• Asia-Pacific Journal of Business
• /
• v.10 no.4
• /
• pp.137-151
• /
• 2019

Using Korean Labor and Income Panel Study data, this paper estimates nominal wage rigidity in Korea by industry from 2005 to 2017 and evaluates the level of inefficiency of Korean labor market. And, after estimating employment volatility by industry using the Labor Force Survey at Establishments data for Korea, we combine the nominal wage rigidity and the employment volatility estimates and analyze the effect of nominal wage rigidity on employment volatility in Korea from 2011 to 2017. If the level of wage rigidity is high, it may be hard for the labor market to be in the equilibrium, and therefore, the market may have inefficiency. We find that the inefficiency of the labor market in Korea have increased from 2005 to 2017 and the industry of accommodation and food service activities has the highest level of inefficiency over the period. We also find that one-percent-point increase in wage rigidity increases employment volatility by 2.3-2.9 percent and the positive effect is bigger for workers with part-time and temporary jobs. The result implies that firms may adjust their labor costs by changing the number of casual workers, rather than permanent workers, when the labor market suffers from a high level of wage rigidity.

• KDI Journal of Economic Policy
• /
• v.33 no.3
• /
• pp.33-55
• /
• 2011

Market concentration in the Korean banking industry has markedly increased since the financial crisis of 1997-1998 because of M&As, P&As, and consolidation of banks. With this change, there has been a growing concern over market power in the Korean banking sector. We examine the effects of market concentration on bank efficiency and competition for the period of 1992-2006. Three different indicators of bank inefficiency are used in this study, including X-inefficiency that is derived from the directional technology distance function. The level of competition is measured by both the H-statistic of the Panzar-Rosse model and the level of the net interest margin and its standard deviation. Empirical results indicate that market concentration has not improved bank efficiency through scale economies or scope economies. Instead, recent mergers, acquisitions and consolidation of banks resulted in an increase in inefficiency measured by the three different indicators: X-inefficiency, labor inefficiency and asset inefficiency. While an increase in market share of individual banks improved bank efficiency, an increase in the overall market concentration ratio resulted in lower efficiency. Our study also finds that the Korean banking sector has been monopolistically competitive throughout the sample period except for the crisis period according to the H-statistic. Although an increase in market concentration ratio has not changed the overall level of bank competition, it has a positive significant effect on the level of the average interest margin.

• The Korean Journal of Financial Management
• /
• v.20 no.1
• /
• pp.191-212
• /
• 2003

Recently, there is a growing body of literature that suggests that information inefficiency is one of the causes of the asymmetric volatility. If this explanation for the asymmetric volatility is appropriate, then innovations, such as the introduction of futures, may be expected to impact the asymmetric volatility of stock market. As transaction costs and margin requirements in the futures market are lower than those in the spot market, new information is transmitted to futures prices more quickly and affects spot prices through arbitrage trading with spots. Also, the merit of the futures market may attract noise traders away from the spot market to the futures market. This study examines the impact of futures on the asymmetry of stock market volatility. If the asymmetric volatility is significant lower post-futures and exist in the futures market, it has validity that the asymmetric volatility is caused by information inefficiency in the spot market. The data examined are daily logarithmic returns on KOSPI 200 stock price index from January 4, 1993 to December 26, 2000. To examine the existence of the asymmetric volatility in the futures market, logarithmic returns on KOSPI 200 futures are used from May 4, 1996 to December 26, 2000. We used a conditional mode of TGARCH(threshold GARCH) of Glosten, Jagannathan and Runkel(1993). Pre-futures the spot market exhibits significant asymmetric responses of volatility to news and post-futures asymmetries are significantly lower, irrespective of bear market and bull market. The results suggest that the introduction of stock index futures has an effect on the asymmetric volatility of the spot market and are inconsistent with leverage being the sole explanation of asymmetry. However, it is found that the volatility of futures is not so asymmetric as expected.

• The Journal of the Korea Contents Association
• /
• v.12 no.11
• /
• pp.368-376
• /
• 2012

Government has strictly regulated the concentration of the media market because the number of broadcasters was traditionally limited and they had significant influence on public. However as the media market converges with Internet's open architecture, scarcity and pervasiveness are losing their roles in justifying media regulation. This article examines market convergence and its impact on market concentration, and criticizes the current concentration regulation. The study indicates that market performance are much governed by firm's competitive actions than market structure, and that vertical integration contributes to service innovations, and that horizontal concentration makes it difficult to measure due to its even-changing market definition. Therefore, the regulation for market concentration should shift its focus from firm's market share to broadcaster's unfair acts driving market inefficiency and hurting content diversity.

