• IE interfaces
• /
• v.25 no.2
• /
• pp.241-254
• /
• 2012

This paper studies the relationship between SCM(Supply Chain Management) metrics and corporate value (Tobin's Q) for manufacturing and wholesale/retail firms in Korea. Specifically, the multiple regression analysis is used to investigate the relationships 1) between inventory level, inventory turns, and days of inventory and Tobin's Q and 2) between cash-to-cash (C2C) cycle time including its components such as days of inventory, days sales outstanding, and days payable outstanding and Tobin's Q. The results indicate that there exist statistically significant negative relationships between inventory levels and days of inventory (DOI) and Tobin's Q. Also, we found that there exist commonly known negative correlations between days of raw materials inventory and days of work in process (WIP) inventory and Tobin's Q. For the C2C cycle time, we found that there -exists a statistically significant negative relationship between the C2C cycle time and Tobin's Q. Also, we found that there exist commonly known correlations between the two components of C2C cycle time and Tobin's Q such as the negative for DOI and days sales outstanding. This study clearly shows the negative relationship in general between inventory levels and corporate value and between C2C time and corporate value, and this kind of result has not been found by previous studies in Korea.

• IE interfaces
• /
• v.16 no.2
• /
• pp.167-173
• /
• 2003

We attempted to empirically analyze the supply chain performance of Korean companies. We utilized the supply chain performance metric of SCOR(Supply-Chain Operations Reference-Model) which has been developed by the Supply Chain Council. We especially focused on the supply chain asset performance using the currently available accounting database of Korean companies. Cash-to-cash cycle time, inventory days of supply, and asset turns were analyzed for 621 Korean companies during the last 5 year period 1997-2001. We compared the performance by industry type and company size. In addition, we compared the cash-to-cash cycle time of Korean companies with global companies.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.3
• /
• pp.115-125
• /
• 2020

This paper investigates the impact of working capital management on the firm's profitability. The research sample includes 119 non-financial listed companies on Vietnam stock market over a period of 9 years from 2010 to 2018. Two statistical approaches include Ordinary least squares (OLS) and fixed effects model (FEM) are employed to address econometric issues and to improve the accuracy of the regression coefficients. The empirical results show the negative and significant impacts of the working capital management, which measured by cash conversion cycle (CCC) and three components of the CCC including accounts receivable turnover in days (ARD), inventory turnover in days (INVD), and accounts payable turnover in days (APD) on the firm's profitability measured by return on assets (ROA) and Tobin's Q. It implies that firms can increase profitability by keeping the optimization of the working capital management measured by the CCC, which includes shortening the time to collect money from clients, accelerating inventory flow and hold the low payment time to creditors. Besides, the profitability of firms was impacted by the sale growth rate, firm size, leverage, and age. Therefore, this paper provides a new insight to managers on how to improve the firm's profitability with working capital management.

• The Journal of Asian Finance, Economics and Business
• /
• v.6 no.4
• /
• pp.53-63
• /
• 2019

The paper examines the influence of profitability on distance to default (DD) in Vietnam securities market. The investigated sample consists of 211 companies listed on HOSE during 18 years from 2010 to 2017. We apply KMV model to calculate distance to default and use both macroeconomics factors and firm specific factors as independent variables. Using General Least Squared (GLS) method, we find evidence to confirm the positive relationship between profitability and distance to default. This result showed that, although profitability did not directly reflect the cash flow generated, a good profitable enterprise would be an important factor to help facilitate and generate cash flow and at the same time debt was guaranteed when it was due. Besides, the test results revealed that the financial structure and sales on assets have the inverse effect on the distance to default at the significance level of 5%. The results also revealed that a group of macro factors had an influence on the distance to default of businesses, including spread, GDP and trade balance (via exchange rates). Gross domestic income had certain impacts on the distance to default of businesses. This was also a basic indicator measuring the national economic cycle.

• International conference on construction engineering and project management
• /
• 2022.06a
• /
• pp.1106-1113
• /
• 2022

Cost segregation helps reduce tax liabilities by reclassifying real property to personal property and accelerates tax depreciation of a property. A typical cost segregation study requires much time and high costs. This study proposed a BIM integrated cost segregation process that can be applied to any commercial building project. The proposed BIM-based cost segregation process was verified in a new commercial construction project. It approved that this approach can: (1) increase the cash flow for the owner and provide assistance to tax-paying enterprises; (2) enable the contractor to use it as an added value in the bidding process; (3) realize data sharing in a common platform to improve the cost segregation study efficiency and reduce costs and errors; (4) contribute to the asset management in the life cycle of buildings while filling in the blank of cost segregation process. Future studies will focus on the automation of cost segregation and asset management in building construction's life cycle.

• The Research Journal of the Costume Culture
• /
• v.17 no.1
• /
• pp.177-188
• /
• 2009

SCM as the important marketing strategy enhance the firm's efficiency and compatibility in global market environment such as global outsourcing. Firms adopted SCM realized the need to evaluate precisely the performance of SCM. In spite of importance of SCM, there was not much intention and research to measure SCM performance in textile fashion industry. Therefore, the purpose of this case study was to measure performance of supply chain management in textile fashion business using BSC(Balanced Score Card) to measure not only financial perspective but also non-financial perspectives such as customer perspective, internal business perspectives, financial perspective, and innovation & learning perspective. The questionnaire developed by the reviews of the literature was adopted for this study. The results of this study showed that SCM performance was enhanced from the point of customer perspective(cost, quality, time, service), financial perspective(cash cycle time, inventory turn over, inventory obsolescence, return on asset, return on investment, capacity utilization), and innovation & learning perspective(cost for human resource management, service for human resources). But there was same performance level regarding internal business perspective(lead time, cost for manufacturing process, product quality control, productive flexibility for time, quantity, and variety). Therefore, we should keep close relationship and two way communication among supply chain members to promote better SCM performance.

