• Journal of Digital Convergence
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• v.15 no.12
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• pp.283-291
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• 2017

This Study analyzes the predictability of accounting information from mandatory K-IFRS adoption using the K-IFRS reconciliations information. We use the sample of 2,557 firm-year Korea listed companies belonging to non-financial corporate sector during 2010-2016. Specifically, we examine whether K-IFS reconciliation would improve or reduce the predicting power for future earnings after K-IFRS adoption. The results of empirical analyses show that reconciliation information from discretionary judgement tend to reduce the predicting power of K-IFRS based accounting earnings for future earnings. This result indicates that managers are likely to use the adjustments process to reconcile K-GAAP accounting numbers with corresponding K-IFRS as means to realize the various private utility. This study is expected to provide useful information by suggesting the need for more rigid screening schemes for the K-IFRS reconciliation process and also for adequate measures to be taken to ensure that the interests of the outside investors are properly protected.

• Journal of Intelligence and Information Systems
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• v.20 no.1
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• pp.103-119
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• 2014

In this paper, we investigate intellectual reaction differences among market participants to various corporate information announcements and the main information prompting investors to trade. Our research is based on IPO companies listed on the KOSDAQ exchange from January 2000 to September 2012 and concentrates on three information disclosures - bonus issue, seasoned equity offer, and new investment in facilities announcements. We find that intellectual market participants react positively to bonus issues and seasoned equity offers, but negatively to new investment announcements. Market trading volume increases before the positive events and all cgroups actively buy shares during these periods. For the negative events, only institution participants show active selling. Overall, institutions act as momentum traders, and individuals and foreigners as contrarian traders. We also discuss the implications of this study.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.9
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• pp.3827-3833
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• 2011

This paper performed empirical tests of the validity of the pecking order theory which explains financing behavior of firms under information asymmetry. The results of regression analyses using the data of listed manufacturing companies in the Korean Stock Market from 1981 to 2010 have shown strong evidences supporting the pecking order theory. Especially regression coefficients of change of debt on funds deficit and control variables were found to be almost (+1) with statistically significance, which is interpreted as being consistent with the pecking order theory. Same results were found when I performed regression analyses by dividing the sample period into pre-currency crisis period, currency crisis period and post-currency crisis period and using 2 regression models. Change of tangible asset were found to function as collateral rather than reducing information asymmetry and as the firm size decreased, use of debt increased and as profitability increased use of debt decreased, which are consistent with the pecking order theory.

• International Area Studies Review
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• v.12 no.3
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• pp.517-545
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• 2008

This study, tried to describe the corporations and competitiveness of IT industries in Korea and China as well as the general trend in trade using import-export structure. Further, based on trade intensity index, revealed comparative advantage index, Grubel-Lloyd index, constant market share, the trade structure between Korea and China was analyzed for the equipment in the fields of communication, information, broadcasting and their parts. The results are; first, since 2004, China has been catching up with Korea in the number of their companies listed in the global top 500 conglomerates. Second, the trade intensity index increased in 2007 4.57% up from 2002, showing increasingly closer connection between the two countries in the area of communications equipment. Third, according to revealed comparative advantage index, Korea's info-communications equipment seems to comparatively lag behind, but in terms of import-export structure is in the black. Fourth, in recent years, Korean equipment's market share in the Chinese market has been dropped due to the weakening competitiveness and the changing commodity supplies.

• Journal of Digital Convergence
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• v.17 no.2
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• pp.73-80
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• 2019

This study analyzed the relevance between investment horizons of foreign investors and Book-Tax Difference. To do this, we measured investment horizons of foreign investors as the investment-turnover of foreign investors. We use the sample of 3,025 firm-year Korea listed companies belonging to non-financial corporate sector during 2011-2016. The results of empirical analyses show that investment horizons of foreign investors has a negative relevance with Book-Tax Difference. This result indicates that the firm have a long-term foreign investors has a good Accounting Earning's Quality than the firm have a short-term foreign investors. This study is expected to provide useful information by suggesting the need for more incentive for the long-term foreign investors. And Our Study has a contribution that this study extended prior research on foreign investors by utilizing investment horizons of foreign investors.

• Journal of Digital Convergence
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• v.17 no.3
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• pp.153-160
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• 2019

This paper analyzes the impact of investment tendency of foreign investor on accounting conservatism. We use the sample of 1,527 firm-year Korea listed companies belonging to non-financial corporate sector during 2014-2016. The results of empirical analyses show that investment horizons of foreign investors has a positive relevance with accounting conservatism. This result indicates that the firm have a long-term foreign investors has a good quality of accounting earning than the firm have a short-term foreign investors. This study that verified the relevance between investment tendency of foreign investor and accounting conservatism is expected to provide useful information by suggesting the need for more incentive for the long-term foreign investors. And we expect a follow-up study focused on the discriminative effect of investment tendency of foreign investor on accounting policy.

