• Asia-Pacific Journal of Business
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• v.11 no.4
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• pp.205-224
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• 2020

Purpose - This study aimed to identify the effects of ownership structures on agency costs in internationally diversified firms listed on the KOSDAQ market. Design/methodology/approach - A total of 5,824 samples were finally selected and empirically analyzed for a total of nine years from 2011 to 2019, during which the International Accounting Standards had been mandatory for firms listed on the KOSDAQ market. Findings - The results of this study showed that the effects of ownership structures on the ratio of asset turnover are positive for the major share and foreign equity ratios of international diversified firms. Moreover, by selecting the ratio of entertainment expenses as a proxy for agency expenses, this study confirmed that the effects of the ownership structure of an international diversified entity on entertainment expenditure were determined to show a significantly negative relation to entertainment expenditure, thus indicating that the higher the ratio of major shareholders, the more appropriately control the expenditure of entertainment expenses through arbitrary private deviations of the management.Furthermore, considering the effect of the ownership structure on the expenditure of sales and administrative expenses as a proxy variable for agency costs, this study verified that the majority share ratio of international diversified firms was negative to the expenditure of sales and administrative expenses, confirming that the higher the share of major shareholders, the lower the selling and administrative costs, but insignificant.Finally, as a result of determining whether the ownership structure of an international diversified firm affects the holding of free cash, the majority share of this firm shows a significantly negative relation to the ratio of the holding of surplus cash, indicating that the higher the proportion of major shareholders, the more appropriately control the holding of the entity's free cash through arbitrary private deviance by the manager. Research implications or Originality - Major shareholders of an internationally diversified firm listed on the KOSDAQ market play a positive role in the firm's performance by properly controlling agency costs that may be incurred by the management.

• Journal of Korea Trade
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• v.23 no.5
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• pp.45-65
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• 2019

Purpose - As the well-known Structure-Conduct-Performance paradigm implies, risk structure of a corporation may affect its risk management activity and the activity may in turn determine its performance. Depending on its goal, Foreign Direct Investment (FDI) can shape its risk structure, risk management and its performance. Under this assumption, we investigate the relationship between the goals of FDI and risk management for the first time in academics. Design/methodology - This empirical research uses a survey of 279 current Korean enterprises' FDIs in China with the recently developed business risk quadrant model. Companies are classified into either a market- or an efficiency-seeking group, to identify how each group perceives and manages risks, and values the performance of risk management. Also, we apply integrated risk management method that multinational corporations have introduced in China, then verify the mediating effect between risk factors and performance. Findings - Our research shows the FDIs can expose themselves to differing risk structure although risk management activities simply represent the level of empowerment given to local management by headquarter due to limit of sample size despite diversity of risk and risk management tools. To sum, market seekers are found to have more strategic risk (revenue related risk) than efficiency seekers with financial risk (cost related risk). The market seekers can manage their risk by empowering their local organisation while the efficiency does the opposite ways. The risk management appears to be successful in general. Originality/value - Previous studies on small and medium enterprises' FDIs to China have concentrated on the analysis of entry determinants, withdrawal factors and individual risk management. Meanwhile, this research establishes enterprise-wide risk factors faced by the companies that advance into China, according to the method of the classification by ERM and verifies if they could synthetically improve performance through risk corresponding measures.

• Journal of Information Technology Services
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• v.23 no.3
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• pp.55-63
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• 2024

To grasp the structure of an industry and monitor its changes, it is essential to utilize relevant statistics. Various statistics are being compiled regarding the software (SW) industry, presenting diverse numerical values. However, without a precise understanding of the scope and measurement methods inherent to each statistic, gaining a rigorous understanding of the industry's structure and evolving trends becomes challenging. Moreover, significant discrepancies between similar statistics often lead to confusion among users. In the software (SW) industry, key statistics commonly used include SW production value and SW market size. As of 2022, the annual domestic SW production value is reported as 77.4 trillion KRW (based on ICT Survey), while the SW market size for the same year is stated as 38.5 trillion KRW (according to IDC data). Although production value and market size may seem conceptually similar, there is approximately a twofold difference between the figures provided. Without understanding the meanings of each statistic and the differences between them, there are limitations in utilizing these statistics effectively. While statistics are utilized for various purposes such as policy development or causal analysis of policy using statistical raw data, research that presents and analyzes the precise meanings and limitations of each SW-related statistic is virtually non-existent. Thus, this study aims to compare and analyze the methodologies and differences among key statistics used to represent the SW industry: SW production value, SW market size, and SW GDP statistics. Through this analysis, the goal is to contribute to a better understanding of the SW industry's structure and enable more accurate and rigorous utilization of relevant statistics.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.26 no.12C
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• pp.280-291
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• 2001

