• Journal of Distribution Science
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• v.17 no.10
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• pp.41-48
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• 2019

Purpose - This study investigates whether financial analysts consider the intangible investment implicit in selling, general, and administrative (SG&A) expenditures to forecast firms' future earnings. Research design, data, and methodology - Using 52,609 U.S. firm-year observations spanning 1984-2016, this study examines the association between the Intangible investment implicit in SG&A expenditures and properties of analysts' earnings forecasts. To estimate the Intangible investment of SG&A, I decompose SG&A excluding R&D and advertising expenditures into maintenance and investment components following Enache and Srivastava (2017). Results - The main results show that analysts' earnings forecast errors and dispersion in analysts' forecasts increase with the intangible investment derived from SG&A because the investment component of SG&A affects future earnings and the uncertainty of those earnings. However, these results are weakened in the wholesale and retail industries where firms have a higher level of investment component of SG&A. I attribute the weaker results to low R&D expenditures in those industries. Conclusion - This study indicates that financial analysts incorporate the intangible investment of SG&A into their earnings forecasts differently across firms and industries. Furthermore, this study supports the argument for the separate reporting of the investment nature of SG&A from other operating expenses such as maintenance nature of SG&A.

• Journal of the Korean Society of Safety
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• v.14 no.2
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• pp.140-147
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• 1999

Currently, the consumer pattern is directed to small quantity and high variety these days. World market is led by technological innovations and changes rapidly. To survive in this environment, the raising of small and medium enterprises is highly desirable. In the context of nationwide restructuring, competitive medium and small industries which are in good financial status should lead the nation's economy. But general ignorance of the safety issues could lead to a miss management of this industry in this field. In this study, actual condition and improvement of safety management are as follows; We have to 1) find out the factors which endangers this industry, and set a proper guideline for safety management. 2) encourage safety management of these industries by themselves, and advertise and provide technical support for using PC and internet. 3) set a higher standard of safety issue when accrediting a prospective medium and small industry, and have a firm control of this issue once accredited. 4) supply more governmental financial aids to terms of safety issues for medium and small industries.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.990-994
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• 2009

With the world in financial recession, the general trend of global trade is declining. As a result, the world leading shipbuilding industries are confronted with an even more difficult task of mitigating various risks associated with the industries. How well the three shipbuilding industries, Japan, Korea and China, can adapt and manage the risks will be crucial. As the youngest of the top three, the Chinese industry faces greater risks. As it happens to share many factors with that of South Korea in 2004-2005, it is necessary to review and evaluate the risk management plan used by South Korea. This paper presents an evaluation of the risk management plan for shipbuilding industry in South Korea during 2004-2005, considering the financial and political environments at that time. This will help us to structure a plan of risk management for the future.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.1
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• pp.133-142
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• 2022

This study examines the relationship between debt maturity structure and bankruptcy risk. There are various studies of leverage's effect on bankruptcy risk. Debt maturity, however, has not received the attention it deserves, especially in emerging markets with a high degree of information asymmetry. Using Vietnamese listed company data and various estimations, we find that leverage is positively associated with the likelihood of default. Importantly, short-term leverage shows a significantly positive effect on bankruptcy risk, while long-term leverage does not show significant results. The findings highlight that rollover risk firms are exposed to when using short-term debt increases bankruptcy risk. Meanwhile, firms do not cope with this risk in case of long-term debt adoption. High information asymmetry in emerging markets may be the main reason for the difference. The result is robust for subsamples of firms in different financial conditions, in concentrated and competitive industries, as well as for manufacturing and non-manufacturing companies. We also find that firms in a better financial situation and concentrated industries experience a higher short-term leverage effect than their counterparts. We, however, do not find a significant difference in the impact between manufacturing and non-manufacturing companies. This paper is among the first to examine the relation between debt maturity and bankruptcy risk in Vietnam.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.75-87
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• 2020

This paper aims to not only investigate the nature of financial security and its measurement, but also to compare financial security level in 629 listed companies divided into four different industries (materials, industrials, health care, and consumer goods) before building a theoretical framework and regression models to examine the determinants of financial security. By gathering 2,167 financial statements published in Vietnamese Stock Exchange during eight years from 2012 to 2019, with the support of STATA, the research results indicate that six different internal factors, which are liquidity, profitability, firm size, debt management ratios, asset management ratios, and cash flows, explain 77.7% the change of financial security ratio and 3.4% the change in sustainable growth ratio. Specifically, while firm size has a positive impact on sustainable growth ratio but a negative impact on financial security ratio, deb management and profitability have an insignificant influence on the financial security level. Furthermore, an increase in asset management ratios would result positively in both two dependent variables whereas a rise in sustainable growth and a decline in financial security ratio are expected to witness if there is an increase in cash flows.

