• The Journal of Fisheries Business Administration
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• v.34 no.1
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• pp.31-44
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• 2003

The purpose of this study is to investigate empirically interaction among the financing decision, investment decision, and profitability by using 41 fisheries corporations in Korea, and to suggest implications of the empirical results for government's financial policy for fisheries corporations. Sample period is 19 years from 1982 till 2000. This analysis method employs the two stage least squares(2SLS) estimation method. From the results of regression analysis by 2SLS estimation method, the adjusted $R^2$ values were high and the overall F values indicated significant. The empirical results of this study are as follows; (1) determinant factors of capital structure model for fisheries are profitability, firm-size, fisheries investment of total asset, and business risk. As pecking order theory explains, the higher is profitability the lower is debt ratio. The larger firm-size, the higher is debt ratio. The higher is fisheries investment of total asset and business risk, the higher is debt ratio. (2) determinant factors of investment model for fisheries are the change of sales, business risk, and debt ratio. These factors have positive relation to fisheries investment of total asset (3) determinant factors of profitability model for fisheries are fisheries investment of total asset and debt ratio. These factors have negative relation to profitability. On the basis of analysis results, on the government's financial policy for fisheries corporations, I suggests that with interest rate reduction, the government should lend more funds to solve the crisis in the financial structure of the fisheries firms

• Korea Trade Review
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• v.46 no.1
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• pp.1-21
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• 2021

The main purpose of this research is to analyze the changes in investment motivation by year through time series and cross-sectional analysis of the factors and investment decisions of Korean manufacturing companies. According to the investment pattern for Asean from the 1980s to the 19th, the first expansion period was 82 to 86, the average increase in overseas investment for securing foreign raw materials due to the second oil shock, and the second expansion period was a gradual increase in exports to the U.S. in 1987 to 1996. During the first stagnation period, direct investment in Asean stagnated in the aftermath of the 1998-05 Asian crisis, and in the third expansion period, part of the production facilities invested in China were relocated to Asean, increasing Asean's investment to become Korea's largest manufacturing investment in 17. Korea's proportion of investment in Asean surpassed that of mass investment since 10 years ago, and the proportion of investment in manufacturing sector has been transferred from China to Asean, and after 17 years, it has served as an overseas production base connecting China. As such, The main purpose of the research will be to extract the determinant factors and key factors for overseas direct investment and investment patterns in conjunction with global manufacturing companies' production base relocation and investment trends through empirical analysis. This research paper gave basic reference to the motivation and determinant of investment 16 years ago, and analyzed the changes in investment motivation by year and content through empirical analysis, contributing some reasonable purpose to the decision of companies and policy makers interested in overseas direct investment.

• Information Systems Review
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• v.19 no.1
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• pp.185-202
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• 2017

Most studies based on production function theory have concluded that economic growth is a result of information technology (IT) capital use. However, some studies have indicated that economic growth is a determinant of IT investment. To determine if these results also hold at the industry level, we use the Granger causality test to analyze bidirectional causality with industry-level data for 1977~2007 from the United States. The results generally reveal that IT investment causes economic growth in many industries under the concept of Granger causality, that economic growth causes IT investment in some industries, and that IT investment is not associated with economic growth in some industries. In the country-level time-series data made by summing up the IT capital and gross output for each industry, the results do not show any causality between IT investment and economic growth. However, they show bi-directional causality between IT investment and economic growth in the panel data. These results may be a source of IT productivity paradox.

• Asia-Pacific Journal of Business
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• v.7 no.2
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• pp.61-76
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• 2016

This study aims to establish ways of how languages are used as determination factors for investment decisions among Asian countries where used languages are diversified. According to the analysis result, language segmentation of the investing country increases investment whereas the language segmentation of the invested countries is analyzed as the decreasing factor of investment. Also, it is analyzed that the further the linguistic distance between the investing country and the invested country the more investment increases. In the aspects of approached language distance and investment time selection, along with the increased linguistic distance, the elasticity to foreign direct investment is apprehended to be more flexible than other forms of investment. Such result shows the more segmented the languages of the targeted invested country the more investment cost will increase and therefore the results in linguistic distance can be explained as diversification of the invested country and the result to the forming of bridgehead at the invested area.

• International Commerce and Information Review
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• v.10 no.4
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• pp.417-437
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• 2008

Korean firms have had a short history of foreign direct investment and export in China market entry. This present study empirically analyzed determinants of the choice of foreign market entry modes, Particularly forcusing on the China market entry on Korean manufacture firms. This study developed a research model to determinant factor in the China market entry and collected 77 survey responses from the Korean manufacture firms. This study model construct in the third factor, China market character, company character and product character. In China market character, the variance are China trade barrier, culture different, competition power. The variance in company character are internationalization experience, enterprise rage and entry motivation. Also the variance in product character are product different, customer service and cost advantage. It is researcher's main interest that which type of China market entry format brought most positive evaluation form the Korean manufacture firms. therefor, these research results turned out to be different a little both export and direct investment in China market of Korean manufacture firms.

