• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.2 no.4
• /
• pp.71-102
• /
• 2007

There were many comprehensive analyses conducted within the existing research activities wherein factors affecting technology progress including investment in R&D vis-${\Box}$-vis their influences act as the determinants of TFP. Note, however, that there were few comprehensive analysis in the industrial research performed regarding the impact of the economy of scale as it affects TFP; most of these research studies dealt with the analysis of the non -parametric Malmquist productivity index or used the stochastic frontier production function models. No comprehensive analysis on the impacts of individual independent variables affecting TFP was performed. Therefore, this study obtained the TFP increase rate of each industry by analyzing the factors of the existing growth accounting equation and comprehensively analyzed the TFP determinants by constructing a comprehensive analysis model considering the investment in R&D and economy of scale (smallness by industry) as the influencers of TFP by industry. First, for the TFP increase rate of the 15 industries as a whole, the annual average increase rate for 1993${\sim}$ 1997 was approximately 3.8% only; during 1999${\sim}$ 2000 following the foreign exchange crisis, however, the annual increase rate rose to approximately 7.8%. By industry, the annual average increase rate of TFP between 1993 and 2000 stood at 11.6%, the highest in the electrical and electronic equipment manufacturing business and IT manufacturing sector. In contrast, a -0.4% increase rate was recorded in the furniture and other product manufacturing sectors. In the case of the service industry, the TFP increase rate was 7.3% in the transportation, warehousing, and communication sectors. This is much higher than the 2.9% posted in the electricity, water, and gas sectors and -3.7% recorded in the wholesale, food, and hotel businesses. The results of the comprehensive analysis conducted on the determinants of TFP showed that the correlations between R&D and TFP in general were positive (+) correlations whose significance has yet to be validated; in the model where the self-employed and unpaid family workers were used as proxy variables indicating the smallness of industry out of the total number of workers, however, significant negative (-) correlations were noted. On the other hand, the estimation factors of variables surrogating the smallness of scale in each industry showed that a consistently high "smallness of scale" in an industry means a decrease in the increase rate of TFP in the same industry.

• 산업혁신연구
• /
• v.34 no.2
• /
• pp.1-30
• /
• 2018

This study analyzes empirically the effects of financial cash flows and operating cash flows on R&D investment of firms listed on Korea Exchange. The main results of this study can be summarized as follows. Financial cash flows have a larger positive effect on R&D investment than operating cash flows do, implying that firms use more financial cash flows than operating cash flows for financing R&D investment that has information asymmetry problems. This results suggest that improving financial cash flows enhance R&D investment by increasing the predictability of cash flows and decreasing the volatility of cash flows by decreasing financial leverage. Financially constrained firms use much more financial cash flows than operating cash flows for financing R&D investment that has information asymmetry problems. Financial constraints are measured by proxy variables such as firm size and Hadlock and Pierce's(2010) HP index. This results suggest that improving financial cash flows is more important than operating cash flows for financing R&D investment of financially constrained firms. Moreover, firms use more financial cash flows for financing asset-counted R&D investment than for financing cost-counted R&D investment. Asset-counted R&D investment is counted in intangible assets on the Statement of Financial Position, whereas cost-counted R&D investment is counted in cost on the Income Statement. In conclusion, even after controlling for adjustment costs associated with R&D investment and the endogeneity problems of cash flow variables as well as other characteristic variables, the results show that financially constrained firms use much more financial cash flows than operating cash flows for financing R&D investment that has information asymmetry problems. Overall, this finding suggests that information asymmetry and financial constraints problems are likely to co-exist in financing R&D investment. This finding also contributes to the extant literature that examines investment-cash flow sensitivity by showing that financial cash flows have a larger effect on R&D investment rather than operating cash flows.

• Management & Information Systems Review
• /
• v.31 no.1
• /
• pp.221-246
• /
• 2012

The study examines the effects that non-audit service and firm's ownership structure might have on the value relevance directly or indirectly. This investigation is based on prior research which suggests that the audit firms' non-audit services is likely to adversely affect investors' perceptions of the credibility of financial reporting and that corporate governance are likely to mitigate the adverse this kind of non-audit services effects. The sample consists of non-banking firms listed on the Korea Exchange that reported annual financial statements over the period from 2004 to 2008. In the setting, stock returns as proxy for capital market response, auditor quality(measured as the discretionary accruals) is endogenously determined. This study employs a structural equation model to take into account the endogenous variables under study. The analysis influences through the path analysis that ownership structure suppress the market response through audit quality and also the non-audit service have influence on the market response through audit quality. The results of this study contribute to the literature in the following ways. First, this provides direct evidence that there is a negative association between audit firms' client importance and the value relevance. Second, the findings that the negative association is attenuated for audit quality support the findings of prior studies which present that corporate governance provide higher credibility of financial reports.

