• Management & Information Systems Review
• /
• v.37 no.2
• /
• pp.187-207
• /
• 2018

This study examines the negative relationship between accounting conservatism and excess executive compensation and examines whether their relationship increases as managerial incentive compensation intensity increases. For this purpose, a total of 2,755 company-years were selected for the analysis of the companies listed on the Korea Stock Exchange from December 2012 to 2016 as the final sample. The results of this study are as follows. First, there is a statistically significant negative relationship between accounting conservatism and manager overpayment. This implies that managers' incentives to distort future cash flow estimates by over booking assets or accounting profits in order to maximize their compensation when manager compensation is linked to firm performance. In this sense, accounting conservatism can reduce opportunistic behavior by restricting managerial accounting choices, which can be interpreted as a reduction in overpayment to managers. Second, we found that the relationship between accounting conservatism and excess executive compensation increases with the incentive compensation for accounting performance. The higher the managerial incentive compensation intensity of accounting performance is, the more likely it is that the manager has the incentive to make earnings adjustments. Therefore, the high level of incentive compensation for accounting performance means that the ex post settling up problem due to over-compensation can become serious. In this case, the higher the managerial incentive compensation intensity for accounting performance, the greater the role and utility of conservatism in manager compensation contracts. This study is based on the fact that it presents empirical evidence on the usefulness of accounting conservatism in managerial compensation contracts theoretically presented by Watts (2003) and the additional basis that conservatism can be used as a useful tool for investment decision.

• Korean Security Journal
• /
• no.1
• /
• pp.351-370
• /
• 1997

This study concerns possible measures to prevent separatists' terrorist acts against overseas Korean businessmen. Of late, many Korean enterprises are helping a number of foreign countries develop their economy, by building factories and manning regional offices in those countries. But recent development of terrorism especially against Korean businessmen is alarming. This report discusses the need for Korean enterprises heading overseas to prepare themselves with awareness of terrorism and possible protective measures against it, besides their routine pursuance of profits; and for the government and prospective enterprises to refrain from investing in those countries having active separatist movements. If an investment has become inevitable, a careful survey of the region in conflict should be conducted and self-protective measures should be put in place through security information exchange, emergency coordination and training of personnel, etc. This study will first review the past terrorist incidents involving employees of overseas Korean enterprises, and then will focuss on seeking effective measures on the basis of the reported incidents. In carrying out the study, related literature from both home and abroad have been used along with the preliminary materials reported and known on the Internet from recent incidents. 1. The separatist movements of minority groups Lately, minority separatist groups are increasingly resorting to terrorism to draw international attention with the political aim of gaining extended self rule or independence. 2. The state of terrorism against overseas Korean enterprises and Koreans Korean enterprises are now operating businesses, and having their own personnel stationed, in 85 countries including those in South East Asia and Middle East regions. In Sri Lanka, where a Korean enterprise recently became a target of terrorist bombing, there are 75 business firms from Korea and some 700 Korean employees are stationed as of August 1996. A total of 19 different terrorist incidents have taken place against Koreans abroad since 1990. 3. Terrorism preventive measures Terrorism preventive measures are discussed in two ways: measures by the government and by the enterprises. ${\blacktriangleleft}$ Measures by the government - Possible measures at governmental level can include collection and dissemination of terrorist activity information. Emphasis should be given to the information on North Korean activities in particular. ${\blacktriangleleft}$ Measures by individual enterprises - Organizational security plan must be established by individual enterprises and there should also be an increase of security budget. A reason for reluctant effort toward positive security plan is the perception that the security budget is not immediately linked to an increment of profit gain. Ensuring safety for overseas personnel is a fundamental obligation of an enterprise. Consultation and information exchange on security plan, and an emergency support system at a threat to security must be sought after and implemented. 4. Conclusion Today's terrorism varies widely depending on reasons and causes, and its means has become increasingly informationalized and scientific as well while its method is becoming more clandestine and violent. Terrorist organizations are increasingly aiming at enterprises for acquisition of budgets needed for their activities. Korean enterprises have extended their business realm to foreign countries since 1970, exposing themselves to terrorism. Enterprises and their employees, therefore, should establish their own security measures on the one hand while the government must provide general measures, on the other, for the protection of the life and property of Korean residents abroad from terrorist attacks. In this regard, set-up of a counter terrorist organization that coordinates the efforts of government authorities in various levels in planning and executing counter terrorist measures is desired. Since 1965, when the hostile North Korea began to step up its terrorist activities against South Koreans, there have been 7 different occasions of assassination attempt on South Korean presidents and some 500 cases of various kidnappings and attempted kidnappings. North Korea, nervous over the continued economic growth and social stabilization of South Korea, is now concentrating its efforts in the destruction and deterioration of the national power of South Korea for its earlier realization of reunification by force. The possibility of North Korean terrorism can be divided into external terrorist acts and internal terrorist acts depending on the nationality of the terrorists it uses. The external terrorist acts include those committed directly by North Korean agents in South Korea and abroad and those committed by dissident Koreans, hired Korean residents, or international professionals or independent international terrorists bought or instigated by North Korea. To protect the life and property of Korean enterprises and their employees abroad from the threat of terrorism, the government's administrative support and the organizational efforts of enterprises should necessarily be directed toward the planning of proper security measures and training of employees. Also, proper actions should be taken against possible terrorist acts toward Korean business employees abroad as long as there are ongoing hostilities from minority groups against their governments.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.12 no.6
• /
• pp.13-24
• /
• 2017

