• Proceedings of the KSR Conference
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• 2007.11a
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• pp.1951-1966
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• 2007

This research attempts to examine the effects of import penetration in an industry on the firms' decision of business diversification and provide an integrative framework including the determinants and results of the business diversification. The research results are as follows. First, the import penetration doesn't affect the degree of business diversification. Second, the more profitable their core business industry, the lower the degree of business diversification against the import penetration. In addition, both technology-related assets and marketing-related assets are necessary for business diversification when faced with the import penetration. Finally, the inverted U-shaped relationship is supported between the degree of business diversification and firm performance.

• Asia-Pacific Journal of Business
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• v.14 no.4
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• pp.151-161
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• 2023

Purpose - In this study, we examine the factors related to the asset allocation decisions of individual investors who 1) directly invest in stocks or bonds, 2) indirectly invest in various fund products (excluding CMA and MMF), and 3) invest in both products. Design/methodology/approach - We collect a sample of 3,000 individual investors and investigate the factors influencing investment behavior, especially the diversification tendency in asset allocation, with the "Investor Behavior Survey" that is conducted jointly by the Korea Financial Investment Association and the Korea Gallup Research Institute in 2011 and 2012. Findings - Our regression analyses estimate the marginal effects of various factors such as the amount of total financial assets, monthly income, occupation, age, and gender. The results reveal that male investors with manual labor occupations were less inclined to diversify their investments compared to female investors in office jobs. Additionally, higher monthly income is associated with a greater inclination toward diversification. Therefore, if a positive relationship exists between income and educational level, we may suggest that higher educational levels lead to a greater tendency for diversification. Research implications or Originality - Interestingly, investors who engage in direct investments tend to exhibit a weaker diversification tendency as the amount of their direct investment increases. On the other hand, investors who engage in both direct and indirect investments show a weaker diversification tendency as the amount of total financial assets increases. This suggests that the investment style of investors is closely related to their diversification behavior.

• Journal of Korea Trade
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• v.25 no.5
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• pp.74-92
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• 2021

Purpose - Utilizing a large sample of Korean firms, this study examines international diversification impacts on corporate tax avoidance and whether firms affiliated with large business groups (known in Korean as "chaebol") reinforce the relationship between international diversification and tax avoidance. Design/methodology - This paper hypothesizes that 1) international diversification is likely to increase tax avoidance, 2) the positive effect of international diversification on tax avoidance is likely to be more pronounced for chaebol firms. We examine the hypotheses by using Korean firms listed in the Korean stock market between 2011 and 2016. We employ the number of foreign subsidiaries and the entropy index as proxies for international diversification and CASH ETR and GAAP ETR as proxies for tax avoidance. Findings - Our findings are summarized as follows. First, we have found that as firms are more internationally diversified, tax avoidance increases. It means that international diversification can be employed as a method of reducing the tax burden. Second, firms affiliated with chaebol are strengthened by the positive relation between international diversification and tax avoidance. It is interpreted that chaebol firms have more effective opportunities to reduce taxes than other firms. When entering foreign markets, they can share experience and resources to decrease taxation within the large business group. Originality/value - This study provides empirical evidence regarding the tax effect of international diversification. Unlike prior studies, international diversification is positively related to tax avoidance in Korea. In addition, we present additional evidence on the chaebol effects of international diversification on tax avoidance, in which they have an advantage to reduce taxes using transfer pricing through related party transactions, income shifting to low tax rate countries, and establishing subsidiaries in tax havens.

• Management & Information Systems Review
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• v.31 no.4
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• pp.539-557
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• 2012

This study purposes to analyze how the level of diversification affects cost stickiness behavior. Specifically, we document that cost stickiness behavior is bigger in case of firm with a high level of related diversification. The purpose mentioned above are empirically tested using 1,508 firm-year data listed on Korea Stock Exchange from 2000 to 2009 and regression analysis methods were used for the analysis of the research hypotheses. The following are the results of this study : First, the increase in SG&A(selling, general and administrative costs) as sales increases is greater than the decrease in SG&A in respect to the equivalent decrease in sales. Second, cost stickiness behavior is bigger in case of firm with a high level of diversification. Also, cost stickiness behavior is bigger as the level of related diversification increase. These results imply that the level of diversification effects on the cost stickiness behavior.

• Journal of Preventive Medicine and Public Health
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• v.24 no.1 s.33
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• pp.16-28
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• 1991

Service diversification is recognized as an important strategy against turbulent environmental change. This study is designed to find out the trend of service diversification in Korean health care organizations and also to identify factors associated with the degree of service diversification. Data were collected from 69 hospitals out of 71 hospitals with over 300 beds. Important findings are summarized below. 1. Types of diversification are closely related to hospital size. Large hospitals have a tendency to provide sophisticated services requiring specialized skills and equipment, while small hospital have concentrated their efforts on health screening programs. 2. The more competitive and bigger hospitals are, the greater number of services that provide. Also, hospitals operating rational management information systems provide more services. Contrary to the expectation hospitals with a low performance during last 3 years showed more service diversification. 3. A trend of more diversification was observed in hospitals whose chief executive officer used a prospector strategy. 4. A multiple regression analysis revealed that bed size, competitive environment, degree of rational management, and the growth pattern were significantly associated with the service diversification.

