• The Korean Journal of Financial Studies
• /
• v.10 no.1
• /
• pp.249-269
• /
• 2004

Free cash flow is known as a typical type of agency conflict between managers and shareholders in a firm. The insurance industry, which is not growing, is particularly susceptible to such excessive cash flow. We herein investigate the effects of stock ownership plans on reducing agency conflicts. We adopt undistributed cash flow to proxy free cash flow, and size, default risk, group membership, leverage, investment opportunity, and stock options are selected as explanatory variables. We find that stock option plans are effective(at a 10% level) in reducing free cash flow.

• The Journal of Bigdata
• /
• v.4 no.1
• /
• pp.83-97
• /
• 2019

With sensor and communication technology development, spatial data related to business activities is exploding. Spatial data is now evolving into atypical data about space over three dimensions, away from two-dimensional geographic data. In addition to the Fourth Industrial Revolution, which connects the virtual space with the real space, there is a great opportunity for companies to utilize it. The analysis of recent overseas cases shows that it is possible to analyze customized services by understanding the situation of customers and objects located in the space, to manage risk, and furthermore to innovate business processes by analyzing spatial data. In the future, business innovation that combines spatial data from various sources and real-time analysis of relationships and situations between people and objects in space is expected to expand in all business fields.

• Asia-Pacific Journal of Business
• /
• v.7 no.1
• /
• pp.11-30
• /
• 2016

The study specifically aimed to identify factors affecting business longevity. It focused on knowing how embroidery enterprises managed to persist in the industry for many years despite the competitive business environment. After discovering the significant relationships of such factors to longevity, problems experienced by the enterprise cluster were ascertained in order to come up with recommendations that can be proposed to the enterprise owners. Embroidery entrepreneurs have been experiencing a continuous decline in sales due to lack of innovation and intense competition. In the evaluation of their personal entrepreneurial competencies, they scored low on risk-taking, persuasion and networking, and opportunity seeking; thus, implying that these are their weaknesses. On the other hand, the statistical results of this study say that longevity is a function of the entrepreneur's competencies (i.e., persistence, commitment to work contract, demand for quality and efficiency, information seeking, and systematic planning or monitoring), the generation currently managing the business, competition, and the customer's preferences. These results suggest that these independent variables are significant and are deemed critical to business longevity. Thus, entrepreneurs have to find ways on how to use these competencies as an advantage in reinventing their businesses and in reviving their industry.

• The Journal of Korea Institute of Information, Electronics, and Communication Technology
• /
• v.11 no.3
• /
• pp.215-220
• /
• 2018

This paper limited the participation of large corporations in the mass information market by revising the Software Industry Promotion Act in order to increase business opportunity, equality of opportunity, and capacity building for small and medium sized IT companies. However, it is a fact that the medium and small SW companies have insufficient business capacity and expose various problems such as quality degradation of public information business, inadequate risk management, and deterioration of schedule management. In order to solve this problem, this paper derived the factors of quality deterioration in the system integration project and proposed to carry out the project by using some activities of VISUALIZATION, rigorous test management and Agile Methodology as a solution. Applying these measures to healthcare IT projects developed by midsize / small-sized IT companies has improved communications, improved quantitative progress management and improved project visibility. In addition, it contributed to minimizing defect resolution time, improving the requirement coverage ratio, and shortening unnecessary meeting time.

• Journal of Korea Trade
• /
• v.25 no.3
• /
• pp.21-47
• /
• 2021

Purpose - Offshoring has emerged as one of the major trends in international trade and has become one of the strategies for achieving competitiveness in the global market. In spite of this, the expected gains of offshoring can be offset by hidden costs and risks, such as those associated with the COVID-19 pandemic, the trade war between the USA and China, and the ongoing trade dispute between Korea and Japan. To obviate such business failure and prevent critical business blunders, offshoring strategies that efficiently consider both risk elements and potential wealth creation are urgently need. The first purpose of this study is to contribute to the development of more advanced offshoring strategies to help host countries select the best locations to manage supply chain risks and create unique value. The second purpose is to specifically analyze the current status of Korea and provide Korean companies with implications to be considered when deciding whether to offshore or re-shore. Design/methodology - A Network DEA model was applied to measure the comparative location efficiency of national competencies for offshoring strategy from perspectives of wealth creation opportunities (profitability and marketability) and supply chain risk management. The location efficiencies are compared among a total 70 countries selected from the Global Competitiveness Index (GCI) and globally attractive locations outlined by Kearney (2017). For the secondary analysis of efficiency, a t-test examining the nature of competitive advantage and the level of sophistication in production processes was implemented in three divisions. We then analyzed differences in offshoring performance in terms of the identified national traits. Moreover, Tobit regression analysis is conducted to investigate the correlation between value-added business activities and each divisional efficiency, seeking to determine how each degree of value-added business activity influences the increase in offshoring productivity. Findings - Regarding overall location efficiency for offshoring performance, only the USA and Italy were identified as being efficient as host countries for offshoring, under circumstances of advanced development, such as productivity and risk management. Korea ranks 13th among 70 countries. The determinants of national competitiveness depend on national traits (the nature of competitive advantage and business sophistication). Countries with labor/resource advantages and labor-intensive industries are more competitive in terms of marketability than others. In contrast, countries with strong technology-intensive industries benefit offshoring companies, particularly in the technology sector, with the added advantage of supply chain risk management. As the perception of a value chain is broader in a country, it can achieve both production sophistication and competitive advantages such as marketability and SCRM. Originality/value - Existing studies focus on offshoring effectiveness from a company perspective. This paper contributes to comparing country efficiency in producing core competencies related to an offshoring strategy and also segments countries into three performance-based considerations associated with the global offshoring market. It also details Korea's position as an offshoring location according to national efficiency and competency.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.19 no.3
• /
• pp.13-26
• /
• 2024