The purpose of this study is to examine the effect of the management of receivables on the management performance of micro manufacturing industries. The results of the survey are as follows. First, among the factors of management of pre- and post-trade receivables in the micro manufacturing industries, management organization and regulations, contract execution management, bad debt control, which are the subordinate factors of credit control, are positive (+) significant effect on stability. In terms of profitability, management organizations and regulations, which are subordinate factors of credit control management, have a positive (+) significant effect on profitability. The recovery management, which is a factor of management of post - receivable receivables, did not have a significant effect on the stability and profitability of financial management performance. Second, the effect of financial performance on organizational satisfaction is positively related to stability, while profitability has no significant effect on organizational satisfaction. The implication of this study is that pre - trade receivables management is more important than post - trade receivables management in the management of accounts receivables of micro manufacturing industries. Proactive credit management refers to the procedure of establishing and managing personal guarantees and physical guarantees in order to smooth the execution of the obligations at the same time as the contract is concluded through processes such as credit investigation, analysis and evaluation, and sales decision before the contract is concluded. Post receivables management based on the assumption of default is a receivables management procedure from receipt of receivables that are already defaulted to bad debts to bad debt processing. If the collection of receivables is delayed or bad debt is increased, Furthermore, a corporation may be subject to bankruptcy risk (insolvency by paper profits). Therefore, it is meaningful that this study suggests direction to induce change of contract type in advance by understanding the possibility of settlement of accounts receivable and recovery of bad debts within the day of transition in case of contract of micro manufacturing industries.

• Asia pacific journal of information systems
• /
• v.19 no.2
• /
• pp.139-155
• /
• 2009

