• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.2 no.4
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• pp.1-17
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• 2007

There are many different types of risk capital competing for deals in the korean entrepreneurial capital market. In the past, even though korean private venture capitalists did not have their distinctive competitive advantages, due to government support and subsidies, they could be survived in the market. However, the government controlled area has changed to a market driven area which emphasizes market forces and competition rather than support and protection. In order to be competitive, Korean private venture capital firms need to recruit high calibre professionals and build required financial skills for wise entrepreneurial investments. The purpose of this article is to analyze the relationships among firm characteristics, human resources, and investment strategies of korean venture capital firms. We can find that the asset size of venture capital firms has a positive effect on the size of their human resources. However, we can not find any relationship between firm characteristics and investment strategies of venture capitals. Even though we find some evidences among some variables, we need to interpret the results very carefully. Further research would be needed to carried out to clarify the disputable interpretations and our understanding of this area.

• Journal of Digital Convergence
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• v.13 no.5
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• pp.237-244
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• 2015

Export-led policies, FTA signed and economics of scale through a variety of market-oriented policies, such as regulations to improve market grew constantly. Accordingly, the correct decision making accurately analyze the economics market for decision, a problem has been an important issue in predicting. For accurate analysis and decision-making of the most common indicators of the stock market by proposing a number of indicators of economic transformation techniques were applied to the convergence model combining estimation and forecasts problem confirmed its effectiveness. Experimental result, gave the model estimation method to apply a transform to show the valid combinations proposed model state estimation result was confirmed in a very similar exercise aspect of the physical problem and the KOSPI index prediction.

• Journal of Arbitration Studies
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• v.31 no.1
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• pp.155-171
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• 2021

Recently, the e-business market has become a place of convergence where consumers and suppliers communicate with each other, and a new method of trading of funds has emerged in the process. Crowd-funding is one of the types of money transactions that have emerged in the online space, and its interest and trading volume have been growing rapidly recently. The platform in the online space using crowd-funding method operates in the form of online telecommunication sales, and it is in the form of producing and delivering products based on funds obtained from potential consumers by the operators involved in securing funds. However, if the participating business operators do not deliver the product or deliver the product other than the promoted product and avoid responsibility, the potential demander will not be compensated without mediation by the platform operating entity. In this study, despite the rapid growth in the market size of crowd-funding, consumers who participated in the funding are protected and able to resolve disputes in the event of a conflict amid growing complaints from potential consumers and side effects. The structure or method of crowd-funding is a new form of trading that has different features from conventional e-commerce. Therefore, the legal basis is not yet in place and the standards need to be laid out through various and sufficient discussions politically, legally, socially and culturally and economically. As the potential market and positive effects of crowd-funding around the world have been recognized, a role is required as an ecosystem for new financial transactions. And the potential market could be realized as a new industry if the right legal system and policy consultation were made.

• The Journal of Industrial Distribution & Business
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• v.11 no.12
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• pp.39-45
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• 2020

Purpose: The stock price delay phenomenon refers to a phenomenon in which stock prices do not immediately reflect corporate information and the reflection is delayed. A prior study reported that the stock price delay phenomenon appears strongly when the quality of corporate information is low (Callen, Khan, & Lu, 2013). The purpose of the internal accounting control system is to improve the reliability of accounting information. Specifically, the more professionals such as certified public accountants are placed in the internal accounting control system, the more information is prevented from being distorted, so the occurrence of stock price delay will decrease. Research design, data and methodology: In this study, companies listed on the securities market from 2012 to 2016 were selected as a sample to analyze whether the stock price delay phenomenon is alleviated as accounting experts are assigned to the internal accounting control system. The internal control personnel data were collected in the "Internal Accounting Control System Operation Report" attached to the business report of each company of the Financial Supervisory Service's Electronic Disclosure System(DART). The measurement method of the stock price delay phenomenon was referred to the study of Hou and Moskowitz (2005). The final sample used in the study is 2,641 firm-years. Results: It was found that companies with certified accountants in the internal accounting control system alleviate the stock price delay phenomenon. This result can be interpreted as increasing the speed at which corporate information is reflected in the stock price by improving the reliability of information disclosed in the market by the placement of experts in the system. Conclusions: The results of this study suggest that accounting professionals assigned to the internal accounting control system are playing a positive role in providing high-quality information to the market. In this study, focusing on the fact that the speed at which corporate information is reflected in the stock price is very important for the stakeholders in the capital market, we find that having a certified public accountant in the internal accounting control system alleviates the stock price delay phenomenon.

