• Journal of Korea Port Economic Association
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• v.39 no.2
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• pp.143-163
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• 2023

This study aims to analyze the impact of ESG activities on the corporate performance of logistics companies in Korea. To achieve this, the study examines the factors influencing the adoption and implementation of ESG activities, assesses the extent to which ESG activities enhance corporate trust and image, and empirically analyzes the effect of ESG implementation on the corporate performance of logistics companies. An online survey was conducted using Google Forms for Korean logistics companies, and a total of 463 data sets were utilized for PLS structural equation analysis using the SmartPLS 4.0 software tools. The findings of the study are as follows: Firstly, external pressure, specifically government pressure, significantly influences environmental responsibility activities, while investor pressure significantly affects social responsibility activities and governance responsibility activities. Additionally, internal management pressures significantly impact environmental responsibility activities, and employees have a significant influence on all ESG responsibility activities. Secondly, environmental responsibility activities positively affect corporate image, whereas social and governance responsibility activities influence trust and corporate image. Thirdly, trust and corporate image demonstrate significant effects on both financial and non-financial performance. Fourthly, trust significantly mediates the relationship between social responsibility, governance responsibility, and non-financial performance, while image mediates the connection between ESG responsibility and both financial and non-financial performance. The contribution of this study lies in providing practical insights for logistics companies to actively promote ESG activities, thereby establishing a reputation for being environmentally, socially, and governance responsible and gaining customer trust. By doing so, this study aims to raise awareness of the importance of ESG activities in the logistics industry and help companies recognize their significance for sustainable management

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.861-872
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• 2021

This study examines the relationship between board characteristics and capital structure. Data was collected from the annual reports of listed companies in the Stock Exchange of Thailand, from 2015 to 2017, which totaled 1,264 firm-year observations. The study uses multiple regression analysis to analyses the data by using independent variables, including board size, outside directors, managerial ownership, CEO duality, frequency of board meetings, board experience, and gender to measure board characteristics and the total debt ratio for capital structure. Research findings show that the more independent the directors are, the lower the cost of debt financing is, as they control the management team more strictly about debt financing than directors with less independence do. Additionally, the results reveal that the higher the percentage of managerial ownership, the higher the level of leverage and debt financing, whereas board size and board meetings have a negative relationship to capital structure. Further research showed that firm size, growth opportunities and corporate governance rating all had a positive significant impact on capital structure. The findings of this study suggest that the presence of proper corporate governance leads to better funding mechanisms as it ensures that the company is in a better position to obtain external funding.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.369-379
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• 2021

This paper investigated the relationship between corporate governance mechanisms and firm performance in Vietnam. Based on a dataset of 101 HOSE-listed manufacturing firms, the results showed that CEOs' knowledge capability, gender diversity, and board size are positively associated with firm performance, whereas firm age is negatively associated. These findings suggested that firms should consider enlarging the boardrooms, but to a certain extent to avoid an inverse-U-shaped decline of performance; furthermore, firms should promote women executives' presence in a boardroom for it brings greater cultural-diversity benefits and inhibits information asymmetry. Contrary, the aging process impedes firms' growth. It depreciates their values in terms of total assets, so managers must review their assets' net value after each working year to avoid such a hardship. However, the thesis constrains itself since it did not treat the TMTs' knowledge capability equally as the CEOs' and completely excluded their treatment. Besides, it did not regard the effect of external governance mechanisms such as the supply-demand relationship, customer behavior, market imperfections, and market concentration due to data unavailability. Based on the main findings, several suggestions are set forth for firms and managers to enhance performance and minimize a poor governance mechanism's adverse consequence.

• Asian Journal of Business Environment
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• v.5 no.4
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• pp.67-72
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• 2015

Purpose - This aim of this study is to examine how conglomerates in Korea have evolved from the perspective of institutional economics. The growth of the economy, dominated by large conglomerates, is projected in light of the dynamic equilibrium between government and capitalists. Research design, data, and methodology - The historical formation of big business groups is examined in chronological order. For the analysis, we divide the assessment into three different eras: Japanese colonial rule, liberation up to the civil war, and the fast growing period since the military coup. Each period is viewed as a dynamic equilibrium that is shaped by economic agents. Results and Conclusion - Despite the rise of modern commerce during the colonial era, contemporary conglomerates came into being with the "enemy property" allotted by the government. Around the civil war, the government coexisted with prototype conglomerates through foreign aid. As the external aid decreased, the system could not be sustained anymore, thus the military coup took place. The reinstated strong bond between government and the conglomerates has shaped the forms of the modern conglomerates thereafter.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.6
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• pp.175-181
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• 2022

Malmendier and Tate (2005) and Aktas et al. (2019) suggested that overconfident managers will invest if they have sufficient internal funds. Still, they will save internal funds instead of reducing investment if they have insufficient internal funds because they perceive more substantial financial constraints than other managers. This study examines whether overconfident managers will not invest when the financial crisis makes it difficult to raise external funds. In particular, during the financial crisis in Japan, banks simultaneously provided active monitoring and financing to firms with strong relationships with banks. Therefore, this study can also examine the relationship between overconfident managers and bank behavior by focusing on Japanese firms. This study examines whether overconfident managers increase their investment in firms with strong relationships with banks during the financial crisis. The results of this study showed that overconfident managers, especially their firms with strong relationships with banks, reduce investments more than other managers during the financial crisis. This study suggests that Japanese banks reduced financial constraints and exerted strong corporate governance on Japanese firms during the financial crisis.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.1
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• pp.59-69
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• 2019

