• Journal of the Korean Operations Research and Management Science Society
• /
• v.39 no.3
• /
• pp.41-49
• /
• 2014

Several developed countries have recently provided electric vehicle consumers and producers with financial subsidies. There has been some empirical research on the impact of government subsidies on the consumers' purchase of electric cars. However, little analytical research on the government subsidies for the electric car market exists. This research analyzes the impact of the government financial subsidies on the electric car price and technology level as well as the consumers' adoption of electric cars. This research also suggests that the government should subsidize only the electric car market to further improve the electric car technology.

• East Asian Journal of Business Economics (EAJBE)
• /
• v.7 no.4
• /
• pp.41-49
• /
• 2019

Purpose - This paper empirically investigates what factors contribute to corporate investments under financial constraint condition in the Korean stock market. In the paper, tangible assets' growth rate and fixed assets' growth rate were employed as investment performance and total assets were also used for comparison purpose. Research design and methodology - Samples are constructed by manufacturing firms listed on the stock market of Korea as well as those who settle accounts in December from 2001 to 2018. Financial institutions are excluded from the sample as their accounting procedures, governance and regulations differ. This study adopted a fixed panel regression model to assess the sample construction including yearly and cross-sectional data. Results - This results support the literatures that major shareholders showed positive significance to investment in financially unconstrained firms and no significance to investment in financially constrained firms. ROA showed positive significance to investment in financially unconstrained and constrained firms, whereas firm size showed negative significance to investment in financially unconstrained and constrained firms. Debt showed no positive significance to investment in financially unconstrained firms and negative significance to investment in financially constrained firms. Conclusions - This paper documented evidence that ROA and firm size are important factors to investment irrespective of firms' financial constraints. And this paper also supports that major shareholders give positive impact to investments in financially unconstrained firms. This means that financial constraints itself rule corporate' investment decision in financially constrained firms.

• The Journal of Asian Finance, Economics and Business
• /
• v.5 no.4
• /
• pp.73-83
• /
• 2018

The purpose of this paper is to examine the relationship between regional financial development and corporate investment efficiency as well as the relationship between firm-level characteristics and corporate investment efficiency. Using a large sample of A-listed companies in China from CSMAR database between 2003 and 2016, this paper explores corporate investment efficiency and its influencing factors in emerging market on the basis of heterogeneous stochastic frontier model. The results show that: (1) the average investment efficiency of Chinese listed companies is 74.5%, and the investment efficiency of large enterprises, state-owned enterprises and enterprises with relatively high financial development level is significantly higher; (2) compared with average corporate investment efficiency in the year 2003, the investment efficiency of different types of enterprises in 2016 is significantly higher, and the gap is gradually widening; (3) enterprise heterogeneity namely firm size, nature of property right, and institutional environment reflected by the level of regional financial development indirectly affects corporate investment efficiency by influencing the financing constraints and uncertainty. The findings suggest that to improve corporate investment efficiency in emerging market, financial market should be accelerated, regional balance should be restored and the differences among regions, industries and differences between public and private sectors should be eliminated.

• Journal of Families and Better Life
• /
• v.29 no.6
• /
• pp.137-151
• /
• 2011

This study examines the condition of transfers between mothers and adult children, analyzing the influencing factors in such transfers. Specifically the study examines the influence of financial transfers and economic resources on financial transfers and grandchild caregiving between mothers and adult children. The sample of 3719 mothers with adult children was extracted from the first wave of the Korean Longitudinal Survey of Women and Families. The major findings are as follows. Mothers's socio-demographic characteristics are important factors in explaining financial transfers between mothers and adult children. Mothers who have jobs and spouses are more likely to provide economic resource to their adult children than those who don't have. In terms of receiving economic resources from adult children, statistically meaningful factors are mothers' age, labor market participation, marital status, household income, household asset, and children's labor market participation. Especially, labor market participation of mothers and adult children is statistically powerful factor in financial transfers and caregiving.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.2
• /
• pp.747-757
• /
• 2021

The primary purpose of the study is to investigate the volatility spillover from financial uncertainty (FU) of the United States (US) to the stock markets of SAARC member countries including India, Sri-Lanka, Pakistan, and Bangladesh. The empirical literature overlooked SAARC countries and the FU index. Based on the estimation method, the data of FU is available for three different forecast horizons including 1-month, 3-months, and 12-months. For empirical analysis, monthly data is used from February 2013 to September 2019. EGARCH model is employed to investigate the volatility spillover effects. The findings of the study show that the spillover effect of FU varies with the forecast horizon. The FU with a higher forecast horizon has a significant spillover effect on more countries. The spillover effect of US financial uncertainty is negative in most of the SAARC countries. Bangladesh stock market is influenced by FU with all three forecast horizons whereas the volatility of the Pakistan stock market is not influenced by FU with any forecast horizon. The findings are consistent with the concept of "limited trade openness" in the financial markets of emerging economies. The emerging economies avoid financial market openness to minimize the risk of spillover of other countries.

