• The Journal of Fisheries Business Administration
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• v.18 no.1
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• pp.37-57
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• 1987

This article discussed the characteristics of several Pareto-optimal incentive contracts between owner and labor, more specifically, four situations: reporting output jointly observable by labor ana owner; reporting both output and effort; incorporating other endogenous elements (like capital) that affect the production process and Pareto-optimal fee schedules; and ascertaining the effects of private pre-decision information private- decision information, and per-contact informational asymmetries. Also presented were several extensions of the basic contractual model, and the different components of agency costs associated with labor-owner contractual relations. In a single-period model, the agency problem exists because the uncertainty prevents the owner from using the cash flow to determine unambiguously the labor's action. Holmstrom(1979) suggests that "when the same situation repeats itself over time, the effects of uncertainty tend to be reduced and dystunctional behavior is more accurately revealed, thus alleviating the problem of moral hazard. " Under these conditions, if the labor selects the first-best level of effect in each period, the cash flow will be independent and identically distributed over time. As the number of periods increases, the variance of the labows average output, if he selects the first-best level of effort in each period, gets smaller. Note that for this diversification effect to occur, it is necessary that the owner evaluate the labor's effort over the entire history of his employment, rather than evaluate each period's performance separately. Radner(1980) and Rubinstein and Yaari(1980) consider the extreme case in which there are an infinite number of observations. They show that the owner can eventually detect and systematic shirking on the part of the labor by comparing the labor's average output with what would be expected if the labor had been selecting the first-best level of effort in each period. In a dynamic model with incentive problems we have demonstrated that the labor's second-period compensation will depend on his first-period performance. This allows the owner to diversify away some of the uncertainty surrounding the labor's actions. In addition, this allows the owner to smooth the labor's income over time by spreading the risk of the first-period outcome over both periods. At least some unexplored avenves in this area invite future accounting research: situations where owner has different incompatible objectives and negotiates a contract with labor; circumstances in which owner deals with multiple objectives and negotiates contracts with several labors simultaneously; the value of costly accounting information systems and communication in establishing, Pareto-optimal incentive contracts, and the value and effects of inside information, Thorough theoretical or empirical research on each of these topics not only would increase our knowledge about the role and significance of accounting information but could also provide explanations of the inherent differences among various organizations and in their economic behavior. behavior.

• Korea Journal of Hospital Management
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• v.21 no.1
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• pp.1-13
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• 2016

As the importance of strengthening the competency of managers who are in charge of cash collection and disbursement, and preparing for financial statements becomes more visible, this study examined the competency of middle-level managers of accounting department in general hospitals in Korea. Based on the literature, competency was measured by seven components: achievement and action, service, influence, management, cognition, individual effectiveness, and change management. Survey questionnaires included the respondents' perceived importance and performance of each of the seven components of competency. A total of 84 managers from 29 general hospitals responded to the survey between October 2015 and November 2015. Descriptive statistics, mean comparison (t-tests and ANOVAs), and multiple linear regression were conducted. The results of this study are as follows. Overall perceived importance of the competency was 4.16, while the performance was 3.87, and thus, the difference was 0.29. Among the seven components of the competency, cognition and change management had higher scores in terms of difference between the importance and performance. The regression analyses found that female managers had higher perceived importance and performance of competencies in achievement and action, and influence compared to male counterparts. In addition, participants in this study responded that main reasons for the gap between the perceived importance and performance are low compensation, lack of support, lack of knowledge, insufficient technical experience, excessive workload, and regulations. The results of this study can be used when designing capacity building training opportunities for the hospital accounting department. Also, the managers may evaluate themselves and look at the areas where they can narrow the gap between the perceived importance and performance of the competency that is required for today's leading managers.

• Journal of the Economic Geographical Society of Korea
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• v.13 no.4
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• pp.681-696
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• 2010

This paper aims to evaluate the importance of risk factors at each stage of real estate development projects, and to propose risk management plans. For this purpose, possible risk factors at each stage of real estate development projects are extracted through previous studies, questionnaire survey by real estate experts is conducted next. And finally, the importance of risk factors at each stage evaluated using the AHP method. The results of this study are as follows. First, according to the results of evaluating the risk factors by main categories, planning risks in predevelopment stage, licensing risks in developing preparation stage, and cash flow risk in development stage are appreciated as most important risks. Second, according to the results by sub categories, changes in consumer preferences in pre-development stage, contracts and licensing-related work in developing preparation stage, bankruptcy of developers and construction companies in development stage, and compensation for any kinds of accidents in management and operation stage are appreciated as most important risks. Third, the major risk management plans at each stage based on the analysis results are suggested.

• The Korean Journal of Financial Management
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• v.24 no.1
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• pp.149-182
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• 2007

This study examines the determinants of the long-run stock price performance of the firms that granted stock options between 1997 and 2002. We divide the sample into the firms run by the owner and those run by the professional manager. If the primary reason for granting stock options is reduction of the agency costs between the manager and shareholders, the effect of stock options is likely to be more pronounced in the firms run by the professional manager. We find that the long-run abnormal returns of the firms run by the professional manager are negatively associated with the shareholdings by the manager and the book-to-market value and are positively associated with the earnings growth and the size of the outstanding stock options. In contrast, the long-run abnormal returns of the firms run by the owner are negatively associated with the cash flows rate and the sales growth rate and are positively associated with the firm size. This is consistent with the argument that the agency costs arising from the conflicts between the manager and shareholders are an important determinant of the post-stock option granting long-run stock price performance only in the firms run by the professional manager. The results also suggest that stock options in the firms run by the owner are likely to be used for the purposes such as additional compensation, a signaling device, a means that reduce the agency costs within firms.

• Journal of Navigation and Port Research
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• v.45 no.3
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• pp.117-129
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• 2021

This study intends to verify the effectiveness of incentive schemes at Busan Port' aimed at promoting transshipment cargo. The current incentive schemes of Busan port intended to increase the T/S cargo volume have been disputed constantly. It is imperative, therefore, to restructure the system in accordance with the planned strategy. In this study, in order to ensure objectivity of the incentive schemes, all the parties (carriers, terminal operators and Port Authority) with a direct interest are answered and analyzed using the AHP methodology. Effectiveness is the top priority in the analysis of beneficiary validity of incentive schemes, when incentives are provided to Global overseas carriers compared with Global national carriers, IntraAsia carriers and Terminal operators. In the analysis of incentive schemes, direct cash support corresponding to the quantity of the T/S cargo had the highest effectiveness compared with exemption of port dues, cost compensation, port infrastructure support and subsidy for the service opening. The study results, therefore, reference the Port Authority when restructuring the schemes. This study has been conducted only focusing on the Busan port; however, the findings may have significant implications for overseas Port Authorities intending to implement incentive systems to promote cargo volumes similar to those at Busan port.