• The Journal of Fisheries Business Administration
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• v.34 no.1
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• pp.185-211
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• 2003

Initially, the system of outside director of cooperative has the object of consulting an external specialist. Recently, it takes a serious view of monitoring about securing clean management on the operating crisis. Nevertheless, in the field of NFFC(National Federation of Fisheries Cooperatives), it is difficult that the system of outside director of cooperative attains that is initial object. And in the field of FC(Fisheries Cooperative), it isn't in force about the outside director of cooperative. Therefore, it is important to make a following system improvement. (1) The ratio of outside directors among the member of board of directors has to be increased. (2) Outside director's term of office has to be amended from lyears to 2years and the current method of selection should be reformed to be a strict one with high standard of requirement and substantial screening for membership. (3) Outside directors' wage system must be actualized by adopting incentive system' etc. A measure of appointing an executive in a similar business line or organizations to ours as an outside director must be considered. FC have to introduce the system of outside director. (4) A recognition of proper management of outside directors and putting in practice is essential.

• Journal of the Korea Society of Computer and Information
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• v.21 no.12
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• pp.173-178
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• 2016

In this paper many discussions are raised regarding the outside director system in order to establish the position of the outside director within institutional organizations and to review ways to activate the outside director system in for-Profit Hospital. it seems to be more desirable in Korea for each company to establish an efficient system by itself in accordance with suggested guidelines suitable for each for-Profit Hospital management circumstances rather than to apply a unilateral outside director system to for-Profit Hospital through legalization. In this regard, while keeping the current outside director system for the time being, it is necessary to review and improve the management status of companies and the usefulness of the system, and various recommendations from lawyer associations, Hospital business associations, and academia should be allowed rather than just for-Profit Hospital recommendation by the government.

• The Journal of the Korea Contents Association
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• v.16 no.3
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• pp.439-446
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• 2016

This research examines the effect of outside director system which has been legislated after financial crisis in Korea. Outside director system is based on agency theory which assumes that a manager is selfish and opportunistic in situation where ownership and management of a firm is separated. In this situation, outside director system has an important function to monitor and keep in check a manager. Thus, we examined that outside director system works as a monitoring mechanism in Korea. And we tested that above effect is weakened in family CEO firms where it is different from assumption of agency theory in Korea. According to empirical result with 282 sample firm, it is confirmed that outside director system reduces agency cost. In family CEO firms, however, this agency cost-reducing effect becomes weak. This result suggests that outside director system needs be cautiously managed without focusing on only monitoring function.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.3
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• pp.85-97
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• 2015

This study examined the effects of outside directors and CEO duality on acquisition strategies and performance of Korean firms in high-technology industry. Based on the resource dependence theory, we focused on the service and resource-dependence roles from board of directors in the process of decision-making of acquisition strategies. In addition, CEO opportunism behavior rises when CEO serves as chairperson of board and induces the negative effects on acquisition performance. Specifically, we investigated the interaction effects between outside directors ratio and CEO duality. For the period of 2004 to 2012, 246 acquisitions of Korean firms in high-technology industry were analyzed to test our intended hypotheses. Our results indicate that there exist positive relationship between outside director ratio and acquisition performance for Korean high-technology firms. Negative associations prevail between CEO duality and performance consequences of acquisitions. While outside director ratio has a positive effect on acquisition performance when there is a presence of CEO duality, negative effect prevail for outside director ratio on acquisition performance in the absence of CEO duality position to hold our interaction hypothesis. The favor of dual structure can be explained with implications referring to unity of command and strong leadership driven from CEO duality that enhances the resource dependence roles of board of directors in the context of high-technology industry acquisition behaviors rendered by Korean firms.

• Asia-Pacific Journal of Business
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• v.12 no.3
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• pp.213-233
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• 2021

Purpose - Our study examines the determinant factors of corporate financial fraud and whether the characteristics of outside directors tend to decrease the fraud in China. Design/methodology/approach - The data come from the enforcement actions of the Chinese Securities Regulatory Commission (CSRC). The multiple regression analysis were hired in order to analyze the data. Findings - Firms that have smaller size, higher debt ratio, or lower return of assets are associated with the incidence of fraud. However, the firms that have a high proportion of outside directors on the board or whose outside directors have a high compensation are less likely to engage in fraud. Our results show that outside directors monitor the actions of managers and thus help deter fraudulent acts. On the other hand, fraud is more associated with the local outside directors rather than outside directors who are from other locations. Since local outside directors tend to be more related with managers of firms, they can lose their independence. Research implications or Originality - Our findings have implications for the design of appropriate outside directors systems for China-listed firms. Moreover, our results imply that recruiting outside directors from other regions can improve the expertise and independence of outside directors in China. Our study contributes to provide more useful information about investors' investment decisions or management oversight and regulators' decisions on audit activities by disclosing information relating to the characteristics of outside directors.

