• Journal of the Korea Convergence Society
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• v.11 no.12
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• pp.243-251
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• 2020

The purpose of the study is to explore the relationship between the type of reporting weaknesses in the Internal Accounting Control System and executive compensation, and then analyze whether such relevance varies depending on the characteristics of governance structure. The analysis data used 6,343 KOSPI&KOSDAQ companies excluding the financial industry from 2011 to 2016. As a results of the study, First, executive compensation decreased in companies reporting the weaknesses of CL. Second, this relevance was further strengthened according to the governance structure. This study confirms that information on the operation results of system is an important factor in determining manager compensation. It implies that it is necessary to study reasonable compensation policies and governance structures suitable for companies. If an internal control system that affects executive compensation is added, the basis for stronger support of the research results can be prepared.

• Journal of the Korea Convergence Society
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• v.13 no.4
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• pp.321-329
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• 2022

This study analyzes how companies of prospector type with inherent risks from new products and R&D costs affect audit hours, and further analyzes how they affect rank-specific audit hours. Samples were empirically analyzed using samples from 2018 to 2019 for KOSPI-listed and KOSDAQ-listed companies. As a result of the analysis, first, it was found that auditors were aware of the inherent risks of companies of prospector type and were striving to improve audit quality. Second, it was found that the corresponding degree of risk differs depending on the position and role in the audit team, so higher efforts were made in core positions with high risk levels. The results of this study are meaningful in verifying how the type of Business Strategies affects the audit efforts and resource input of auditors who are external parties, not internal factors such as financial reporting quality or tax avoidance. It also has important implications that a company's Business Strategies can be an significant factor to consider in preparing policies and systems for improving audit quality.

• Journal of the Korea Convergence Society
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• v.13 no.1
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• pp.365-373
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• 2022

The purpose of this study is to determine the effect of concurrent appointment as a director on the quality of the internal accounting management system (IACS). For analysis, 9,343 KOSPI & KOSDAQ company-year data from 2014-2019, excluding the financial industry, were used. As a result of the analysis, it was confirmed that the quality of IACS decreased as the number of multiple positions in the director increased. Although there is a difference in the roles of inside and outside directors, it was found that the quality of IACS decreases equally as the number of board members. According to the business hypothesis, this can be said to be the result of the agency problem within the company because directors, who were more busy with concurrent positions as directors, did not put sufficient effort into their work. This study suggests that information on the concurrent position of directors can be a new indicator that reflects the characteristics of the board in evaluating the effectiveness of corporate governance.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.2 no.4
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• pp.103-133
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• 2007

The purpose of this study is to investigate whether customer satisfaction is affected by the expenditure for the customer satisfaction such as advertising, promotion, and training. This study also investigate whether the financial performance of the firm is affected by the customer satisfaction. The major findings are summarized as following. First, the customer satisfaction is affected by the expenditure for the customer satisfaction such as promotion, training. But customer satisfaction is not affected by advertising cost. Second, considering the time-lag and incremental valiables, the relationship between customer satisfaction and expenditure for the customer satisfaction is not founded. Third, the customer satisfaction affects positively on the corporate financial performance, such as ratio of operating income to sales, ratio of net income to sales, return on total assets, and return on equity. Finally, considering the time-lag the relationship between customer satisfaction and financial performance is not founded. Considering the incremental valiables, the relationship between customer satisfaction and financial performance is founded when ratio of operating income to sales and return on total assets are used financial performance. These findings imply that the expenditure for promotiom and training is needed to increase the customer satisfaction. Also improvement customer satisfaction is needed to increase the financial performance. The limitations of this study are as following. First, this study could not consider the other variables that would affect on the relationship among expenditure for customer satisfaction, level of customer satisfaction, and financial performance. Second, the results of this study are difficult to generalize because this study is focused on the service industry.

• Korean Business Review
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• v.14
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• pp.31-44
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• 2001

The purpose of auditing is to express an auditor's opinion on the fair presentation of the financial position and business operations of companies according to the financial accounting standards, and to raise the reliability of the financial statements and to enable the user of the financial statements to make a proper judgement on the companies. There should be an audit risk in the audit of the financial statements in a modem sense because it is done by the sampling audit not by the detailed one. Audit risk is the risk that an auditor may unknowingly fail to modify appropriately the auditors' report on financial statements containing a material misstatement. The audit risk eventually hurt the reliability of the financial statements when the auditors set up different audit risks because it is determined by the auditor's professional judgement. Thus, there have been negative opinions on the Audit Risk Model suggested in the SAS No. 47 because it cannot explain the process of auditor's judgement and bring different results. In view of the results so far achieved, which influences the auditor's decision making, should be done by the Belief Function Mode Model in a position of raising the reliability of the financial statements and emphasizing the usefulness and effectiveness of the auditing.

