• Journal of Distribution Science
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• v.19 no.1
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• pp.27-35
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• 2021

Purpose: This study is to investigate the effect of managerial ownership level in distribution and service companies on the stock price crash. The managerial ownership level affects the firm's information disclosure policy. If managers conceal or withholds business-related unfavorable factors over a long period, the firm's stock price is likely to plummet. In a similar vein, management's equity affects information opacity, and information asymmetry affects stock price collapse. Research design, data, and methodology: A regression analysis is conducted using the data on companies listed on the Korea Composite Stock Price Index (KOSPI) between 2012-2017 to examine the effect of the managerial ownership level on stock price crash risks. Results: Logistic and regression results indicate that the stock price crash risk was reduced as managerial ownership levels are increased. The managerial ownership level has a significant negative coefficient on stock price crash risk, negative conditional return skewness of firm-specific weekly return distribution, and asymmetric volatility between positive and negative price-to-earnings ratios. Conclusions: As the ownership and management align, the likeliness of withholding business-related information is reduced. This study's results imply that the stock price crash risk reduces as the managerial ownership level increases because shareholder and manager interests coincide, thereby reducing information asymmetry.

• Knowledge Management Research
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• v.21 no.2
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• pp.59-75
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• 2020

In this paper, we investigate the influence of factors on the firm, industry, and country levels on the new product development performance (NPD) of manufacturing firms in advanced economies. The resource-based view, industrial organization theory and institutional theory have established that firm-, industry- and country-level factors are all relevant for the NPD of firms. However, little is known about the relative importance of factors at the three different levels across countries, as prior studies on firms' NPD have focused on specific countries and levels of analysis. Our analysis of survey data from 1,437 manufacturing firms in nine advanced OECD countries shows that while firm-level factors are generally better predictors of firms' innovativeness than either industry- or country-level factors, the results strongly differ across countries, indicating that the relative importance of antecedents of innovativeness is country-specific rather than universal.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.1
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• pp.417-425
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• 2020

In this paper, value relevance of the level of dependence on separate accounts in non-life-insurance companies is studied. As noted by Shim et al. (2015), the separate accounts of insurance companies consist of contracts with different attributes from the general accounts, so it is likely that firm value will vary depending on the insurer's dependence on the separate accounts. Thus, in this paper, an empirical analysis has been conducted using quarterly financial data and stock price data from domestic listed non-life-insurance companies from 2011 to 2018. The analysis shows that variables representing the level of dependence on separate accounts have a significant negative relevance to firm value. These results may suggest that changes in the proportion of a non-life-insurer's separate accounts may result in a change to its firm value under the same net assets and net income scales in aggregate accounts. This study provides management implications for the operation of separate accounts from the perspective of maximizing firm value. In addition, this study suggests that disclosure system improvement would be necessary to more directly report the operational performance of the separate accounts.

• International Area Studies Review
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• v.21 no.1
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• pp.59-77
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• 2017

Diversification strategy is important for the enterprise which intends to expand its competitive advantage. However, it is not always a success because of its different form and level which brings us totally different results also. This study analysis the effect from diversification strategy on firm performance and we divided the diversification strategy into two different level: products diversification level and international diversification level. We select financial data from 88 China listed enterprises during the year from 2008-2013 and use fixed effect model to do the analysis. According to the result, there is a positive effect between diversification strategy and firm value. A company which has the higher products diversification level and international diversification level will more possibly achieve success in diversification strategy. However, there is no significant effect on firm's profit. Considering the time effect of profit, we used after 1 year profit data and find that the enterprise which has a higher level of international diversification will have less profit, but there is also no significant effect between product diversification and firm's profit.

• East Asian Journal of Business Economics (EAJBE)
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• v.10 no.1
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• pp.123-136
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• 2022

Purpose - Diversity subject is rising globally, as the proportion of women in the workforce increased to a large extent and the variety of resources became greater. Diversity attempts have appealed more awareness to the value of female participation in various areas, notably in the boardroom and corporate governance. This study tests the relationships among gender diversity, openness, and innovation, at the firm level across countries from the MOI Survey. Research design, data, and methodology - In this study the relationships among gender diversity, openness, and innovation were investigated at the firm level across countries from the Management, Organisation, and Innovation (MOI) Survey. A cross-cultural analysis was conducted based on the empirical evidence from six countries: Germany, India, Lithuania, Poland, Romania, and Russia. Result - The results show that gender diversity is positively related to innovation performance, moreover openness is positively associated with the level of firm innovation. In addition, a company's capability to use knowledge from outside and the creation of new combinations positively influence a firm's potential to innovate. Conclusion - This study suggests that the more gender-diverse top management team and the higher openness may bring the firm's innovation with greater possibility. the paper encourages more female participation on top management on the grounds of recommending that firms with greater gender diverse top management teams.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.3
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• pp.105-112
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• 2022