• Journal of the Korean Society for Marine Environment & Energy
• /
• v.20 no.1
• /
• pp.18-25
• /
• 2017

Damage of both life and property has been increased by natural disaster under the influence of climate change, thus many natural disaster vulnerability researches have been carried out to make adaptation policy and impact assessment of climate change recently. Their method for assessing vulnerability usually have used proxy variables for making vulnerability indices. However, because their results were too qualitative and relative it tends to be hard to make absolute comparison and establish standard of prevention or adaptation ability. Accordingly, this study aimed at quantifying natural disaster vulnerability using emergy through recognizing disaster as the relations between order and disorder by system approach. As a result, ordering energy (4.66E+22 sej/yr) and ordered structure (1.98E+22 sej) of Busan in 2003 and disordering energy (7.80E+18 sej), disordered parts (4.55E+20 sej) and rebuilding energy (3.87E+20 sej) by typhoon Maemi were analysed. And then, this was compared with Hurricane Andrew in Dade County. Through this comparison, if the prevention ability of Busan increases, disordered parts can be reduced against the more powerful disordering energy. Also, prevention for additional damages by disaster is needed to practical rebuilding action. In conclusion, it was able to figure out the impact of disaster quantitatively by natural systems and urban systems showing as common measure. Based on this study and further research to make effective prevention for how much prevention ability should be increased will contribute to producing the scientific data for disaster management policy in future.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.11 no.1
• /
• pp.13-27
• /
• 2016

Companies strive to have the ability to flexibly respond to environmental changes in modern society with its rapidly changing business environment. That is, companies try to achieve the corporate performance by using a variety of strategies since companies that don't go along with changes in industry are likely to fall behind. Also, the corporate performance is a key element in national competitiveness, and government is willing to support companies to maximize their performance in various ways. This study examines whether there is a difference between corporate strategies and government policies according to the retention and the type of certification of innovation. The company's strategy configuration effort is largely divided into exploration and exploitation of external knowledge, while the government's policy is divided into direct support, indirect support, and financial support. The corporate performance is analyzed using technological performance; innovative perspective and the sales; and the actual corporate performance as proxy variables. As a result, the variable affecting the performance differs according to the retention of certification of innovation. The variable affecting the corporate performance differs according to the type of certification of innovation as well. Therefore, it was found that companies can achieve the corporate performance by considering the situation at hand and the differentiated action strategies depending on the type of certification of innovation.

• The Korean Journal of Financial Management
• /
• v.27 no.2
• /
• pp.1-33
• /
• 2010

This study explores if the higher initial returns and the poorer long-run performance observed in the IPOs markets are associated with the firms offered in the 'hot markets,' and then empirically examines the effect of optimistic investors' sentiment on this phenomenon, particularly in the aspects of both pricing mechanism and the opportunistic behavior of offering firms. We analyzed a total of 432 IPO firms for the years between 2001 and 2005. This analysis finds that the initial returns and long-run under-performances of 'IPOs in the hot market' are significantly higher than those of 'IPOs in the cold market.' This study also finds that the proxy variables for the optimistic investors' sentiment have a positive effect on the initial return and negative effect on the long-run performance. Finally, this research finds no difference of ownership structure, venture capital backed, and financial properties between hot market IPOs and cold market IPOs. R&D expenditure rate and financial qualities of IPOs are higher in the hot market than in the cold market. These results do not support the 'windows of opportunity' hypothesis that low quality firms take advantage of hot market condition for successful IPOs.

• Journal of Korea Technology Innovation Society
• /
• v.12 no.2
• /
• pp.360-387
• /
• 2009

In this paper, we analyse empirically the effects of internal financing on investment of innovative small and medium sized enterprises listed on Kosdaq Market of Korea Exchange. The main results of this study can be summarized as follows. Free cash flows by proxy variables of internal financing have the significant effects on R&D investment as well as fixed asset investment. Internal financing has much more effects on R&D investment of general enterprises listed on Kosdaq Market than that of venture enterprises listed on Kosdaq Market, and on R&D investment of innovative enterprises than that of non-innovative enterprises. Internal financing has more effects on asset-counted R&D investment than cost-counted R&D investment. Asset-counted R&D investment is counted in intangible assets on Balance Sheet, and cost-counted R&D investment is counted in cost on Income Statement. Internal financing has more effects on R&D investment of financial constrained enterprises than that of financial unconstrained enterprises. Financial constraints is measured by credit ratings. Faulkender and Smith (2007) emphasize that low credit ratings enterprises are more likely to face financial constraints, and they rely largely on internal financing.