• The Korean Journal of Franchise Management
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• v.5 no.1
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• pp.85-108
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• 2014

This study provides the information about size, financial structure, profitability and growth of franchisors using financial data(asset, liability, equity, sales volume, operating income and net income) in uniform franchise offering circular of fair trade commission. The data were collected from 1,050 franchisors in various business fields: fast food, family restaurant, bakery, agriculture & fishery and liquor shop in the uniform franchise offering circular in 2012 and 2011. Results of this study are as follows: For company size, median of total assets was KRW 675 million and the accumulated median assets rate was 0.48%, but the accumulated median company numbers were 49.9%, which showed small size. For financial structure, 525 companies were below 200% debt ratio, while 314 (29.9%) companies were in over 200% debt, and 211 (20.1%) companies were impaired in capital. These also showed financial structure was vulunerable. For profitability, median of ROA for total companies were only 4.72%, which showed low profitability. For growth, median of growth rate for sales were 7.57% per year, which showed mature industry. In overall, the results showed franchisors should improve their financial status.

• Management & Information Systems Review
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• v.29 no.4
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• pp.333-357
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• 2010

Purposes of this paper are to investigate whether managers' compensation is sticky as accounting performance(ROA) vary or not and explore further what factors influence the managers' compensation stickiness. To empirically study the stickiness of managers' compensation, we used the financial data from manufacturing firms lised in the Korea Stock Exchange(1,000 firm-year data for 4 years). The results are as follows : First, managers' compensation is sticky with respect to change in accounting performance. That is, the increase in managers' compensation as accounting performance increases is greater than the decrease in managers' compensation in respect to equivalent decrease in accounting performance. Second, the degree of managers' compensation stickiness increases when managers have influence and contribution to firm value. Specifically, the degree of stickiness is positively associated with investment opportunity set, intangible assets' value, uncertainty of firms' operating environment, complexity of organizational hierarchy. But firms' size reversely impacts on the degree of managers' compensation stickiness.

• Journal of Digital Convergence
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• v.18 no.1
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• pp.121-127
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• 2020

This study analyzed through GEM-listed companies for verifying the interrelationship between positive and negative impacts on accounting information GEM-listed companies, whether venture firms operate the internal control operation system stably. Hong Kong's GEM listed company is a securities market similar to Korea's KOSDAQ market. To analyzing this study, used regression analysis method through internal control index to evaluate the operation of internal control system and discretionary accruals to evaluate the quality of accounting information. In this study, because profit adjustments used to realize through discretionary accruals, so analyzed using the modified Jones model to check whether the management deliberately transformed the company to realize future profits. In the empirical analysis, the correlation between the internal control index and the discretionary accruals to assess the quality of accounting information was able to find highly correlated. This study can provide useful guidance for evaluating the form and value of profit management of venture firms in the future, also would expect to help understand the financial environment of emerging venture firms.

• Journal of Industrial Convergence
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• v.20 no.12
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• pp.59-70
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• 2022

This study investigates the sensitivity reflected in the accounting earnings differs according to the difference in the characteristics of accounting information such as profit and loss for the same market information. For this, market information and accounting data were analyzed for 11,462 non-financial listed companies listed on the KOSPI and KOSDAQ markets from 2012 to 2020 by using Basu's measurement of conditional conservatism and Ball and Shivakumar's measurement of conservatism. Accounting earnings sensitivity was analyzed according to the combination of information. As a result of the study, it was confirmed that both earnings and losses corporates recognize losses with delay, while losses are recognized quickly by loss corporates and delayed recognition by earnings companies. It was confirmed that more strict conservatism was applied to the losses corporates compared to the earnings corporates by delaying the recognition of earnings while the early recognition of the losses. It provides empirical data on the causality between the asymmetric timeliness and the combined effect of market information and accounting information by verifying that the losses corporates responds sensitively to market information while the earnings corporates does not react sensitively to the market information.

• Journal of Korea Port Economic Association
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• v.23 no.4
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• pp.49-69
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• 2007

The purpose of this study is to analyze contribution factors of economic growth through growth accounting analysis in Korean port-logistics industry. Comparing with the average level of entire industry for 1990-2003, the contributions of total factor productivity and labor in port-logistics industry were high, but that of capital stock was very low. The pattern of growth in Korean port-logistics industry has greatly changed before and after Korean financial crisis. Before the 1997 financial crisis, the economic growth rate of port-logistics industry was 14.1%, which is higher than that of the whole industries, 7.7% for 1990-1998. Main contribution factors of the economic growth rate were the growth of capital stock and productivity, but ratios of their contributions were relatively low and did not come up to that for the whole industry. After the financial crisis, annualized growth rate of GDP in port-logistics industry had rapidly declined at 5.4% for 1998-2003, which did not get to that of the entire industry (10.1%). The main contribution factors of the economic growth rate over the 1998-2003 period were capital stock 13.1%, labor 57.0 %, and total factor productivity 29.9 %, Such growth pattern as excess dependence on growth of labor brought reduction of the rate of economic growth with degradation of productivity growth in the Korean port-logistics industry.