• Management & Information Systems Review
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• v.28 no.4
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• pp.67-92
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• 2009

We examine the effects of investment opportunities, external financing, and cost of debts on the firms' capital investments. The empirical findings indicate that : (1) the firms' investment opportunities positively stimulates corporate capital investments but the effects of investment opportunities on the firms' capital investments decrease as the external financing and cost of debts increase ; (2) the firms' investment opportunities are positively correlated with firms' capital investments but the effects of external financing on the firms' capital investments decrease as cost of debts increase; (3) cost of debts is negatively associated with firms' capital investments and especially in the KOSPI firms, the effects of investment opportunities on the firms' capital investments decrease as cost of debts increase. Our findings suggest that managers' views be different from the policy maker's view and the more firms' internal factors of capital investments be found in the future.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.3
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• pp.157-165
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• 2020

This paper estimates the optimum level of reserves in Vietnam based on the approach of reserves' cost-benefit and sovereign risk which is one of developing countries' characteristics. The cost of reserves is the opportunity cost when holding reserves. The benefit of reserves is the loss due to country's default in case that there is no reserves to finance external debt payment. The optimum reserves is found out by minimizing the total of opportunity cost and loss due to country's default with the probability of default. Through the usage of HP Filter method for calculating the loss due to country's default, ARDL regression for the risk premium model and lending rate of VND as proxy for opportunity cost together with the Vietnamese economic data in the period of 2005 - 2017, the empirical results show that the optimum reserves in Vietnam is almost higher than the actual reserves during the research period except the point of Q3/2008 and the last point of research period - Q4/2017. Therefore, Vietnam should continue to increase reserves for safety but Vietnam does not need pushing quickly the speed of increasing reserves. In addition, controlling Vietnamese optimum reserves is necessary to help the actual reserves become reasonable.

• Asia-Pacific Journal of Business
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• v.13 no.3
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• pp.59-71
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• 2022

Purpose - We investigate how firms transfer financial risks to employees in a form of flexible employment contracts and layoffs. Design/methodology/approach - Based on the literature on the prevalence of shareholder value ideology and the associated 'risk shift', we examined how stock price volatility is associated with a firm's use and hiring of nonstandard employees, and the number of employees lay-offed. We test our hypotheses using a longitudinal, multi-source, dataset of Korean firms from 2003 to 2011. Findings - We found support for the relationship between stock price volatility and flexible employment contracts and layoffs after controlling for actual risks such as increased debt or decreased sales. However, we found that the relationship is moderated by the power of professional CEOs relative to that of shareholders, in that powerful CEOs are more likely to transfer the external risks, i.e. stock price volatility, to employees. Research implications or Originality - This study contributes the emerging stream of literature that explore the effect of stock market pressures and governance structures on human resource management.

• Journal of Korea Port Economic Association
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• v.40 no.2
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• pp.65-78
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• 2024

This study investigates the correlation between financial constraints and investment activities in Korean logistics firms. A sample of 340 companies engaged in the transportation sector, as per the 2021 KSIC, was selected for analysis. Financial data obtained from the DART were used to compile a panel dataset spanning from 1996 to 2021, totaling 6,155 observations. The research model was validated, and tests for heteroscedasticity and autocorrelation in the error terms were conducted considering the panel data structure. The relationship between investment activities in the previous period and current investment activities was analyzed using panel Generalized Method of Moments(GMM). The validation results of the research indicate that Korean logistics firms tend to increase investment activities as their level of financial constraints improves. Specifically, a positive relationship between the level of financial constraints and investment activities was consistently observed across all models. These findings suggest that investment decision-making varies based on the financial constraints faced by companies, aligning with previous research indicating that investment activities of constrained firms are subdued. Moreover, while the results from the model examining whether investment activities in the previous period affect current investment activities indicated an influence of investment activities from the previous period on current investment activities, the investment activities from two periods ago did not show a significant relationship with current investment activities. Among the control variables, firm size and cash flow variables exhibited positive relationships, while debt size and asset diversification variables showed negative relationships. Thus, larger firm size and smoother cash flows were associated with more proactive investment activities, while high debt levels and extensive asset diversification appeared to constrain investment activities in logistics companies. These results interpret that under financial constraints, internal funding sources such as cash flows exhibit positive relationships, whereas external capital sources such as debt demonstrate negative relationships, consistent with empirical findings from previous research.

