• 산경연구논집
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• 제11권1호
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• pp.39-47
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• 2020

Purpose: This study investigated the effects of valuation errors on the capital market through the earnings forecasting errors of financial analysts. As a follow-up to Jensen (2005)'s study, which argued of agency cost of overvaluation, it was intended to analyze the effect of valuation errors on the earnings forecasting behavior of financial analysts. We hypothesized that if the manager tried to explain to the market that their firms are overvalued, the analysts' earnings forecasting errors would decrease. Research design, data and methodology: To this end, the analysis period was set from 2011 to 2018 of KOSPI and KOSDAQ-listed markets. For overvaluation, the study methodology of Rhodes-Kropf, Robinson, and Viswanathan (2005) was measured. The earnings forecasting errors of the financial analyst was measured by the accuracy and bias. Results: Empirical analysis shows that the accuracy and bias of analysts' forecasting errors decrease as overvaluation increase. Second, the negative relationship showed no difference, depending on the size of the auditor. Third, the results have not changed sensitively according to the listed market. Conclusions: Our results indicated that the valuation error lowered the financial analyst earnings forecasting errors. Considering that the greater overvaluation, the higher the compensation and reputation of the manager, it can be interpreted that an active explanation of the market can promote the accuracy of the financial analyst's earnings forecasts. This study has the following contributions when compared to prior research. First, the impact of valuation errors on the capital market was analyzed for the domestic capital market. Second, while there has been no research between valuation error and earnings forecasting by financial analysts, the results of the study suggested that valuation errors reduce financial analyst's earnings forecasting errors. Third, valuation error induced lower the earnings forecasting error of the financial analyst. The greater the valuation error, the greater the management's effort to explain the market more actively. Considering that the greater the error in valuation, the higher the compensation and reputation of the manager, it can be interpreted that an active explanation of the market can promote the accuracy of the financial analyst's earnings forecasts.

• 유통과학연구
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• 제18권2호
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• pp.99-108
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• 2020

Purpose: This paper investigated the relationship between market competition and firm valuation error. Furthermore, Additional analyses were made according to the quality of financial reports and the listed market. Through the process we confirm to the impact of competition on the capital market. The purpose of this study is to analyze the impact of competition on valuation errors. The preceding studies did not provide a consistent results of the effects of competing functions on the capital market. One view is that the competition could mitigate the information asymmetry, and the other is that monopolistic lessens the manager's involvement in financial reporting. This study is intended to expand the prior study by analyzing the impact of competition on the capital market and on the valuation of investors. Research design, data, and methodology: The analysis was conducted on 12,031 samples over 11 years from 2008 to 2018 using data from market in Korea. Here the valuation error was measured by the research methodology of Rhodes-Kropf, Robinson and Viswanathan (2005), and competition measured by Herfindahl-Hirschman Index multiplied by (-1), and Concentration Ratio by (-1). Results: We confirm that the positive relationship between competition and the valuation error. In addition, we also found that the positive relation between competition and valuation error was in cases of low discretionary accruals and the KOSDAQ market. This means that the net function of competition does not mitigate valuation errors. Conclusions. This study has the following contributions when compared to prior research. First, the relevance between the level of competition and the valuation of the entity was confirmed. The study by Haw, Hu and Lee (2015) suggested that monopolistic industry of analysts' forecast is more accurate due to lower the variability in earnings. This study magnified it to confirm that monopolistic lessen information uncertainty in valuation. Second, the study on valuation errors was expanded. While the study on the effect of valuation errors on the capital market is generally relatively active, it is different that competition degree has analyzed the effect on valuation errors amid the lack of research on the effect on valuation errors.