• The Journal of the Korea Contents Association
• /
• v.17 no.3
• /
• pp.578-588
• /
• 2017

The purpose of this paper was to prove the January Effect and Efficiency of the KOSPI Market, and then suggest as a result. KOSPI data was divided into two of section, Before and After IMF Financial Crisis, and this paper utilized Market Capitalization of common stock to conduct a study. As the main findings of this result, in KOSPI 1st section(Before IMF Financial Crisis), this paper proved the January Effect and Size Effect for Small-capital stock. On the other hand, in KOSPI $2nd-{\alpha}$ & ${\beta}$ section(After IMF Financial Crisis), this paper couldn't prove the January Effect. And then, this paper couldn't prove the Efficient Market hypothesis in KOSPI 1st with January Effect, however, proved the weak efficient market in KOSPI 2nd(${\alpha}$ & ${\beta}$) without January Effect. Finally, this paper deducted implications and limitation as the results.

• International Area Studies Review
• /
• v.18 no.3
• /
• pp.67-88
• /
• 2014

The Chinese stock market has increasingly strengthened its market power on other stock markets due to rapid growth of its economy. In this context, this study investigated return spillover effect as well as asymmetric volatility spillover effect using a VAR-Bivariate EGARCH model among stock markets(China, US, Japan, Korea). Furthermore, we conjectured the impact of 2008 global financial crisis on the spillover effect of the Chinese stock market. In our empirical results, the Chinese stock market has a weak return spillover effect to other markets(US, Japan, Korea), but after the global financial crisis, its return spillover effect becomes stronger among other stock markets. In addition, the Chinese stock market have strengthened its asymmetric volatility spillover effect on other stock markets after the Global financial crisis. As a result, the Chinese stock market has an strong influence on other stock markets.

• The Journal of the Korea Contents Association
• /
• v.19 no.9
• /
• pp.233-241
• /
• 2019

The purpose of this study is to empirically analyze whether the influence of foreign investors from the monitoring role in Korean capital market is observed differently in accordance with the global financial crisis situation. We collected a total of 2,919 firm data from 2003 to 2015 and performed the empirical tests between foreign investor ownership and firms' cost of equity capital separately according to the situation of the global financial crisis. From the empirical results, foreign investors in general were playing a positive function in the Korean capital market by effectively performing the monitoring role for companies. However, we observed that their monitoring role is not effectively performed when the risk level of capital market is maximized, such as during the global financial crisis. The study suggested that the influence of foreign investors may vary depending on the level of risk in the capital market, which is expected to contribute to the market participants and academia.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.16 no.5
• /
• pp.75-89
• /
• 2021

Currently, small business owners are facing a situation where it is difficult to run their business in the existing way due to the spread of digital technology and the prolonged COVID-19. As a necessary competency for them, this study focused on digital literacy and examined the relationship between digital literacy and individual and market characteristics, business performance of small business owners. The specific research purpose is to examine the effect of entrepreneurial characteristics, which are individual factors, and market characteristics, which are environmental factors, on business performance and the mediating effect of digital literacy. In previous studies, various factors explaining the business performance of small business owners were reviewed, and innovation and self-determination, which are entrepreneurial characteristics of small business owners, and market competition and growth were derived as independent variables, and financial and non-financial performance were set as dependent variables. The hypothesis was established as digital literacy was expected to play a role in mediating the relationship between independent and dependent variables. For empirical research, a survey was conducted on small business owners across the country, and the analysis results are summarized as follows. It was found that the innovation and self-determination of small business owners had a positive (+) significant effect on financial and non-financial performance. In addition, it was confirmed that the degree of competition in the market had no significant effect on financial and non-financial performance, and that the growth of the market had a significant positive (+) effect on financial and non-financial performance. In the case of the mediating effect of digital literacy, it was confirmed that innovation had a partial mediating effect on non-financial performance, and digital literacy had a complete mediating effect on the effect of market competition on financial and non-financial performance. Finally, it was confirmed that digital literacy has a partial mediating effect on the effect of market growth on non-financial performance. Looking at the results, it can be seen that the entrepreneurial characteristics of small business owners, which correspond to innovation and self-determination, directly act as a factor to increase business performance, and market characteristics indirectly increase digital literacy to achieve results. Based on the above research results, the implications and limitations of the study and future research directions were presented together.

• The Korean Journal of Applied Statistics
• /
• v.29 no.1
• /
• pp.75-83
• /
• 2016

We propose methodology to analyze the dynamic mechanisms of financial market contagion under market integration using a biological contagion analytical approach. We employ U-statistic to measure market integration, and a dynamic model based on an error correction mechanism (single equation error correction model) and latent factor model to examine market contagion. We also use quantile regression and Wald-Wolfowitz runs test to test market contagion. This methodology is designed to effectively handle heteroscedasticity and correlated errors. Our simulation results show that the single equation error correction model fits well with the linear regression model with a stationary predictor and correlated errors.