• International Area Studies Review
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• v.20 no.2
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• pp.113-140
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• 2016

This paper first extracts the main basis for the Middle-Income Trap(MIT) to apply these grounds to reality of the Chinese economy. And then confirmed crisis factors of China economy. Also discussed then the economic reforms of China in order to not fall into the MIT. After reviewing previous research extracted six factors the results will correspond to comply with the Chinese economy. Those are 'Over-investment', 'excess capacity' 'reduction of TFP continued,' 'disappearance and the aging of the population bonus', 'excessive debt and structural adjustment and financial instability of the company', 'income unequal expansion', 'low financial and information infrastructure accessibility', and 'low transparency index'. China's policy direction to avoid the MIT generally set properly, but proof that implementation process not easy, was appearing everywhere. After all, China economy should be modified now to a reforms of 'government failure' and promotion of function for ongoing restructuring system in the market. Because of the SDR incorporation from 2015, it is inevitable to face major constraints in the external aspects.

• Journal of Distribution Science
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• v.14 no.12
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• pp.79-87
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• 2016

Purpose - Since 1990, the sudden stop in capital flows has caused the economic crisis. The purpose of this research is to suggest the policy measures to mitigate the risk of the sudden stop in capital flows. To this end, we examine the theoretical framework and analyze the case study for countries which are faced with the sudden stop. Also we examine the structural problems of the foreign exchange market in Korea and derive the policy implications to prevent the sudden stop. Research design, data, and methodology - The criteria of whether the sudden stop in capital flows occurs are based upon Calvo et al. (2008). In case the proxy variable for the balance of capital account decreases from the average by over twice standard deviation, we determine that the sudden stop occurs for that country. The sample period is from January 1990 to December 2008, as in Calvo (2014). The sample countries are 17 developed countries and 19 emerging market countries, which are different from those of the previous papers as Agosin and Huaita (2012), and Calvo (2014). When the exchange market pressure index(EMPI) is deviated from the average by over three times standard deviation, we determine that the foreign exchange market is unstable for that country. Results - We find that the characteristics of the sudden stop in capital flows are the bunching or contagion among countries, the rapid drop in real effective exchange rate, and the huge decrease in foreign exchange reserves. Many countries tried to increase foreign exchange reserves and regulate capital flows. Also the foreign exchange market in Korea are found to be the volatile exchange rate, the vulnerable external debt and careless management of the foreign exchange derivatives transaction risk. Conclusions - To lessen the risk in the sudden stop of capital flows, this research suggests the some useful policy measures. To enhance the foreign exchange and distribution market stability, we should improve the price mechanism of exchange rate, hold the appropriate level of foreign exchange reserves, prevent excessive inflows of foreign exchange and promote sound transactions of foreign exchange derivatives.

• East Asian Journal of Business Economics (EAJBE)
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• v.7 no.3
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• pp.13-48
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• 2019

Purpose - This study is to analyze the monetary indicators and the key macroeconomic indicators and to assess the effectiveness of state regulation on its basis. The analysis of monetary aggregates of Russian Federation, CIS, the countries of leading countries of North-East Asia at the present stage of development. Research design and methodology - The volume of data on Russia was analyzed from the 1995 to the 2018. The data from the 1950 to the 2019 were estimated on China. The data from the 1980 to the 2018 were estimated on Japan. On South Korea - since the 1960 to the 2018. On Republic of Belarus - since the 2003 to the 2018. On Tajikistan - from the 2008 to 2017. On Kazakhstan - from the 1994 to the 2018. On Kyrgyzstan - from the 2002 to the 2018. On Armenia - from the 2003 to the 2018. Results - Hypothesis 1: In Russian Federation, the monetary stock has a stable tendency to grow. The volume of money stock of Russia and the analyzed countries is much determined by external debt, GDP, the export, the import, and the international reserves. Hypothesis 2: The growth of money supply does not always give a positive effect in the development of the country, as well as a significant increase in the amount of money stock does not always lead to negative consequences. The monetary stock should be commensurate with the macroeconomic indicators of the state. Conclusions - The growth of the monetary stock does not always give a positive effect in the development of the country, as well as a significant increase in the amount of monetary stock not always lead to negative consequences.