This study investigates how entrepreneurial competencies affect firm outcomes for necessity entrepreneurship in Korea. Based on a survey collected from 162 necessity entrepreneurs, this study conducted multiple regression analysis. The statistical results show that founder entrepreneurial competencies, such as risk-taking, tend to be associated with positive outcomes financially as well as non-financially, which suggests that the existing propositions of previous research on the relationship between risk-taking and firm performance can be applied to necessity entrepreneurship as well. Additionally, founder opportunity competencies and resilience increase the likelihood of better financial performance in necessity entrepreneurship compared to others, whereas their effect on non-financial performance is not statistically significant. This indicates that necessity entrepreneurs are likely to focus more on financial performance to survive than on non-financial performance, particularly concerning variables related to sustainability such as the environment and society. The findings of this study contribute to knowledge concerning the role of necessity entrepreneurs' competencies in the performance of their companies.

• Journal of Digital Convergence
• /
• v.20 no.5
• /
• pp.239-251
• /
• 2022

This study tried to understand the structural relationship between public crisis communication, emotional influence, and behavioral intention in a national crisis/risk situation. Based on the results of previous studies and empirical studies, the results of crisis/threat type, crisis/threat response, sentiment (crisis/risk responsibility, strategic risk/risk reflective response), and action intention For tourists who visit tourist destinations, as well as the relationship between crisis and risk communication at the tourist destination and one of the unique emotions of Koreans (crisis threat responsibility, strategic response, and reflective response to crisis threat) The relationship between the outcome variable, behavioral intention, was identified. A theoretical study was conducted on each research concept to achieve the proposed research purpose. Based on this, a questionnaire was drawn up and empirical research was conducted in parallel. Three hypotheses were established, and meaningful results were confirmed according to the results of the hypotheses. When a risky situation occurs, the government, business, and local community will actively respond and respond to it as an opportunity to offset the risk of crisis.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.35 no.2
• /
• pp.212-219
• /
• 2012

This study focus on what methods of MOT are needed and utilized to solve a technical problem in the MOT leading company. We first classified the MOT methods by project life cycle and R&D job quality based on the several discussion with working group. In order to study, the survey was carried out by 168 experts working on MOT practices. Our main research findings are as follows. The level of utilized MOT methods was above average because MOT sector was beginning to represent an increasing share of total R&D business. But the satisfaction level on the MOT majors was below average. The more utilized MOT methods in practices were 'environment analysis and opportunity research,' 'business feasibility,' 'roadmapping,' 'portfolio,' 'technology tree,' 'scheduling,' 'risk management,' 'six sigma,' 'design of experiment,' 'quality control,' 'cost analysis' etc. And the subjects of product realization process were also needed to MOT practice such as 'design for reliability,' 'design for cost,' 'design for performance,' 'design for safety' deeply involved to product quality. Finally, the capability requested to University students were 'problem define and solving,' 'technology planning and strategy,' 'creative thinking.'

• Journal of Information Technology Services
• /
• v.12 no.4
• /
• pp.109-124
• /
• 2013

Recently domestic companies have struggled to deal with different kinds of crisis accrued from various sources. However, their perception on the crisis and crisis management system are extremely vulnerable. In particular, although almost all companies have had many business related crisis, they have tended to ignore the crisis with simply considering it as unlucky and not to approach it provocatively in preparing some preventive measures and turning it into an opportunity due to the lack of recognizing the importance of risk management. In other words, domestic companies have not systematically prepared detailed plans for potential crisis, rather have tended to recognize the importance of having crisis management system after experiencing a detrimental crisis or accident. Furthermore research on the issue has conducted sparsely in the academic world. The purpose of this study was to investigate the differences among types of businesses in terms of the degree of crisis experienced previously, the perception on the importance of crisis management system, the level of crisis management implementation, and the areas of crisis management being focused in the future. Usable data was collected from 201 companies using an on-site survey. Data was analyzed with SPSS 21.0 using some descriptive statistics and a series of ANOVA (One-way Analysis of Variance). Results and implications were provided, along with some future research directions.

• The Korean Journal of Financial Management
• /
• v.24 no.1
• /
• pp.59-83
• /
• 2007

In this paper, we test empirically free cash flows hypothesis about stock repurchase. The main results of this study can be summarized as follows. First, repurchasing firms do not experience a growth in profitability relative to their peer firms. Second, repurchasing firms experience a contraction in their investment opportunity, and so capital expenditures and cash reserves decline after the repurchase. Third, repurchasing firms experience a decline in systematic risk and investments and in their cost of capital. Fourth, the reduction in profitability and cost of capital are sources of the positive market reaction to the repurchase announcement. And the market reaction to stock repurchase announcements is stronger among those firms that are more likely to overinvest. Conclusively, these results support free cash flows hypothesis. When firms experience a decline in profitability, capital expenditures and cash reserves, systematic risk and cost of capital, they decide to repurchase stocks to reduce free cash flows.