• Journal of the Economic Geographical Society of Korea
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• v.13 no.3
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• pp.457-469
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• 2010

The study aims to estimate interregional trade coefficient of service industry using the gravity model. The gravity model has been widely used for prediction of the level of human interaction between two regions which is positively related to attraction of them and negatively related to the distance between them. To apply the gravity model for explaining the interregional trade flow of service industry, the choice of proper proxy variables which represent a dependent variable and independent variables is most important. However, the literature shows that there are few studies on this issue. Four models concerned to the choice of proxy variables are considered. Finally, this paper employs the least-squares regression analysis to test the model's goodness-of-fit, and suggests the most appropriate model based on the result from the analysis. The result shows that the interregional trade of service industry in regional input-output table developed by The Bank of Korea is desirable as a dependent variable, the service industry output of export region, the population of import region, and the spatial distance between regions are desirable as independent variables.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.2
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• pp.343-353
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• 2023

Corporate reputation is a widely debated topic among academics and a crucial issue in the business world. However, previous research in this area has been scattered and fragmented, leaving room for further study, particularly in terms of reputation measurement methods. Factors such as sustainability reporting, governance attributes, and company characteristics have been linked to improved company reputation. However, there is limited research on the effects of these variables on the new methods of measuring reputation, especially in developing countries like Malaysia. Therefore, the current study developed a new measurement for reputation and aimed to examine the relationship between these variables and the new proxy of reputation. The current study collected secondary data from the company's annual report for two years period of study (i.e., 2018 and 2019) and employed content analysis. A period of two years was chosen and deemed ample to provide insightful findings of the effect of the variables associated with reputation disclosure. The results indicate that sustainability reporting, outside directors, company size, leverage, and profitability significantly impact corporate reputation. This finding suggests that Malaysian PLCs and other firms in developing countries must recognize sustainability reporting as part of their reputation management strategy that influences the company's reputation.

• The Korean Journal of Financial Management
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• v.24 no.2
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• pp.1-40
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• 2007

We test a model of investment-cashflow-growth opportunities relationship in order to estimate the sensitivities to investments. In this study, we use a new proxy variable for the value of growth opportunities(hereafter "VGO"), which is based on the seminal papers of M&M(1958:1961:1963) and Lee(2006;2007). The empirical findings on the sensitivities of cashflow and growth opportunities are as follows. First, when the traditional proxy variables for the growth opportunities such as Tobin's Q, MBR and sales growth are included with the new proxy VGO in the estimation, their coefficients are turned out to be insignificant. Second, only the new proxy variable VGO shows a statistically significant positive sensitibity to investment, which can be regarded that the growth opportunities hold the positive influences to investments. Third, the Tobin's Q can be decomposed into three factors such as the value of growth opportunities(VGO), the value of asset-in-place and valuation errors. It turns out that only the VGO shows a statistically significant positive relationship with investment among others. This means that the new variable VGO is a good proxy variable for the growth opportunities in the investment-cashflow sensitivity analysis. In sum, thanks to the above findings in this study, we can say that it will not be proper to choose a proxy variable for the growth opportunities from the traditional set of proxies such as Tobin's Q, MBR, or sales growth rate.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.109-116
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• 2020

The study examines the nexus between financial development and economic growth in India during Q1: 1996 to Q3: 2018. This study employs time-series data of real GDP and ratio of broad money to GDP as a proxy for economic and financial development, respectively. The data are obtained from RBI database on the Indian economy. All variables are seasonally adjusted using X12-arima technique and expressed in natural logarithm form. Non-linear Autoregressive Distributed Lag (NARDL) bound test has been used to check for cointegrating relationship of these two variables. Empirical findings suggest that, unlike in the short run, in the long run financial development does impact economic growth positively. Further, a symmetric effect of positive and negative components of financial development is found for the Indian economy, whereas the effect of control variable like exchange rate and trade openness is in consonance with common economic intuition. Exchange rate is in consonance with intuitive economic logic that a fall in exchange rate makes exports cheaper and increases the quantity of export, which improves the balance of payment and leads to a rise in aggregate demand, hence improves economic growth. This paper contributes to the existing literature on India by breaking down financial indicator into positive and negative components to examine the finance-growth relationship.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.6
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• pp.543-552
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• 2021

