• Journal of Korean Society of Industrial and Systems Engineering
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• 제46권3호
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• pp.198-208
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• 2023

In order to enhance competitiveness in the industry, financial companies are building a high level of customer satisfaction and repurchase intention by further strengthening not only the technical quality of the platform business but also the customer-oriented service quality. Theoretically, it is time for a theoretical review of whether the expansion of service quality using platform business in the financial industry is directly linked to the performance of financial companies, such as satisfaction and repurchase intention of existing customers. Based on the rapid growth of mobile and the main activities of financial platform companies above, This study attempted to test a significant impact on customer satisfaction and reuse intention on information services and system services, which are service quality of mobile financial platforms. Even if a number of financial companies compete with each other, they could survive by dividing the market, In the digital environment, customers have free access, so the winner can monopolize the market. It is an environment in which customers can move to platform companies that provide better services. The contents presented through the results in this study will be able to be used strategically in terms of the implementation and operation of the financial platform. In addition, it served as an opportunity to find independent variables that affect customer satisfaction and reuse intention, which are financial platform service quality, and suggested the possibility of continuous development of the platform in the future. In summary, the service quality of financial platforms can further expand users by emphasizing user visibility in terms of information services and utilizing user-centered financial platforms that increase customer satisfaction and reliability by strengthening the responsiveness and ease of system services. This study is of important value and is believed to have laid an important foundation for future research.

• Journal of Technology Innovation
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• 제20권1호
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• pp.45-73
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• 2012

In this paper, we analyse empirically the effects of financial characteristics on the relationship between R&D investment and market value of firms listed on Korea Exchange. The main results of this study can be summarized as follows. Firm size increase the market valuation of R&D investment because it provides economies of scale, easier access to capital market, and R&D cost spreading. Market share also positively effects the relationship between R&D investment and firm value. Alternatively, free cash flow has a negative effect on the relationship between R&D investment and firm value because firms with high free cash flow could be tempted to use the free cash flow to undertake negative NPV projects. The dependence on external finance is a handicap negatively assessed by the market when firms undertake R&D projects due to the higher information asymmetry associated with this kind of project. Labor intensity has a negative effect on the relationship between R&D investment and firm value because the abnormal profits arising from R&D investment are diluted among employees. Capital intensity also has a negative effect on the relationship between R&D investment and firm value due to the greater financial constraints faced by capital intensive firms. In conclusion, several financial characteristics(firm size and market share) positively effect the relationship between R&D investment and firm value, while others(free cash flow, dependence on external finance, labor intensity, and capital intensity) exert a negative effect. Therefore, we conclude that the effectiveness of R&D investment depends on these financial characteristics.

• The Journal of Asian Finance, Economics and Business
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• 제7권2호
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• pp.157-168
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• 2020

Since the economic crisis sweeps across the world in 2008, the foreign direct investment of various countries has been greatly impacted. Therefore, this paper regards China as an example to analyze China's outward foreign direct investment patterns in terms of Asian financial markets with a panel data over the period 2003-2017. We mainly focus on the money market oriented outward foreign direct investment and foreign exchange market oriented outward foreign direct investment. Using the individual fixed effect model to conduct empirical analyses, the empirical findings indicate that China will reduce its foreign direct investment amount to a country with large money supply and China will increase its foreign direct investment amount to a country with large foreign exchange reserves. Furthermore, when a country has signed Free Trade Agreement with China, China will increase more foreign direct investment amount to these countries than that of a country who has not signed Free Trade Agreement with China. Moreover, the empirical findings indicate that no matter what the money market oriented outward foreign direct investment or foreign market oriented outward foreign direct investment, China will reduce its foreign direct investment amount to these Asian countries due to the global economic crisis.

• Journal of Korean Society of Industrial and Systems Engineering
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• 제41권4호
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• pp.81-90
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• 2018

Modern investment theory has empirically proved that stock returns can be explained by several factors such as market risk, firm size, and book-to-market ratio. Other unknown factors affecting stock returns are also believed to still exist yet to be found. We believe that one of such factors is the operational efficiency of firms in transforming inputs to outputs, considering the fact that operations is a fundamental and primary function of any type of businesses. To support this belief, this study intends to empirically study the relationship between firm efficiency and stock price performance. Firm efficiency is measured using data envelopment analysis (DEA) with inputs and outputs obtained from financial statements. We employ cross-efficiency evaluation to enhance the discrimination power of DEA with a secondary objective function of aggressive formulation. Using the CAPM-based performance regression model, we test the performance of equally weighted portfolios of different sizes selected based upon DEA cross-efficiency scores along with a buy & hold trading strategy. For the empirical test, we collect financial data of domestic firms listed in KOSPI over the period of 2000~2016 from well-known financial databases. As a result, we find that the porfolios with highly efficient firms included outperform the benchmark market portfolio after controlling for the market risk, which indicates that firm efficiency plays a important role in explaining stock returns.

• The Journal of Asian Finance, Economics and Business
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• 제7권12호
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• pp.255-265
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• 2020

This study examines whether the adoption of International Financial Reporting Standards (IFRS) has increased financial statement comparability among firms and reduced undervaluation of Korean firms in the capital market by enhancing financial statement comparability. The so-called Korea Discount, which indicates an inefficient allocation of capital, has been attributed to lack of transparency and comparability of accounting information. Therefore, an efficient distribution of capital in the market was intended when IFRS was first adopted in Korea, but such progress is based on a premise of enhancement in Korean firms' accounting information comparability. This study conducts empirical analysis by using a comparability measure by De Franco et al. (2011). More specifically, it analyzes differences among comparability of domestic firms following IFRS adoption, with firms in the EU, which adopted IFRS in 2005, and with firms in the U.S., China and Japan that do not follow IFRS. The analysis of changes in domestic firms' comparability finds that their comparability improved following IFRS adoption. Meanwhile, the examination of cross-national differences in comparability demonstrates that, although there has been no significant change in comparability with firms in the U.S. and the EU across Korean industry since IFRS adoption, comparability with China has decreased while that with Japan improved.