• Journal of Korean Society of Transportation
• /
• v.26 no.5
• /
• pp.41-49
• /
• 2008

According to the demand for services. a single point contract between a user and provider spreads over the industry, and the relationship between them is a main issue. The user wants to make a deal with the contributor which can provide the effective services to the user. This study is to estimate the efficiency of global logistics industry with Data Envelopment Analysis, by nations from 2001 to 2005. Furthermore, it tries to estimate the inefficiency affected by macro factors, and proves the association between them using Tobit model. Global logistics industry has made growth both externally and internally more than doubled for the last 5years. Technical inefficiency of global logistics industry is more influenced by pure technical inefficiency than inefficiency of scale. Therefore technical efficiency can be increased by decreasing pure technical inefficiency. Through this study, it found that the logistics industry got influenced to its efficiency by high price of oil, and courier and transportation service market is formed stably. Furthermore, it advocates policy planners to consider effectiveness and clearness of policy which influence to inefficiency of logistics industry. Also, it found that labor and financial support can give critical effect.

• Management Science and Financial Engineering
• /
• v.17 no.2
• /
• pp.85-97
• /
• 2011

In this study we examine the long term behavior of stock returns. The analysis reveals that negative autocorrelations of the returns exist for a super-long horizon as long as 10 years. This pattern, however, contrasts to predictions of previous stock price models which include random walks. We suggest the introduction of a fractionally integrated process into a nonstationary component of stock prices, and demonstrate empirically the existence of the process in NYSE stock returns. The predicted values of autocorrelation from our stock price model confirm the super-long term behavior of the returns observed in regression, indicating that inefficiency in the stock market could remain for a long time.

• The Journal of Fisheries Business Administration
• /
• v.34 no.2
• /
• pp.1-25
• /
• 2003

During the past 100 years, Korean fisheries management policies have enforced the license system, it is the most typical regulation system in Korean fisheries. Even now, it has caused resource management failure, it has also invited economic inefficiency and inequity. Accordingly, the Korean government has recently introduced the self-regulatory management system for fishermen with the TAC system. These systems are one of the most market-oriented regulation systems in fisheries management systems. It is defined as regulatory policy tools other than regulations with command and control approach. It is also called “alternatives” which is composed of regulatory alternatives and non-regulatory alternatives. The self-regulatory management system and the ITQ system are cooperative-based co-management between government and fishermen as an alternative management strategy ; it is gaining the increasing attention to improve the effectiveness of fisheries management in Korea. It is expected not only to positively improve function in fisheries regulation, but also to decrease inefficiency in fisheries policies. However, these systems have many problems. The monopolization of rent is one of the typical examples. As solutions for the problem in the aspect of fishery management, fisheries policy is need of approach to industrial organization. For instance, Contestable market theory is one of the good theoretical background, it mean that market is able to free entry and free exit. Thus, fisheries management carry out policies such as revitalization of the used market of capital goods in fisheries, organize of the self-regulatory management group. Conclusively, as the exploiters and managers, fishers and the government should put emphasis on improving economic efficiency so that fishery would grow as an industry that contributes to the increase of social welfare, and the change to that direction will be the only way for our fisheries to preserve its importance.

• The Journal of the Korea Contents Association
• /
• v.20 no.12
• /
• pp.136-144
• /
• 2020

Previous studies report that labor investment inefficiency occurs as the information asymmetry becomes severe and the agency problem between managers and external investors increases. Therefore, it is highly likely that managers will make opportunistic decisions that can damage corporate value in companies with high labor investment inefficiency. This study examines whether the value relevance of accounting information decreases as labor investment inefficiency increases as it is less likely that investors in the market use the accounting information of companies in which labor investment decisions are made inefficiently. Labor investment efficiency is measured as the difference between the actual level of labor investment and the expected level of optimal labor investment. Larger difference between the actual level of labor investment and the expected level of optimal labor investment is considered as higher inefficiency in labor investment. Using data of firms listed on the Korea Stock Exchange from 2002 to 2018, empirical results show that the value relevance of earnings decreases as the inefficiency of labor investment increases. This research provides empirical evidence on whether investment inefficiency in labor, which is an important factor in the competitiveness of a company, reduces the information usefulness of reported earnings.

• Journal of the Korean Society of Industry Convergence
• /
• v.7 no.1
• /
• pp.121-127
• /
• 2004

This paper is to give some hints to solve the problems of the Korean The third Market suffering from the extreme shortage of the liquidity. To solve that problem, this paper mainly compare the liquidity indices of the Third Market with that of the Japanese third market, that is Mothers. The main liqudity indices of the Mothers shows better than that of the Korean Third Market redardless of the small numbers of the listed Firms. The main differences in the liquidity levels between two markets is to caused by the trading system. The Korean Third Market has been adapting the one-to-one trading system which most stock markets of the world gave up that system owing to the inefficiency. This paper shows the proper trading system for the Third Market is competitve trading system partialy combined with the market maker system beacause of the small firm characterristics.

• Journal of Korea Game Society
• /
• v.7 no.2
• /
• pp.41-52
• /
• 2007

Presently, the online game industry of Korea are growing up fastly. The growth of online game give rise to the new problem of regulation on Real Money Trade(RMT). This article analyzed the market failure of RMT, and showed whether or not the government regulate RMT. The results showed that the RMT has efficiency in monopoly and external economie, and inefficiency in external diseconomies and uncertainty. But, the inefficiency in external diseconomie and uncertainty is based on the regulation of RMT by the game company. So, it is necessary for government to deregulate the RMT for curing the inefficiency of RMT.