• Korean Journal of Social Welfare
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• v.67 no.4
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• pp.181-202
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• 2015

This article is aiming at finding the character of social welfare corporations and at finding whether the outside director system is constitutional or not. These two issues are closely interrelated with each other. After examining critically existing studies and precedents that have seen the character of social welfare corporations as public sector or private sector, the present study suggests the dualism that divides social welfare corporations into facility corporations and support corporations and that finds the character of facility corporations and support corporations respectively. According to the dualism, even if outside director system for the facility corporations restricts the right to manage the corporations the system is seen as being constitutional because the corporations are more likely to be public sector so that the principle of private autonomy would not be applied to them. While outside director system for the support corporations is seen as being unconstitutional because the corporations are more likely to be private sector so that the principle of private autonomy would be applied to them. So, this article suggests the amendment of Social Welfare Service Act through which the different character of the facility corporations and support corporations can be respected and the diversity of social welfare corporations and social welfare services can be realized.

• The Journal of Fisheries Business Administration
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• v.36 no.3 s.69
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• pp.37-63
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• 2005

According to the Fisheries Cooperative Law, the Fisheries Cooperative has made a substantial contribution to the development of Korea's fisheries industry amid the nation's rapid economic growth and drastic social changes since its establishment in April 1st 1962, It is, however, generally believed that the cooperative has made a poor performance in improving its business constitution. Therefore, the reform of its board of director system is one of the ways to strengthen the constitution. For the purpose of making the board of director system to operate rationally, this dissertation is divided into five chapters. Chapter I provides an overview of this study, such as research background and objectives. Chapter II focuses on the Fisheries Cooperative's board of director: its function, composition, and election. Chapter III analyzes the responses of the Fisheries cooperatives to questionnaires about the board of director system, and subsequently presents the causes and the meaning of the analysis results. Chapter IV deals with the various ways to improve the Fisheries Cooperative's board of director system, including director and cooperative governance. Finally, Chapter V draws a conclusion of this study. The independent function of the Cooperative's board of director and responsible directorship is one of the most important factors which can prevent the Cooperative from insolvency. Unlike the past, not only it has become difficult to keep the Cooperative's business under the government's support, but also the Cooperative itself is now facing a situation where the support from the government cannot be expected. This ist he reason why the Cooperative should manage itself autonomously, workout its organization, and respond to the current situation with a renovativemanagement and business strategy. Therefore, a rational operation of the board of director is urgently needed.

• KDI Journal of Economic Policy
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• v.38 no.3
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• pp.17-35
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• 2016

In many advanced countries, most outside directors are executives, active or retired, at other firms; in other words, executives from other companies make executive compensation decisions. This situation may hinder the board of directors (BOD) in their efforts to optimize executive compensation levels objectively. Using a panel data analysis of the S&P 1500 companies, we provide supplemental evidence of whether, and to what extent, the concurrent executive employment of outside directors distorts the executive pay decisions at a given company. An unbiased fixed-effect estimation confirms that a $1.00 increase in CEO pay at outside directors' primary companies results in an approximate increase of $0.22 in CEO pay at the given company. From a policy perspective, this added agency problem - caused by the BOD and not by management - is noted as difficult to control; although a firm may establish board independence, the inherent concurrent employment of directors on a board continues to exist.

• Journal of Distribution Science
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• v.17 no.4
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• pp.33-39
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• 2019

Purpose - This paper examines whether product market competition in distribution and service industries is related to audit quality. This paper investigates, specifically, the relationship in distribution and service industries by using Herfindahl-Hirschman Index and audit quality measured by audit fee and audit hour. Research design, data, and methodology - Using 1,011 firm-year observations of listed companies from 2002 to 2016 in distribution and service industries, this study examines whether product market competition in distribution and service industries is related to audit quality. Results - This study finds that market competition in distribution and service industries is negatively related to audit quality and this negative relation is pronounced for the firms with high outside director groups. Further analysis suggests that the relationship between market competition and audit hours is no longer significant. Conclusions - This study extended the existing scope of the audit quality study by systematically analyzing the impact of industrial-level characteristics (i.e. market competition) in the distribution service industries on audit quality. This study, in other words, suggests the regulatory body consider the industrial-level characteristics of each industry in order to enhance audit quality.

• Journal of the Korea Convergence Society
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• v.12 no.8
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• pp.207-214
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• 2021

Existing studies have shown consistent results that a diversification discount phenomenon occurs, which means that the value of the company decreases as the degree of diversification of a company increases. Nevertheless, it is explained by the agency theory as a factor that continues to promote diversification by companies. And in order to solve the agency problem, it is important to form an effective governance structure. In order to solve these problems, this study aims to study how the directors' concurrent information affects the monitoring effect of the board of directors through this affects diversification.To this end, research was conducted on KOSPI companies for 6 years from 2011 to 2016.As a result of the analysis, in the case of the concurrent appointment of the CEO and the inside director, there was a positive (+) effect, but the significance could not be confirmed. In the case of adjunct appointments as outside directors, positive results were confirmed that were significant for diversification.