• Journal of Distribution Science
• /
• v.21 no.12
• /
• pp.127-140
• /
• 2023

Purpose: In a situation where the local economy and alley economy are stagnant, efforts to revitalize the role of small business owners need a virtuous cycle system through consumers' consumption power, not just cash support. Research design, data, and methodology: The study site focuses on Daedeok-gu, the first to introduce local currency as a policy. In the case of the store survey, 254 stores out of 300 stores registered with local currency were analyzed, and the consumer survey was conducted on 1,394 out of 1,500 local people using local currency. Statistical analysis was performed using the SPSS. Result: As a result of time-series checking whether local economic activities are carried out smoothly due to the nature of the local currency, the average daily sales of Daedeok-gu increased by 388,980won compared to 2019. This proved through empirical research in the region that local currency played a priming role in bringing opportunities and rehabilitation to the local commercial districts and small business owners. Conclusions: In the monetary function of simply buying and selling value through payment, points supported as incentives can be used as local currency while inducing direct participation in solving social problems, and the concurrent effect of causing problem-solving and regional economic vitality began to sprout.

• Journal of the Korea Institute of Building Construction
• /
• v.11 no.4
• /
• pp.396-406
• /
• 2011

Execution of the finish work for high-rise residential construction occurs when a mixture of work progresses simultaneously at each floor or sector and is carried on by highly-specialized subcontractor teams. Therefore, the finish work plan requires an effective scheduling method that interfaces between the work and the teams. In order to address these issues, the TACT technique is utilized in Korea. This technique is based on Line-of-Balance and Lean construction. However, according to recent case studies, finish work using TACT technique was frequently delayed with cost overruns because the work was performed without a detailed schedule control plan outlining the relationship between architecture and mechanical, electrical, and plumbing work. This paper describes the enhanced-TACT technique which provides a detailed work flow chart and TACT work template. With improved TACT technique, this paper will contribute to improved cash flow and reduced cycle time and provide quality improvement through work continuity.

• Journal of Construction Engineering and Project Management
• /
• v.2 no.4
• /
• pp.42-45
• /
• 2012

In construction industry, the term 'procurement' is considered as a project based job where clients and contractors are always keen to observe performance indicators. These indicators represent financial and non-financial efficiency of project activities. Among these, the monitoring of financial indicators such as cost monitoring is an ongoing process and its importance cannot be undermined during the project life cycle. It can be monitored by using traditional approach of direct reporting of actual cost against budget. However, the comparison of budget versus actual spending does not indicate the worth of the work which is completed at any given time. This approach does not represent the true cost performance of the project. Because of these limitations, this paper discusses the applications of Earned Value Analysis (EVA) for cost monitoring of construction projects in Malaysia. Besides traditional approach, EVA is a three-dimensional approach that compares three cost indicators i.e. the budgeted value of work scheduled with the earned value of physical work completed and the actual cost of work completed. Therefore, cost monitoring by EVA is an objective measure of actual work performed. This paper uses a case study, an example application of EVA as a cost monitoring tool. This case study reaffirms the benefits of using EVA for project cash flow analysis and forecasting.

• New & Renewable Energy
• /
• v.8 no.2
• /
• pp.33-43
• /
• 2012

Why solar companies preferred vertical integration of whole value chain? Major solar companies have built internally strong vertical integration of entire PV value chain. We raise a question whether such integration increases the corporate value and whether market situation affects the result. To test these questions, we conducted multi-variant analysis where characteristic factors mainly affect the corporate value measured in terms of Tobin'Q, based on the financial and non-financial data of PV companies listed in US stock market between 2005 and 2010. We hypothesize that since integration increases the overall efficiency but decreases the flexibility to adjust to various market situation, the combined effect of the efficiency gain and the flexibility loss ultimately determines the sign of integration effect on the corporate vale. We infer that the combined effect will be influenced heavily by business cycle, as in boom market (Seller's market) the efficiency gain may be larger than the flexibility loss and vice versa in bust market. We test whether the sign of combined effect changes after the year of 2009 and which factors influence most the sign. Year of 2009 is known as the year when market shifted from Seller's to Buyer's market. We show that 1) integration increases corporate value in general but after 2009 integration significantly decreases the value, 2) the ratios such as Production/Total Cost, Cash turnover period chosen for reversal of the flexibility measure are negatively affect Tobin's Q and especially stronger after 2009. This shows the flexibility improves corporate value and stronger in the recess period (Buyer's market). These results imply that solar company should set up integration strategy considering the tradeoff between efficiency and flexibility and the impact of the business cycle on both factors. Strategy only based on the price competitiveness determined in boom time can bring undesirable outcomes to the company. In addition, Strategic alliances in some value chains as a flexible bondage should be taken in account as complementary choice to the rigid integration.