• East Asian Journal of Business Economics (EAJBE)
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• v.6 no.1
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• pp.1-31
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• 2018

Purpose - This study is to analyze indicators characterizing the monetary turnover and its determining factors. Also this paper looked at the evolution of monetary aggregates of the Russian Federation, Australian, Sweden, Denmark, countries of CIS at the present stage of development and in the historical context. Research design, data, and methodology - The scale of research on Russia: to be analyzed the amount of data from the 2011 by 2016. In the historical context of the estimated data in the 1900-2011. On Belarus - the 2007-2017, on Tajikistan - the 2000 - 2017, on Kazakhstan - the 2000-2017, on Kyrgyzstan - the 2000-2017, on Australian - the 1959-2017, on Sweden - the 2009-2017, on Denmark - the 1999-2017. Results - Hypothesis 1. In Russian Federation the monetary stock has the steady tendency to growth. The dynamics of money supply in Russia is largely determined by historical events. Hypothesis 2. The dynamics of money supply the leading countries-partners has the tendency to grow. The monetary amount of countries-partners are analyzed is largely determined by external debt, GDP, the exports, the imports, the international reserves. Conclusions - The dynamics of monetary stock of Russia is determined by the historical events in many respects. The Russian Federation maintains a steady and the liquid economic position in the case of considerable amount of monetary stock and the high degree of its surplus. In most of the countries studied, the monetary supply has a significant volume exceeding the needs of the economy. If the distribution of monetary mass is adequate and there is a vertical of financial control, this will not have a negative impact on the country's economic stability and the development.

• Environmental and Resource Economics Review
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• v.27 no.1
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• pp.161-194
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• 2018

This study examines performances of cooperatives relative to investor-owned firms in the US electric power industry. Using a panel data of firms from 2001 to 2014, the results show that cooperatives operate under conditions of more difficult capital constraints associated with the higher cost of debt and limited access to external equity capital. While investor-owned utilities, especially the large utilities that are less capital constrained, take benefits from substantial scale economies existing in the industry, the marginal cost of operation substantially increases with output for cooperatives. I do not find differences in profitability between the two ownership structures, measured by return on assets and return on equity. Plant capacity utilization, which is a measure of plant efficiency conditional on the operation, is also not statistically different between the two groups.

• Journal of Sport and Applied Science
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• v.5 no.2
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• pp.39-46
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• 2021

Purpose: This study aims to analyze the management environment provincial and municipal professional soccer teams based on financial statements at a time when strengthening the financial soundness of domestic professional soccer teams is emphasized. Research design, data, and methodology: This study analyzed the financial statements (2018-2020) of the six teams of the provincial and municipal professional soccer teams whose financial statements were disclosed. The statements includes indicators of growth, profit and stability, which represents the main business performance of the entity. Results: As a result of the study, First, in terms of sales growth, sales in 2020 fell sharply year-on-year due to the impact of Covid-19. Second, the increase in sales through the import of player transfer fees had a positive impact on the growth of the business performance of the provincial and municipal professional soccer teams. Third, the profitability of the provincial and municipal professional soccer team is still low. Fourth, the debt ratio of the provincial and municipal professional soccer team was high, indicating that stability was serious. Conclusions: In order to increase sales, various strategies and measures are needed to overcome external factors such as media content products and non-face-to-face content strategies. The provincial and municipal professional soccer team, which has weak self-sustaining operations, needs to generate more profits through transferring players as a new management (profit) model, and first of all, a long-term strategy is needed to secure financial stability by improving the club's profitability.