For the last few decades, many studies have tried to explore and unveil venture companies' success factors and unique features in order to identify the sources of such companies' competitive advantages over their rivals. Such venture companies have shown tendency to give high returns for investors generally making the best use of information technology. For this reason, many venture companies are keen on attracting avid investors' attention. Investors generally make their investment decisions by carefully examining the evaluation criteria of the alternatives. To them, credit rating information provided by international rating agencies, such as Standard and Poor's, Moody's and Fitch is crucial source as to such pivotal concerns as companies stability, growth, and risk status. But these types of information are generated only for the companies issuing corporate bonds, not venture companies. Therefore, this study proposes a method for evaluating venture businesses by presenting our recent empirical results using financial data of Korean venture companies listed on KOSDAQ in Korea exchange. In addition, this paper used multi-class SVM for the prediction of DEA-based efficiency rating for venture businesses, which was derived from our proposed method. Our approach sheds light on ways to locate efficient companies generating high level of profits. Above all, in determining effective ways to evaluate a venture firm's efficiency, it is important to understand the major contributing factors of such efficiency. Therefore, this paper is constructed on the basis of following two ideas to classify which companies are more efficient venture companies: i) making DEA based multi-class rating for sample companies and ii) developing multi-class SVM-based efficiency prediction model for classifying all companies. First, the Data Envelopment Analysis(DEA) is a non-parametric multiple input-output efficiency technique that measures the relative efficiency of decision making units(DMUs) using a linear programming based model. It is non-parametric because it requires no assumption on the shape or parameters of the underlying production function. DEA has been already widely applied for evaluating the relative efficiency of DMUs. Recently, a number of DEA based studies have evaluated the efficiency of various types of companies, such as internet companies and venture companies. It has been also applied to corporate credit ratings. In this study we utilized DEA for sorting venture companies by efficiency based ratings. The Support Vector Machine(SVM), on the other hand, is a popular technique for solving data classification problems. In this paper, we employed SVM to classify the efficiency ratings in IT venture companies according to the results of DEA. The SVM method was first developed by Vapnik (1995). As one of many machine learning techniques, SVM is based on a statistical theory. Thus far, the method has shown good performances especially in generalizing capacity in classification tasks, resulting in numerous applications in many areas of business, SVM is basically the algorithm that finds the maximum margin hyperplane, which is the maximum separation between classes. According to this method, support vectors are the closest to the maximum margin hyperplane. If it is impossible to classify, we can use the kernel function. In the case of nonlinear class boundaries, we can transform the inputs into a high-dimensional feature space, This is the original input space and is mapped into a high-dimensional dot-product space. Many studies applied SVM to the prediction of bankruptcy, the forecast a financial time series, and the problem of estimating credit rating, In this study we employed SVM for developing data mining-based efficiency prediction model. We used the Gaussian radial function as a kernel function of SVM. In multi-class SVM, we adopted one-against-one approach between binary classification method and two all-together methods, proposed by Weston and Watkins(1999) and Crammer and Singer(2000), respectively. In this research, we used corporate information of 154 companies listed on KOSDAQ market in Korea exchange. We obtained companies' financial information of 2005 from the KIS(Korea Information Service, Inc.). Using this data, we made multi-class rating with DEA efficiency and built multi-class prediction model based data mining. Among three manners of multi-classification, the hit ratio of the Weston and Watkins method is the best in the test data set. In multi classification problems as efficiency ratings of venture business, it is very useful for investors to know the class with errors, one class difference, when it is difficult to find out the accurate class in the actual market. So we presented accuracy results within 1-class errors, and the Weston and Watkins method showed 85.7% accuracy in our test samples. We conclude that the DEA based multi-class approach in venture business generates more information than the binary classification problem, notwithstanding its efficiency level. We believe this model can help investors in decision making as it provides a reliably tool to evaluate venture companies in the financial domain. For the future research, we perceive the need to enhance such areas as the variable selection process, the parameter selection of kernel function, the generalization, and the sample size of multi-class.

• Asia pacific journal of information systems
• /
• v.23 no.3
• /
• pp.131-154
• /
• 2013

New internet technologies have created a revolutionary new platform which allows consumers to make decision about product price and quality quickly and provides information about themselves through the transcript of online reviews. By expressing their feelings toward products or services on virtual opinion platforms, users extend their influence into cyberspace as electronic word-of-mouth (e-WOM). Existing research indicates that an impact of eWOM on the consumer decision process is influential. For both academic researchers and practitioners, investigating this phenomenon of information sharing in online website is essential given the increasing number of consumers using them as sources of purchase decisions. It is worthwhile to examine the extent to which opinion seekers are willing to accept and adopt online reviews and which factors encourage adoption. Discerning the most motivating aspects of information adoption in particular, could help electronic marketers better promote their brand and presence on the internet. The objectives of this study are to investigate how online WOM influences a persons' purchase decision by discovering which factors encourage information adoption. Especially focused on the self-efficacy, this research investigates how self-efficacy affects on information usefulness and adoption of online information. Although people are exposed to same review or comment about product or service, some accept the reviews while others do not. We notice that accepting online reviews mainly depends on the person's preference or personal characteristics. This study empirically examines this issue by using cognitive dissonance theory. Specifically, in the movie industry, we address few questions-is always positive WOM generating positive effect? What if the movie isn't the person's favorite genre? What if the person who is very self-assertive so doesn't take other's opinion easily? In these cases of cognitive dissonance, is always WOM generating same result? While many studies have focused on one direct of WOM which indicates positive (or negative) informative reviews or comments generate positive (or negative) results and more (or less) profits, this study investigates not only directional properties of WOM but also how people change their opinion towards product or service positive to negative, negative to positive through the online WOM. An experiment was conducted quantitatively by using a sample of 168 users who have experience within the online movie review site, 'Naver Movie'. Users were required to complete a survey regarding reviews and comments taken from the real movie page. The data reflected user's perceptions of online WOM information that determined users' adoption level. Analysis results provide empirical support for the proposed theoretical perspective. When user can't agree with the opinion of online WOM information, in other words, when cognitive dissonance between online WOM information and users' preference occurs, perceived self-efficacy significantly decreases customers' perception of usefulness. And this perception of usefulness plays an important role in determining users' intention to adopt online WOM information. Most of researches have been concentrated on characteristics of online WOM itself such as quality or vividness of information, credibility of source and direction of online WOM, etc. for describing effect of online WOM, but our results suggest that users' personal character (e.g., self-efficacy) plays decisive role for acceptance of online WOM information. Higher self-efficacy means lower possibility to accept the information that represents counter opinion because of cognitive dissonance, whereas the people that have lower self-efficacy are willing to accept the online WOM information as true and refer to purchase decision. This study suggests a model for understanding role of direction of online WOM information. Also, our result implicates the importance of online review supervision and personalized information service by confirming switching opinion negative to positive is more difficult than positive to negative through the online WOM information. This implication would help marketers to manage online reviews of their products or services.