• International Area Studies Review
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• v.14 no.2
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• pp.25-40
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• 2010

Accurate forecasting of volatility is of considerable interest in financial volatility research, particularly in regard to portfolio allocation, option pricing and risk management because volatility is equal to market risk. So, we attempted to delineate a model with good ability to forecast and identified stylized features of volatility, with a focus on volatility persistence or long memory in the Australian futures market. In this context, we assessed the long-memory property in the volatility of index futures contracts using three conditional volatility models, namely the GARCH, IGARCH and FIGARCH models. We found that the FIGARCH model better captures the long-memory property than do the GARCH and IGARCH models. Additionally, we found that the FIGARCH model provides superior performance in one-day-ahead volatility forecasts. As discussed in this paper, the FIGARCH model should prove a useful technique in forecasting the long-memory volatility in the Australian index futures market.

• Journal of Korea Trade
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• v.23 no.5
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• pp.45-65
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• 2019

Purpose - As the well-known Structure-Conduct-Performance paradigm implies, risk structure of a corporation may affect its risk management activity and the activity may in turn determine its performance. Depending on its goal, Foreign Direct Investment (FDI) can shape its risk structure, risk management and its performance. Under this assumption, we investigate the relationship between the goals of FDI and risk management for the first time in academics. Design/methodology - This empirical research uses a survey of 279 current Korean enterprises' FDIs in China with the recently developed business risk quadrant model. Companies are classified into either a market- or an efficiency-seeking group, to identify how each group perceives and manages risks, and values the performance of risk management. Also, we apply integrated risk management method that multinational corporations have introduced in China, then verify the mediating effect between risk factors and performance. Findings - Our research shows the FDIs can expose themselves to differing risk structure although risk management activities simply represent the level of empowerment given to local management by headquarter due to limit of sample size despite diversity of risk and risk management tools. To sum, market seekers are found to have more strategic risk (revenue related risk) than efficiency seekers with financial risk (cost related risk). The market seekers can manage their risk by empowering their local organisation while the efficiency does the opposite ways. The risk management appears to be successful in general. Originality/value - Previous studies on small and medium enterprises' FDIs to China have concentrated on the analysis of entry determinants, withdrawal factors and individual risk management. Meanwhile, this research establishes enterprise-wide risk factors faced by the companies that advance into China, according to the method of the classification by ERM and verifies if they could synthetically improve performance through risk corresponding measures.

• Asia-Pacific Journal of Business
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• v.14 no.1
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• pp.73-91
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• 2023

Purpose - The purpose of this study is to re-examine the disclosure effect of stock splits and long-term performance after stock splits using stock split data over the past 10 years, and infer the motivation (signal or opportunism) of stock splits. In addition, we focus on exploring the determinants of the short- and long-term market response to stock splits. Design/methodology/approach - We measure the short-term market response to a stock split and the long-term stock performance after the stock split announcement using the event study method. We analyze whether there is a difference in the long-term and short-term market response to a stock split according to various company characteristics through univariate analysis and regression analysis. Findings - In the case of the entire sample, a statistically significant positive excess return is observed on the stock split announcement date, and the excess return during the 24-month holding period after the stock split do not show a difference from zero. In particular, the difference between short-term and long-term returns on stock splits is larger in companies with a large stock split ratio, small companies, large growth potential, and companies with a combination of financial events after a stock split. Research implications or Originality - The results of this study suggest that at least the signal hypothesis for a stock split does not hold in the Korean stock market. On the other hand, it suggests that there is a possibility that a stock split can be abused by the manager's opportunistic motive, and that this opportunism can be discriminated depending on the size of the stock split, corporate characteristics, and financing plan.

