• 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 Industrial Distribution & Business
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• v.9 no.9
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• pp.15-23
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• 2018

Purpose - The purpose of this paper is to examine the determinants of non-bank depository institutions (non-bank financial corporations) lending to firms. The paper aims to contribute to the existing literature by providing empirical evidence from firm-level data and unveiling factors related to access to non-bank financial corporations by firms. Research design, data, and methodology - We used the data on borrowing by firms from CRETOP from years 2008 to 2011. Using the manufacturing industry, we examined what firm-level characteristics explained the increase in borrowing from non-bank financial corporations rather than the banks. Results - Analyzing the firm-level data from 2008 to 2011, we found that firms were more likely to borrow from non-bank financial insti­tutions as the size of the firm increases, implying that large firms have more access to non-bank financing than small and medium-sized firms. In addition, it also showed that small and medium-sized firms moved to non-bank financial corporations for loans. Conclusion - Non-bank depository institutions are not a sub­stitute for bank lending to firms. More specifically, they replace bank lending to firms mostly for large firms rather than small and medium-sized firms. Also, collateral and other firm-level characteristics do not matter in accounting for non-bank lending to firms.

• East Asian Journal of Business Economics (EAJBE)
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• v.7 no.4
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• pp.1-13
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• 2019

Purpose - Based on transaction cost perspective and institution-based perspective, this research attempts to investigate the effect of outsourcing on a firm's performance and how it interacts with institutional context in which the firms operate. Research design, data, and methodology -With a sample of 164 manufacturing firms form South Korea, we examine the direct effects of outsourcing on the a firm's level of product innovation and internationalization and the moderating effects of competitive pressure and property right protection as important external factors that could affect the effectiveness of outsourcing decision. Result - The findings show that outsourcing not only enhance a firm's capability to concentrate on its core competencies, but also to increase a firm's combinative capacity to acquire external knowledge. Furthermore, we finds that in a highly competitive environment, potential knowledge spillovers to other competitors may attenuate the potential benefits of outsourcing. Conclusion - Outsourcing can enhance a firm's innovation activities by providing valuable access to external knowledge and also to complementary resources from the external partners, which in turn enables firms to focus on core competences.

• Journal of Distribution Science
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• v.11 no.7
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• pp.23-30
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• 2013

Purpose - The study attempts to investigate the relationship between inventory management and firm performance using a multi-dimensional aspect of inventory management with respect to lean management practices across countries. Research design, data, and methodology - 1643 manufacturing firms from Japan and the US that SIC ranges from 2000 to 3999 were chosen to conduct the empirical test. This study employs hierarchical OLS regression analysis to examine the impact of control variables, ABI, EBI, and the interaction between ABI and EBI on firm performance. Results - The result indicates that in Japan high level of inventory negatively influences the accounting flows of business, while US manufactures exhibit strong positive impact of ELI on firm performance across accounting and market measures. The results show that the complementarity between the amount and the speed of inventory does exist. Except for Tobin's q, the sign of interaction term coefficient is negative, suggesting that when the amount of inventory increases and it stays longer in a firm, market values, ROS, and ROA suffers. Conclusions - The major finding of this study is that there exist some complementarities between the scope and implication of inventory management for lean strategy across countries, particularly in U.S. and Japanese firms.

• Journal of Korea Trade
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• v.23 no.3
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• pp.1-19
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• 2019

Purpose - This research examines the effect of a foreign subsidiary on the productivity growth of a Two-way trading manufacturing firm in Korea. We explore firms engaged in both trade and FDI simultaneously to verify whether participation in GVC as a broad concept is an efficient internationalization strategy to increase the productivity of a Korean manufacturing firm. Design/methodology - Based on the firm-level data by utilizing the Survey of Business Activities from Statistics Korea, we examine the impact of vertically integrated foreign subsidiaries on the productivity of a manufacturing firm that exports and imports simultaneously. Findings - The results show that if a Two-way trading firm establishes one or more overseas subsidiaries, the total factor productivity growth increases. Moreover, the FDI effect is statistically significant when the destination country has an economically close relationship with Korea. However, these effects are disparate depending on the industrial competitiveness or market situation where the subsidiary is located. Nonetheless, the synergy effect resulting from industrial combination is represented in China and the USA only. Originality/value - As the importance of GVC has become more emphasized around the world. In spite of the scarcity of related domestic studies, we explored the effect of multinational manufacturing firms participating in GVC using firm-level data.

