• Journal of Distribution Science
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• v.18 no.2
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• pp.99-108
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• 2020

Purpose: This paper investigated the relationship between market competition and firm valuation error. Furthermore, Additional analyses were made according to the quality of financial reports and the listed market. Through the process we confirm to the impact of competition on the capital market. The purpose of this study is to analyze the impact of competition on valuation errors. The preceding studies did not provide a consistent results of the effects of competing functions on the capital market. One view is that the competition could mitigate the information asymmetry, and the other is that monopolistic lessens the manager's involvement in financial reporting. This study is intended to expand the prior study by analyzing the impact of competition on the capital market and on the valuation of investors. Research design, data, and methodology: The analysis was conducted on 12,031 samples over 11 years from 2008 to 2018 using data from market in Korea. Here the valuation error was measured by the research methodology of Rhodes-Kropf, Robinson and Viswanathan (2005), and competition measured by Herfindahl-Hirschman Index multiplied by (-1), and Concentration Ratio by (-1). Results: We confirm that the positive relationship between competition and the valuation error. In addition, we also found that the positive relation between competition and valuation error was in cases of low discretionary accruals and the KOSDAQ market. This means that the net function of competition does not mitigate valuation errors. Conclusions. This study has the following contributions when compared to prior research. First, the relevance between the level of competition and the valuation of the entity was confirmed. The study by Haw, Hu and Lee (2015) suggested that monopolistic industry of analysts' forecast is more accurate due to lower the variability in earnings. This study magnified it to confirm that monopolistic lessen information uncertainty in valuation. Second, the study on valuation errors was expanded. While the study on the effect of valuation errors on the capital market is generally relatively active, it is different that competition degree has analyzed the effect on valuation errors amid the lack of research on the effect on valuation errors.

• International Area Studies Review
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• v.21 no.2
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• pp.143-169
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• 2017

This paper empirically examines how capital structure inertia varies across industries and there is different in industries, and whether this fact is explained by product market competition using non-financial firms listed in KOSP market over periods of 1981 to 2015. In empirical test, I find that firms with more competition environment tend to have inertia behavior in making decision of capital structure. This implies that it is explained by debt discipline effect and it is substitution for product market competitions. Also I find that manager tends to take action actively making decision of capital structure when product market competition is low. Also I show that they use debt to constraint the free cash flow. As a result, I conclude that Korean non-financial firms do not have more strong inertia behavior in capital structure rather than U.S. firms. Second, using OLS estimation, inertia effect disappears while there is strong inertia effect in relationship between inertia and product market competition. This result suggests that transaction cost is not key factor in explaining inertia behavior of capital structure.

• Proceedings of the Technology Innovation Conference
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• 1999.06a
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• pp.203-225
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• 1999

In this paper, I tried to analyze the relationship between the market structure of teleommunicatin industry and market performance using Economides and Lehr's results considering composite goods methods. And I took three policy scenarios into account. First, government tires to implement the policy which divides the integrated monopoly into network operator and service provider, then invite competition to service part. Second, government tries to implement the policy which invite the competition to service part only. Third, government tries to implement the policy which invite the competition to integrated duopoly. I gained the best result in the third scenario. So we can conclude that Parallel vertical integration is the best market structure. I also specially checked the relationship between the market structure and service quality. I gained the best service quality in the third scenario. So we can conclude that Parallel Vertical Integration is also the best market structure with regard to the service quality.

• Journal of Korea Trade
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• v.23 no.3
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• pp.105-117
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• 2019

Purpose - Underdog positioning is often used to evoke a positive attitude when interacting with consumers. However, little research has been conducted on the market competition structure and innovation contexts in which underdog positioning produces the most impact. This research aims to investigate unexplored boundary conditions of underdog positioning and addresses two issues: market structures (oligopoly vs monopolistic competition) and perceived firm innovativeness (PFI). Design/methodology - Two one-way ANOVA designs (market structures: monopolistic competitions vs. oligopoly; perceived frim innovativeness: strong vs. weak) were randomly assigned to 297 graduate and undergraduate students (52 % female) majoring in business. Study 1 examined the effect of underdog positioning on consumer attitudes in the different market structures. Study 2 investigated the relationship between underdog effect and consumer attitudes through viewing conditions that varied in PFI. Findings - Drawing on the results of the study, the authors conclude that underdog positioning is effective to generate more positive consumer attitudes when employed in the market structure of monopolistic competition rather than oligopoly. Moreover, both underdog and top dog positioning are likely to generate more positive consumer attitudes when accompanied with strong PFI than weak PFI. Originality/value -This is the first study to distinguish between monopolistic competition and oligopoly market structures with underdog positioning as well as to demonstrate a positive effect of PFI, regardless of the type of brand narratives.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2012.11a
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• pp.277-278
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• 2012

After the introduction of CM(construction management) for improving productability in construction industry, the CM market was shown to actively grow shape until 2007 but suddenly appears passive movement of the market after in 2008. However, on one hand, the CM corporations has increased, because the construction supervision market come to the CM market area by reduction their work place. Because of this, it was discussed that will intensify competition between companies in the CM market. Therefore, this paper want to analyze to status of the CM market structure for studying about the CM industry status and change during last 3 years. As a result, by decreasing the Market concentration, the CM market competition rate did not too high with business despite that CM market downsize and has been increased the number of companies.

