• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.451-458
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• 2021

The objective of this research is to analyze the effect of bad credit and liquidity on bank performance with the mediation of capital adequacy. Data were provided by banking institutions listed on the Indonesia Stock Exchange from the period of 2011-2019. The analysis technique was PLS-SEM supported by an application named WarpPLS 6.0. The results of the research show that the effect of bad credit and liquidity on bank performance is not significant. A high level of bad credit is associated with a low level of bank performance. Bank earnings decline along with low profitability. This relationship is not significant because banks can still cover some proportions of bad credit through capital availability. Capital adequacy as an intervening variable has mediated partially the effect of bad credit and liquidity on bank performance. Besides, capital adequacy has a strong effect on credit distribution. Agency theory says that the owner of the fund (the savers of saving account, current account, deposit account) is called principal while the bank as the trusted institution to manage the fund is called an agent. If customers fulfill their duty, then bad credit never happens.

• Journal of Distribution Science
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• v.19 no.1
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• pp.27-35
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• 2021

Purpose: This study is to investigate the effect of managerial ownership level in distribution and service companies on the stock price crash. The managerial ownership level affects the firm's information disclosure policy. If managers conceal or withholds business-related unfavorable factors over a long period, the firm's stock price is likely to plummet. In a similar vein, management's equity affects information opacity, and information asymmetry affects stock price collapse. Research design, data, and methodology: A regression analysis is conducted using the data on companies listed on the Korea Composite Stock Price Index (KOSPI) between 2012-2017 to examine the effect of the managerial ownership level on stock price crash risks. Results: Logistic and regression results indicate that the stock price crash risk was reduced as managerial ownership levels are increased. The managerial ownership level has a significant negative coefficient on stock price crash risk, negative conditional return skewness of firm-specific weekly return distribution, and asymmetric volatility between positive and negative price-to-earnings ratios. Conclusions: As the ownership and management align, the likeliness of withholding business-related information is reduced. This study's results imply that the stock price crash risk reduces as the managerial ownership level increases because shareholder and manager interests coincide, thereby reducing information asymmetry.

• Asia Marketing Journal
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• v.15 no.3
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• pp.53-77
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• 2013

As advertising and promotions are categorized as operating expenses, managers tend to reduce marketing budget to improve their short term profitability. Gauging the value and accountability of marketing spending is therefore considered as a major research priority in marketing. To respond this call, recent studies have documented that financial market reacts positively to a firm's marketing activity or marketing related outcomes such as brand equity and customer satisfaction. However, prior studies focus on the relation of marketing variable and financial market variables. This study suggests a channel about how marketing activity increases firm valuation. Specifically, we propose that a firm's marketing activity increases the level of the firm's product market information and thereby the dispersion in financial analysts' earnings forecasts decreases. With less uncertainty about the firm's future prospect, the firm's managers and shareholders have less information asymmetry, which reduces the firm's cost of capital and thereby increases the valuation of the firm. To our knowledge, this is the first paper to examine how informational benefits can mediate the effect of marketing activity on firm value. To test whether marketing activity contributes to increase in firm value by mitigating information asymmetry, this study employs a longitudinal data which contains 12,824 firm-year observations with 2,337 distinct firms from 1981 to 2006. Firm value is measured by Tobin's Q and one-year-ahead buy-and-hold abnormal return (BHAR). Following prior literature, dispersion in analysts' earnings forecasts is used as a proxy for the information gap between management and shareholders. For model specification, to identify mediating effect, the three-step regression approach is adopted. All models are estimated using Markov chain Monte Carlo (MCMC) methods to test the statistical significance of the mediating effect. The analysis shows that marketing intensity has a significant negative relationship with dispersion in analysts' earnings forecasts. After including the mediator variable about analyst dispersion, the effect of marketing intensity on firm value drops from 1.199 (p < .01) to 1.130 (p < .01) in Tobin's Q model and the same effect drops from .192 (p < .01) to .188 (p < .01) in BHAR model. The results suggest that analysts' forecast dispersion partially accounts for the positive effect of marketing on firm valuation. Additionally, the same analysis was conducted with an alternative dependent variable (forecast accuracy) and a marketing metric (advertising intensity). The analysis supports the robustness of the main results. In sum, the results provide empirical evidence that marketing activity can increase shareholder value by mitigating problem of information asymmetry in the capital market. The findings have important implications for managers. First, managers should be cognizant of the role of marketing activity in providing information to the financial market as well as to the consumer market. Thus, managers should take into account investors' reaction when they design marketing communication messages for reducing the cost of capital. Second, this study shows a channel on how marketing creates shareholder value and highlights the accountability of marketing. In addition to the direct impact of marketing on firm value, an indirect channel by reducing information asymmetry should be considered. Potentially, marketing managers can justify their spending from the perspective of increasing long-term shareholder value.

• The Korean Journal of Financial Management
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• v.25 no.3
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• pp.131-153
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• 2008

This paper calculates the Risk Index of Korean securities industry that summarizes the information contained in seventeen financial indicators that represent risk categories such as capital adequacy(C), asset quality(A), earnings(E), and liquidity(L) by using the NBER statistical methodology. For the validation of Risk Index, expected default frequency has been used, and the result has been proved to be positive. According to the compiled Risk Index, the level of risks of Korean securities industry has been decreasing from the second quarter of 2003 to the first quarter of 2006 by 22 percent. But the risk has been increasing during the periods from the first quarter of 2002 to the first quarter of 2003 and from the first quarter of 2006 to the last quarter of 2006.