LL (Leased Line service) is a facility-based service as a traditional business data service, but new competition services, such as FR (Frame Relay), VPN (Virtual Private Network), and ATM (Asynchronous Transfer Mode), are value-added services. Because of different service classifications, it is hard to gather necessary data for the service providers to plan their market strategies and regulations and policies are also applied asymmetrically to each service provider. Therefore an appropriate market classification is required for the business data services. After various methods of market classification are reviewed, the Hendry model is selected in this paper to analyze substitution-degree among brands or among services. Since the structure of virtual competitions is required for the Hendry model to be applied to data service market, the market is analyzed first by the well-known Porter's model. By the analysis of Porter's model, two virtual competition structures are set up - one is for the competitions among leased line service providers, and the other is for the competitions among business data services such as LL, FR, VPN and ATM. After the Hendry model is applied to each competition structure, it is confirmed that 7 LL service providers do not compete directly, but 2 sub-markets exist for the LL service provisions. However, it is shown that 4 business data services compete directly. Using the Switching Probability Matrix from Hendry model, future market shares of LL service providers and market shares of business data services are forecasted. These empirical results are helpful for service providers to set competitive strategies with the minimization of cannibalization effect and they can easily and efficiently predict their market demands.

• International Commerce and Information Review
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• v.14 no.4
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• pp.61-88
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• 2012

Korea exported the passenger cars(HS 8703) such as key export item 41billion dollars in 2011. But the Korea's representative enterprises which bound forward in the global markets, have a tough time in the Japanese markets alone, and especially, they hardly sell key items such as automobiles. Japan is the third largest automobile market sold annually 5 millions, despite its long-term depression. At this time of point, analyzing the competition structure of the automobile market and proposing the strategies of the Korean enterprises's export to Japan would be a great academic contribution. This study analyzed the Japanese automobile market by the method of upper enterprises' Concentration Ratio($CR_k$) based on J. S. Bain's SCP paradigm and the literature study on the characteristics of the Japanese market by Itami Hiroyuki. As a result, in the Japanese automobile market, it is very likely that there exist market dominating enterprises, but at the same time, the movement of change also could be grasped between Japanese car makers. Accordingly, the cross-leveraging distribution strategy, brand strategy and Japan specification(designed for Japan) development strategy of the Korean enterprises' export to Japan which can respond to the change of the Japanese automobile markets were proposed.

• Journal of Korean Institute of Industrial Engineers
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• v.43 no.1
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• pp.30-38
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• 2017

Contingent convertible (Coco) bonds have been issued in 2009 after financial crisis for improvement of capital structure in international banks. With more focuses on coco bonds in financial market, academic fields have paid attention to the instrument for optimal structure for issuers and rational pricing methodologies. However, there is a crucial discrepancy in prevailing pricing model and their target subjects. Though most of the coco bonds have been issued based on accounting triggers, many of existing models are based on market prices and therefore exhibit limitations in practical use. In this paper, a more practical pricing method for accounting triggered coco bonds is proposed using stochastic equity ratio process. Empirical results tested on coco bond issued by JB financial group supported the proposed approach with favorable performance in tracking actual market prices.

• Journal of the Korean Operations Research and Management Science Society
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• v.17 no.3
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• pp.101-135
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• 1992

An an exploratory attempt, this study examines the patterns of strategic changes of the firms and changes in strategic group structure in response to environmental changes of the industry. Empirical analyses of 39 firms in the Korean tile industry for the period of 1986-1990 reveals that :1) environmental changes had different impacts on attractiveness of different product/market segments :2) the relatively large firms in less attractive product/market segments were more likely to change their domains :3) according to their specific target product/market segments, the firms tended to strengthen different resource capabilities which were identified as key success factorss to compete in each target segment : and 4) these differences in strategic changes of the firms resulted in the changes in strategic group structure during the same period. Implications and the limitations of this study are finally discussed.

• Journal of Internet Computing and Services
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• v.2 no.3
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• pp.93-98
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• 2001

It is difficult to develop Electronic Commerce System due to expansion, maintenance and repair of the system. In this paper, the author proposes 3-Tier structure Stock Market Management System using JAVA and CORBA. The event service of CORBA supports the interactive environment. For improvement of expansion, performance, security, maintenance, repair. and efficiency, the 3-Tier structure Stock Market Management System is implemented using CORBA and JDBC middle ware in this environment.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2015.05a
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• pp.140-141
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• 2015

Although the depression of oversea construction market becomes more serious recent years, asian construction market is relatively dynamic, particularly in china. However, few research has been conducted about how to manage construction projects in china as foreign developers. Four important risks are identified from series of surveys using the WBS-RBS method, the result shows that the main risk of tender stage is 'Tender max price error', ' Bill of quantities error', 'Unusual low price' and 'Moral risk' respectively.

• Journal of Information Technology Services
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• v.4 no.2
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• pp.79-97
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• 2005

With the proliferation of EC, many customers have been participating into online auction or group-buying market over searching internet shopping-malls to purchase goods. To support the customer's convenient transaction, lots of agent systems are developed to facilitate the customer's product brokering, merchant brokering, and negotiation of transaction. However, many of these systems have focused upon supporting transaction at only one type of marketplace. Since these marketplaces have different transaction settlement mechanism, it is necessary to develop the system that utilizes the customer's transaction including the selection of the type of marketplace to buy. Then we classify the kinds of B2C electronic marketplace according to the protocol by which the market operated. The structure of negotiation message is developed using XML schema and RDFS under the characteristics and message example of each marketplace in this research.