• Journal of the Korean Operations Research and Management Science Society
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• 제38권4호
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• pp.11-33
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• 2013

We analyzed the structures and properties of the global financial market networks using social network analysis approach. The Minimum Spanning Tree (MST) lengths and networks of the global financial markets based on the correlation coefficients have been analyzed. Firstly, similar to the previous studies on the global stock indices using MST length, the diversification effects in the global multi-asset portfolio can disappear during the crisis as the correlations among the asset class and within the asset class increase due to the system risks. Second, through the network visualization, we found the clustering of the asset class in the global financial markets network, which confirms the possible diversification effect in the global multi-asset portfolio. Meanwhile, we found the changes in the structure of the network during the crisis. For the last one, in terms of the degree centrality, the stock indices were the most influential to other assets in the global financial markets network, while in terms of the betweenness centrality, Gold, Silver and AUD. In the practical perspective, we propose the methods such as MST length and network visualization to monitor the change of the correlation risk for the risk management of the multi-asset portfolio.

• The Journal of Asian Finance, Economics and Business
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• 제7권9호
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• pp.329-340
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• 2020

This study investigates the effect of capital structure on the financial performance of pharmaceutical enterprises which are listing on Vietnam's stock market. The study builds the regression using ROE as dependent variable and four independent variables, including self-financing, financial leverage, long-term asset and debt to assets ratios. In addition, we use other variables as controlling ones, such as firm size, fixed asset rate and growth. We collect data for the period from 2015 to 2019 of all 30 pharmaceutical enterprises which are currently listing on Vietnam's stock market. The least square regression (OLS) is used to test the effect of capital structure to the firms' financial performance. The analysis results show that the financial leverage ratio (LR), long-term asset ratio (LAR) and debt-to-assets ratio (DR) have positive relationship with firm performance, meanwhile the self-financing (E/C) affects negatively to the return on equity (ROE). Upon the findings we suggest that the Vietnamese government should focus on stabilizing macro environment to create favorable environment for enterprises. And the pharmaceutical enterprises should build more reasonable capital structure with higher debt proportion than equity, diversifying loan mobilization channels such as issuing long-term bonds. Additionally, the firms should expand the scale appropriately to maintain development and ability to pay debts.

• The Journal of Asian Finance, Economics and Business
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• 제8권11호
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• pp.11-19
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• 2021

The aim of this paper is to evaluate the impact of the COVID-19 pandemic on the stock prices of the companies traded on the UAE financial markets (Abu Dhabi Securities Exchange and Dubai Financial Market). The time series regressions have been applied to estimate the impact of COVID-19 data on the companies' stock prices movements. The data cover the period between January 29^th, 2020, and January 5^th, 2021. The data was collected from the website of the Federal Competitiveness and Statistics Centre of the UAE. The empirical results of this study show that the stock prices are negatively and significantly affected by the number of COVID-19 positive cases and the number of death while they are positively and significantly affected by the number of recoveries. The results vary from one industry to another. These results would be important to the policymakers and financial regulators in developing the needed policies to improve the stock markets' resilience and maintain financial and economic stability. In addition, the findings would be useful to the investors and portfolio managers in taking the most appropriate investment decisions and managing more efficiently their portfolios. This paper will shed light on the responsiveness of the UAE financial market to the COVID-19 pandemic.

• The Journal of Asian Finance, Economics and Business
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• 제8권8호
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• pp.75-83
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• 2021

For many years, many academics and practitioners have paid attention to the increasing popularity of corporate social responsibility (CSR) and its relationship with financial performance. They have shown that creating social and sustainable responsibility can strengthen the organization's financial performance as the organization can achieve its current needs without compromising the ability to meet future needs. While much theoretical and empirical evidence has been provided to support this argument in developed countries, this topic is under-researched, and the outcomes are controversial in developing countries. Therefore, this paper aims to examine and investigate the relationship between corporate social responsibility and financial performance in Vietnamese organizations. The dataset includes 27 firms listed on the stock market exchanges in Ho Chi Minh city (HOSE) and Hanoi (HNX) from 2015 to 2019. The disclosure approach is adopted to measure corporate social activities; four areas were developed: environment, community, employee and product, customer, and supplier practices. Return on average equity (ROE) and return on average assets (ROA) are two proxies for measuring financial performance. The research results confirm the existing literature with a strong correlation between employees and returns on average assets.

• Communications for Statistical Applications and Methods
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• 제25권4호
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• pp.397-409
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• 2018

The world financial markets are inter-linked in ways that varies according to market and time. We examine the causality of change focusing on the Korean market as related to the U.S. (S&P 500), Japan (Nikkei 225), Hong-Kong (HSI), and European (DAX) markets. In order to capture time-varying causality running from and to the Korea stock market, we apply the Granger causality test under a VAR model with a wild bootstrap rolling-window approach. We also propose a new concept of a significant causality ratio to measure the intensity of the Granger causality in each time unit. There are many asymmetric strengths in mutual Granger causal relationships. Moreover, there are cases with significant Granger causal relations only in one direction. The period with the most severe Granger causality both running from and to the KOSPI market is the GFC. The market that formed the two-way Granger causal relationship with the KOSPI market for the longest period is the S&P 500. The HSI and DAX markets have the strongest two-way Granger causal relationship with the KOSPI shortly after 2000, and the Nikkei market had the strongest two-way Granger causal relationship with the KOSPI market before the Asian financial crisis.