• The Korean Journal of Health Service Management
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• v.9 no.4
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• pp.157-169
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• 2015

Objectives : The aim of this study was to investigate the effect of various Republic of Korea policies, including the medicine cost rationalization policy implemented By investigating the management strategy/performance changes of the industry caused by such policies. Methods : Pharmaceutical companies listed on the national stock exchange and the KOSDAQ were examined for 10 years from 2004 to 2013. Their financial statements were collected and market changes before and after drug price policy implementations were compared. Results : From the result of this research, among the medicine related policies, the drug price rationalization policy was found to have a significant effect on business management strategies in terms of safety, profitability and growth potential after its implementation. After the drug pricing transparency policy was implemented, management strategies were affected significantly in terms of safety and profitability. Conclusions : As a result, all of the medicine related policies were found to have regulatory effects. Based on these findings, implications, research limitations and future study plans are presented.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.9
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• pp.3849-3855
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• 2011

This study presents an efficient strategy for selecting portfolio by evaluating growth potential of a corporation based on dividend. Through preliminary experiments, we extract 4 categories to sort out prospective stocks and develop a scoring table including criteria and formulas used to calculate scores for each category. In order to show the effectiveness of the portfolio selected by scoring table, we constructed 3 portfolios for every 4 years (2007-2010) out of 927 listed companies in KRX and proved that our portfolios are superior to market portfolio in terms of rate of return.

• Asia-Pacific Journal of Business
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• v.9 no.4
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• pp.157-180
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• 2018

This paper empirically analyzes how working conditions of employees and executives affect Korean companies' survival. To this end, a survival analysis based on the accelerated failure time model is conducted from the end of December 2012 to the end of September 2018 on the 2012 year-end financial data for corporations whose common stocks have ever been listed either in the KOSPI market or in the KOSDAQ market with fiscal year ending at the end of December. The analysis shows that the average wage level per employee and the number of executives relative to the number of employees threaten while the average duration of service for female employees prolongs firm survival. Here, the average wage level per employee has turned out to worsen firm survivability regardless of the gender of employees in question while the average duration of service improves firm survivability only in case the employees are female: the average duration of service for male employees or the entire employees has turned out not to have any statistically significant influence on firm survival. The average compensation per executive and the percentage of temporary employees have turned out not to have any statistically significant influence on firm survival while the percentage of female employees has shown statistically significant positive influence on firm survival in some, although not all, models employed in our study. These results are expected to be a good reference in the course of our reaching agreements regarding the improvement of working conditions either between firms and employees or among the members of the entire society.

• The Journal of Economics, Marketing and Management
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• v.12 no.3
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• pp.13-22
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• 2024

Purpose: While there has been extensive research on discretionary accruals (hereafter, 'DA') and accounting conservatism, interpretations have varied among researchers depending on how discretionary accruals are determined as proxies. This study investigates the relationship between discretionary accruals (DA) and accounting conservatism, focusing on the distinctions between signed DA and absolute DA. Research design, data and methodology: Using financial data from companies listed on the KOSPI and KOSDAQ markets from 2010 to 2020, we employ regression analysis to explore how signed and absolute DA impact accounting conservatism. This approach allows us to parse out the effects of positive versus negative discretionary accruals systematically. Results: Our findings indicate a divergent impact of DA on accounting conservatism. Specifically, in cases of negative DA, an increase in DA corresponds with heightened accounting conservatism. Conversely, when DA is positive, increases in DA do not exhibit a significant relationship with changes in accounting conservatism. These effects suggest that the nature of DA-whether it represents upward or downward earnings adjustments-critically influences its relationship with conservatism. Conclusions: The results elucidate the nuanced role of discretionary accruals in influencing accounting conservatism. The decrease in accounting conservatism associated with absolute increases in DA appears primarily driven by groups with downward earnings adjustments. This suggests that as negative DA diminishes toward zero, accounting conservatism intensifies, whereas positive DA does not have a parallel effect.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.4 no.4
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• pp.45-70
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• 2009

This article investigates which types of the strategies announced by the listed firms contribute to enhancing the long-term performance of the companies. Since 2002, Korean Exchange adopted the "faire disclosure policy" which mandates that all publicly traded companies must disclose material information to all investors at the same time. Thanks to the policy, Korean investors can, now, easily access the board's decision on management strategies on the same day the decision is made. If the companies trustfully carry out their announced strategies, we can decide which types of strategies actually enhance or deteriorate the long-term performance, simply by comparing the announced strategies and the firm's performance. The sample companies are confined to 60 firms that became listed in the KOSDAQ market through back-door listing from 2003 to 2005. Using only the newly listed companies, we can avoid the interference on the long-term performance of the strategies pursued before the event date. This often holds true, for many companies radically modify their strategies after the listing. Furthermore, the back-door listing companies serve our purpose better than IPO companies do, because the former tend to have a variety of announcement within a given period of time beginning the listing date. Using these sample companies, this article analyzes the effect on one year buy-and-hold returns and abnormal buy-and-hold returns after the listing of the various types of strategies announced during the same period of time. The results show that those evidences of restructuring such as 'reduction of capital' and 'resignation of incumbent board members', actually contribute to the increase in adjusted long-term stock returns. Those strategies which can be view as evidence of new investment such as 'increase in tangible assets', 'acquisition of other companies', do also helps the stockholders better off. On the contrary, 'increase in bank loans', 'changes of CEO' and 'merger' deteriorate the equity value. The last findings let us to presume that the back-door listing companies appear to use the bank loans for value-reducing activities; the change in CEO is not a sign of restructuring, but rather a sign of failure of the restructuring; another merger carried out after back-door listing itself is also value-reducing activity. This article's findings on reduction of capital, merger and bank loans oppose the results of the former empirical studies which analyze only the short-term effect on stock price. Therefore, more long-term performance studies on public disclosures are in order.

