• KDI Journal of Economic Policy
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• v.13 no.1
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• pp.167-197
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• 1991

This paper is intended as an introductory essay to explain endogenous changes in the scope of firm activities in the competitive structure of a deregulated, multi-product financial industry. Recently, the global financial industry has been experiencing a widespread reshuffling in its activities, reflecting both consolidation and specialization. The spread of the universal banking system, which involves the integration of various kinds of financial activities, has resulted in the so-called financial supermarket. At the same time, the traditional set of banking activities has been unbundled into so-called financial boutiques. A relevant question is where the current reshuffling process of integration and disintegration in financial activities might lead the financial industry. However, presently popular theories of the financial industry are not really appropriate for the analysis of this issue. This paper attempts to integrate the theory of specialization [George J. Stigler, "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, Vol. LIX, No.3, June 1951] and the theory of the multi-product firm [William J. Baumol, John C. Panzar, and Robert D. Willig, Contestable Markets and the Theory of Industry Structure, Harcourt Brace Jovanovich, Inc., New York, 1982] and to apply the resulting hybrid theory, a theory on the scope of financial activity, to the financial industry. The implications of this theory for the issues raised above are formalized under five hypotheses on the reshuffling of financial activities as listed below: Hypothesis I: The differences in the organization of financial industries among countries are determined by differences in the size of the financial markets, other things being equal. Hypothesis II: A financial firm will separate those financial activities simultaneously having relatively strong economies of scale and relatively weak economies of scope (alternatively, diseconomies of scope) from other activities. Conversely, the firm will integrate those activities simultaneously having relatively weak economies of scale (alternatively, diseconomies of scale) and relatively strong economies of scope with incumbent activities. Hypothesis III: A competitive equilibrium in the deregulated financial industry will consist of both specialized and multi-product financial firms, resulting in a mixed form of specialized and universal banking systems. Hypothesis IV: As world financial markets fully integrate and all countries consequently face this single, common world market, the financial structures of individual countries will become increasingly similar. Hypothesis V: A more universal banking system will dominate the deregulated financial industry in countries with relatively small financial markets, while a more specialized banking system will dominate in countries with relatively large financial markets. However, equilibrium will ultimately be mixed, with specialized and universal banks coexisting, as stated in Hypothesis III. Based on these hypotheses, this paper interprets the historical development of specialized vs. universal banking systems in major industrial countries as a process driven by the evolution of the financial market in each country - i.e. the change in the size of the financial market over time. In addition, this paper anticipates that the final equilibrium of the world financial industry, which is currently under the pressure of financial innovations and deregulation, will be a mixed equilibrium with both specialized boutiques and universal supermarket-type financial firms, instead of an exclusively specialized or universal banking system. Future research should seek continued theoretical elaboration and empirical verification of this paper's hypotheses.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.225-234
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• 2019

The study aims to explore key dimensions of service quality of E-Retailing of Islamic banks in the Kingdom of Saudi Arabia. The convenience sample size consists of 373 respondents who regularly use online Islamic banking facilities in Saudi Arabia was used. For measuring the consumers' perspective, a four-factor E-SERVQUAL scale; namely efficiency, system availability, fulfillment, and privacy was used. Exploratory Factor Analysis and Confirmatory Factor Analysis are used to test the model fitness. Structural equation modelling is utilized to determine the impact of E-service quality dimensions on customers' satisfaction. The results of the study reveal that 1) reliability as a dimension of E-retailing of Islamic banks made a significant impact on customers' overall satisfaction; 2) there is a positive significant relationship between responsiveness and customers' overall satisfaction. One unit increased in responsive leads to 0.763 unit increases in the overall satisfaction of the customer; and 3) ease of use is the most important dimensions of service quality of E-retailing of Islamic banks. One unit increases in Security/ Privacy leads to 0.473 unit increases in overall satisfaction. There is a positive impact of good E-service on customers' satisfaction, but it does not override unsatisfactory performance in other areas.

• The Journal of Information Technology and Database
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• v.7 no.2
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• pp.87-100
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• 2000

The customer loyalty has been decreasing dramatically in e-Business environments such as cyber trading, shopping, banking, and portal services. However, little research has been done so far in order to analysis the newly emerging concept and changing nature of the e-Business customer loyalty. The purpose of this study is to investigate whether the quality of e-Business information systems has any impact on customer loyalty. The quality, which is tee independent construct in this study, is divided into three variables: basic system quality, information contents quality, and service quality. Cyber systems of 40 domestic stock trading firms were chosen as target e-Business information systems Both online survey and traditional field survey were employed in order to collect data, and more than 8,000 cyber customers have responded. The results of statistical analysis show that all of three independent variables have statistically significant effects on customer loyalty and, among three variables, the basic system quality has the strongest impact.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.5 no.6
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• pp.1192-1213
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• 2011

Information security management systems (ISMSs) are used to manage information about their customers and themselves by governments or business organizations following advances in e-commerce, open networks, mobile networks, and Internet banking. This paper explains the existing ISMSs and presents a comparative analysis. The discussion deals with different types of ISMSs. We addressed issues within the existing ISMSs via analysis. Based on these analyses, then we proposes the development of an information security management evaluation system (ISMES). The method can be applied by a self-evaluation of the organization and an evaluation of the organization by the evaluation committee. The contribution of this study enables an organization to refer to and improve its information security levels. The case study can also provide a business organization with an easy method to build ISMS and the reduce cost of information security evaluation.