• Ocean and Polar Research
• /
• v.35 no.1
• /
• pp.1-14
• /
• 2013

Shoreline data of the barrier islands in Nakdong River Estuary for the last three decades were assembled using six sets of aerial photographs and seven sets of satellite images. Canny Algorithm was applied to untreated data in order to obtain a wet-dry boundary as a proxy shoreline. Digital Shoreline Analysis System (DSAS 4.0) was used to estimate the rate of shoreline changes in terms of five statistical variables; SCE (Shoreline Change Envelope), NSM (Net Shoreline Movement), EPR(End Point Rate), LRR (Linear Regression Rate), and LMS (Least Median of Squares). The shoreline in Jinwoodo varied differently from one place to another during the last three decades; the west tail has advanced (i.e., seaward or southward), the west part has regressed, the south part has advanced, and the east part has regressed. After the 2000s, the rate of shoreline changes (-2.5~6.7 m/yr) increased and the east advanced. The shoreline in Shinjado shows a counterclockwise movement; the west part has advanced, but the east part has retreated. Since Shinjado was built in its present form, the west part became stable, but the east part has regressed faster. The rate of shoreline changes (-16.0~12.0 m/yr) in Shinjado is greater than that of Jinwoodo. The shoreline in Doyodeung has advanced at a rate of 31.5 m/yr. Since Doyodeung was built in its present form, the south part has regressed at the rate of -18.2 m/yr, but the east and west parts have advanced at the rate of 13.5~14.3 m/yr. Based on Digital Shoreline Analysis, shoreline changes in the barrier islands in the Nakdong River Estuary have varied both temporally and spatially, although the exact reason for the shoreline changes requires more investigation.

• Journal of Korea Technology Innovation Society
• /
• v.19 no.2
• /
• pp.254-279
• /
• 2016

Recently, with the conversion towards knowledge-based economy era, the importance of the evaluation for patent valuation has been growing rapidly because technology transactions are increasing with the purpose of practically utilizing R&D outcomes such as technology commercialization and technology transfer. Nevertheless, there is a lack of research on determinants of patent valuation by analyzing technology transactions due to the difficulty of collecting data in practice. Hence, to suggest quantitative determinants for the patent valuation which could be applied to scoring methods, 15 patent valuation models domestically and overseas are analysed in order to assure the objectiveness for subjective results from qualitative methods such as expert surveys, comparison assessment, etc. Through this analysis, the important 6 common determinants are drawn and patent information is matched which can be used as proxy variables of individual determinant factors by advanced researches. In addition, to validate whether the model proposed has a statistically meaningful effect, total 517 technology transactions are collected from both public and private technology transaction offices and analysed by multiple regression analysis, which led to significant patent determinant factors in deciding its value. As a result, it is herein presented that patent connectivity(number of literature cited) and commercialization stage in market influence significantly on patent valuation. The meaning of this study is in that it suggests the significant quantitative determinants of patent valuation based on the technology transactions data in practice, and if research results by industry are systematically verified through seamless collection of transaction data and their monitoring, we would propose the customized patent valuation model by industry which is applicable for both strategic planning of patent registration and achievement assessment of research projects (with representative patents).

• Journal of the Korean Home Economics Association
• /
• v.43 no.6 s.208
• /
• pp.113-131
• /
• 2005

The purpose of this study was to investigate older people's planning for estate distribution by examining the factors associated with their will-holding status. This study used data from the 1994 Assets and Health Dynamics among the Oldest Old (AHEAD) Survey, Wave One. The objectives of this study were (a) to establish profiles of older people who have a written will and to compare their financial portfolios across will-holding status; (b) to identify factors that influence the decision to make a will, and (c) to draw implications for family economists, financial educators, planners, and policy makers. The results suggested that a household's financial resources (i.e., liquid and illiquid assets, housing equity, and household income) positively influence the probability of having a will. Older people who resided in a community property state and who were in poor health were less likely to be will-holders than their counterparts, holding financial resources and other variables constant. Demographic characteristics such as age, education, and race, and behavioral characteristic also were significant determinants of the likelihood of having a will. Volunteer participation and charitable contribution, which are proxies for altruism, increased the likelihood of having a will. The probability of having a will also was higher among those who had life insurance and had gwen inter-vivos gifts of more than $\$5,000$ to their children or grandchildren in the past 10 years. On the other hand, the likelihood of having a will declined with increasing number of biological children. From the findings, implications for financial planners and educators were suggested along with directions for future research.