• 아태비즈니스연구
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• 제15권3호
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• pp.287-307
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• 2024

Purpose - This study was a study on managerial overconfidence and valuation errors to verify how the increase in managerial overconfidence affects valuation errors. Design/methodology/approach - Managerial overconfidence propensity refers to managers having excessive confidence in their position or ability (Hayward and Hambrick, 1997; Park Jin-hee, 2021) and was measured according to Schrand and Zechman (2012). Valuation error refers to a situation where a company's actual stock price differs from its intrinsic value as a result of numerous information asymmetries in the market, and was measured using the measurement method in Rhodes-Kropf et al (2005) study. The sample of this study used companies listed in the capital market for a total of 12 years from 2011 to 2022. Findings - As a result of the verification, there was a significant positive (+) relationship between managerial overconfidence and valuation errors, and this relationship was alleviated as the percentage of foreign shareholders shares or the number of financial analysts they followed increased. It can be interpreted that when the information demands of investors, such as foreign shareholders and financial analysts, increase significantly, managers provide more information to meet investors demands, thereby reducing information asymmetry and leading to a decrease in valuation errors.. Research implications or Originality - Previous studies on overconfidence, among the cognitive characteristics of individual managers, have yielded mixed results. In this study, we conducted a direct empirical analysis of managerial overconfidence using a measure called valuation error, which evaluates numerous information asymmetries in the capital market. This is expected to help stakeholders in the capital market understand the characteristics of managers and recognize their importance. It can also be used as a basis for establishing policies to reduce valuation errors.

• 기술혁신학회지
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• 제3권2호
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• pp.1-13
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• 2000

This paper maps the overall features of technology valuation through a conceptional framework. The framework is composed of 4 dimensions such as basic, compositional, technical and behavioral dimension. At basic dimension, what is value and what is technology are discussed. The valuation of technology or the valuation of other assets are compared at the compositional dimension. The techniques of the valuation of technology and its difference with the valuation methods of other assets are examined at the technical dimension. The effectiveness, possibility and error of valuation are discussed at the behavioral dimension.

• The Journal of Asian Finance, Economics and Business
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• 제6권4호
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• pp.83-90
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• 2019

The purpose of this study is to test the effect of business strategy on valuation error. Business strategy includes managerial decision making and managerial tendency. In previous research, there is a negative relationship between business strategy and accounting quality. In this study, we try to confirm whether strategy tendencies affected valuation errors. In order to confirm empirically between business strategy and overvaluation, we use 8,117 firms that between 2006 and 2017 and listed in KSE and KOSDAQ. We calculated business strategy which is introduced by Bentley, Omer, and Sharp (2013). We also used the overvaluation method introduced in Rhodes-Kropf, Robinson, and Viswanathan (2005). The results show that the more the leading business strategy is, the greater the value error becomes. In the case of dividing into leading and defensive companies, the lead firms showed a significant positive correlation with the valuation errors, while the defensive firms showed the negative relationship with overvaluation. This study examined the business strategy and the overvaluation. we confirmed whether the management strategy deepens the evaluation error caused by the firm characteristics. The results are meaningful that we extended the study on the quality of financial reporting of leading strategic firms.

• 유통과학연구
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• 제18권5호
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• pp.5-13
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• 2020

Purpose: The aim of this article is to test the link between growth of loan distribution and Bank Valuation in Vietnam's banking sector. At the same time, the study also compared the differences in the effect of growth of loan to valuation bank in banks of different sizes, ownership rates and bank values. Research design, data and methodology: With panel data estimation techniques along with robust standard error for a sample of the banks listed on Vietnam stock exchange from 2012 to 2019. Results: Growth of loan has a positive impact on Bank Valuation (by Tobin's Q). A closer investigation provides evidence for the differential valuation effect of loan growth depending on different features of banks. Specifically, loan growth is found positively and significantly associated with Bank Valuation in small and non-state-owned banks only. Besides, bank size, deposit, and return on equity are found negatively associated with Tobin's Q, while loan loss provisions exhibit a positive relation with this measure of Bank Valuation. Conclusions: These findings provide contributions to the literature on the existence of the effect of loan growth on Bank Valuation. At the same time, the study also provides practical implications for policy makers in banks and investors.