• Journal of Information Technology Services
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• v.19 no.3
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• pp.17-34
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• 2020

Recently, various attempts have been made to discover promising items and technologies. However, there are very few data-driven approaches to support business diversification by companies with specific technologies. Therefore, there is a need for a methodology that can detect items related to a specific technology and recommend highly marketable items among them as business diversification targets. In this paper, we devise Labeled Item Network for Business Diversification Consulting Support System. Our research is performed with three sub-studies. In Sub-study 1, we find the proper source documents to build the item network and construct item dictionary. In Sub-study 2, we derive the Labeled Item Network and devise four index for item evaluation. Finally, we introduce the application scenario of our methodology and describe the result of real-case analysis in Sub-study 3. The Labeled Item Network, one of the main outcome of this study, can identify the relationships between items as well as the meaning of the relationship. We expect that more specific business item diversification opportunities can be found with the Labeled Item Network. The proposed methodology can help many SMEs diversify their business on the basis of their technology.

• The Korean Journal of Applied Statistics
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• v.24 no.1
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• pp.1-10
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• 2011

This study investigates the dynamic structure of interdependence on the domestic and related major stock markets by employing a statistical framework. Finance theory predicts potential gains by international portfolio diversification if returns from investment in different national stock markets are not perfectly correlated or not cointegrated. The benefit of international diversification is limited when national stock markets are cointegrated because of the limited amount of independent variation by the presence of common factors. The statistical tests suggest that international diversification appears to be favorable after the period of the comovement of the stock prices caused by 1997 Asian financial crisis. The result reflects the increase in overseas investment and purchase of overseas funds after the early 2000's.

• World Technopolis Review
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• v.1 no.1
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• pp.6-15
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• 2012

Science and technology parks have been popular among policy-makers at several spatial levels to promote innovation and economic growth of certain localities. However, this mainly property-led policy tool has been criticised for two reasons. First, it often failed to successfully support regional networking and technology transfer to regional firms. Only unplanned science and technology parks, such as Silicon Valley, seem to have been successfully fostering regional networking and technology transfer which has led, in turn, to the development of competitive innovative clusters. Secondly, it has too often bet on the same horses and become too specialised in the same fields, such as in micro-electronics or in biotechnology. This specialisation has been theoretically supported by the cluster concept. It has led to both a zero sum game of competition between locations as well as potentially negative path dependence and lock-ins. This paper suggests increasingly supporting diversification in science and technology parks by bringing together hitherto unconnected technologies. Several recently discussed concepts could be used to support diversification, such as related variety (Frenken et al. 2007), regional branching (Boschma and Frenken 2011), regional innovation platforms (Harmaakorpi et al. 2011) and transversality (Cooke 2011).

• The Journal of Industrial Distribution & Business
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• v.9 no.8
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• pp.17-26
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• 2018

Purpose - Indonesian economy often receives negative impact from external factors, particularly through trade linkage. To mitigate that impact, the export market and product diversification should be established. Latin America is one of the potential regions to augment the Indonesian export market. Research design, data, and methodology - This study attempts to classify the potential market and product for Indonesian export, particularly in Latin America, by using panel regression, trade complementarity, and export similarity index over the period 2000-2015. Regression was also used to examine whether the presence of the Indonesian Trade Promotion Center (ITPC) can support diversification. Results - Based on regression results, those indexes established Chile, Uruguay, Suriname, and Ecuador as the priority countries with the products: animal and vegetable oils, fats and waxes; chemicals and related products; miscellaneous manufactured articles; commodities and transactions. Conclusions - The results of the regression concludes that the trade complementarity index gave a significant positive effect to boost Indonesian export, whereas, the export similarity index gave a significant negative effect. The regression also conclude that ITPC gave a significant positive impact on Indonesian export. For instance, the government should prioritize those countries and products and also develop ITPC there to optimize Indonesian export.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.9
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• pp.100-107
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• 2018

This study investigated the effect of corporate international diversification on cost stickiness. A cost behavior that indicates a lower rate of cost reduction when the volume of sales decreases than the rate of cost increase when the volume of sales is increased is called cost stickiness. This cost behavior is caused by decisions made by considering the adjusting costs of the manager, and for corporate international diversification, the decision making on the adjustment cost of the manager has been reduced by the offsetting accruals hypothesis. From the empirical results, we observed that the cost stickiness of international diversified companies decreases. It is expected to contribute to the capital market and academia by identifying whether corporate international diversification can have a significant impact on management decision making related to costs.