• Asia-Pacific Journal of Business
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• v.14 no.4
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• pp.23-36
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• 2023

Purpose - This study investigates the impact of equity financing on the valuation of R&D investments using a sample of firms from 33 countries from 1997 to 2018. Design/methodology/approach - I use a modified version of the valuation regression widely used in the literature. Findings - I find evidence that R&D investments are more highly valued when financed through equity. In contrast, debt financing does not affect the valuation of R&D investments. I also document that the impact of equity financing on R&D investment valuation weakens during the financial crisis. Research implications or Originality - In light of the distinctive characteristics of innovative investment, previous research investigates its relationship with financing. What remains unexamined, however, is how financing choices impact the way investors value innovative investments. This study seeks to bridge this gap in the existing body of research using a sample of firms from 33 countries from 1997 to 2018, for 22 years.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.721-730
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• 2020

This study investigates the impact of the country's governance on the revenue efficiency of 108 Islamic banks from 26 countries offering Islamic banking and finance products services. The technical efficiencies of individual Islamic banks have been analyzed using the Data Envelopment Analysis method. The data will be pooled across the selected countries and utilize the intermediation approach. The Ordinary Least Square estimation method is employed to examine the impact of country supervision and regulation on the technical efficiency of Islamic banks. As robustness check, the study examines the impact of the level of bank regulations and supervision on the efficiency of Islamic banks operating in different income-level countries. The results found that the stricter the supervisory power, the less strict capital requirement, the tighter the restrictions on non-banking activities, and the stricter the private monitoring enhance statistically significantly the level of efficiency of Islamic banks. In upgrading the regulations and supervision of the Islamic banks, the existing regulatory framework based on the Basel Committee on Banking Supervision (BCBS) must be complemented with the prescriptions on Islamic banking or Shariah compliance diligently, so that the Islamic banks could be regulated accurately and further improve the technical efficiency of their operations.

• Journal of the Korean association of regional geographers
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• v.21 no.1
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• pp.21-38
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• 2015

This study attempts to estimate the complementarity between 21 cities in the Korean Southeastern Region using data on the network time distance and the volume of flow between the cities. Four types of flows recognized are people, commodities, information and finance. The first two types of flows are thought to be made on the transportation network while the last two are on the communication network. For the purpose of the study, the expected volumes of flows between cities are first estimated using the gravity-based regression and doubly-constrained entropy maximization models. These baseline volumes are then subtracted from the observed volumes of flows (of people and commodities) or the estimated volumes of flows (of information and finance) in order to identify positive differences or complementarities. The result shows that these four types of complementarity flows form distinctive urban networks in terms of spatial pattern and urban hierarchy. This suggests that more customized strategies to different types of complementarity are recommended to properly address the issues related to network infrastructure provision in the pursuit of the network city model in the region.

• The Journal of the Korea Contents Association
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• v.17 no.5
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• pp.574-590
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• 2017

The purpose of this paper is the provision of a decision-making tool for developers to identify the project risks for under-consideration overseas independent power projects (IPPs), and to analyze the priority and importance weights of the risks through the employment of a fuzzy multi-criteria decision-making (MCDM) approach. A fuzzy MCDM is the calculation method for which the imprecision of each respondent's unique opinion is considered. Through the extensive literature surveys that were conducted for this paper, eight major project finance (PF) risks have been derived credit risk, completion risk, market risk, fuel risk, operating risk, financial risk, environmental risk, and force majeure. The empirical results show that the market risk is the most important risk factor in terms of overseas IPPs, thereby confirming that the long-term power purchase agreement (PPA) guarantee of the host country is one of the most important corresponding factors for the PF.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.9
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• pp.273-285
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• 2021

This study estimates the financial value of return on investment (ROI) of research funds. Four simulation estimations are employed to measure ROI finance value that considers the outputs, outcomes, impacts and total ROI from the allocation input received. Research outputs, outcomes, and impacts can be quantitatively measured based on improvements to existing systems. In terms of input, the Malaysian government has allocated MYR301,350,000 for fundamental research in the 2021 budget compared with 2019, up 9.5 percent from 2019. It brings up the question: To what extent does the input of research funds allocated by the government yield a good return in outputs, outcomes, and impacts to the academic community, society, and country? The result of total ROI shows around MYR7 return is generated by researchers for each Malaysian ringgit channeled by the funder. More specifically, for a research project, it is more difficult to produce impacts and outcomes compared to research outputs. The positive return is evidence that all the allocated funds are beneficial to the stakeholders. The government can apply this approach in calculating ROI for evaluation and fund allocation to universities. Furthermore, the positive financial value of research output, outcome, and impact automatically contribute to a positive innovation environment in Malaysia.