The study examines how foreign capital inflows affect stock market development in Pakistan for the period from July 2008 to June 2018. Several components of foreign capital inflows were used for empirical analysis, namely, foreign direct investment, foreign portfolio investment, and remittances. Further, market capitalization was used as a proxy for stock market development. The study uses an ARDL model for examining the long-run and short-run relationships between variables. We also analyze the bi-directional causality between the variables through the Granger causality test. Further, the presence of structural breaks was analyzed through the CUSUM and CUSUM Square test. The results suggest that in the long run, remittances have a positive and significant relationship with stock market development. However, foreign direct investment, foreign portfolio investment, and USD-PKR exchange rate do not have a significant impact on stock market development. The results also suggest that in the short run there is a negative relationship between FDI, USD-PKR exchange rate and market capitalization. Contrarily, we found a positive relationship between FPI and market capitalization. The results of Granger causality test suggest that remittances and USD-PKR exchange rate have a causal relationship with stock market development. Finally, we found no evidence of structural breaks in the dataset.

• Journal of Technology Innovation
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• v.21 no.3
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• pp.121-140
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• 2013

The establishment of function and role in government-funded research institute becomes a vital issue as fierce international technology-competition and enhanced industrial convergence makes science and technology important and influential more and in socio-economic level. This paper defines independent and dependent variables to identify factors which influence on research performance. As the independent variables, research funds, research personnel and research support staff are chosen. Dependent variables which are selected as proxy variables of research performance are royalties, papers and patents. Values from regression analysis were drawn by time-series analysis and cross-section analysis. As a result, the significance of correlation coefficients is sequential, research personnel, research support staff and research funds respectively. This finding is expected to give implication of future direction on government-funded research institute development.

• Industry Promotion Research
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• v.8 no.2
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• pp.11-19
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• 2023

The purpose of this study is to analyze the effect of economic uncertainty on business innovation. To this end, Ahir et al. (2018) World Uncertainty Index (WUI) is selected as a proxy for economic uncertainty, while total R&D investment (RD), capitalized R&D investment (RD_A), expensed R&D investment (RD_E), and the proportion of capitalized R&D investment to total R&D investment (RD_R) are selected as variables representing business innovation. The research findings showed that economic uncertainty (WUI) had a statistically significant positive (+) relationship with total research and development investment (RD), asset-based research and development investment (RD_A), and the proportion of asset-based research and development investment (RD_R). This relationship remained the same even after controlling for managerial opportunistic accounting behavior (DACC; discretionary accruals). These findings suggest that companies focus on research and development investment as an opportunity for management innovation even in the face of economic uncertainty. The results of this study are significant in demonstrating the validity and effectiveness of government support for industrial promotion under economic uncertainty.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2012.11a
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• pp.149-151
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• 2012

Changes in the price of materials in construction projects is one of the important variables. Therefore, measures are necessary to respond to the demand and supply of materials and price instability. In previous studies, mainly of ready-mix concrete and steel beam analysis was carried out. However, a study of non-ferrous material prices are still insufficient. So, in this study, the researcher identified the causal relationship between the construction cost and non-ferrous materials prices. Construction Cost Index was selected as a proxy variable of construction cost.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2000.10a
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• pp.251-254
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• 2000

In the knowledge-based economy, technological capability is critical for the survival and growth of firms. Technological capability differs across firms depending on the structural and environmental conditions. In nature, the evaluation of technological capability is an intractable task and thus previous studies often employ such proxy measures as patent, productivity, or profitability. In this research, we define technological capability as a combination of the above three measures and investigate, by using the multi-variate statistical analysis, the characteristics of technological capability of electronics/IT firms of Korea. We first propose a taxonomy in which firms are classified into four clusters based on the differences in the nature of technological capability. Then, across clusters, we comparatively analyze the relationship between technological capability and structural/environmental factors of firms. Finally, the implications of empirical findings will be discussed. This study is a small-scale, descriptive one but will be extended and elaborated by augmenting the database and/or incorporating more variables.

• Journal of the Korean housing association
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• v.14 no.2
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• pp.31-40
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• 2003

This study was intended to examine the effects of socioeconomic status on housing values, norms, and behaviors of young households. The purpose was accomplished using the Life Style Survey of 2001 in Ulsan, and the data from 370 households were analyzed. The importance of household income and current housing size which are used as a proxy for socioeconomic status in explaining housing values, norms, and behaviors were once again confirmed in this study, even if there were some other significant variables. This implies that housing values, norms, and behaviors tend to change according to the socioeconomic characteristics of the households under the conditions of controlling demographic ones.