• Journal of Korea Technology Innovation Society
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• v.9 no.4
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• pp.796-811
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• 2006

This paper aims to develop methodology and indicators to review effective competition in Korean mobile telecommunication market. After examining strengths and weaknesses of other countries' experiences, we proposed several indicators for the assessment of competition. Developed from criteria such as transparency, regulation cost, policy objectives, proposed indicators comprise market structure, behaviour of sellers and consumers, and consumer benefits. These indicators are applied to the Korean mobile market. During the period 2001-2004, 'the competition assessment index' increased steadily, meaning the state of competition was aggravated during this period.

• Journal of Distribution Science
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• v.17 no.3
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• pp.97-105
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• 2019

Purpose - The purpose of this study is to investigate the effect of the government support project on traditional market and the interaction effect between the government support project and the competition intensity. Therefore, this study focuses on the competition intensity of individual stores in traditional markets, unlike the traditional research flow, which is beyond the competitive structure of traditional markets and large retailers. Research design, data, and methodology - This study is based on the data of 'Statistics of Traditional Market in 2017'. In this study, a multiple regression equation was constructed using the number of government support projects as an independent variable, competition intensity as an interaction, and sales per store, number of customers per store as a dependent variable for analysis. A multiple regression equation was constructed for the main effect analysis. To investigate the effect of the interaction, cohen(1980)'s regression equation and two-way ANOVA were used. Results - First, according to this study, the traditional market participated in the government support project showed that the sales and the number of visitors per store in the traditional market were higher than those in the non-participation market. Second, the impact of government support projects on sales per store(also number of visiting customers per store) can be different depending on the competition intensity. More specifically, if the market is politically supported by a market with a high level of competition, it may be more effective than the market with no support. Conclusions - Based on the results of the study, we suggested academic and practical implications and suggested that competition intensity of stores in the traditional market should be considered in the future. The implications of this study are as follows. First, the effects of the government's traditional market support project were analyzed empirically. Second, this study is different from the previous studies in that it examined the competitive strengths and the effects of individual stores in traditional markets, away from competition between traditional market and large retailers. Third, it provided practical implications for the operation of government support projects.

• KDI Journal of Economic Policy
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• v.38 no.1
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• pp.53-70
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• 2016

This paper examines market concentration and its effect on competition in the Chinese commercial banking market. This study also investigates how changes in competition have affected the financial stability of Chinese commercial banks. To test the competitive conditions, we obtained the H statistic of the Panzar-Rosse model from a revenue function equation. The degree of financial stability is estimated by the Z-score formula. The Chinese banking industry has become an increasingly less concentrated market with an increased number of banks. Along with a decreased market concentration, competition in the Chinese banking industry has improved moderately. However, its market structure is still far from a competitive market. An individual bank's ability to earn higher markup or charge a higher net interest margin contributes to its financial soundness, although a higher degree of market concentration may have negative effect on the financial stability of the entire banking system.

• KDI Journal of Economic Policy
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• v.29 no.1
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• pp.79-112
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• 2007

Opening domestic market to international trade may enhance not only actual competition but also potential competition from foreign competitors. It seems that the competition authority has focused mainly on the actual competition (measured by the current market share) and has paid less attention to the potential competition. In this regards, this paper investigated the relation between potential foreign competition and domestic market structure. Using dynamic panel regression model, we analyzed the dynamic response of import penetration to the changes of domestic market condition in Korea as a proxy for the degree of potential foreign competition. The empirical results suggests that potential foreign competition does exist in the Korean manufacturing sector and this tendency is more stronger when the market is more concentrated. Thus, in order to effectively implement competition policy, it is necessary to consider both actual and potential competition.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.1
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• pp.85-100
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• 2009

An online marketplace, such as eBay, is an example of two-sided markets. In online marketplaces, there are transactions between sellers and buyers and direct competition effects among sellers and among buyers. Previous research on two-sided market has not handle these competition effects and mostly focused on indirect network externalities between sellers and buyers. We analyze the fee structure of an online marketplace considering direct competition effects among sellers and among buyers. We find that when fees for sellers and buyers can be imposed, an auction or fixed-pricing rule can be chosen according to the characteristics of a product traded. But when only fees for sellers can be imposed, an auction can be taken as a trading mechanism solely.