• Journal of Technology Innovation
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• v.13 no.3
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• pp.77-100
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• 2005

This paper analyzes the determinants of firm's innovative activity, using Korean Innovation Survey (KIS) dataset. Especially, we focused on the role of external networks by partners(other firms or research institutions) in performing innovative activities. The product innovation, product improvement, and process innovation are used as proxies for innovative activity. The explanatory variables such as market concentration ratio, lagged profitability, foreign ownership, export ratio, firm's age, formal R&D activity, and industrial R&D intensity are also considered. With data from 1,124 firms for the two years (2000-2001), we estimated the logistic regression model. The finding is that the determinants of firm's innovative activities differ by type of innovations. We also found that the innovative behavior of SMEs differs from that of large firms. The result confirms that external networks have a strong positive effect on innovative activity. However, the network effects by partners vary across both firm size and type of innovations.

• Journal of Korea Trade
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• v.27 no.1
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• pp.60-78
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• 2023

Purpose - The study analyzed 90 online firms worldwise and observed them for ten years to investigate their investments and firm performance variabilities. This study attemped to verify the existence of agency problems in online firms. Through this, the paper intends to expand the scope of research in the fields of investment and firm value both empirically and in theory. This study also attempted to supplement the insufficient logic of previous studies by analyzing the relationship between investment and profitability. Design/methodology - In this study, the investment is subdivided into over-, under-, and neutral investments, and an empirical analysis of the firm performance was conducted. As investment generally has long-term effects, the impact of a firm's investment on future firm performance and variabilities in firm performance was considered over the short-and medium-term period. Findings - It was found that there was a negative relationship between firms with an overinvestment and future firm performance. Underinvestment has no clear statistically significant results on firm performance. This implies that overinvestment causes more reduction in future firm performance than underinvestment. It was also found that underinvestment and overinvestment significantly increased the variability of firm performance. A positive significance was found between under- and over- investment with a variability of 3 years and overinvestment with a variability of 4 years in the future. A negative relationship was found between neutral investment propensity and future performance variabilities. Neutral investment has less effect on the future performance variability of a firm than a firm's overinvestment and underinvestment. For online firms, underinvestment and overinvestment have a greater effect on the firm's future performance variability than neutral investment. Originality/value - The agency theory predicts that information asymmetry and adverse selection problems exacerbate conflicts of interest among stakeholders, thus firm performance. The study contributed to accumulating research on online firms that are currently underexplored by analyzing the investment behavior of major firms in the online industry.

• Management & Information Systems Review
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• v.31 no.4
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• pp.539-557
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• 2012

This study purposes to analyze how the level of diversification affects cost stickiness behavior. Specifically, we document that cost stickiness behavior is bigger in case of firm with a high level of related diversification. The purpose mentioned above are empirically tested using 1,508 firm-year data listed on Korea Stock Exchange from 2000 to 2009 and regression analysis methods were used for the analysis of the research hypotheses. The following are the results of this study : First, the increase in SG&A(selling, general and administrative costs) as sales increases is greater than the decrease in SG&A in respect to the equivalent decrease in sales. Second, cost stickiness behavior is bigger in case of firm with a high level of diversification. Also, cost stickiness behavior is bigger as the level of related diversification increase. These results imply that the level of diversification effects on the cost stickiness behavior.

• East Asian Economic Review
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• v.25 no.1
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• pp.99-121
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• 2021

This paper investigates the relationship between the minimum wage and firm's export behavior by using firm-level data of Vietnamese manufacturing enterprises over the period 2010 through 2015. In this regard, I apply the logistic regression model for the probability of exporting and the differences-in-differences analysis to the data, and find that raising minimum wage standards drive no new exporters but a rise in a firm's export sales. Less productive and more labor-intensive firms raise their amount of exports in response to increasing minimum wage levels. Being exposed to increasing minimum wage levels makes a firm under-perform in terms of export sales compared to non-exposed firms.

• Asia-Pacific Journal of Business
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• v.15 no.1
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• pp.33-44
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• 2024

Purpose - The purpose of this study is to empirically investigate the degree of performance inconsistency among the Environmental, Social and Governance ratings. Design/methodology/approach - This study performs regression analysis using the widely used ESG ratings published by the Korea Institute of Corporate Governance and Sustainability. Findings - The results show that firms often do not show consistent performance across the Environmental, Social and Governance aspects, with excellent performance on one aspect but mediocre or poor performance on another. The paper also finds some degree of firm-level persistence in such performance inconsistency, suggesting that the traits of the firm and the industry the firm belongs to might influence whether a firm shows inconsistent performance across the three aspects. Research implications or Originality - This paper highlights the need for researchers and practitioners to understand the underlying behavior of the individual E, S and G ratings, instead of taking them as given, in order to properly design their analyses.