• Journal of Korean Academy of Nursing
• /
• v.27 no.2
• /
• pp.411-422
• /
• 1997

The purpose of this study is twofold : (i) to investigate how much effort the married couples are making for the good health of both the pregnant woman and her unborn child from the time of their marriage to and during the period of conception : and (ii) to comprehensive investigate socio-cultural back-grounds which affect prenatal effort. Result of this study provide a basis for the prenatal care program which will be appropriate to our culture. This study has been done by the ethnographic research method. The subjects of this study are 53 people in all consisting of 33 pregnant women and 20 husbands. In order to investigate socio-cultural factors which influence Taegyo, producers of Taegyo music were interviewed. In addition the researcher surveyed the markets of Taegyo music, participated in special courses of prenatal education, analyzed the content of the books and periodicals dealing with Taegyo, and collected the concept of Taegyo distributed by the mass media. The full-fledged study continued for eight months from February to August.1996. The data were analyzed as soon as they were collected. Spradly's(1979, 1980) developmental, sequential method of domain analysis. taxonomic analysis, componential analysis, and theme analysis in this order was adopted as the procedure of analyzing the data. To obtain the exactness of study, Sandelowski's (1986) four criteria, that is, Credibility, Fittingness, Auditability, and Confirmability were applied to all stages of data collection, data analysis, the interpretation of the result, and the description of the result. The following are the result : 1. The couples' Taegyo at the stage of preconception was related to their physical, psychological, spiritual conditions under which a healthy baby will be born. Specific methods they prefer are : "the choice of one's spouse." "physical check-up," "physical good health, " "praying, " and so on. 2. When the marriod couple have sex in order to conceive, their Taegyo was related to the imposition of their physical, psychological, and environmental conditions. Specific methods they prefer are : "having sex at specific time, " "having sex in nice place." "to purify their minds while having sex," and so on. 3. The married couples' Taegyo while they are in pregnancy was related to the imposition of their physical. psychological, emotionmental. environmental, social and spiritual conditions. Specific methods they prefer are : "listening to music. " "reading," "looking at beautiful things only," "to avoid looking at or listening to bad things." "to eat food in good shape, " "to avoid drugs," "eating Korean herbal medicine." "sexual abstinence," "to avoid dangerous places," "to keep emotional tranquility," "moderate exercises and rest." "leading a pure life." "praying." "being aware of their words and behavior." "for the couple to keep a good relationship." "interaction with their unborn child," "to support Taegyo for pregnant women," and so on. 4. The married couple put Taegyo into practice on the basis of the following principles : the principle of respecting an unborn child, the principle of forming a good disposition. the principle of top-down parental love, the principle of synergy between a pregnant woman and her unborn child, the principle of expecting a good child, the principle of forming a good habit, and the principle of acquiring a parental role. 5. The practice of Taegyo is influenced by such factors as the married couple, the supporting system, and the mass media. As the husband -and-wife factor, their information of Taegyo, the degree of importance is assigned to their characters, their time to spare, their healthiness, the age of pregnant woman, their conception plan, their religion, their belief of the Taegyo effects, and the birth of a baby in this order. The factor of the supporting system consists of her husband's support, her family support, and her neighbor's support. The mass media factors include the broadcasting media, books specialized in Taegyo, periodicals for pregnant women, booklets for advertizing powdered milk, Taegyo music of record manufacturing companies, and the teaching materials for gifted children. Among these the mass media is especially taking advantage of Taegyo as its main source of economic profits are leading the public behavior pattern to a prodigal one. Taegyo is a self-control behavior which requires practice for the following : the physical and psychological good health of the pregnant woman and her unborn child, the development of the unborn child's good character, the development of the unborn child's intelligence and talents, the expectation of the unborn child's good features. shape a good habit, the expectation of the unborn child's bright future, and the learning of a parental role, the expectation of male birth. Above all it is a type of our good cultural tradition which pursues a value higher than the one that the prenatal care does. The principles of pregnancy care inherent in the habit of Taegyo will provide us a guideline for the development of the prenatal care.