• The Journal of Economics, Marketing and Management
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• v.8 no.2
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• pp.27-38
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• 2020

Purpose: Strategic management scholars have investigated the effects of corporate social responsibility (CSR) on firm financial performance, identifying various impacts of CSR activities showing conflicting results. Meanwhile, relatively less attention has been paid to the antecedents of CSR activities. According to upper echelons theory, organizational outcomes are predicted by characteristics of CEOs and top management team members. Corporate social responsibility is a type of organizational outcome influenced by such top leader characteristics and choices. Recognizing the importance of exploring new antecedents of CSR activities, I examine whether CEO humility affects CSR outcomes. Research design, data and methodology: The KEJI index was set as a dependent variable to measure CSR activities. Among the 200 sample companies registered in the KEJI database in 2014, 85 companies were finally selected and analyzed to measure CEO humility, as independent variable. I also examine the moderating effects of firm slack on the relationship between CEO humility and CSR activities. Results: There is a positive relationship between CEO humility and corporate social responsibility activities and this relationship is negatively moderated by firm slack. Conclusions: This paper contributes to understanding positive impacts of having humble CEOs on corporate social responsibility outcomes and recognizes the role of firm slack.

• Asia-Pacific Journal of Business
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• v.11 no.2
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• pp.207-233
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• 2020

Purpose - The purpose of this paper analyzes the relationship between the Corporate Social Responsibility(CSR) and Corporate Value to estimate whether the characteristics of Firm can change this relationship. Design/methodology/approach - This paper utilizes the total 776 firms' data over the period 2014-2018, and develops a new ESG index which was estimated by PCA. Findings - First, the estimated ESG index implies that Large company has the highest value of CSR, while Medium sized and Small company have the relatively low one. And comparing to the case of 2014, the trend of ESG index in Large company does not decrease in 2018. Second, there is a clear and significant non linear relationship between CSR and corporate value, it implies that the U-shaped exists in the Korean Firms. Such a tendency is mush stronger in the Large company. Third, the new ESG index indicates that it takes more time to increase Firm value in the Medium sized and Small company while there is a high possibility of increasing value in Large company from the little gab between the threshold points and mean value of ESG. Research implications or Originality - The non linear tendency between the Corporate Social Responsibility and Corporate Value is strongly affected by Firm size and the relative high quintile of ESG, but it is less affected by Firm history.

• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.185-198
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• 2020

Purpose - The purpose of this study is to examine the effect of performance-related pay on gender labor productivity differences theoretically and empirically. Design/methodology/approach - This study analyzes the Principal-Agent model in which a firm employes many male and female workers under moral hazard, and uses large survey data from Survey of Business Activities of MDIS (MicroData Integrated Service) in Korea. The fixed-effect model is employed in order to analyze the data. Findings - The theoretical result is that, after performance-related pay is offered to workers, the effect of performance-related pay on gender productivity is determined by whether the female ratio within firm affects firm's performance(such as revenue and profit) per capita. The empirical result is that, before performance-related pay is provided for all workers, the firm's female ratio does not affect firm's revenue and profit per capita at all, but after it is offered, the female ratio positively affects firm's performance per capita. Research implications or Originality - Fixed pay does not bring about the difference between male and female productivity, but performance-related pay affects female productivity more positively than male productivity in Korean firms. It means that female workers are more sensitive to incentives than men in Korea.

• Journal of Distribution Science
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• v.20 no.10
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• pp.51-60
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• 2022

Purpose: The aim of this research is to study 1) the effects of internal factors (technological capability and entrepreneurial orientation) that affect Thailand's hotel business network capability. 2) the effects of external factors (government policy and trust relationship) that affect Thailand's hotel business network capability. 3) the impact of network capability on the firm performance. 4) the moderating effect of absorptive capacity between network capability and firm performance. Research design, data and methodology: The test model collected data from a mail survey of 164 hotel businesses in Thailand. The correlation and multiple regression were adopted to analyze and test the proposed hypotheses. Results: Interestingly, technological capability, entrepreneurship orientation, and trust relationship have a direct impact on network capability. However, network capability still does not have a significant relationship with firm performance in all dimensions. Surprisingly, the absorptive capacity does not have a moderating effect on the relationship of network capability on firm performance of hotel businesses in Thailand. Conclusions: This research found that the hotel business should focus on analyzing the external and internal environment as it affects network building, which will guide the creation of strategies for further increasing hotel distribution channels and competitive advantage.

• Asia-Pacific Journal of Business
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• v.14 no.1
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• pp.59-71
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• 2023

Purpose - The purpose of this study is to investigate the effect of corporate social responsibility (CSR) on firm performance in China, plus the moderating effects of advertising intensity and environmental pollution. Design/methodology/approach - We analyzed our dataset that consists of 188 public Chinese firms drawn from the Shanghai and Shenzhen exchanges during 2010-2020. Findings - Based on the stakeholder theory and signaling theory, we proposed the positive relationship between the CSR level and the firm performance. Further, we configured consumers and the government as major stakeholders in China, suggesting positive moderating effects of advertising intensity and environmental pollution, respectively. Research implications or originality - The results show that the CSR level increases the firm performance. The advertising intensity positively moderates the relationship between the CSR level and the firm performance, but there was no significant moderating effects of environmental pollution. The findings confirm the importance of consumers for the CSR stakeholders. While the Chinese government strongly reinforces environmental regulation, CSR itself does not seem to be the fine-aligned action prioritized for mitigating environmental pollution.