• Journal of Digital Convergence
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• v.14 no.8
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• pp.163-175
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• 2016

The purpose of this study is to provide an efficient internal control system formation incentives for company and to confirm empirically usefulness of the internal accounting control system for financial institutions by analyzing whether the internal control vulnerabilities of companies related significantly to the classification and assessment of soundness of financial institutions. Empirical analysis covered KOSPI, KOSDAQ listed companies and unlisted companies with more than 100 billion won of assets which have trading performance with "K" financial institution from 2008 until 2013. Whereas non-internal control vulnerability reporting companies by the internal control of financial reporting received average credit rating of BBB on average, reporting companies received CCC rating. And statistically significantly, non-reporting companies are classified as "normal" and reporting companies are classified as "precautionary loan" when it comes to asset quality classification rating. Therefore, reported information of internal control vulnerability reduced the credibility of the financial data, which causes low credit ratings for companies and suggests financial institutions save additional allowance for asset insolvency prevention and require high interest rates. It is a major contribution of this study that vulnerability reporting of internal control in accordance with the internal control of financial reporting can be used as information significant for the evaluation of financial institutions on corporate soundness.

• The Journal of the Korea Contents Association
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• v.9 no.3
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• pp.305-311
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• 2009

The bankruptcy in Korea affects to all stakeholder of firms. Companies listed in KOSDAQ have high technology but the possibilities for success of business are low. The purpose of this study is to develop and to applicate falling prediction model of KOSDAQ firms using logistic regression analysis. The results of this study are as follows. First, the accuracy of classification of the models by years was between 76.5% and 77.5%, and that of the mean model was between 70.6% and 83.4%. Among the models, the mean model of -three years, -two years, and -one year was highest in the accuracy of classification (83.4%). Second, when the mean model of -three year, -two years, and -one years, the highest model in accuracy of classification, was selected to be verified on validation samples, the accuracy of prediction increased from -three years to -one year (71.7% for -three years, 75.0% for -two years, 90.0% for -one year). In indicating the superiority of developed model.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.7
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• pp.149-161
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• 2017

This paper analyzed the impact of alliances on the market value of the 106 bio-pharmaceutical companies listed on the KOSPI or KOSDAQ in Korea by using the 'Event study methodology'. Although general alliances did not impact the corporate value significantly, in the analysis corresponding to the alliance type, R&D alliances created positive value, as technology acts as an important factor for the alliance. Among the R&D alliances, 'Technology Transfer alliances', in particular 'Development Technology Transfer alliances', had a positive influence on the corporate value. We interpret these differentiated results as market tends to screen for types of alliances. Meanwhile, we confirmed that the possibility of a stock price increase before the alliance announcement is high by analyzing the impact of the timing of corporate alliance announcements on the company value. It can be inferred that the possibility of information leakage is high. This paper analyzes the impact of alliances for managers and practitioners seeking to create value for domestic bio-pharmaceutical companies, and suggests the need to prevent information leakages by establishing a suitable policy.

• Journal of Internet of Things and Convergence
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• v.8 no.1
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• pp.1-10
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• 2022

The purpose of this study is to establish a foundation for IoT-related industries to secure financial soundness and to dominate the global market after COVID-19. Through this study, the quantitative management status of IoT-related companies was checked. It also was attempted to preemptively prepare for corporate insolvency by examining the relationship between financial ratios in accordance with stock price fluctuations and designation of management items. This study selected 502 companies that were listed on the KOSPI and KOSDAQ in the stock market from 2019 to 2020. For statistical analysis, multiple regression analysis, difference analysis and logistic regression analysis were performed. The research results are as follows. First, it was found that the impact of IoT company accounting information on stock prices differs depending on before and after COVID-19. Second, it was found that there is a difference in the closing stock prices of IoT companies before and after COVID-19. Third, it was found that financial ratios according to stock price fluctuations exist differently after COVID-19. Fourth, it was found that the financial ratios according to the designation of management items after COVID-19 exist differently. Through these studies, some suggestions were made to secure the financial soundness of IoT companies and to lay the groundwork for leaping into the global market after COVID-19. Through the results of this study, it is expected that it will lead the growth of IoT companies and contribute to growth as a decacorn company of the future that can guarantee financial soundness in the changing financial market.

• Journal of Digital Convergence
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• v.19 no.8
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• pp.141-149
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• 2021

This study investigated the effect of accounting information on dividend policy as a measure of corporate conservatism from the perspective of the internal accounting management system. The verification is based on a sample of 543 companies listed on securities (excluding KOSDAQ and financial industry) among the Bank of Korea (2019) 「2018 Corporate Management Analysis」 and company analysis of the Korea Productivity Center (financial data disclosed as listed companies as a December settlement company) was composed. Using SPSS 22, empirical analysis was conducted using exploratory factor analysis and regression analysis. The first is the verification related to corporate conservatism and the role of dividend policy, and it is verification of whether internal accounting management influences financial decision-making. Second, if internal accounting management exists, it is a verification of how conservatism and investment policies (in-house reserve, debt borrowing, capital increase, dividends, etc.) affect the corporate value according to accounting information. As a result, from the perspective of the internal accounting management system, it was found that among the variables of accounting information, profitability can have a positive effect on corporate conservatism and dividend policy as a corporate valuation method of reinvestment. In addition, it has been proven that corporate conservatism has an effect on profitability-to-value through capital accumulation and reinvestment such as surplus and internal reserves. In the future, we will study and discuss the complementarity of corporate conservatism and dividend policy in relation to governance structure and improvement of the internal accounting management system.