• 유통과학연구
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• 제14권12호
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• pp.129-139
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• 2016

Purpose - This paper examines the explanatory power of the agency theory in the determination of cash holdings for Korean retail firms. If the agency theory holds, a firm with strong corporate governance structure tends to have low cash holdings. A strong governance structure makes the CEO of this firm to behave in the interests of shareholders and thus the CEO has low incentive to stockpile cash holdings, which can be easily diverted for the CEO's own managerial purposes. We investigate this relationship between corporate governance structure and cash holdings, by using corporate governance scores as a proxy variable that captures the effectiveness of corporate governance mechanism. Research design, data, and methodology - We adopt the sample of publicly listed retail firms in KOSPI market from 2005 to 2013. Financial and accounting statements are gathered from the WISEfn database. We also use the corporate governance scores published by Korean Corporate Governance Service. The relationship between the corporate governance scores and cash holdings is cross-sectionally estimated based on the ordinary least square method. This estimation method is widely accepted in the existing literature. The sample of large conglomerates, Chebol, and the remainder firms are separately examined as well, to account for the distinctive internal financing environment in these large conglomerates. Results - We mainly contribute to the extant literature by providing empirical evidence against the agency theory of cash policy. Unlike the prediction of agency theory, we confirm statistically insignificant or even positive correlations between the set of corporate governance scores and cash-asset ratios. Almost all the major corporate governance attributes including total score, shareholder rights, board structure, and the quality of information disclosure do not show negative correlations with cash holdings, which poses a strong challenge to the validity of the agency theory in the determination of retail firms' cash holdings. Conclusions - This study presents interesting empirical results with respect to the cash policy in Korean retail firms. Consistent to prior studies, I verify that the agency theory only limitedly explains the level of cash holdings. Future studies may obtain more robust results by examining a longer sample period.

• 유통과학연구
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• 제20권12호
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• pp.13-22
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• 2022

Purpose: The paper contributes to the existing literature on Vietnamese corporate governance and firm performance with a focus on listed family firms and the use of a more suitable econometric framework to analyze firm performance. The study investigates how family firm performance is affected by corporate governance under the standpoint of stewardship theory in Vietnam. Research design, data and methodology: With the use of different measures for firm performance (Tobin's Q, ROA, and ROE), regression models were estimated using Generalized Least Square (GLS) method on a panel data of a total of 113 listed companies during the five-year period from 2015 to 2019. Results: We found that family ownership as the main characteristic of the stewardship theory affects family firms positively. In addition, several other characteristics in corporate governance as board composition (board independence, board audits, and board committees), CEO (age and tenure) and firm characteristics (size, age, expansion, and annual sales) showed significant impacts on firm performance. Our findings also suggest that family firm performance can be either positively or negatively affected based on the characteristics of corporate governance. The findings can help companies evaluate the significance of corporate governance through deciding board structure and the selection of CEOs to match family firm characteristics. It also gives insights for investors, rating agencies, and policymakers for relevant purposes.

• The Journal of Asian Finance, Economics and Business
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• 제8권3호
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• pp.1417-1425
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• 2021

The purpose of this study is to map mineral and coal (Minerba) policies by analyzing the law and producing research novelty on mineral and coal governance policies in Indonesia with the Theory U approach. This study uses a qualitative research with the U theory approach. The results of the SNA analysis indicate that good mineral and coal governance must be carried out at various levels, from micro to macro. First, related to regulations on mineral and coal governance at the macro level. Regulations regarding the management of mineral and coal need to be carried out with a deeper evaluation related to the tax system, licensing system, increased value added and downstreaming and mineral and coal funds. The second is related to the regulation of mining management in the meso level. Third, related to the management of mineral and coal at the micro level, it is necessary to conduct more stringent supervision of the impacts caused by the mining sector of the Minerba. In addition, surveillance is also carried out as per law in order to avoid harmful behavior for both the company and the state. The originality of this research is the theory of U in the Mining Law research.

• The Journal of Asian Finance, Economics and Business
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• 제7권7호
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• pp.149-158
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• 2020

The purpose of this study was to investigate the impact of corporate governance index on the cost of equity in companies listed on the Tehran Stock Exchange. This study collects data from 975 observations during the period 2012 to 2018 to test the hypotheses using multiple linear regression model for the panel data. In this research, the independent variable of corporate governance index comprises of 27 specific corporate governance attributes. The results of hypothesis testing showed that corporate governance has a negative and significant effect on the rate of capital cost. In other words, the quality of corporate governance can lower the rate of capital cost. This result suggests that, by using a powerful corporate governance system and by declining the information asymmetry (increasing transparency) and agency conflict, we would be able to enhance the quality of financial reports. It would strengthen the capital market, attract financial suppliers and investors, and absorb the required financial resources of the firm by a lower rate. The findings of the study suggest that companies are able to reduce the cost of equity by establishing strong corporate governance. This conclusion suggests the importance and effectiveness of corporate governance in the cost of equity.

• 한국유통학회지:유통연구
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• 제1권1호
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• pp.83-107
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• 1996

The concern of external environment is growing up in the field of channel distribution. In the former channel distribution, the channel distribution environment is little bit unmoveable owing to a powerful manufacture control against poor distributor. Therefore intra-efficiency is channel member's core interest. The structure of channel governance, however, come to be changable because of the mature distributor power against manufacturer such as a Price Break, JIT of channel governance, and a serial of change. Accordingly, it is acceptable that the interest of external-environment of channel members' is more and more enlarged, and external-environment change in the channel distribution make the serious problems in intraorganizational system. Thus, it is meaningful that this study try to discover the consumer power as external environment factor and to find the best strategy to overcome this consumer power. Resource dependence theory, Transaction cost theory, Political Economic Approach, and Working partnership Approach are the theory foundation of the reasearch. Apparel franchise is a sample to analyse the hypothesis and correlation and multi-regression are a chief tools to estimate the hypothesis. Thus, the above results imply that a flexible governance is appropriate to consumer power, conflict is not intervening value between consumer power and channel governance, and the channel member's satisfaction can be confirmed in the flexible governance better than control governance.