• Asia-Pacific Journal of Business
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• v.14 no.1
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• pp.131-148
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• 2023

Purpose - Since the 2020s, the management philosophy of Chinese firms' ESG has been rapidly established under the leadership of the Chinese government. We empirically analyze the ESG characteristics and effects on corporate value of Chinese firms. Design/methodology/approach - Using OLS and random effect panel regression analysis, we identify ESG determinants. In analyzing the impact on corporate value, likewise a large number of literatures, we adopt a 2SLS methodology using instrumental variables in the reason of endogeneity between ESG and firm value. We analyze using the G2SLS methodology, which is improving the efficiency of the estimation coefficients along with 2SLS. Findings - We find that ESG ratings are high in state-owned and foreign capital invested companies, ESG ratings are low in companies with a high proportion of non-floating stocks which implies information asymmetry. However, there are no significance in the institutional investor's, the major 10 largest shareholders' and manager's ownership. Furthermore, we can support most of the hypotheses that ESG ratings will be high in companies with high management performance. ESG ratings are significantly higher in companies with high ROA, rich in cash asset, low debt ratio, and large size. we strongly support the hypothesis that the higher the ESG rating, the higher the firm value, and ESG has a moderating effect on state-owned companies, non-floating shares, the ownership of institutional investors, manager, and the 10 major shareholder. In particular, state-owned companies, the proportion of non-floating shares, and the ownership of the 10 major shareholders have a negative impact on firm value, however, ESG attenuates this negative effect. Research implications or Originality - This study looks forward to enhancing our understanding of ESG characteristics in East Asia.

• Asia-Pacific Journal of Business
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• v.14 no.2
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• pp.119-139
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• 2023

Purpose - This study is the first field study about the insurance market in North Korea. By analysing the information and the data collected from the visit to North Korea, we introduced the most recent change on the insurance market in North Korea and analyzed the impact of the change of economic policy on the insurance market. This study may enhance the understanding the current situation and provide expectations on the future of the insurance market in North Korea. Design/methodology/approach - This study is based on the field study doen in 2018 to Pyeong Yang, the capital of North Korea, The most information was collected from the legal documents, news papers and academic reports. Findings - During his regime from the year of 2012, Kim Jong Eun, the Supreme Leader of North Korea, initiated the drastic change in economic renovation policy in North Korea by shifting the economic system from the commodity economy to the market economy. Due to the policy, the insurance market in North Korea became marginally privatized and the market of life insurance contracts is expected to be increased if North Korea may resolve the political conflicts between North Korea and the United States and its allies in Asia mainly due to its nuclear testing. Research implications or Originality - Until now, very few studies have been done regarding the financial market in North Korea, especially about the insurance market. Our study provides unique information on the insurance market in North Korea because all the information and its implications are based on the field study in 2018.

• International Journal of Computer Science & Network Security
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• v.21 no.9
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• pp.323-331
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• 2021

