• Management Science and Financial Engineering
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• v.22 no.1
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• pp.21-26
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• 2016

We analyze how firms' global production activities affect their inventory supply and financial performance in regards to its production location. For the analysis, we use information on global production quantities of 3,076 Korean multinational firms that operate business in Europe and Asia through foreign direct investment (FDI) from 2006 to 2013. Our estimation results show that an increase in global production ratio, measured by global production/total production, decreases inventory supply and financial performance of firms that produce in European countries, while it decreases financial performance of firms that produce in Asian countries. Although our results indicate that global production decreases financial performance of firms that produce in Europe and Asia, we find that its negative effects on financial performance are different based on the market demand uncertainty.

• Proceedings of the Korea Society for Industrial Systems Conference
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• 2003.11a
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• pp.251-275
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• 2003

Given the importance of adoption of the IOS (Interorganizational System) and the “much-slower-than-anticipated” growth of IOS adoption, especially in small- and midium firms, this study aimed to identify the key determinants of small- and midium-sized firms' ISO usage. Based on prior research on IT/EDI adoption in various organizations, the model that incorporates 9 factors that are hypothesized to have influence on the ISO usage decision was developed and empirically tested against data collected from 114 small- and midium-seized firms' top management. The results show that perceived financial costs are found to be major impediments to usage intention, and perceptions of relative advantage, compatibility, risk are also important determinants of ISO usage intention in small- and midium-sized firms. Implications of these findings are duscussed for researchers and practitioners.

• Asia pacific journal of information systems
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• v.11 no.4
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• pp.1-25
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• 2001

Manufacturing firms face a paradigm shift from industrial systems driven by efficiency to post-industrial systems where success depends on a quick-response to customer demands for a variety of high-quality products. In essence, time is becoming a critical dimension for competition. New information technologies allow many firms to pursue time-based competitive strategies. The purpose of this research is to investigate the relationship among the types of information technology, behaviors of suppliers, the structures of new product development processes, and the competitiveness of the firms. The data for this study were collected from 96 Korean manufacturing firms that have implemented certain types of information technologies. Research results from LISREL analysis confirm that the competitiveness comes from product innovation capabilities and innovative product development process. But the linkage between the information technologies and the firms' competitiveness proves to be indirect. Suppliers, organizational culture related to IT, and some other factors also have indirect impact on the competitiveness. A summarized report of other findings is provided as well.

• Asia pacific journal of information systems
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• v.17 no.3
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• pp.79-103
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• 2007

The main purpose of this study is to define antecedents that influence e-SCM synchronization and to investigate how it affects e-SCM performance. We, therefore, investigate (1) the impact of firms' internal IT planning capabilities on e-SCM synchronization and on SCM process management capability, (2) the impact of firms' internal IT infrastructure on e-SCM synchronization and on SCM process management capability, (3) the impact of firms' internal SCM process management capabilities on e-SCM synchronization, and finally (4) the impact of e-SCM synchronization on SCM performance. A survey has been administrated to the firms' SCM and marketing staffs and 171 returns analyzed. The results show that (1) IT plan has not direct impacts on e-SCM synchronization, but has direct impacts on organizational support, purchasing, and operations processes except logistics process. IT plan, however, has indirect impacts on e-SCM synchronization through purchasing and operations of SCM process management capability. (2) IT infrastructure has both direct and indirect effects on e-SCM synchronization, and also has direct impacts on organizational support, purchasing, and operations processes except logistics process. (3) SCM process management capabilities have direct impacts on e-SCM synchronization. Among these SCM core processes purchasing positively influences operations, which in turn positively influences logistics process management capability. (4) e-SCM synchronization has positive impacts on SCM performance indicator (SCOR), such as delivery reliability, responsiveness & flexibility, and cost. These results indicate that e-SCM synchronization can be critical to achieve better internal performance like cost and external performance like delivery reliability, responsiveness & flexibility of firms' SCM. In sum, this study demonstrates that the intervening role of e-SCM synchronization between e-SCM performance and IT management capability and between e-SCM performance and SCM core process management capability has been significant in achieving better e-SCM performance. Therefore, it can be suggested that e-SCM performance should be accomplished in consequence of the acceleration of e-SCM synchronization through the enhancement of preceding factors for the e-SCM synchronization.

