• Journal of Distribution Science
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• v.17 no.7
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• pp.55-63
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• 2019

Purpose - This paper examines the value relevance of socially responsible activities in the Korean retail firms. Recent studies predict positive relationships between socially responsible activities and the value of corporation. Research design, data, and methodology - We use the environmental score, social score, governance score and the sum of these three scores to represent a fim's effectiveness of socially responsible activities. These scores are published by the Korean Corporate Governance Service. This paper adopts a share price valuation model to evaluate the effect of socially responsible activities on a firm's share price, which controls for the book value of assets and current earnings. The ordinary least square method is employed to examine the relationship. The sample of Korea retail firms is examined from 2011 to 2016. We also conduct sub-sample analysis based on the categorization of chaebol affiliates and non-chaebol affiliates. Results - The entire sample analysis finds neither negatively nor positively significant relationship between socially responsible activities and the value of a corporation. In contrast, our examinations find a significantly positive valuation effect of social score within non-chaebol retail firms. Conclusions - The results weakly support the positive valuation effect of socially responsible activities. The results are consistent with recent studies that highlight heterogeneous effects of socially responsible activities on corporate policies and valuation.

• Asia-Pacific Journal of Business
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• v.12 no.1
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• pp.195-208
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• 2021

Purpose - The primary objective of this paper is to empirically examine whether the engagement of socially responsible activities in corporations affect the tendency of tax-avoidance by using the sample of Korean companies. We are particularly interested in Chaebol-affiliated firms, which are a special type of Korean conglomerates. Design/methodology/approach - This study is based on a sample of 5,496 firm-year observation data from 2011 to 2017 by using the ESG ratings from the Korea Corporate Governance Service(KCGS), a ESG rating agency in Korea. For our analysis, the firms were separated into 1,547 Chaebol-affiliated firms and other 3,949 firms. All financial and firm data were extracted from Fn-guide, which provides financial information for Korean listed firms. Findings - We find that CSR is generally positively related to the effective tax rate, which indicates a lower level of tax avoidance for more socially responsible firms. In particular, a positive relationship of social score with GAAP ETR was observed. Research implications or Originality - We find that the positive relationship is robust to the group of chaebol and non-chaebol affiliates unlike extant literature.

• Journal of Distribution Science
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• v.17 no.6
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• pp.33-42
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• 2019

Purpose - We investigate whether a firm's engagement in socially responsible activity affects the quality of financial reporting within the retail industry of Korean market. Recent studies argue that more socially responsible firms tend to show a better quality of financial reporting. Research design, data, and methodology - We use a variety of proxy variables related to the use of discretionary accruals and real activity manipulation to measure the quality of financial reporting. The total of environmental, social and governance score is used to represent the degree of socially responsible activity in the retail industry. We use regression models to examine whether more socially responsible firms show a higher quality of financial reporting. The sample of publicly traded Korea retail firms is analyzed from 2011 to 2016. Results - Our analysis finds supporting evidence for limited earning management via the use of discretionary accruals. We find, however, no significant relationship between the degree of social responsibility and the quality of financial reporting within chaebol affiliates unlike non-chaebol affiliates. Conclusions - Our results weakly support a better quality of financial reporting for more socially responsible firms. The results highlight the importance of firm characteristics in deciding the effect of socially responsible activity on corporate policies.

• Proceedings of the Korea Information Processing Society Conference
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• 2023.05a
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• pp.692-693
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• 2023

ESG 경영이 중요해짐에 따라 기업의 분식 여부도 중요해졌다. 따라서 본 논문에서는 인공신경망과 랜덤포레스트를 활용하여 기업의 분식회계 여부를 판단 성능을 비교분석하고 그 유용성에 대해 평가하였다. 실제 기업 회계정보를 수집하여 실험을 수행하였고, 실험 결과 F1-Score 기준 랜덤포레스트의 RFECV 기법이 0.81로 분식 기업을, SMOTE 기법을 사용한 모델이 정상 기업을 탐지하였고 Accuracy 기준 랜덤포레스트의 RFECV 기법과 SMOTE 기법을 사용한 모델이 0.77로 가장 효과적인 탐지 성능을 보여주었다.

• Asia-Pacific Journal of Business
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• v.13 no.3
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• pp.311-328
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• 2022

Purpose - The purpose of this study was to examine the relationship between firm's non financial performance and its shareholder return by analyzing PCA while focusing on the classifying all the variables into three categories such as financial, characteristics, and non financial factors of the firms. Design/methodology/approach - By exploring the pattern of self tender from the 801 firms in KOSPI while focusing on the objective of stock disposal, this paper analyzes the change of shareholder return of the firm. Findings - First, the higher major ownership, the lower self tender gets, whereby the higher ownership by foreigners, the ratio of self tender is higher. Secondly, cash dividend has not significant impact on the disposal of self stock, and the high ratio of ownership by foreigners leads to the high probability of retirement rather than the general disposal. In contrast, the major ownership has a negative impact on the general disposal as well as retirement. Thirdly, the score of non financial factors such as Environment(E), Social responsibility(S), and Governance(G) shows the high value in case of the firms with self tender. More specifically, the firms with retirement has the highest value of ESG while it has the lowest value in case of the firms with general disposal. Research implications or Originality - The retirement which means the active shareholder return is strongly affected by the non financial factors. Specifically, the probability of retirement increases in case of the firms with retirement, and even such a tendency is found to the case of the firms with general disposal.