The relevance of the study implies the need to explain the main determinants of environmental policy, allowing countries to converge on a common working basis. The purpose of the research is to explore ways in which the environmental aspects of EU regions and territories can be shaped to apply to domestic environmental policy. A total of 997 representatives from the Ukrainian UTCs, who are involved in local environmental policy, participated in the survey. Results of the research. A hierarchy of regional environmental policy objectives has been identified. Three key principles of eco-policy development have been distinguished. The means of the innovative approach strategy implementation have been outlined (formation of the regional market of environmental services; organization of interaction between environmental agencies and market structures; establishment of environmental funds which finance environmental activities; implementation of the "collateral return" system; formation of a system of benefits and loans to enterprises that successfully implement the environmental policy). The means of the prognostic approach implementation strategy to the development of the region's environmental policy have been determined (the use of an orderly and successful long-term strategy of economic development of the region; obligatory consideration in the mechanisms strategy aimed at improvement of environmental management system of the region, interbranch impact of the projects implemented on the region's ecological situation; taking into consideration the economic and geographical peculiarities of the region, the necessary infrastructure, issues of the territorial location of the large enterprises in the region and their impact on the environment). The means of the traditional approach strategy implementation have been outlined (activity programs focused on solution of specific problems, rather than on the implementation of measures for environmental restoration and enhancement; nature conservation problems have interbranch, interdepartmental character due to unity of the region's ecosystem; tracking complexity of changing conditions (water basins, woodlands, air-mass transport), regional boundaries generally do not coincide with natural ecosystems boundaries). The practical significance of the study lies in providing recommendations for the implementation of certain aspects of Ukrainian UTC's environmental policy.

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.22 no.1
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• pp.39-51
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• 2023

This study uses the hedonic price approach to estimate the economic value of a parking lot in an apartment building. In this study, a logarithmic function was applied to estimate the price elasticity of parking spaces. Variables were composed of an independent variable (apartment house characteristics) and a dummy variable (external characteristics). Detailed variables include exclusive area, number of floors, waterproofing, number of bathrooms, and number of parking spaces per household. Based on the results of the analysis for the entire year, the increase in the number of parking spaces affects a price increase of approximately 25.97 million won to 59.68 million won, which can be interpreted as the economic value of the parking space. However, since Hanam City was specified in this study, there is a limit to generalizing the current results and using them for project evaluation.

• Journal of Distribution Science
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• v.12 no.4
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• pp.11-22
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• 2014

Purpose - The domestic franchise industry has made significant contributions to industry such as investment, employment, and community economy development, facilitating growth potential. The franchise industry provides management knowhow transfer between parent companies and franchisees as per contracts addressing use of business signs, franchisees' independent position, franchisor support, and royalties to be paid to the franchisors. However, many franchisors lack management knowhow and provide insufficient support because of poor control of franchisees and not having a systematic approach to support. This results in dissatisfied franchisees and failure to establish long-term relationships. Few studies have examined relational commitment and/or re-contract intention by support resources between franchisors and franchisees, despite a considerable output of theories and studies of the growth of the franchise industry. The purpose of this study, therefore, was to examine the effects of the ability to provide resources on relational commitments and re-contract intention, and to suggest causal relationships and implications. Research design, data, and methodology - The subject was domestic franchisors registered with the Association of Franchise with more than 50 franchisees. Franchisees under contract for 2 years and considering re-contract of their franchise 2 years later were used. The subjects totaled 300 franchisees in Seoul. A questionnaire survey was used to investigate the subject of franchisees' concessions during the 10 days from November 21, 2013 to November 30, 2013. After excluding 16 surveys with poor answers, 284 responses were finally used. Four areas and 44 questions were used. A nominal scale was used for four common characteristics questions including gender, ages, educational background, and franchise managing time. Questions regarding ability, relational commitment, and re-contract intention made use of a Likert 5-point scale. Data coding and data cleaning were used. SPSS 18.0 was used as follows. First, frequency analysis was done to investigate demographic characteristics. Second, exploratory factor analysis was done to verify validity of testing tools, and Cronbach's α coefficient was used to verify reliability. Third, correlation analysis and multiple regression analysis were done. An exploratory factor analysis was done to verify validity of concepts. A correlation analysis was done to test relationships between the variables, and multiple regression analysis was done to verify franchisor's ability, franchisees' relational commitment, and re-contract intention. Results - The following were the outcomes. First, store operation management, finance operation management, and human resource management affected the calculated bond. Second, store operation management and finance operation management affected the emotional bond. Third, store operation management, finance operation management, human resource management, and marketing management affected the prescriptive bond. Fourth, calculated bond and prescriptive bond had an effect on re-contract intention. Conclusions - As stated above, in franchise management, parent companies' offer and instruction of core competence to their franchisees as an information resource could improve the relational bond by helping them grow together through the resource sharing. Consequently, core competence factors were promoting factors that could improve franchisees' re-contract intention for a long time.