• Journal of the Korean Institute of Landscape Architecture
• /
• v.42 no.5
• /
• pp.134-147
• /
• 2014

Pleasure grounds, which were introduced during the Japanese colonial era, were places for organizing new amusement activities, and developed into a large-scale private spaces and a new type of public space at the same time. This study explores the scenery and accommodations of pleasure grounds and the changes of the amusement culture through the Wolmido Pleasure Grounds, which was a typical pleasure grounds of the time. At that time, Wolmido became a comprehensive amusement/entertainment place with many elements of both Western and Japanese pleasure grounds such as exotic buildings harmonized with trees, a beach, a seaside school, public playing field, and zoo constructed on the Island. Wolmido Pleasure Ground, which was connected with Kyungsung by Kyungin railroad during the Japanese colonial era, is a good example showing the process of the popularization and commercialization of the amusement culture. The process of popularization of amusement shows the spreading of the enjoyment of leisure time with amusement activities through appreciating the beautiful scenery of the pleasure grounds among various social classes. The caste system was broken and anyone could use the pleasure grounds by paying the fee, of which there were many kinds, so the distinction between genders and the different classes, such as the Chosun people and Japanese, regarding amusement in pleasure grounds disappeared gradually. Also, pleasure grounds were a place for Western hobby-sports activities and were the means to generalize collective and dynamic activities through summer school and various sport games. At the same time, there were places for deviation from the existing social norms when it was combined with entertainment facilities. The commercialization of amusement took place in the form of an artificial entertainment culture within an artificial environment. First, the scenery was artificially constructed and this scenery created the image of paradise such as 'captivating summer vacation spot' and 'water kingdom'. This was the result of the combined intentions of the colonial authority, the railroad company and the amusement corporation to produce economic profits and encourage development in the area. Second, an artificial spectacle was constructed using nature as the backdrop. Buildings of various styles created a modernized and exotic image when they were combined with each other. Artifacts such as breakwaters and arcades created new attractions for people that enabled them to view both nature and the crowds from a whole different perspective. Third, pleasure grounds contributed to the advent of passive users who would just follow the given use and instructions. In this way, one can find the prototype of popular entertainment places of today such as sightseeing complexes, amusement parks, and theme parks through the construction of amusement grounds as a place for providing dynamic activities.

• Journal of Korean Ophthalmic Optics Society
• /
• v.10 no.1
• /
• pp.83-89
• /
• 2005

The results that research industrial competitive power of about two hundreds frames manufactures were as follows. First, It's researched that frames industry of Daegu will be worse and worse, and 79 percent of inquiry manufactures in export and 58 percent of them in the domestic demand prospects to be worse. Second, it is analyzed that the commercial profits in 2004 was more decreased to 16.5 percent than 2002. Therefore it is studied that they will be diminished to 5---- comparing with last year by a fall in the exchange rate of the won dollar, in the export unit cost and a raise of raw material price. Third, it is researched that most competitive countries of Daegu glasses manufactures is China and the mext county is japan, ltuly and hik. Fourth, It is studied that average price of glasses of Daegu during last three years(2002~2004) was more disadvantageous than China and Hong Kong, but was more profitable than Italy and Japan by the examination that when Korea is 100, China is 82, Hong Kong 89, Italy 112, Japan 114. Fifth, It is investigated that the average of production cost in Daegu is more disadvantageous than that of China and Hong Kong but is more profitable that of Italy and Japan by the study that when average production cost of Korea is 100, that of China is 78 and that of Hong Kong 89, that of Italy 114. Sixth, It is studied that the Average personal expense of Daegu is much more disadvantageous than that of China and more profitable than Japan and Italy by the analysis that when Korea is 100, China is 74, Hong Kong 98, Japan 112, Italy 113. Seventh, It is analyzed that technique, quality, design of Daegu are more advantageous than those of China, are equal with those of Hong Kong. Eighth, It is studied that Daegu still lags behind more four and five years than developed countries and goes more oheod four years than developing countries.