• Journal of the Korea Convergence Society
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• v.10 no.4
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• pp.175-182
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• 2019

The purpose of this study is to test whether credit rating agencies highly evaluate the credit ratings of corporate bonds based upon management participation and ownership share by family governance in ownership structure forms. The samples of this study for empirical analysis were 1,449 non-financial companies listed on Korean Exchange from 2011 to 2016, over whose firm/year data this study conducted regression analysis. The results of empirical analysis in this study are as follows. First, family businesses had positive effects on the evaluation of corporate credit ratings. Second, if the ownership share of family businesses was higher, corporate credit ratings were higher. This result means that high ownership share in family businesses has very positive effects on the credit ratings of related businesses. It is meaningful that this study tested the effect that family businesses can alleviate agency problems and reduce information asymmetry. Furthermore, it is also academically meaningful that this study can contribute to future studies on the role of ownership structure.

• Fourth Industrial Review
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• v.1 no.1
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• pp.1-10
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• 2021

Purpose - This case study analyzes the internationalization strategy and innovation strategy as key factors contributing to the business success of CAP, a small and medium-sized manufacturing company in Korea producing auto parts such as wipers. This study describes the diversification strategies conducted by CAP Corporation and highlights the company's core competencies that have largely contributed to their global competitive success. Research design, data, and methodology - This paper provides in-depth case study on how CAP was able to grow into a hidden champion company, focusing on their strategies since its establishment. In particular, by analyzing the success factors centering on CAP's aggressive innovation strategy and internationalization strategy, it presents guidelines for small and medium-sized enterprises in Asian countries to become a Hidden Champion company. Result - CAP's product technology has successfully established innovative system on their product called 'vertebra spring' to distribute uniform pressure to the rubber to ensure performance as well as durability of their products. In order to continue benefiting from utilizing core competence and to continue pursuing technological advancement in the wiper industry, CAP has launched a wide range of products (flat blade, conventional blade, hybrid blade) applicable to 95% of the vehicle in the market. Conclusion - Taken together, CAP has many aspects of a hidden champion company by investing in R&D up to 8% of its annual sales to R&D investment even during the crises situation. This number is about 3.36 times higher than the average ratio of listed companies in Korea. Furthermore, the leadership of the management team as well as their vision toward the global market and strong commitment to innovation enabled CAP to become the world's fifth-largest wiper and Asia's No. 1 wiper manufacturer.

• Journal of Industrial Convergence
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• v.19 no.5
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• pp.13-19
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• 2021

In this study, the relationship between R&D investment and firm value was approached from ESG's G(governance) perspective to verify the moderating effect of the corporate governance and ownership structure. To this end, a panel analysis was conducted on a total of 2,825 samples of 405 manufacturing companies listed on the KOSPI market during 2013~2020. The main analysis results are as follows. First of all, we found that R&D investment has a negative impact on firm value, at least in the short term, and that these relationships are moderated by corporate governance and ownership structure. When professional CEO with high level of expertise in business and management does lead R&D investment, the negative impact of R&D investment on firm value is mitigated compared to owner-manager. Also, the stronger the power of outside blockholders, the more transparent the management and disclosure of information, alleviating the information asymmetry between internal and external shareholders, which mitigates the negative impact of R&D investment on firm value. The findings suggest that the factors of ESG may not only have a direct impact on firm value, but also have a moderating effect on firm value.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.391-397
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• 2021

This study examines the effect of independent commissioners and the Audit Committee on internal control disclosure and its implications for earnings management in the banking industry listed on the Indonesia Stock Exchange for the period 2016-2018. In this study, a purposive sampling technique was used, combined with two multiple regression analysis models. The final sample for this study comprised 30 companies over the three years of observation, such that there were 90 observations in total. This study indicates that independent commissioners, as measured by their composition, do not affect the disclosure of internal control. However, as measured by the number of members, the Audit Committee had a positive effect on internal control disclosures. This study also indicates that the disclosure of internal control as measured by the Internal Control Disclosure index affects reducing the negative practice of earnings management. This study proves that the Audit Committee's role is very dominant in assisting the Board of Commissioners in supervising internal control. This has implications for reducing earnings management practices. However, the Independent Commissioner's role in the Indonesian banking industry has not been optimal in carrying out the supervisory function in this study.