The auditor, an important instrument of corporate governance, ensures the transparency and accountability of the firm to the stakeholders. The objective of this paper is to explore the impact of audit characteristics on firm performance. In this study, external audit quality (BIG4), frequencies of audit committee meetings, and audit committee size are used as the proxies of audit characteristics and firm performance is measured through ROA, profit margin and EPS. A total of 503 firm years are considered as sample size from the listed manufacturing firms of Dhaka Stock Exchange (DSE) during the period of 2013 to 2017 to find out the impact of audit characteristics on firm performance. In this study, multivariate regression analysis is conducted using the pooled OLS method. Moreover, time dummy and lag model of multivariate analysis are also analyzed as robust check. The multivariate regression results find that external audit quality (BIG4) and audit committee size are significantly positively associated with firm performance. This study also finds that there is a significant negative relationship between audit committee meeting and firm performance. This study recommends that the regulatory authority and audit committee should review the frequencies of audit committee meeting to make it more effective to ensure better firm performance.

• Journal of Internet Computing and Services
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• v.20 no.4
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• pp.63-72
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• 2019

As a sub-concept of corporate or organization governance, business governance and IT governance have become major research topics in academia. However, despite the importance of process as a construct for mediating the domain between business and information technology, research on process governance is relatively inadequate. Process Governance focuses on activities that link business strategy with IT system implementation and explains the creation of corporate core values. The researcher studied the basic conceptual governance models of political science, sociology, public administration, and classified governance styles into six categories. The researcher focused on the series of metamodels. For examples, the traditional Strategy Alignment Model(SAM) by Henderson and Venkatraman which is replaced by the neo-SAM model, organizational governance network model, sequential organization governance model, organization governance meta model, process governance CUBE model, COSO and process governance CUBE comparison model, and finally Process Governance Framework and etc. The Major difference between SAM and neo-SAM model is Process Governance domain inserted between Business Governance and IT Governance. Among several metamodels, Process Governance framework, the core conceptual model consists of four activity dimensions: strategic aligning, human empowering, competency enhancing, and autonomous organizing. The researcher designed five variables for each activity dimensions, totally twenty variables. Besides four activity dimensions, there are six driving forces for Process Governance cycle: De-normalizing power, micro-power, vitalizing power, self-organizing power, normalizing power and sense-making. With four activity dimensions and six driving powers, an organization can maintain the flexibility of process governance cycle to cope with internal and external environmental changes. This study aims to propose the Process Governance competency model and Process Governance variables. The situation of the industry is changing from the function-oriented organization management to the process-oriented perspective. Process Governance framework proposed by the researcher will be the contextual reference models for the further diffusion of the research on Process Governance domain and the operational definition for the development of Process Governance measurement tools in detail.

• International Area Studies Review
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• v.20 no.3
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• pp.101-121
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• 2016

This research is purposed to analyze the effect of firms' current socially responsible management on the future corporate financial performance with specified areas of socially responsible management according to the beneficiaries. Tobin's Q statistic and return on assets are calculated and exploited as measures of corporate financial performance. as of empirical analysis results, we found that the social contributions in the consumer area and external social contribution at time t influence the Tobin's Q statistic at time (t+1) in the aggregate analysis. as it is revealed that there is no effect in the firms with the outstanding social performance to the future corporate financial performance, we understand that the capital market is very sensitive to the external social contribution including consumers of firms with the weak social performance rather than the social contribution of socially outstanding firms. This sensitivity of capital market can effectively enhance the social contribution of firms, in particular listed firms with the weak social performance.

• Journal of Distribution Science
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• v.17 no.9
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• pp.103-115
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• 2019

Purpose - We attempted to verify the level of ethics of firms achieving sustainable management from the aspect of reliability of accounting information. Specifically, we evaluated the effects of sustainable management on accruals-based earning management (AEM) and real earning management (REM). Research design, data, and methodology - We employed the issuance of sustainability reports in addition to the indices of social responsibility and environmental-management evaluation of the Korea Corporate Governance Service in order to measure sustainability management. AEM was measured using discretionary accruals and calculated using the operant Jones model. Specifically, REM was measured using the methodology suggested by prior studies. The sample of our study consisted of 1,418 years of public listed firms in the Korea Stock Exchange from 2015 to 2017. Results - First, the level of AEM in firms achieving sustainable management was lower than the other. Second, the level of REM in these firms was lower than the other. Nonetheless, another analysis showed that the level of governance control affects the level of earning management and that the levels of AEM and REM were generally lower in firms achieving sustainable management than the others. Conclusions - We expected that firms achieving external ethics tend to have a higher level of internal ethics than others.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.243-253
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• 2021

This study aims to examine (1) the association between the chief executive officer tenure and audit quality, (2) the relationship between chief executive officer duality and audit quality, (3) the association between board independence and audit quality, (4) the relationship between board size and audit quality, and (5) the role of controlling variables (client size, leverage debt, and business complexity) in controlling these relationships. The research sample includes 325 financial reports from manufacturing firms listed in Amman Stock exchange over the 2014-2018 period. The study relationships are tested by using logistic regression. The results revealed a negative relationship, but not significant between CEO tenure and independent directors with audit quality. In addition, the results showed there is a negative effect of CEO duality on audit quality; also the results revealed that there is a statistically significant effect on the board of directors (board size) on the AQ. In general, the coefficient estimates of controlling variables show that client size and leverage debt positively affect audit quality, and on the contrary, business complexity has an insignificant positive relationship with audit quality. The summary of the study findings play an active role to external auditor opinion on business practice in towered the corporate governance system.