• 한국게임학회 논문지
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• 제14권4호
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• pp.67-74
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• 2014

초기 온라인 게임 개발사의 기업가치를 평가함에 있어서 실물옵션이 효과적이라는 것은 이론적으로나 실증적으로 이미 밝혀진 바가 있다. 하지만, 실물옵션 방법론 역시도 비재무정보를 효과적으로 반영하는 데에는 한계가 있기 때문에 이를 효과적으로 반영할 수 있는 수정 실물옵션 방법론이 이론적으로 제안된 바가 있다. 하지만, 이에 대한 실증 연구가 미비해서 그 효과성을 검증하는 데에는 한계가 있었다. 따라서 본 연구는 사례 연구를 통해 수정 실물옵션 방법론이 초기 게임 개발사의 가치를 효과적으로 측정할 수 있는지에 대해 검증하고자 하였다. 분석 결과, 수정 실물옵션 모형은 초기 단계의 게임 개발사의 비재무적 정보를 모형 내에 효과적으로 반영하며, 이로 인해 예측 오차를 크게 감소시키는 것을 확인할 수 있었다.

• 한국소프트웨어감정평가학회 논문지
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• 제15권2호
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• pp.95-100
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• 2019

본 논문에서는 리눅스 OS의 소프트-RAID 시스템에서 발생된 오류를 간단한 하드웨어를 이용해 보고하는 방법을 제시하였다. 제시한 방법은 다른 보고 방법들에 비해 로그-인 과정이나 홈-페이지 접속 등과 같은 별도의 액세스 과정 없이 직관적으로 오류상태를 표시하며, 특히 서버에서 오류상태를 능동적으로 표시함에 따라 관리자가 즉시 조치를 취할 수 있는 특징을 지니고 있다. 제시한 방법의 효과를 확인하기 위해 실험 장치를 구성하고 실험한 결과 저장장치에서 이상이 발생한 경우 능동적으로 오류사실을 표시함을 확인하였다. 이와 같이 소프트-RAID 시스템이 하드웨어 RAID 시스템과 거의 유사한 기능을 수행할 수 있으므로 저렴한 가격으로 서버의 데이터 안정성을 확보할 수 있다.

• 한국소프트웨어감정평가학회 논문지
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• 제16권2호
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• pp.69-76
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• 2020

본 논문에서는 오류 수정 난이도를 나타내는 지표인 오류 수정 시간을 사용하여 소프트웨어 최적 출시 시점 결정 문제를 연구하였다. 특히 기존의 오류 수정 시간을 고려한 소프트웨어 신뢰도 성장 모델에서 오류 발견 시간과 수정 시간이 독립적이라는 가정을 수정하고, 오류 발견 시간과 수정 시간의 상관관계를 표현할 수 있는 일반적인 프레임워크 모델을 설정하여 소프트웨어 최적 출시 시점을 결정해 보고자 하였다. 그 결과 테스트 초기에 수정 시간이 걸리는 오류를 발견하는 것이 경제적인 관점에서 중요하다는 것을 알 수 있었다. 최적의 소프트웨어 출시 시점을 결정하는 데에 있어서 오류발견시간과 오류수정시간의 상관관계를 분석하는 것이 매우 중요하다는 결론을 얻을 수 있었다.

• 대한안전경영과학회지
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• 제6권2호
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• pp.1-9
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• 2004

The chemical factory deals with dangerous element and more advance, human-error analyzes and becomes effective research for the country and region. This paper analysis the form of work-miss on human-error according to a safety accident for domestic chemical factory from 1999-2002. It include the present contents and raise issues human knowledge, behavior, judgment, sensibility as an important counter plan that makes the safety solution of work miss. For the point of view of human knowledge, it takes color standard for works to be effective in work place. For behavior, the test has been for risk Point of work place and infra worker movement, also the workers performed professional work as classify according to work. For judgement, the valuation sheet is reflected to minimize the human-error and the 3rd supervisor does a cross-check audit beforehand. For sensibility, it is applicable for human relations, information, communication by program to the consciousness and an attitude of worker-supervisor.