• The Journal of the Convergence on Culture Technology
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• v.6 no.1
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• pp.455-461
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• 2020

Electronic payment system using Internet banking is a very important application for users of e-commerce environment. With rapidly growing use of fintech applications, the risk and damage caused by malicious hacking or identity theft are getting significant. To prevent the damage, fraud detection system (FDS) calculates the risk of the electronic payment transactions using user profiles including types of goods, device status, user location, and so on. In this paper, we propose a new risk calculation method using relative location of users such as SSID of wireless LAN AP and MAC address. Those relative location information are more difficult to imitate or copy compared with conventional physical location information like nation, GPS coordinates, or IP address. The new method using relative location and cumulative user characteristics will enable stronger risk calculation function to FDS and thus give enhanced security to electronic payment systems.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.21-28
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• 2021

The purpose of this study is twofold. First, this paper argues that a theoretical lens that can connect three crucial concepts is often missing when it comes to assessing the success or failure of corporate reputation in terms of corporate environmental responsibility. These three concepts include the legitimacy of environmental disclosure information, stakeholder interest in corporate environmental responsibility, and the relationship between corporate environmental practices and disclosure. The second purpose is to investigate the roles of transparency and systemic thinking in corporate environmental responsibility and disclosure that could help to connect the information from environmental disclosure to internal information in firms, thereby minimizing conflicting accountabilities and increasing stakeholder engagement in environmental disclosure. Rather than conducting an empirical study, the author has followed a theoretical examination of legitimacy, stakeholder, and stewardship theories. This study, thus, suggests the retention of many theories (e.g. legitimacy, stakeholder, and stewardship) to study and explain the relationship of corporate environmental practices, environmental disclosure, and corporate reputation.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.343-352
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• 2021

This study aims to identify the impact of the audit approach based on business risks (i.e., external environment risk, operations risk, information risk) in reducing unsystematic risks (i.e., operational risk, credit risk, liquidity risk, capital risk, and administrative risk) in Jordanian banks. To reduce the effect of unsystematic risks and, thus, improve banking performance, an audit approach based on business risks has emerged. To achieve the objectives, this study relied on descriptive statistics and the regression approach to study twenty-five Jordanian banks. The researcher used the intentional sampling method represented by employees of the accounting, financial and control departments in Jordanian banks. Seventeen banks contributed to the study, with a percentage of 68%, totaling 356 employees. A questionnaire was designed to obtain the data, and due to homogeneity among the sampling members, a purposive sample was drawn and 300 questionnaires were distributed. The results of the study found a statistically significant effect of the audit approach based on business risks with its combined dimensions on reducing unsystematic risks in Jordanian banks. The results of the study also found a statistically significant effect of the business risk-based audit approach with its combined dimensions on reducing operational risks in Jordanian banks.

• Journal of Digital Convergence
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• v.10 no.1
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• pp.125-133
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• 2012

The volume of electronic banking service via smart phone is expected to increase dramatically under smart convergence environment. Under such circumstances, the effort to establish the mobile electronic banking culture which took a major step forward from the conventional electronic commerce method is essential. It is necessary to standardize the mobile payment infrastructure in order to resolve the initiative conflicts between financial institutions and newly launched non-financial institutions. Furthermore, a domestic and international strategy is required as the number of NFC technology based smart phone transaction business is increased. As various types of business enter the electronic commerce field, efforts to resolve the dissatisfaction of the customers are critical. Additionally, security is one of the significant issue due to the conversation process to open-type operating system. This study surveyed and analyzed the current domestic and foreign status, the problems in Korea, and suggested an effective counterplan and policy, which could be helpful in governments' preparation for electronic commerce policy.

• Journal of the Korean Data and Information Science Society
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• v.28 no.1
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• pp.163-171
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• 2017

With the advance of function of smart phone system and internet services, mobile trade grows more popular in the area of e-business or banking. These environmental changes, it makes the needs of authorized certificates. Authorized certificate is not only important in these days but also future society. In 2015, 27 millions of Korean people used public key certificate, but most of them does not know the details on the public key certificate. Therefore, in this paper, we explain and investigate the characteristics on the public certificate and explain the relation ship between authorized certificate and public key encrytion. By investigating several papers, internet data, newspapers and books, we found the historical changes, substantial aspects, the encryption systems on the authorized certificate. Also we study the pros and cons of authorized certificate. Finally we predict the number of issued authorized certificate for the future society based on nonparametric statistical method.

• The Journal of Information Technology
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• v.5 no.1
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• pp.51-67
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• 2002

Over a period of several years there have been a number of queries raised with the ICC Banking Commission as to the determination, by banks, of what is an "original"document under a letter of credit and the necessity, if my, for such a document to be so marked. So, the ICC Banking Commission Decision on original documents was sent to members in July. This Decision emphasizes the need to correctly interpret and apply sub-Article 20(b) of UCP 500. Consequently, about Hand signed documents, Facsimile signed documents, Photocopies and Telefaxed presentation of documents, Banks examine documents presented under a letter of credit to determine, among other things, whether on their face they appear to be original. Banks treat as original any document bearing an apparently original signature, mark, stamp, or label of the issuer of the document, unless the document itself indicates that it is not original. Accordingly, unless a document indicates otherwise, it is treated as original if it : appears to be written, typed, perforated, or stamped by the document issuer's hand; or appears to be on the document issuers original stationery; or states that it is original, unless the statement appears not to apply to the document presented (e.g. because it appears to be a photocopy of another document and the statement of originality appears to apply to that other document).document).