• Proceedings of the Society of Korea Industrial and System Engineering Conference
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• 2002.05a
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• pp.113-118
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• 2002

Research and Development(R&D) was once considered to be a unique, creative and unstructured process that was difficult, if not impossible, to manage and control. R&D decisions impact the entire enterprise. Therefore, decisions must not be based solely on R&D's perception of what is important or worthwhile. R&D contributions are difficult to measure separately from other functional organizations such as manufacturing and marketing. While some firms are attempting to overcome perceived limitations in traditional accounting-based performance measures using ROI, EVA, others are embracing the use of non-financial measures for decision making and performance evaluation. In particular, many firms are implementing 'Balanced Scorecard(BSC)' systems that supplement traditional accounting measures with non-financial measures focused on at least three other perspectives-customers, internal business processes, and learning and growth. AHP is a popular multi-attribute decision making model that allows for the development of importance rankings. The AHP has been applied in a wide variety of practical settings to model complex decision problems. The former, determine Perspectives and the Key Performance indicator(KPI) through the former research, the latter compose the questionnaire for determine the weight of perspectives and KPIs. And then, make a survey with researchers about 4 perspectives and 18 KPIs. The results will be simulate with Expert Choice 2000 for determine the weights. This results helps establish the firm's business strategy and technology strategy The firm should establish the business strategy to consider market position, business growth potential, and technological capabilities.

• Journal of Distribution Science
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• v.18 no.2
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• pp.99-108
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• 2020

Purpose: This paper investigated the relationship between market competition and firm valuation error. Furthermore, Additional analyses were made according to the quality of financial reports and the listed market. Through the process we confirm to the impact of competition on the capital market. The purpose of this study is to analyze the impact of competition on valuation errors. The preceding studies did not provide a consistent results of the effects of competing functions on the capital market. One view is that the competition could mitigate the information asymmetry, and the other is that monopolistic lessens the manager's involvement in financial reporting. This study is intended to expand the prior study by analyzing the impact of competition on the capital market and on the valuation of investors. Research design, data, and methodology: The analysis was conducted on 12,031 samples over 11 years from 2008 to 2018 using data from market in Korea. Here the valuation error was measured by the research methodology of Rhodes-Kropf, Robinson and Viswanathan (2005), and competition measured by Herfindahl-Hirschman Index multiplied by (-1), and Concentration Ratio by (-1). Results: We confirm that the positive relationship between competition and the valuation error. In addition, we also found that the positive relation between competition and valuation error was in cases of low discretionary accruals and the KOSDAQ market. This means that the net function of competition does not mitigate valuation errors. Conclusions. This study has the following contributions when compared to prior research. First, the relevance between the level of competition and the valuation of the entity was confirmed. The study by Haw, Hu and Lee (2015) suggested that monopolistic industry of analysts' forecast is more accurate due to lower the variability in earnings. This study magnified it to confirm that monopolistic lessen information uncertainty in valuation. Second, the study on valuation errors was expanded. While the study on the effect of valuation errors on the capital market is generally relatively active, it is different that competition degree has analyzed the effect on valuation errors amid the lack of research on the effect on valuation errors.

• Asia-Pacific Journal of Business
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• v.15 no.3
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• pp.287-307
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• 2024

Purpose - This study was a study on managerial overconfidence and valuation errors to verify how the increase in managerial overconfidence affects valuation errors. Design/methodology/approach - Managerial overconfidence propensity refers to managers having excessive confidence in their position or ability (Hayward and Hambrick, 1997; Park Jin-hee, 2021) and was measured according to Schrand and Zechman (2012). Valuation error refers to a situation where a company's actual stock price differs from its intrinsic value as a result of numerous information asymmetries in the market, and was measured using the measurement method in Rhodes-Kropf et al (2005) study. The sample of this study used companies listed in the capital market for a total of 12 years from 2011 to 2022. Findings - As a result of the verification, there was a significant positive (+) relationship between managerial overconfidence and valuation errors, and this relationship was alleviated as the percentage of foreign shareholders shares or the number of financial analysts they followed increased. It can be interpreted that when the information demands of investors, such as foreign shareholders and financial analysts, increase significantly, managers provide more information to meet investors demands, thereby reducing information asymmetry and leading to a decrease in valuation errors.. Research implications or Originality - Previous studies on overconfidence, among the cognitive characteristics of individual managers, have yielded mixed results. In this study, we conducted a direct empirical analysis of managerial overconfidence using a measure called valuation error, which evaluates numerous information asymmetries in the capital market. This is expected to help stakeholders in the capital market understand the characteristics of managers and recognize their importance. It can also be used as a basis for establishing policies to reduce valuation errors.