• Journal of Public Diplomacy
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• 제2권1호
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• pp.1-5
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• 2022

Throughout the six decades evolution of the public diplomacy concept, international relations approaches have remained at the margins of the field. An important international relations theory that has been virtually non-existent in the public diplomacy literature is the English School of international relations. This theory has been the centerpiece of literature in diplomatic studies, but curiously, has not been applied to public diplomacy. In this editorial, I outline a public diplomacy framework for global governance issues that builds on the English School and Pamment's framework on the intersection of international development and public diplomacy.

• 한국IT서비스학회지
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• 제9권4호
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• pp.1-18
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• 2010

Plural governance system in which firms use vertical integration and market governance simultaneously are widely used across various marketing context. Typical examples of plural governance include franchise systems, in which firms own and operate some unit themselves while licensing the operation of some of their units to franchisees. Despite many scholars have attempted to explore the structure of plural governance over decades, there are few insights into its determinants. In this study, we examine the relationship between the proportion of outlets franchised and several franchisor's characteristics based on the perspectives of transaction cost analysis, resource scarcy theory and agency theory. Using franchisor data in Korean Franchise Disclosure Document over the 2006-2009 period, we test the effect of franchisor size, system growth rate, franchise fee, initial investment, and risk sharing on the proportion of outlets franchised. Except for the effect of system growth rate, the results of a series of multiple regression analysis supported the negative effects of franchisor size, franchise fee, initial investment and risk sharing on the proportion of outlets franchised.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.69-79
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• 2021

Good Corporate Governance (GCG) has been implemented by companies, especially companies that have gone public. However, many local companies still have not applied the principles of GCG. This study examines the implementation of the CG concept which is not fully implemented in family businesses in Indonesia. Besides, this research also aims to find out the role of the Internal Audit function in enhancing GCG practices. This research is a qualitative study that uses in-depth interviews, observation, and data triangulation, to gather evidence from exploratory case studies conducted in three family business firms. The results of this study found that CG is essential for the successful run of family businesses. After analyzing the data, we developed a new theory called Islamic Integrity Governance. The Internal Auditor plays a key role in improving GCG and a vibrant and agile internal audit function can be an indispensable resource supporting sound corporate governance. The internal auditor provides objective assurance and insight on the effectiveness and efficiency of risk management, internal control, and governance processes. Therefore, the Internal Auditor is an important pillar for effective and efficient GCG implementation. This theory concludes several concepts such as THTCL (Trustworthy, Honest, Transparent, Creative, Loyal). Internal auditors are needed because the concept of control is useful for improving GCG in business.

• The Journal of Asian Finance, Economics and Business
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• 제7권8호
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• pp.15-23
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• 2020

Based on the theoretical underpinnings of the agency theory and liquidity theory, the purpose of this study is to show how managers who want to enhance the performance of Pakistan's non-financial sector can use liquidity policy in relation to corporate governance. Nowadays, Pakistan is facing a severe liquidity crisis; this study contributes by examining the mediating role of liquidity on the link of corporate governance-performance. We use data from 63 firms from 2010 to 2018, excluding 17 outliers. To analyze the data, we use the Seemingly Unrelated Regression (SURE) model and nlcom-Stata test. Our findings support the mediating role of liquidity on the link between corporate governance and performance. In addition, the results show that corporate governance improves performance. Furthermore, the study supports a significant positive association of liquidity and performance. For robustness, we use two performance variables - return on assets (ROA) and Tobin's q (TQ) - where ROA represents full mediation and TQ indicates partial mediation. This study helps to use liquidity policy to strengthen the inside and outside dimensions of corporate governance mechanisms that improve the performance of firms. Overall, these findings suggest better disclosure, transparency, and solutions to auditing issues that add value to the firms.

• 산업경영시스템학회지
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• 제41권3호
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• pp.11-20
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• 2018

Recently companies have increased the new projects to improve and innovate the business process in order to adopt the advanced technologies such as IoT (Internet of Things), Big Data Analysis, Cloud Computing, mobile and artificial intelligence technologies for sustainable competitive advantages under rapid technological and socioeconomic external environmental changes. However, there are obstacles to achieve the project goals, corporate's strategy and objectives due to various kind of risks based on characteristics of projects and conflicts of stakeholders participated on projects. Hence, the solutions are required to resolve the various kind of risks and conflicts of stakeholders. The objectives of this study are to investigate the impact of the project governance, agency conflicts on the project success based on agency theory by using the statistical hypothesis testing the relationship among those variables. As a result of hypothesis testing, we could find that the project governance impacts positively on project success and negatively on the agency conflicts. Further, the agency conflicts impacts negatively on the project success. Finally, we could find that the agency conflicts such as goal conflict, different risk attitude and information asymmetry between project manager and team members impact negatively on the project success. Meanwhile, the project governance impact positively on the project success, negatively impact on the agency conflicts such as goal conflict, different risk attitude and information asymmetry between project manager and project team members. In order to increase the project success rate, the project governance institutions such as PGB (Project Governance Board), EPMO (Enterprise Project Management Office), PSC (Project Steering Committee) are needed to prevent or reduce the agency conflicts between project manager and team members.