• ETRI Journal
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• v.25 no.4
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• pp.258-265
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• 2003

In our study, we extracted the market, finance, and government factors determining R&D investment of individual firms in the IT industry in Korea. We collected the financial data of 515 individual firms belonging to IT and non-IT industries between 1980 and 1999 from the Korea Investors Service's database and investigated the empirical relationship between the factors using an ordinary regression model, a fixed effects model, and a random effects model. The main findings of our study are as follows: i) The Herfindahl Index variable representing the degree of market concentration is statistically insignificant in explaining R&D expenditures in the IT manufacturing industry. ii) Assets, which is used as a proxy variable for firm size, have a positive and statistically significant coefficient. These two results suggest that the Schumpeterian Hypothesis may be only partially applied to the IT manufacturing industry in Korea. iii) The dividend variable has a negative value and is statistically significant, indicating that a tendency of high dividends can restrict the internal cash flow for R&D investment. iv) The sales variable representing growth potential shows a positive coefficient. v) The subsidy as a proxy variable for governmental R&D promotion policies is positively correlated with R&D expenditure. This suggests that government policy has played a significant role in promoting R&D activities of IT firms in Korea since 1980. vi) Using a dummy variable, we verified that firms reduced their R&D investments to secure sufficient liquidity under the restructuring pressure during Korea's 1998 and 1999 economic crisis.

• Journal of Information Technology Services
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• v.13 no.2
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• pp.55-69
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• 2014

As Korea's global IT sourcing is sluggish and supply of qualified IT personnel does not meet the demand, IT developers currently do not worry about their job security. The sluggish global sourcing is attributed to the lack of system design and analysis skills as well as lack of communication skills of IT personnel. Most of big Korean IT service firms operate in captive market. This is also attributed to the cause of the sluggish global sourcing. Some IT managers, especially in global IT service firms, concerned about the negative long term effect of the sluggish global sourcing on competitiveness and human infra capability of Korea's IT service industry. Managers in IT service firms expect skill requirement changes in the future when global sourcing becomes active. The skills and knowledge that they wish to retain in-house is business knowledge, system analysis and design knowledge, customer relation management skills, project management skills and industry knowledge. The jobs with the above knowledge usually involve customers.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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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.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.27-40
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• 2019

The study examines the effects of growth opportunities, debt maturity and liquidity risk on leverage, making use of a large panel of Chinese listed firms. Research on capital structure has broadened its scope from a single capital structure decision (the debt/equity choice) to various attributes of the debt in firms' capital structure. We use the system Generalized Method of Moments estimator to control for unobserved heterogeneity and the potential endogeneity of regressors. We find a negative relationship between growth opportunities and leverage. Further, we find that while the proportion of short-term debt attenuates the negative effect of growth opportunities on leverage, it negatively affects leverage as predicted by the liquidity risk hypothesis. When we distinguish between state owned firms and private controlled firms, we find evidence that these effects are only relevant to private controlled firms. However, our analysis indicates that the economic implication of liquidity risk effect is much lower for Chinese firms than that observed in the literature for US firms. Our study suggests that these differences can be explained by differences in the institutional environment in which firms operate. This finding related to Diamond's (1991) liquidity risk hypothesis extends our understanding of the relationship between liquidity risk and the debt maturity choice.

• The Journal of Fisheries Business Administration
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• v.43 no.1
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• pp.75-85
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• 2012

In this paper, we study the extent to which the pecking order theory of capital structure provides a satisfactory account of the financing behavior of Korean fisheries firms using financing deficit. The major results of this study are as follows. Firstly, we find that the financing deficit is a important factor that explains the pecking order theory of fisheries firms'capital structure. However, the financing deficit does not wipe out the effects of conventional variables. The information in the financing deficit appears to be factored in along with many other things that fisheries firms take into account. Such result is consistent with the result of Frank and Goyal(2003). Secondly, we find that profitability is only one factor explaining the capital structure of fisheries firms among conventional variables when we test the regression of leverage with financing deficit during post IMF period. This result is different from the previous researches of Korean fisheries firms. (Kang and Jeong; 1997, Nam, Lee, and Hong; 2011) Finally, we examine the dynamics of capital structure of Korean fisheries firms firstly. It will allow a more detailed analysis for capital structure determinants for Korean fisheries firms.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.230-233
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• 2007

As a new form of the public procurement method, that is BTL(Build-Transfer-Lease) was introduced in 2005, it has consequently created a new form of emerging business, so called BTL Project Management firms. As a key participant of BTL projects, PM firms play an important role in securing the projects. But due to the short history of BTL, the identity of BTL PM firms has not been widely understood. The objective of this paper is to investigate major characteristics of BLT PM firms for better understanding of the emerging business.