• Journal of Digital Convergence
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• v.15 no.1
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• pp.77-84
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• 2017

This study investigates the association between financial reporting strategy and the directors' and officers' liability insurance. Since D&O insurance protects officers and directors against the risks of shareholder litigation, it is possible that, because of moral hazard, managers will be more willing to participate in opportunistic financial reporting such as earnings manipulation when they are covered by a generous D&O insurance policy. This paper examines the association between D&O insurance and financial reporting, specifically whether the purchase of D&O insurance affects earnings manipulation. On the other side, the firms engage earnings management are willing to purchase D&O insurance, this study tests whether earnings manipulation affects D&O purchases using listed firms in Korean stock market from 2006 to 2008. This paper finds that firms with higher discretionary accruals are less likely to purchase D&O insurance implies that managers who are participating in earnings manipulation are not willing to purchase D&O insurance. The relation between discretionary accruals and D&O is significantly negative which indicate D&O insurance purchase does not trigger earnings manipulation rather it alleviates opportunistic reporting behavior.

• Journal of Wellbeing Management and Applied Psychology
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• v.5 no.4
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• pp.1-9
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• 2022

Purpose: Many people recognize the fact that women are basically poor at financial and retirement planning. A small number of scholars have explored the factors and situations that influence the level of awareness of pre-retirement women and men with regards to planning for their retirement years. In most developing countries, including Malaysia, there are more men in the younger segment of the population and more women in the older segment, since women tend to live longer than men due to having jobs of relatively lower risk, their behaviors, and activities. Research design, data and methodology: Given that it is hard to predict whether they will be healthy in old age, women may require additional resources to obtain the care and assistance that they need. The transition from career life into retirement is a long process for people to go through. Some may be able to prepare for the next stage of life, and some may not be able to prepare due to personal reasons. Planning for future retirement is important because it will affect the quality of a woman's life after a certain age. Results: Without proper planning, women may face financial instability, depression, and poor psychological well-being. However, many women are unaware of their financial status or do not know their family's financial status, such as tracking the main income, budget, and expenses, financial commitments and have no proper record of assets owned, loans owed, or updated loan balances. Conclusions: The findings of this research have led to the conclusion that pre-retiree women are likely to regard their retirement savings as sufficient without realizing that they should have at least several types of savings instead of just one, and the grave consequences of not having any savings at all for their retirement years.

• The Journal of the Korea Contents Association
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• v.10 no.10
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• pp.334-350
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• 2010

This study aims at investigating the possible effects on the tax accounting practices stemming from adopting the IFRS in financial reporting process. It also seeks for policy implications to help alleviate practical conflicts likely to arise from the inconsistencies between the existing tax law and the tax related IFRS provisions. The results of the survey analysis are summarized as follows: firstly, majority opinion is opposed to the fair value based revaluation of property assets as well as the application of immediate recognition of foreign currency translation gains/losses. It favors the existing provision on asset securitization which adopts sales transaction view. Secondly, most of the respondents oppose the proposed amendments which allows dual classification of lease contracts on the ground. Third, functional currency appears acceptable on a conceptual level, even though a deep concern is expressed regarding the practical feasibility of computing taxable income using financial statements translated on the basis of functional currency on a practical viewpoint. Fourth, many respondents support the existing convention of recognizing depreciation expenses for taxation purposes and are in favor of the separation of accounting and tax books on a long-term basis. Fifth, the majority opinion approves the maintenance of existing tax reconciliation system and the recognition of expenses related with the doubtful accounts on reporting basis. Finally, a concern is raised with regard to the added burden of practical job loads needed to comply with the proposed amendments.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.1
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• pp.173-188
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• 2023

This paper analyzed the Earnings management of firms selected as preliminary Unicorn. If a manager is selected as a preliminary unicorn firm, he can receive financial support of up to 20 billion won, creating a factor in managing the manager's earnings. The motive for management's earnings management is related to the capital market. Accounting information is used by investors and financial analysts, and corporate profits affect corporate value. Therefore, if the accounting earning is adjusted upward, the corporate value will be raised and investment conditions will be favorable. In this paper, earnings quality was measured by the modified Jones model of Dechow et al.(1995) by the ROA control model of Kothari et al.(2005) among the discretionary accruals estimated using an alternative accrual prediction model. Competing similar companies in the same market as the selected companies were formed, and the discretionary accruals were mutually compared to verify the research hypotheses, and only the selected companies were analyzed for the audit year and after the audit year. As a result of the analysis, it was found that the companies selected as preliminary unicorns had higher earnings management compared to the corresponding companies in question, which had a negative impact on the quality of accounting profits. It was found that the companies selected as preliminary unicorns continued to receive incentives for management's earnings management even after being selected. These results indicate that the companies selected as prospective unicorns are recognized for their value in the market through external growth rather than internal growth, and thus, incentives for management's earnings management to attract investment from external investors under favorable conditions are continuing. In the future preliminary unicorn selection evaluation, it was possible to present what needs to be reviewed on the quality of accounting earning. The implication of this paper is that the factors of management's earnings management eventually hinder investors and creditors from judging the reliability of accounting information. It was suggested that a policy alternative for the K-Unicorn Project, which enhances reliability were presented by reflecting the evaluation of earnings quality through discretionary accruals.