• Journal of Fashion Business
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• v.20 no.6
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• pp.1-18
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• 2016

This study examines the impact of consumer ethics on the CSR motive attributions and, the subsequent consumer perception of the firm's ethicality. Data of 512 adults were collected nationwide using a self-administered questionnaire online. Exploratory and confirmative factor analysis were employed to identify six underlying dimensions of consumer ethics, as follows: actively benefiting from illegal actions, passively benefiting from illegal actions, no harm/no foul, economic benefiting from illegal actions, intellectual property infringement, and pro-environmental behavior. In order to examine the relationships between consumer ethics, CSR motive attribution, and consumer perceived ethicality, a structural equation modeling test was conducted. The results demonstrated that actively benefiting from illegal actions, economic benefiting from illegal action, and pro-environmental behavior had impacts on CSR motive attributions such as strategy-driven attribution, value-driven attribution, and stakeholder-driven attribution. Consequently, strategy-driven attribution and value-driven attribution influenced the consumer perception of the firm's ethicality, whereas stakeholder-driven attribution did not. This study provides an understanding of the CSR attribution mechanism from the view of consumer ethics that are multi-dimensional. The ethical judgements on different types of consumer behavior lead to attributions of CSR motives and subsequently their perception of a firm's ethicality.

• Journal of applied mathematics & informatics
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• v.15 no.1_2
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• pp.109-126
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• 2004

This paper deals with two problems of optimal portfolio strategies in continuous time. The first one studies the optimal behavior of a firm who is forced to withdraw funds continuously at a fixed rate per unit time. The second one considers a firm that is faced with an uncontrollable stochastic cash flow, or random risk process. We assume the firm's income can be obtained only from the investment in two assets: a risky asset (e.g., stock) and a riskless asset (e.g., bond). Therefore, the firm's wealth follows a stochastic process. When the wealth is lower than certain legal level, the firm goes bankrupt. Thus how to invest is the fundamental problem of the firm in order to avoid bankruptcy. Under the case of different lending and borrowing rates, we obtain the optimal portfolio strategies for some reasonable objective functions that are the piecewise linear functions of the firm's current wealth and present some interesting proofs for the conclusions. The optimal policies are easy to be operated for any relevant investor.

• Asia Marketing Journal
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• v.16 no.1
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• pp.21-33
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• 2014

When the negative event is published, the company tends to go through the negative impact on the firm performance. Especially, with the SNS, the negative event is instantly spread on indefinite region so the impact seems bigger than the period before the SNS media appearance. It seems that everyone considers the SNS media impact on the firm performance quite big. However, there has been no empirical study on the impact comparison on the firm performance between pre and post SNS media occurrence periods. This study tries to empirically compare the impact of the negative event on the firm performance between pre and post SNS media appearance. Our study starts fromthe basic but not verified question; Does really the negative event have more negative impact in the post-SNS-occurrence period than in the pre-SNS-occurrence period? In order to examine the impact of the negative publicity on firm performance in two eras, pre and post SNS media appearance, we used CAR (Cumulative Abnormal Resturns) model. By using this model, we could verify the statistical significance of cumulative abnormal returns in market between before and after the events. For event samples, we focused on food manufacturers and collected the negative events from 1991 to 2003 for pre-SNS occurrence period, and from 2010 to 2013 for post-SNS occurrence period. Based on the listed food companies at KOSPI, we researched Naver News Library (newslibrary.naver.com) and Naver News (news.naver.com) for all the individual negative events published for both periods. Firm returns data were collected from TS 2000 (KOCO Info) and market portfolio data were collected from KRX Exchange. Through our empirical analysis, our finding is interesting to note that the type of events differently influences on the firm performance. With the SNS, the health-related events have influence on the firm performance 'after the event day' whereas the company behavior trust events have influence 'before the event day'. Our findings have implications for management. When a negative event directly related to or threatening customers or their life such as health, it is crucial to fix up the situation right after the event occurs. On the other hand, when a negative event is not publicly available information such as company behavior trust, it is important for marketers to strengthen the firms' trust reputation and control the bad WOM before the event.

• East Asian Journal of Business Economics (EAJBE)
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• v.6 no.4
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• pp.47-57
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• 2018

Purpose - This paper aims to analyze the determinants of licensing behaviors of manufacturing firms empirically in non-advanced exporting countries. Research design and methodology - We try to approach licensing behavior from the perspective of innovation strategy and open innovation, and deal with two activities composing licensing, i.e. licensing-in and licensing-out using the result of Korean Innovation Survey Results - Firstly, Organizational characteristic factors, particularly the size and size related factors influence the firm behavior of licensing-out, but not in case of licensing-in. Secondly, innovation strategy influences the firm behavior of licensing-in, but not in case of licensing-out. Lastly, the determinants of licensing-in and that of licensing-out are different. Conclusions - In general, firms doing licensing-out have many complementary assets and orientation for global markets. Meanwhile, firms doing licensing-in are innovative firms utilizing patent as an appropriation mechanism. Licensing-out have relevance with product market-related factors and licensing-in have more relevance with technology market-related factors

• Journal of East Asia Management
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• v.3 no.1
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• pp.41-55
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• 2022

This study investigates whether foreign investors' behavior is involved in firm-specific investor sentiment. Because the mixed role of foreign investors on investor sentiment formation seems to exist in the Korean stock market, it needs to examine the moderate or incremental effect of foreign investors on the stock price crash risk which is due to investor sentiment. The analysis results using Korea Stock Exchanges - listed firms for the period of 2011-2019 show the increased future stock price crash risk which is attributable to high investor sentiment is mitigated for firms with the high foreign ownership, indicating the moderate effect. This study expands the literature on the foreign investors' behavior in the Korean stock market, by showing foreign investors are not involved in firm-specific investor sentiment, which improves market's efficiency in the Korean stock market. Also, the paper is valuable to the academic and practice field in that the findings shed light on the foreign investors' mitigating role in stock price crashes in the behavioral finance perspective.