• Management Science and Financial Engineering
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• v.13 no.2
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• pp.99-116
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• 2007

This paper considers the value of location in a linear city model and examines the product differentiation equilibrium of duopoly providing different benefits to consumers. We show that if the value of location is small, symmetric location equilibrium occurs where two firms follow the maximal differentiation principle. However, as the value of location increases, asymmetric location equilibrium occurs where the low-value-location firm moves to the high-value-location firm and thus adjusted maximal differentiation principle holds. We also investigate two different price leadership model and demonstrate the relationship between the value of location and the role of price leadership. In particular, we show that when the location value is high, the price leadership by high-value-location firm will appear as a unique equilibrium.

• Journal of the Korean Operations Research and Management Science Society
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• v.36 no.1
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• pp.57-68
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• 2011

This paper examines how multiple performance feedbacks influence firm's technological search, using two types of indicators : accounting-based performance and market-based performance. Also we investigate how CEO's attention shift depends on firm specific factors such as firm size and outsider ownership. For empirical analysis, we utilized financial data on 675 manufacturing firms in Korea during the period between 1998 and 2009. The results show that technological search based on accounting-based performance feedback is moderated by focal firm's size. However, as outsider ownership increases, technological search increases in response to market-based performance feedback.

• Journal of the Korean Operations Research and Management Science Society
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• v.36 no.1
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• pp.1-11
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• 2011

This article examines the impact of electronic commerce on environmental welfare. In particular, we analyze a game model of price competition between offline and online firms when consumption taxes are imposed on both offline and online transactions that produce environmental pollution. We investigate the properties of optimal taxation between offline and online markets and demonstrate that there is an optimal difference between the two taxes, depending upon not only the transaction cost between offline and online consumption, but also the environmental damage cost. We also investigate the effect of tax-free online transactions on tax revenues, and the financial feasibility of the optimal taxation.

• Journal of Distribution Science
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• v.11 no.3
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• pp.5-11
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• 2013

Purpose - Going concern is one of fundamental concepts in accounting and auditing and sometimes the assessment of a company's going concern status that is a tough process. Various going concern prediction models' based on statistical and data mining methods help auditors and stakeholders suggested in the previous literature. Research design - This paper employs a data mining approach to prediction of going concern status of Iranian firms listed in Tehran Stock Exchange using Particle Swarm Optimization. To reach this goal, at the first step, we used the stepwise discriminant analysis it is selected the final variables from among of 42 variables and in the second stage; we applied a grid-search technique using 10-fold cross-validation to find out the optimal model. Results - The empirical tests show that the particle swarm optimization (PSO) model reached 99.92% and 99.28% accuracy rates for training and holdout data. Conclusions - The authors conclude that PSO model is applicable for prediction going concern of Iranian listed companies.

• Journal of Korea Society of Digital Industry and Information Management
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• v.9 no.2
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• pp.121-137
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• 2013

Now days, firm's technology capability is recognized as important factor to forecast and to evaluate firm's business performance. There are many efforts to develop useful indicators by applying patent information that includes concrete description about technology. Many previous studies analyzed relationship between patent indicators and firm's performance. But they didn't consider time gap between a point of firm's invention activity and a point of firm's performance improvement. They didn't considered a character of industrial fields either. To overcome these limitations, we selected IT industry for target analysis industry. Time-series patent data and financial data from 41 American IT firms between 2000 and 2011 were used to analyze. In this study, We empirically analyzed subsequent effect of patent indicators on firm's business performance by using correlation analysis and regression analysis.

• 한국벤처창업학회:학술대회논문집
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• 2006.11a
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• pp.275-299
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• 2006

This study aims at examining the early-stage financing scale for entrepreneur to build small & medium business. The data was collected from the DART (Data Analysis, Retrieval and Transfer System) of Korean Financial Supervisory Service(FSS) in the main. The results of this study show that small & medium business needs equipment & operation financing for about 37 months extent to reach Break-Even Point. The limitations of this study are data collections from registered firms on Korean FSS primarily and no showing about the early stage financing scale for building small & Medium Business concretely. Small & Medium business entrepreneur have to make a early stage finance plan according to a necessary equipment and operating cost in their business field for 37 months extent.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.13
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• pp.283-302
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• 2000

The firms aim to acquire services and costs advantage from logistics outsourcing strategy. But it is very important to select optimum service provider. A checklist of the criteria for the evaluation of service providers follows : service quality, low cost, logistics information system, service network, financial stability, investments in plant and equipment, management attitude and lookout for the future strategic fit, cultural and psychological barriers etc. Also, a 8-step implement of logistics outsourcing strategy will be of help for maximizing benefits of logistics outsourcing. It follows : 1-step : logistics environment analysis, 2-step : check service provider availability, 3-step : logistics outsourcing determinant analysis, 4-step : select of optimum service provider, 5-step : contract with optimum service provider, 6-step : identify of remaining barriers, 7-step : performance of logistics outsourcing, 8-step : evaluation.

• Management Science and Financial Engineering
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• v.17 no.2
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• pp.99-129
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• 2011

This paper analytically studies how to choose hedging instrument for firms with steady operating cash flows from value maximization perspective. I derive a formula to determine option's optimal strike that makes hedged cash flow have the best monetary payoff given a hedger's view on the underlying asset. I find that not only the expected mean but also the expected standard deviation of the underlying asset in relation to the forward price and the implied volatility play a crucial role in making optimal hedging decision. Higher moments play a certain part in hedging decision but to a lesser degree.

• International Commerce and Information Review
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• v.12 no.4
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• pp.509-535
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• 2010

This paper examines the Spaghetti bowl effect that different tariffs and rules of origin in multiple FTAs have resulted in increasing the significantly additional burden for business when it comes to apply for the use of FTA preference. The wide spread of FTAs in the several years, from 2003 to 2010, has been the most important trade policy development in economically important Korea. Korea presently has 5 FTAs in effect, and made 3 additional agreements which will be expected to take effect in next year. With the study result and expecting a growing number of FTAs in Korea in a next decade, the international trading firms will face rise of transaction costs for enterprises, particularly small- and medium-sized enterprises(SMEs) to cope with multiple tariffs and rule of origins in FTAs. To help mitigate negative effects and facilitate a more SEMs to use the FTA preference, providing new computer programs system, increasing the awareness of FTA provisions, improving business participation in FTA consultations, and SME support in light of education, and financial support are needed.

• Asia-Pacific Journal of Business
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• v.2 no.2
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• pp.61-78
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• 2011

Credit derivative is one kind of arrangement which allows one party to transfer, for a premium, the defined credit risk, computed with reference to a notional value, of a reference asset which may or may not owned by one or more other parties. Credit Default Swaps(CDS) have existed since the early 1990s, but its use has become increasingly popular over time. CDS is the fastest growing segment of the privately negotiated derivatives business as many firms depend on it to efficiently manage the financial market risks inherent in economic activities. The diversification function is especially important for active CDS market participants as banks. CDS banks can achieve their loan portfolio diversification which provides them with increased capacity to expand their lending.