The current study is at the forefront of examining the theory of principal-agent framework and financing constraints to explain the level of corporate innovation. To boost the firm's level of innovation, this study uses corporate governance and corporate performance as driving factors. The study's secondary goal is to give information on the parallel relationship between corporate governance and the level of corporate innovation. This study used a two-step least square (TSLS) regression analysis to examine such a simultaneous association using secondary data from Indonesian listed businesses from 2000 to 2021, which totaled around 1,910 observations. This study uses the Principal Component Analysis (PCA) tool to test cumulative variances of potential corporate governance indicators such as the total commissioner of the firm (TCOM), total independent commissioner of the firm (INDPCOM), the proportion of institutional ownership (INSOWN), total female commissioner (FEMCOM), CEO duality (CEODUAL), and type of the firm (SOE). As a result, PCA reveals that four of these variables, omitting CEODUAL and SOE, were a corporate governance construct. Furthermore, the study discovered that the amount of firm innovation and corporate governance are related.

• Journal of Distribution Science
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• v.21 no.1
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• pp.53-63
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• 2023

Purpose: Big Data analytics (BDA) has been recognized to improve firm performance because it can efficiently manage and process large-scale, wide variety, and complex data structures. This study examines the determinants of Big Data analytics adoption toward marketing and financial performance of global logistic companies in Thailand. The research framework is adopted from the technology-organization-environment (TOE) model, including technological factors (relative advantages), organizational factors (technological infrastructure and absorptive capability), environmental factors (industry competition and government support), Big Data analytics adoption, marketing performance, and financial performance. Research design, data, and methodology: A quantitative method is applied by distributing the survey to 450 employees at the manager's level and above. The sampling methods include judgmental, stratified random, and convenience sampling. The data were analyzed by Confirmatory Factor Analysis (CFA) and Structural Equation Model (SEM). Results: The results showed that all factors significantly influence Big Data analytics adoption, except technological infrastructure. In addition, Big Data analytics adoption significantly influences marketing and financial performance. Conversely, marketing performance has no significant influence on financial performance. Conclusions: The findings of this study can contribute to the strategic improvement of firm performance through Big Data analytics adoption in the logistics, distribution, and supply chain industries.

• Management & Information Systems Review
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• v.28 no.2
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• pp.95-112
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• 2009

The paper investigates the determinants of firm's standardization activity in the Korean service industry. Standardization variables as dependent ones are standardization management at the firm level, domestic standardization activity, and international standardization activity. The independent variables include innovative activities(R&D intensity and patent application), firm size, export ratio, network, and firm's organization characteristics. We estimated the logistic regression model, using the data from 102 Korean service firms. The empirical findings are as follows. First, R&D intensity has a positive effect on international standardization activity, but not on the standardization management at the firm level and domestic standardization activity. Second, patent application has a negative effect on the standardization management at the firm level. Third, firm size doesn't have any influence on firms' standardization activities in the service sector. Fourth, the level of chief executive officer's interest on standardization is a very important factor in determining firms' efforts to participate standardization process, regardless of types of standardization activity.

• Journal of Korea Trade
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• v.24 no.7
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• pp.54-72
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• 2020

Purpose - This study explores the contextual factors that affect the relationship between CEO overseas experience and firm internationalization. This study incorporates a wide range of contextual factors, including mega, macro, and micro variables. In particular, this study goes a step further from prior studies by incorporating a higher-order variable i.e., the global financial crisis that can constrain the managerial discretion of a CEO. Design/methodology - To structure the balanced data set before and after the 2008 global financial crisis, we used the data for the years from 2002 to 2014 from a sample of Korean manufacturing firms. Ultimately, 1101 firm-year unbalanced panel observations from 101 firms were used for the analysis. Findings - Our main findings can be summarized as follows. CEO overseas experience is positively related to firm internationalization. However, this relationship varies depending on the CEOs level of managerial discretion. As for the constraining moderation, the global financial crisis weakened the positive relationship between CEO overseas experience and firm internationalization. As for the enabling moderation, the CEOs tenure strengthened the relationship. Originality/value - This study adopted the knowledge, skills, and abilities (KSA) framework to explain the relationship between CEO overseas experience and firm internationalization. Moreover, we argue that the CEO-internationalization relationship depends on the specific context of the managerial discretion, focusing on the 2008 global financial crisis. Empirically, this study adopted the 2SLS procedure to correct endogeneity. Instead of taking the actual value of prior internationalization as a control, we estimated prior internationalization using the instrument variables at an industry level. This procedure made our estimation more robust.

• The Journal of Information Systems
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• v.15 no.2
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• pp.195-226
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• 2006

The purpose of this study is (1) to develop a conceptually integrated model of IT capability comprising hierarchically structured lower capabilities, and (2) to investigate the impacts of IT capability on firm performance. To do this, the study defined IT capability as a third-order factor model and identified three conceptual dimensions of IT capability IT resource integrating capability, IT infrastructure flexibility, and IT personnel expertise. The relationships between IT capability and firm performance are assessed with 243 firm level data using LISREL. The results of confirmatory factor analysis (CFA) demonstrated that the constructs is highly reliable and valid. Further, we found that IT capability not directly but indirectly affects firm performance through the impacts on business processes.