• Asia-Pacific Journal of Business
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• v.14 no.3
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• pp.187-204
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• 2023

Purpose - This study deals with the manager's overconfidence and stock price delay, and verified whether the stock price delay phenomenon changes as the overconfidence increases. Design/methodology/approach - Manager overconfidence means that managers have over confidence in their positions or abilities, and was measured according to Schrand and Zechman (2012). Stock price delay is a phenomenon in which information of company is not immediately reflected in the stock price, but is reflected over time, and was measured by the method suggested in a study by Hou and Moskowitz (2005). The analysis subjects used in this study are companies listed on the KOSPI market between 2011 and 2019, and the final sample is 5,509 company-years. Findings - As a result of the verification, it was shown that the stock price delay decreased as the manager's overconfidence increased, and this effect was amplified as the foreign shareholder's share ratio increased and the number of follow-up financial analysts increased. This means that as the manager's overconfidence increases, he actively provides high-quality information to the capital market. In addition, as a result of subdividing the manager's overconfidence into the investment and capital raising aspects, the capital raising aspect has a significant effect on reducing stock delays. This can be interpreted as the fact that managers with overconfident tendencies have a greater incentive to satisfy investors' information needs. Research implications or Originality - In previous studies, the characteristics of managers with strong overconfidence have both positive and negative aspects. The results of this study are significant in that they clearly demonstrated the positive aspect through the market variable of stock price delay, and it is expected to help capital market stakeholders understand the characteristics of managers with a strong propensity for overconfidence.

• KDI Journal of Economic Policy
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• v.33 no.3
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• pp.33-55
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• 2011

Market concentration in the Korean banking industry has markedly increased since the financial crisis of 1997-1998 because of M&As, P&As, and consolidation of banks. With this change, there has been a growing concern over market power in the Korean banking sector. We examine the effects of market concentration on bank efficiency and competition for the period of 1992-2006. Three different indicators of bank inefficiency are used in this study, including X-inefficiency that is derived from the directional technology distance function. The level of competition is measured by both the H-statistic of the Panzar-Rosse model and the level of the net interest margin and its standard deviation. Empirical results indicate that market concentration has not improved bank efficiency through scale economies or scope economies. Instead, recent mergers, acquisitions and consolidation of banks resulted in an increase in inefficiency measured by the three different indicators: X-inefficiency, labor inefficiency and asset inefficiency. While an increase in market share of individual banks improved bank efficiency, an increase in the overall market concentration ratio resulted in lower efficiency. Our study also finds that the Korean banking sector has been monopolistically competitive throughout the sample period except for the crisis period according to the H-statistic. Although an increase in market concentration ratio has not changed the overall level of bank competition, it has a positive significant effect on the level of the average interest margin.

• Journal of Distribution Science
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• v.13 no.3
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• pp.61-67
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• 2015

Purpose - Exports have long been regarded as significant drivers of sustainable competitive advantage and growth among small and medium enterprises (SMEs). The export activities of SMEs are particularly important in the context of export-oriented economies such as Korea. Although many studies have examined the determinants of exports, it is difficult to find empirical studies about the determinants of the export performance of regional SMEs. This study investigates the determinants of export performance in the regional SME context based on an integrated approach that combines the environment factor of industrial organization theory, competitive strategy theory, and the competences of the resource-based view. Research design, data, and methodology - To empirically analyze the determinants of export performance in the regional SMEs, data were collected from firms in the Daegu metropolitan area. Data were collected directly through questionnaire surveys; in addition, secondary financial data were also taken from the KIS-VALUE database. Out of the 175 responses that were received, 143 were considered to be worth examining. After testing the reliability and validity of the variables through multiple items such as environmental turbulence and competitive strategy, hypotheses were verified by using five multi-regression models. These models were: a control model with organizational size and age, an environmental model with technology and market turbulence, a competency model with R&D and foreign distribution channels, a strategy model with product and market differentiation, and an integrated model including all of these variables. Results - First, as a control variable, the organization size has significant positive effects on export performance. Second, technology turbulence based on industrial organization theory has significant positive effects on export performance, but market turbulence does not affect export performance. Third, the foreign market distribution competency of the resource-based view has strong positive effects on export performance, but the R&D competency does not affect export performance. Fourth, the product differentiation strategy from competitive strategy theory positively impacts export performance, but market differentiation does not affect export performance. Finally, in the integrated model, only the foreign distribution competency of the resource-based view has a significant effect on export performance. Conclusions - The empirical results of this study verified the usefulness of the rationales behind the three theories to explain the export performance of the regional SMEs, especially the importance of the foreign market distribution competency from the resource-based view. With regard to practical considerations, this study's implications suggest that the use of technological environmental changes by industries is better than the use of market changes. Further, the use of the product differentiation strategy is more effective than the use of the market-driving strategy, and the distribution channel competency plays a stronger role than the technology-oriented competency with regard to the export performance position of regional SMEs. Future studies should examine relational perspectives, such as trust among channel partners. Therefore, the configuration approach is more useful in enhancing pragmatism by comparing high- and low-export companies.