• Journal of the Korean association of regional geographers
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• v.12 no.3
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• pp.339-351
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• 2006

The purpose of this study is to investigate and analyze the relationships between tidal cycles, surface landforms, and sediments of tidal flats and their resident life. The study areas are Uengdo Ri in the Garolim Bay with wide the mud flat, Doou Ri in the Youngwang tidal flat which is developed sand flat and salt field, and Gomso Bay which is developed aquaculture industry. For resident around tidal flats, sea working takes precedence over farming, and main earnings gets from tidal flats. Resident life around the tidal flats is deeply related to tidal cycles, and low water level of spring tide becomes, they are most active and get more earnings than usual day, so it seems to be periodic markets. It is usually developed shellfish aquafarms in the mud flat, the stow net fishery in the sand flat, and salt fields in the mixed flat near the coast. Also a tidal flat has specialization of economic activity, and is divided into salt field and fish-farming in the supratidal zone, shellfish aquafarm in the intertidal zone, and oyster and porphyra culture in the subtidal zone.

• Health Policy and Management
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• v.6 no.1
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• pp.59-84
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• 1996

It is generally believed that the medical profession in Korea is an well-paid field along with legal profession. In this vein, the nursing is regarded one of well-paid profession. The actual data, however, reveals that nurses belong to low income bracket. We carefully compare the nurse's earnings with those of other professions. We selected 58 professions, which are similar in vocational characteristics and education background to nurses and conduct a regression analysis to estimate earning functions. Using the estimated coefficients, we project an optimum salary level for nurse, and compare it with the actual salary level. The estimated results show that the nurses are underpaid : their actual salary is less than the optimum level. We provide several explanations for this phenomenon : a tradition based on Confucian value, wage discrimination for women, and wage inequality among hospitals. Undercompensation will result either ratard professional development, or block the motivation for high quality of nursing care. If the current underpaying situation is not improved, a shortage of nurses along with an noticeable decline in the quality of medical services are expected. Therefore an adequate compensation for nurses must be properly assessed and addresed not only be health care authorities but also by legislators. Further research is needed to explain why there is such as wide salary inequality among nurses, and to find what cause it.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.9
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• pp.25-37
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• 2022

Investment decisions are one of the most fundamental issues in financial management. This study aims to determine the factors that affect investment decisions in the energy industry and to contribute to the companies in this industry to develop strategic policies. The System GMM analyzes were carried out using the data of companies registered on the stock exchange for the period 2000-2015. The findings showed that industrial competition and firm size were important factors influencing the investment decisions of firms in the energy industry. The findings indicated a nonlinear relationship between industrial competition and the rate of investment in the energy sector. Depending on the firm's size, the effect of industrial competitiveness on investment varies. Smaller businesses are more impacted by the level of competition than larger ones. The investment rate decreases depending on the increase in cash holding level and firm risk. When the subgroups in the energy industry are examined, it is determined that they reveal some differences in terms of financial structure. A higher investment rate results from a higher retained earnings ratio. The investment rate of firms falls as a company's risk level and sales revenue variability increase.

• KDI Journal of Economic Policy
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• v.23 no.1_2
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• pp.193-231
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• 2001

The purpose of this study is to clarify the real causes of gender wage differentials in Korea by analyzing changes over the period from 1984 to 1999. The participation rate of women in the Korean labor force has gradually increased since 1963, reaching 47.4 percent as of 1999. This increase can be attributed to more active participation by women of all ages, except those aged 15-19, as a result of their enrollment in higher level education. In particular, a remarkable rise in labor market participation was achieved by those aged 25-29. On the other hand, the ratio of female workers earnings to that of male workers has increased from 45.1 percent in 1972 to 63.1 percent in 1999. However, when the gender wage differentials are decomposed into various factors, it is found that discrimination components against female workers, compared to the skills or productivity characteristics, played a greater role for the 1994 to 1999 period.

• International Journal of Human Ecology
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• v.6 no.1
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• pp.1-16
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• 2005

Due to increasing life expectancy, Americans live nearly 20 years after retirement. During this period, elderly persons have to stretch finances to manage the level of living without earnings. However, decision making ability decreases with age. One coping strategy for this problem would be seeking help from others. We examine factors affecting elderly persons' assistance use with respect to financial management using the 2000 Health and Retirement Study (N=3,823). It was found that age, education, health status, and ethnicity significantly affect elderly persons' financial management assistance use. The older-olds, those with lower educational attainment and poorer health status were more likely to use financial management assistance. However, Hispanic elderly were less likely to use financial management assistance.

• Korean Journal of Child Studies
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• v.30 no.3
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• pp.1-21
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• 2009

Using samples of working mothers with 0-to-47 month old children extracted from the National Longitudinal Survey of Youth (NLSY), this study investigated effects of mothers' job characteristics on parenting behaviors and young children's motor, social, and cognitive development. Date were analyzed by descriptive statistics and multiple regression analysis. Results indicated that (1) job dissatisfaction was negatively related to children's development. (2) Working fewer hours was positively associated with mothers' cognitively stimulating parenting behaviors. (3) Total earnings were a positive predictor of mothers' emotional support. (4) The availability of a flexible hour benefit was positively related to mothers' cognitive stimulation level but the availability of a paid sick and vacation days combined benefit was negatively related to mothers' cognitively stimulating parenting behavior.