• International Commerce and Information Review
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• 제1권1호
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• pp.3-24
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• 2008

This paper examines the corporate parent effect on the diversification strategies of triad and Asian subsidiaries in the ASEAN region. I find that triad subsidiaries tend to participate in high technology intensive industries, and are more likely to diversify. In addition, I also find that the subsidiary diversification strategy is significantly affected by the number of affiliations under the same corporate parent that perform the same or different activities in the region. These results shed light on the influence of corporate parent on subsidiary-level strategy and the role of the subsidiary within an economically integrated region. Various implications are discussed.

• International Journal of Advanced Culture Technology
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• 제10권3호
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• pp.202-209
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• 2022

This study investigates the association between corporate international diversification and audit fees and audit hours. Korean firms' overseas investment has rapidly increased in recent years and the trend of international diversification is expected to accelerate in the future. Thus, it is important to investigate how auditors respond to globally diversified firms. Our empirical findings show that internationally diversified firms incur higher audit fees and audit hours. This suggests that auditors perceive global diversification as being a higher business risk and require higher external audit fees so that they can decrease audit risk arising from inherent organizational complexity. Further, auditors expand audit procedures to collect more audit evidences, exerting increased audit effort. This study provides empirical evidences that corporate global diversification results in higher audit fees and audit hours. Auditors may refer to these results when planning their audit and determining audit fees and audit hours.

• 4차산업연구
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• 제1권2호
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• pp.21-32
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• 2021

Purpose - International diversification, a critical issue in research and practice, undoubtedly represents a growth strategy with great potential impact on firm performance. Although the literature has widely examined the relationship between international diversification and firm performance in international business and strategic management research, it remains unconfirmed. This study, therefore, aims to clarify the relationship as it relates to information service firms. Research design, data and methodology - To examine the international diversification-performance relationship, this study uses a sample of major Korean service firms spread over four industries spanning a period of five years between 2005 and 2009. In this study. generalized least square was used to analyze the relationship between international diversification and performance of service firms. Result - The result showed the U-shaped curvilinear form between international diversification and performance in service firms. Especially, IT service firms may differ from other service firms that the negative effect of internationality may have weaker than other types of service firm. Conclusion - Based on the empirical results, the U-shape relationship between international diversification and performance is confirmed in Korea service firms. Furthermore, information service firm may reduce the initial internationalization cost by transferring codified and digitized information using information and communication technology, so that gain benefit from early international expansion.

• 한국IT서비스학회지
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• 제19권3호
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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 Journal of Asian Finance, Economics and Business
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• 제7권11호
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• pp.647-656
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• 2020

This study empirically examines the effect of ownership structure on bank diversification and risk-taking behavior. The population of this study is based on all commercial banks listed in Bangladesh. Thirty-two conventional commercial banks were randomly selected from thirty-three conventional banks for this study. Data was collected from the annual reports of the concerned banks from 2000 to 2017. To analyze the data, we had applied the two-stage least squares (2SLS) estimator. The results of the analysis show that ownership structure i.e. managerial ownership, institutional ownership, general public ownership, and ownership concentration have a significant negative impact on bank diversification. On the other hand, institutional ownership, managerial ownership, and general public ownership have a significant positive impact on Z-score, and ownership concentration has an insignificant but positive impact on the Z-score of banks in Bangladesh. Therefore, the study opposes the benefits of diversification and promotes ownership structure which is capable of ensuring better financial stability by reducing the probability of risk. The policy-makers especially, Bangladesh banks should evaluate the fact of this study to issue guidelines on corporate governance, bank diversification, and risk-taking behavior of commercial banks.

• 한국철도학회:학술대회논문집
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• 한국철도학회 2007년도 추계학술대회 논문집
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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.

• Journal of Korea Trade
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• 제25권5호
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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.

• World Technopolis Review
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• 제1권1호
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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).

• 한국건축시공학회지
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• 제21권4호
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• pp.319-331
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• 2021

본 연구는 베리-허핀달 지수를 활용한 글로벌 주요 국가의 해외건설 지역별 및 공종별 다각화 및 다변화 지수를 분석하였다. 분석결과, 글로벌 설계 및 시공기업의 해외비중이 높고, 공종별 및 지역별 다각화 정도가 높은 국가들은 유럽 선진 국가들이 대부분을 차지하고 있다. 한국은 시공기업의 공종별 전문화를 통한 다각화를 추진하고 있고, 설계기업은 공종별 및 지역별로 전문화 및 일부 지역에 편중되어 있다. 향후에는 한국의 글로벌 건설기업은 선진국과 같이 해외사업 지역 다변화 및 공종 다각화로 해외경쟁력을 강화할 필요가 있다.

• 유통과학연구
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• 제21권3호
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• pp.71-82
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• 2023

Purpose: This study examines the distribution of income diversification in improving the financial sustainability of private universities amidst difficulties in operational funding during the Covid-19 pandemic with IT Capability moderation. Research design, data and methodology: Closed survey aimed at 468 financial sector leaders from 189 private universities in ten provinces in Indonesia. Results: All income diversification activity variables have a significant positive effect on financial sustainability. In the analysis of liquidity indicators, there are two activities that have a significant positive effect, namely goods and services (β=0.337) and profitable financial management (β=0.124). Furthermore, the results of the solvency indicator test obtained significant positive results in Goods and Services Activities (β=0.337), Commercial Intellectuals (β=0.161), Commercial Contracts (β=0.103), and Profitable Financial Management (β=0.147). The results of the test of higher education growth indicators on three activities have a significant positive effect, namely Goods and Services (β = 0.290), Endowments (β = 0.158), and Commercial Contracts (β = 0.134). The results of the moderation test conclude that IT Capability strengthens the effect of income diversification on financial sustainability. Conclusion: The results of the study as a recommendation for private universities in developing income diversification with information system technology-based management.