• The Journal of Industrial Distribution & Business
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• v.6 no.4
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• pp.27-37
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• 2015

Purpose - This study first explores the possible dynamic relationship between ownership structure and firm performance using a panel of 4,900 Chinese-listed small- and medium-sized enterprises (SMEs) from 1999 to 2012. Research design, data, and methodology - We address this issue through a dynamic panel model using a method of moments (GMM) technique and dynamic simultaneous equations to alleviate the potential endogenous problem: unobserved heterogeneity, simultaneity, and dynamic endogeneity. Results - Under the framework of dynamic endogeneity, firm performance has a significantly positive influence on ownership, but not vice versa. Ownership and performance can be explained by their owned lagged values, respectively. Moreover, intertemporal endogeneity exists among ownership, investment, and performance through the application of system dynamic equations, which implies that the relationship among ownership structure, investment, and firm performance is dynamic by nature. Conclusions - This study also significantly contributes to a better understanding of dynamic corporate governance by providing further empirical evidence from the largest capital market in the Asian region.

• The Journal of Industrial Distribution & Business
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• v.8 no.1
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• pp.5-13
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• 2017

Purpose - In this article, a dynamic model like a VAR is an appropriate choice for estimating the possible interrelationship between ownership structure and firm performance as a dynamic process. Research design, data, and methodology - Data of this work are collected from Chinese stock exchange including 350 Chinese-listed firms during the period of 1999-2012. We hypothesize that this interrelationship dynamically exists between ownership structure and firm performance. To examine the correlation, a panel Vector Auto-regression (PVAR) approach generated by GMM method is utilized to test the possible dynamic relation embedded in corporate governance. Another two dynamic analysis solutions such as orthogonalized impulse-response function and variance decomposition are also used simultaneously. Results - Findings of this study indicate the evidence that dynamically endogenous relationship exists between ownership structure and firm performance. Further, there is a dynamical correlation between investment and performance. Impulse response and variance decomposition illustrate that impact of a shock to variables themselves is the main source for their variability. Conclusions - The conclusion in this study is that there is a bidirectional and inter-temporal effect between proportion of ownership and corporate performance for a long run in accordance with impulse response function. Overall, our results suggest that corporate governance in China is more market oriented.

• Journal of the Economic Geographical Society of Korea
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• v.23 no.4
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• pp.438-453
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• 2020

This study attempts to examine the process of place-making, to define the role and interrelationship of the subjects and to analyze the placeness of the 'Kim Gwang-seok Road', a representative example of artificial place-making. Through a 10-year urban regeneration project based on the concept of Kim Gwang-seok, the alleyway between Bangcheon Market and the retaining wall of Sincheon-daero has been embedded as a memorial space for Kim Gwang-seok and an cultural art space. However, the existing placeness has weakened as the result of the excessive tourism in the late 2010s, while the characteristics of cultural commercial space has strengthened. This change in place has prompted community disintegration, which has caused the loss of momentum for sustainable development. To overcome these problems, it will be necessary to establish endogenous governance to expand and reproduce existing community capabilities, embedded social capital and place assets in new directions.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.3
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• pp.518-526
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• 2017

This study analyzed the impact of family firms and their characteristics on how they use debts to analyze the decision-making process of Korean family firms. For analysis, we classified the characteristics of family firms into three categories, through the influence of the relationship between the lack of funds and net debt issuance, which was confirmed as the 'packing order theory' of family firms. There was a total of 4,503 enterprises in the Korean Exchange (KRX). The period of analysis was 10 years, between 2004 and 2014. To summarize, Shyam-Sunder and Myers (1999) validated the packing order theory by presenting a model of family businesses that showed greater applicable to higher packing order theory than a model of non-family businesses. Moreover, the results also confirmed the application of the packing order theory by the family stronger corporate governance and ownership structure. The ownership and governance characteristics of the ruling family has also shown the applicability of higher packing order theory.

• Journal of the Korea Society of Computer and Information
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• v.17 no.5
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• pp.103-114
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• 2012

EA, efficient and hierarchical Information Resource Management(IRM) tool of Korean public agencie is one of the core of carrying forward the e-Government initiative. The objective of the paper is to study empirically whether using EA Governance for Controlling EA is related with their EA competency or not. the 190 person in charge of Information System service division are included for analysis. The various hypotheses established are validated by structural equation in SPSS and AMOS 18.0. The results shows that EA management and EA utilization of EA competency level was affected by EA Function, EA Organization and EA Human Resource of exogenous variable EA Governance but EA implementation level was not affected by EA Organization and EA Human Resource. also we investigated that the EA management level of endogenous variable EA competency was affected positively by EA implementation level and the EA utilization level of was affected positively by EA management level by stages.

• Journal of the Economic Geographical Society of Korea
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• v.19 no.4
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• pp.642-659
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• 2016

This study examines the characteristics of creative city policy for Japanese culture and arts creation cities and finds the implications of culture and arts city policy by reexamining the examples of Kanazawa and Yokohama from the viewpoint of creation-based strategy of the city. The policy implications of creative-based strategies are as follows. First, in terms of the governance of the creative-based strategy, Kanazawa conducted governance through a citizen-led cooperative network, while Yokohama promoted creative city policy through a local government-led cooperative network. Second, The mechanism of action of the endogenous resources of Kanazawa and Yokohama was different. Third, the territorial embeddedness in Kanazawa and Yokohama was easy for pedestrians to access to the customer center in the creation core area. Both cities have good access to domestic and international demand, and amenity is well established.

