16 no.6
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    • pp.31-42
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    • 2021
  • The importance of startups and ventures in the Korean economy is growing. This study measured whether the start-up and venture ecosystem is growing, including the growth of startups and ventures. The startup and venture ecosystem consists of startups and ventures, investors, and government, which are the main actors of the 'ecosystem', and their movements were measured with 25 quantitative indicators. Based on the original data of the time series from 2010 to 2020, the startup and venture ecosystem index was calculated by applying weights through the comprehensive stock index method and AHP. In 2020, the startup and venture ecosystem grew 2.9 times compared to 2010, and the increase in the government index had a significant impact on growth. Also, the individual indicators that make up each index in 2020, the corporate index had the greatest impact on the growth of the number of 100-billion ventures, while the investment index had a recovery amount and the government index had a significant impact. Based on the original data, the startup and venture ecosystem index was analyzed by dividing it into ecosystems (startup ecosystem and venture ecosystem), industry by industry (all industries and manufacturing industry), and region (Korea and Busan). As a result, the growth of the startup ecosystem over the past decade has been slightly larger than that of the venture ecosystem. The manufacturing was lower than that of all industries, and Busan was lower than that of the nation. This study was intended to use it for the establishment and implementation of support policies by developing, measuring, and monitoring the startup and venture ecosystem index. This index has the advantage of being able to research the interrelationships between major actors, and anyone can calculate the index using the results of official statistical surveys. In the future, it is necessary to continuously update this content to understand how economic and social events or policy support have affected the startup and venture ecosystem.

A study on composite precedence indices focusing on Jeju (제주지역 경기선행종합지수에 관한 연구)

  • Kim, Kye Chul;Kim, Myung Joon;Kim, Yeong-Hwa
    • The Korean Journal of Applied Statistics
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    • v.29 no.1
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    • pp.243-255
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    • 2016
  • The developed composite index has limits to estimate and predict economic status due to economic pattern change and the response change of explanatory variables. A higher precedence individual indicators should be selected to predict the future accurately. In this study, effectiveness of Jeju Island precedence indicators consists of constituents in the area, the consumer price index, services production index, mining and manufacturing production index. The average temperature of Seogwipo and credit card purchase amount is reviewed as an economic turning point consideration and time lag correlation analysis with real data. In addition, we suggest the proper reference cycle in Jeju composite precedence index and evaluate the configuration in leading indicators for Jeju by comparing national economic indicators. Based on the derived results, the current problems of Jeju Island precedence indicators will be illustrated and the improvement methods to estimate a regional composite index will be suggested.

Index Analysis Approach to Identifying Accident Concentration Level of Korean Industries (국내 산업재해집중수준 확인을 위한 지표분석)

  • Lee, Bong Keun;Suh, Yongyoon;Chang, Seong Rok
    • Journal of the Korean Society of Safety
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    • v.35 no.5
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    • pp.59-65
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    • 2020
  • For monitoring the status of industrial accidents, many statistical indexes have been developed and applied such as fatal rate, frequency rate, and severity rate. These accident indexes are measured by frequency and loss time according to the accidents in the individual industry level. However, it is less considered to use the index of identifying the industrial concentration of accidents in the holistic view. Thus, this study aims to suggest the accident concentration level among domestic industries through index analysis. The concentration level of industrial accidents is calculated by the accident composition of sub-industries. This concentration level shows whether an industry is comprised of a few sub-industries generating more accidents or an industry consists of sub-industries having the similar number of accidents. To this end, the concentration rate (CR) and concentration index (CI) are proposed to take a look at the industry composition of accidents by embracing the concept of market concentration indexes such as Hirschman-Herfindahl Index. As for the case study, four industries of mining, manufacturing, transportation, and other business (usually service) are analyzed in terms of indexes of accident rate, death(fatality) rate, and CR and CI of accident and death. Finally, we illustrate the positioning map that the accident concentration level is compared with the traditional accident frequency level among industries.

Factors of Successful Development of Smart Cities

  • Iryna, Kalenyuk;Iryna, Uninets;Yevhen, Panchenko;Nataliia, Datsenko;Maxym, Bohun
    • International Journal of Computer Science & Network Security
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    • v.22 no.7
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    • pp.21-28
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    • 2022
  • The increase in the number of large cities and the size of their population sharpens attention to the new role of cities as entities to ensure a high-quality, safe and modern life of citizens, which has become significantly more active in recent years. The rapid spread of smart cities in the modern world has actualized the issue of analyzing their success and assessing the role of various factors in this. Every success of a smart city is always the result of a unique combination of the most modern technologies, environmental and social initiatives, skillful and consistent management, as well as available human potential. The purpose of the article is to analyze the success factors of smart cities based on the generalization of the results of the most famous ratings. In order to identify the impact of various factors, primarily intellectual, on the success and leadership positions of smart cities, the following ratings were consistently analyzed: Smart City Index (SCI), City in Motion Index (CIMI), Global Power City Index (GPCI), Global Cities Index (GCI), Global Cities Outlook (GCO). They have a different list of indicators and main pillars (dimensions), but all ratings take into account aspects such as: governance, ICT, mobility, functionality, human capital, etc. The highest correlation coefficient, that is, the strongest linear relationship of the CIMI index was found with such factors as: Human capital, Economy, Governance and Technologies. Summarizing the results of the TOP 20 smart cities according to different ratings allowed us to confirm that the list of leaders is very similar in all ratings. Among those cities that are in the TOP-20 in all five indexes are: London, Sydney and Singapore. There are four indices: New York, Paris, Tokyo, Copenhagen, Berlin, Amsterdam, Melbourne. Achieving leadership positions in smart city rankings is always the result of a combination and synergy of certain factors, and first of all, it is the quality of human capital. The intensity and success of the use of information and communication technologies in locality management processes, city planning and improvement of the city's living conditions depend on it.