• Journal of Distribution Research
• /
• v.15 no.5
• /
• pp.217-235
• /
• 2010

In franchise industry, territorial restraint is a system that imposes exclusive right to franchisers in a certain business area. To the franchisers, this system guarantees monopoly profits in a local market and exclusive rights during the contract periods. In such a way, franchisee generates a big revenue at once on the basis of franchiser's initial investment such as interior cost and franchise fee, it must have supervised franchiser's moral hazard for the territorial restraint agreement. Rather than territorial restraint can be a system to give exclusive right to franchiser's so that they neglect their own sales and too much rely on headquarter's brand and marketing activities without their own efforts. This paper assesses the implication of territorial restraint by examining the effect on brand extension, degree of contract termination. Drawing on research in transaction cost agreement and opportunism, the authors suggest that franchisee is highly likely to launch similar brand which is not effected on previous contract when territorial restraint is set out in the contract system. Moreover, the authors find that the degree of contract termination will be high in the existence of territorial restraint due to the franchisee's opportunism. The results imply that territorial restraint induces franchisee's opportunistic strategy more aggressively so that the possibility of brand extension or new brand launching will be increased. At the same time, franchisee is aggressively seeking for the reason for contract termination due to the pursuit of its profit maximization. Based on some empirical findings, this paper concludes with policy implications and some necessary fields of future studies desirable.

• Journal of Sericultural and Entomological Science
• /
• no.12
• /
• pp.47-50
• /
• 1970

There are many factors affecting the development of sericultural industry in Korea. The setting of a rational pricing system for sericultural products is one of important activities of the Korean Government to improve the incentives to producers. The determination o： the prices for many years were based on the production costs including a certain level of profits. Some of cost items are in conflict both in cocoon producers and silk-reeling industries. Government officials have to evaluate these conflicting problems and estimate the consequences of their decisions. In this situation the final decision often became political decisions. This analysis is aimed at providing an alternative method of setting the prices of sericultural products. The criteria of the equilibrium employed in this analysis are based on economic principle which equilibrium condition is determined by the relationships between the marginal productivity of input factors and factor prices. In order to obtain the related information Cobb-Douglas'functions were fitted using KIST computer and data were obtained mostly from the Bank of Korea and the Ministry of Agriculture and Forestru, An important assumption is that "Opportunity Costs" of factors input in both cocoon production and silk-Peeling industries are same, The major finding s obtained are as followings. 1) The sum of coefficient of production elastisity in silk-reeling industries is greater than one. Silk-reeling industries are operating under the situation of increasing return to scale and it is, therefore, expected to develop the industries as the capital-intensive large scale. 2) The cocoon producing farmers are under the situations of the decreasing return to scale and it is expected to continue their cocoon farming as the labor-intensive small scale, assuming the present level of production technology. As the development of commercial farming, the resources input in cocoon production will be shifted to the production for higher profitable crops, 3) The price elastisity of production is higher in cocoon production than in silk-reeling industries. It is expected that the price changing effects on domestic production will be resulted from cocoon producers. 4) Based on analysis results of marginal productivities and the opportunity costs of resources, cocoon price for meeting equilibrium price condition is to be increased by 8-16 percent or standard price level of silk increased by 6-8 percent. There were the possibilities of over evaluation on opportunity cost of resources input in silk-reeling industries, or income transfered from the farmers to the industries. It is recommended that the prices for meeting equilibrium price conditions are to be determined by 72 percent for cocoon and 28 percent for silk-reeling costs, based on standard level of the exporting prices.