• Journal of the military operations research society of Korea
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• v.37 no.1
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• pp.49-70
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• 2011

This paper re-evaluated the research on the accounting information's effectiveness in military construction contracts, questioning the former research results on the central army's construction contract that was under the Qualification Assessment System, especially concerning the relations between the accounting information and the bidding ratios as well as the relations between the bidding rates and the defect rates, which targeted between 1 to 10 billions civil engineering, construction, electricity, telecommunication, and environment work types. Unlike the previous results, the relationship between the accounting information and the bidding rates was shown to be considerably limited that the bidding ratio could not be identified through the accounting information, while it could discern the relations with the defect rates. Furthermore, the proven results did not support the hypothesis that the differences in bidding rates could affect the defect ratio. However, through the prediction model of bidding and defect ratios, we could identity the accounting variables that influenced the ratios. Additionally through the results regarding the non-financial indexes in the Pre-Qualification items, the weight on these indexes could be adjusted. In conclusion, the research results has given us new understanding of the problems in the Qualification Assessment System which accounts for the majority of the current military construction contracts and provide validity on the government's expanded implementation of the Lowest Price Award System.

• Management & Information Systems Review
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• v.39 no.2
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• pp.17-37
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• 2020

The purpose of this study is to investigate the global spillover effects through the existence of linear and nonlinear causal relationships between the US, European and BRIC financial markets after the period from the introduction of the Euro, the financial crisis and the subsequent EU debt crisis in 2007~2010. Although the global spillover effects of the financial crisis are well described, the nature of the volatility effects and the spread mechanisms between the US, Europe and BRIC stock markets have not been systematically examined. A stepwise filtering methodology was introduced to investigate the dynamic linear and nonlinear causality, which included a vector autoregressive regression model and a multivariate GARCH model. The sample in this paper includes the post-Euro period, and also includes the financial crisis and the Eurozone financial and sovereign crisis. The empirical results can have many implications for the efficiency of the BRIC stock market. These results not only affect the predictability of this market, but can also be useful in future research to quantify the process of financial integration in the market. The interdependence between the United States, Europe and the BRIC can reveal significant implications for financial market regulation, hedging and trading strategies. And the findings show that the BRIC has been integrated internationally since the sub-prime and financial crisis erupted in the United States, and the spillover effects have become more specific and remarkable. Furthermore, there is no consistent evidence supporting the decoupling phenomenon. Some nonlinear causality persists even after filtering during the investigation period. Although the tail distribution dependence and higher moments may be significant factors for the remaining interdependencies, this can be largely explained by the simple volatility spillover effects in nonlinear causality.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.2
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• pp.177-188
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• 2021

On December 2015, Financial Supervisory Service(FSS) announced the four key thematic audit review areas, one of them is an appropriation of unbilled revenue. Accounting of unbilled revenue is intertwined with a percentage of completion, that is concerned about discretionary decision by manager. Therefore, if manager motivated by income-increasing manipulation is exaggerating percentage of completion, unbilled revenue is excessively recognized. This problem is caused the serious accounting issues(e.g., shock at a loss for 2013 fiscal year by some construction firms, malpractice of accounting in order-made production industry). Distrust of accounting was grown because the shipbuilding and construction industries successively went poor management and bad accounting of them is revealed. Those accounting issues were the trigger for problem recognition of unbilled revenue, they were background for the designation of appropriation unbilled revenue as thematic audit review areas by FSS. Therefore, this study verified effectiveness of thematic audit review by empirically analyzing whether designation of thematic audit review makes the firm increases conservative behavior. Conservative accounting is estimated by using Basu(1997) model. We analyzed the effect of the thematic audit review on conservative accounting of unbilled revenue by comparing with reflecting unbilled revenue or not. The sample for test consists of firm-years the manufacturing and construction industries from 2012 to 2017. The test results of this study suggested that the conservative accounting of unbilled revenue after designation of the thematic audit review was significantly increased. We also tested again by classifying whether or not it is construction industry. We found that construction industry is more conservative than the other industry only for the designated year of the thematic audit review, otherwise there was not any evidence for significantly increasing conservatism. This study contributes to the literature by empirically analysing relationship of the unbilled revenue to the thematic audit review from the perspective of the conservatism and verifying effectiveness of the thematic audit review.