• Korean System Dynamics Review
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• v.13 no.2
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• pp.47-71
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• 2012

The purpose of this research is the examination of validity of data as well as simulation model, i.e. to simulate the real data in the SD model with the least error using the adjustments for the faithful reflection of real data to the simulation. In general, SD programs (e.g. VENSIM) utilize the Euler or Runge-Kutta method as an algorithm. It is possible to reflect the trend of real data via these two estimation methods however can cause the validity problem in case of the simulation requiring the accuracy as they have endogenous errors. In this article, the future population estimated by the Korea National Statistical Office (KNSO) to 2050 is simulated by the aging chain model, dividing the population into three cohorts, 0-14, 15-64, 65 and over cohorts by age and offering the adjustments to them. Adjustments are calculated by optimization with three different methods, optimization in EXCEL, manual optimization with iterative calculation, and optimization in VENSIM DSS, the results are compared, and at last the optimal adjustment set with the least error are found among them. The simulation results with the pre-determined optimal adjustment set are validated by methods proposed by Barlas (1996) and other alternative methods. It is concluded that the result of simulation model in this research has no significant difference from the real data and reflects the real trend faithfully.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.365-376
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• 2022

This study aims to look into the causal relationships between corporate social responsibility and firm value, corporate social responsibility and institutional ownership, and firm value and institutional ownership. This study develops a triangle model of causal relationships among the three endogenous variables. Samples for this study are manufacturing companies listed on the Indonesia Stock Exchange for the period 2014-2018. The model is operated in the system of simultaneous equation models using the generalized method of moments technique to estimate parameter coefficients. After controlling the effects of trade-off/balancing capital structure and managerial ownership, the research findings show a positive causal relationship between CSR and firm value and firm value and institutional ownership. Institutional ownership has a positive effect on CSR, while the effect of CSR on institutional ownership is negative in the firms without managerial ownership and positive in the firms with managerial ownership. This study finds that the causal relationship between CSR and firm value is stronger after the trade-off/balancing of capital structure is included in the model. Capital structure has a convex effect on firm value and positively impacts institutional ownership. In addition, an independent commissioner has a negative impact on CSR but has no direct impact on firm value.

• Management & Information Systems Review
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• v.31 no.1
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• pp.221-246
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• 2012

The study examines the effects that non-audit service and firm's ownership structure might have on the value relevance directly or indirectly. This investigation is based on prior research which suggests that the audit firms' non-audit services is likely to adversely affect investors' perceptions of the credibility of financial reporting and that corporate governance are likely to mitigate the adverse this kind of non-audit services effects. The sample consists of non-banking firms listed on the Korea Exchange that reported annual financial statements over the period from 2004 to 2008. In the setting, stock returns as proxy for capital market response, auditor quality(measured as the discretionary accruals) is endogenously determined. This study employs a structural equation model to take into account the endogenous variables under study. The analysis influences through the path analysis that ownership structure suppress the market response through audit quality and also the non-audit service have influence on the market response through audit quality. The results of this study contribute to the literature in the following ways. First, this provides direct evidence that there is a negative association between audit firms' client importance and the value relevance. Second, the findings that the negative association is attenuated for audit quality support the findings of prior studies which present that corporate governance provide higher credibility of financial reports.

• Analyses & Alternatives
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• v.7 no.2
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• pp.179-207
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• 2023

Carbon neutrality, the international community's practical challenge in response to climate change, is becoming a key industrial strategy for the future development of nations. Despite concerns that China, as an economic powerhouse in the G2, may face challenges leading global climate change efforts due to its high-carbon-emitting industrial structure, it is leveraging carbon neutrality to enhance its industrial competitiveness. The Chinese government has formulated national policies for achieving carbon neutrality and detailed sector-specific plans to implement them. In particular, it aims to leverage carbon neutrality industrial strategies as a lever for adjusting the domestic industrial structure and fostering new industries, at the same time responding to international climate norms and external pressures. However, the effectiveness of carbon-neutral industrial strategies is expected to vary based on regional conditions such as economic and industrial levels. This article analyzes the regional conditions for implementing carbon neutrality in China, as well as the contents and characteristics of major industrial policies. Due to differing levels of economic development and industrial structures, significant variations in carbon emissions, size, emission sources, and efficiency are inevitable across regions. These disparities introduce diverse initial conditions and endogenous factors in pursuing carbon-neutral goals, limiting the direction and implementation of carbon-neutral industrial strategies favoring certain regions. In particular, the extent of policy autonomy granted to local governments regarding carbon neutrality implementation will influence the regional dynamics of central-local environmental governance. Consequently, it is crucial to emphasize regional monitoring alongside comprehensive national research to accurately navigate the path towards carbon neutrality in China. In summary, the article underscores the importance of understanding regional variations in economic development, industrial structure, and policy autonomy for successful carbon neutrality implementation in China. It highlights the need for regional monitoring and comprehensive national research to determine a more precise direction for achieving carbon neutrality.