• Korean small business review
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• v.43 no.1
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• pp.187-219
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• 2021

Startup accelerators, a new type of investment entity, have emerged as a way to solve the difficulties of early startups and existing investment methods with high risk. With the visible performances of these startup accelerators on the success of startups, medium and large accelerator companies have emerged, along with the increasing size of seed money they invest in. In addition, differences between small and medium&large accelerator companies are emerging. Therefore, startups need informations on what factors to prepare for attracting startup accelerators' investment. Accelerators also need determinant criteria to select startups as the amount of investment grows. However, the study on this subject is not currently being conducted. Therefore, we conducted the study through dividing the average amount of seed money into small and medium & large-sized investment groups and examined the differences in major investment determinants, investment purposes, and major accelerating programs. As the results of this study, small investment groups could be subdivided into 'consulting-oriented accelerators' and medium- and large-sized investment groups into 'investment-oriented accelerators'. In addition, major services and investment purposes and investment decision criteria vary depending on the size of the investment. I think these findings will be good standards for accelerator companies, startups in need of their help, and follow-up researchers.

• Management & Information Systems Review
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• v.21
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• pp.239-269
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• 2007

The purpose of this thesis is to analyze empirically the relationship between market structure, measured by Herfindahl-Hershmann Index(HHI), and financial factors, and innovation in Korean industry panel datasets for 2000-2006. Results show that debt ratio and scale of the firm has a consistent positive effect on the investment in research and development. As more scale of the firm is getting bigger, the investment in R&D decrease. Also, as more debt ratio of firm rise, the investment for innovation increase. Concentration ratio, the HHI and the classification factor of High-tech industry and Low-tech industry has a consistent positive effect on the innovation. Factors affecting the investment in research and development include market structure and characteristics of industry as well as the internal affairs of the firm.

• Asia-Pacific Journal of Business
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• v.12 no.2
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• pp.1-24
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• 2021

Purpose - We aim to verify whether CSM activities increase investment efficiency, and to verify whether the influence of CSM activities on investment efficiency is discriminatory depending on whether or not they belong to chaebol. Design/methodology/approach - Using 4,701 Korean firm-year observations over the 2011-2017 period, we used multiple regression analysis. CSM is measured by the evaluation score of the Korea Corporate Governance Service (KCGS). Findings - Our study confirms that CSM is a significantly positive relationship with investment efficiency. This shows that, as a result of CSM, the increased earnings quality acts as an incentive to increase investment efficiency. Next, in analysis of a dataset into two groups (a chaebol, non-chaebol), the results show that the relationship between CSM and investment efficiency differs among detailed indicator activities depending on whether or not they belong to chaebol. Research implications or Originality - It is significant that this study focused on and analyzed CSM as a determinant of investment efficiency, and examined the effects of whether or not it belongs to chaebol in the relationship between CSM and investment efficiency. Our results, which suggested that CSM can increase investment efficiency, are expected to provide important implications not only for managers but also for investors and supervisors.

• The Journal of Industrial Distribution & Business
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• v.13 no.1
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• pp.11-21
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• 2022

Purpose: This study predicted cost asymmetry as a determinant of investment efficiency, and empirically analyzed the relationship between cost stickiness and investment efficiency. Research design, data and methodology: Using a sample of 4,382 Korean firm-year observations over 2011-2017 period, I examined the relationship between cost stickiness and investment efficiency. Asymmetrical cost behavior is measured as model of Homburg and Nasev (2008) and model of Park, Koo, and Pae (2012). Investment efficiency is measured as Chen, Hope, Li, and Wang (2011)'s model. Results: Firms with cost stickiness are less efficient in their investment than firms with non-cost stickiness. In other words, cost stickiness is an empirical result that supports the previous research on cost decision-making from perspective of managers pursuing private benefits due to information asymmetry. Conclusions: By showing that the manager's decision-making on the cost behavior affects the investment efficiency corresponding to capital management, the implications for the mechanism for efficient capital management are provided. Through the empirical results, it was shown that the cost stickiness is a product of opportunistic cost decision-making due to information asymmetry, and it is to present evidence that expands the meaning of the causes of asymmetric cost behavior.

• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.95-106
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• 2020

Purpose - This study examines the information effect of the disclosure of new office investments on the Korean stock market and investigates determinant of performance of sample firms. Design/methodology/approach - The sample consists of companies listed on the Korean Exchange that announced investments in new office construction for eleven-years from January 2007 to December 2017. It analyzes excess return using event study methodology and studies the determinants of abnormal return with multiple regression analysis. Findings - We find that abnormal returns of the short and long window are positive on average and statistically significant. In particular, CAR of high growth subsample is a larger positive return than that of the low one both short and long window. Difference in abnormal returns by investment size is observed only in short time window. But there is not observed difference by cash holding level. Research implications or Originality - This finding is able to be added to the evidence of the theory of corporate value maximization academically. Moreover, it shows the possibility that building a new office can have a positive effect on corporate value. It is expected to help investors make decisions because it can provide useful information to market participants in practice.