• Journal of Industrial Convergence
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• v.1 no.2
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• pp.81-94
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• 2003

This study is an empirical analysis of causal relationship that is the effect of strategic importance and orientation of electronic commerce system on performance. Among four industries(financial, retailing wholesaling, service, and manufacturing), financial industry has high level of strategic importance and orientation, that of manufacturing industry is low level. strategic importance has highest effects on strategic orientation. strategic importance and orientation has a positive effects on internal, financial performance significantly. effects of strategic orientation on performance is much than that of strategic importance.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.25 no.1
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• pp.181-195
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• 2015

Financial industries have operated internal and external network with an unified system for continual business process of customers and other organizations in the past. The financial supervising authority requires more technical and managerial protecting policy to financial industries related to the exposure as danger of external attacks or information leakage. Financial industries performed network separation into internal business and external internet networks for protecting IT assets from malware infection accessing internet or hacking attacks and prohibiting leakage of customers' personal and financial information following financial supervising authority and redefine security policy to fit on network separated-condition. In this study, effectiveness for network separation policy was examined on malware inflow and verified that malware inflow in all routes can be blocked by the policy with analyzing operration data of a financial company, estimating network separation. Result of this study proves that malware infection route by portable storages was not completely blocked even on adapting network-separated condition. As a solution for this, efficient security policy would be suggested in this paper as controlling portable storages for maximizing effectiveness of network separation.

• Journal of the Korean Society of Systems Engineering
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• v.19 no.2
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• pp.1-17
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• 2023

This study aimed to examine the characteristics of ESG activities among major domestic companies in the carbon-emitting industry compared to industries with lower emissions, as ESG has emerged as a significant agenda across various industries. Departing from the traditional focus on the "why" of ESG, which primarily centers around financial performance, this research sought to uncover the "how" of effective ESG management in domestic companies. The analysis involved studying the sustainability reports of 124 companies using the Global Reporting Initiative (GRI) indicators and comparing high-emitting and non-high-emitting industries. The findings revealed industry-specific patterns in companies' ESG activities, providing valuable insights for future ESG evaluations and assessments. Furthermore, the advancement of rating analysis methods holds implications for ESG rating agencies and financial authorities in terms of policy-making.

• Journal of Information Technology Applications and Management
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• v.21 no.3
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• pp.119-133
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• 2014

Prior to the 2000s, internal control had not been among the high priority issues in the management's agenda. Since then, however, it has become one of the hottest issues, and has received a significant attention as the means of improving the transparency, sustainability, and competitiveness of a company. The objectives of this paper are to examine if there has been any noticeable changes in the level of internal controls of Korean companies before and after the 2010, and to analyze the underlying drivers and issues thereto. Accounting manipulation and moral hazard were among the factors to cause the Korean financial crisis in 1997 and 2008. Since then, the capital market has had a strong pressure on Korean companies to enhance the transparency of management and accounting while the government has made the laws, requirements, and recommendations to alleviate the moral hazard problems of management and enhance the accounting transparency. Both market and government have driven companies to put more priority on the reliability of financial reporting and the compliance of applicable laws and regulations. Thereby, the market and governmental forces has led companies to enhance the level of internal controls which contribute to the reliability of financial reporting and the compliance The pressure on companies to enhance the level of internal controls may be different across industries. The capital market and government experiencing the severe financial crisis in 1997 and 2008 put even more pressure on financial companies such as banks to upgrade the reliability of financial reporting and the compliance of regulations to the global level than on non-financial companies. A survey is performed on the changes in the level of internal controls of 54 major companies consisting of 10 financial and 44 non-financial companies in Korea. The survey results show that the average level of internal controls of Korean companies has noticeably improved and that the change in the level of control environment factor is higher than that of IT control factor. The analysis on the industry differences shows that financial companies increased the level of control environment factor more than non-financial companies did while non-financial companies upgraded the level of IT control factor more than financial companies did relatively. Among internal control categories, the most improved area since the economic crisis is "Risk Assessment." The global best practices for risk management have been developed primarily in the financial industry and then spread to other industries. The general level of control practices of Korean companies has been improving significantly, but still appears below the global advanced practices.

• International journal of advanced smart convergence
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• v.11 no.1
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• pp.101-110
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• 2022

The purpose of this study is to evaluate the efficiency of financial support for rural industry revitalization in eastern China. Comparative analysis of the efficiency of provincial financial support for rural industrial revitalization in eastern China can provide reference for various provinces to formulate financial policies for rural revitalization. In the research process, 5 evaluation indicators were selected using the panel data of the 2016-2021 "China Financial Statistical Yearbook" and "China Statistical Yearbook", and the DEA and Malmquist index methods were used for calculation. The results show that the average efficiency of financial support for rural revitalization in the 10 eastern provinces from 2015 to 2020 was generally higher, with the efficiency values all higher than 0.8, and reached 0.908 in 2017. The comprehensive efficiency of financial support for rural industry revitalization in Tianjin, Shanghai and Hainan has reached the best. From 2015 to 2020, the total factor productivity of financial support for rural industry revitalization in the eastern region has a "V"-shaped fluctuation. Total factor productivity has the fastest growth. The provinces are Beijing, Hebei and Shandong showing negative growth. It is recommended that relevant provinces improve their strategies for financial support for the revitalization of rural industries. The scope of future research should be expanded to most areas of China and the evaluation indicators should be optimized.