• KDI Journal of Economic Policy
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• v.33 no.2
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• pp.41-79
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• 2011

This study examines the compensation scheme for the executives and risk-taking behavior in the Korean banks. Theoretically, shareholders prefer risky asset choice to the optimal one due to the limited liability feature of reward, and stock-based executive compensation may induce choices favorable to the shareholder. We empirically test this risk-taking hypothesis using Korean banks' data. Since only the stock option data is available under the current disclosure system, we limit our analysis to examine the relationship between the compensation through stock option and the risk of banks. The result provides no evidence that stock option compensations increase the risk of banks, which is contrary to the theoretical prediction and preceding studies in the US. This may be due to any factor that the executive reward data omit, or regulation effects on the bank management.

• Journal of Distribution Science
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• v.12 no.10
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• pp.75-84
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• 2014

Purpose - This article aims to examine whether the stock issuance of firms in the retail industry follows Myers' (1984) pecking order theory, which is based on information asymmetry. According to the pecking order model, firms have a sequence of financing decisions, of which the first choice is to use retained earnings, the second one is to get into safe debt, the next involves risky debt, and the last involves finance with outside equity. Since the 2000s, the polarization of the LEs (Large enterprises) and SMEs (Small and Medium Enterprises) arose in the retail industry. The LEs exhibited an improvement in growth and profitability, whereas SMEs had a tendency to degenerate. This study contributes to corroborating the features of financing decisions in the retail industry distinguished from the other industries. Research design, data, and methodology - This study considers the stocks listed on the KOSPI and KOSDAQ markets from 1991 to 2013, and is more concentrated on the stocks in the retail industry. The data were collected from the financial information company, WISEfn. The empirical analysis is conducted by employing two measures of net equity issues (and), which were introduced in Fama and French (2005), and can be calculated from firms' accounting information. All variables are generated as the aggregate value of the numerator divided by aggregate assets, which, in effect, treats the entire sample as a single firm. Substantially, the financing decisions of the firms were analyzed by examining how often and under what circumstances firms issue and repurchase equity. Then, this study compares the features of the retail industry with those of the other industries. Results - The proportion of sample firms that show annual net stock issues reaching the level of the year's average was 54.33% for the 1990s, and fell to 39.93% per year for the 2000s. In detail, the fraction of the small firms actually increases from 45.08% to 51.04%, whereas that of large firms shows a dramatic decline from 58.94% to 24.76%. Considering the fact that the large firms' rapid increase in growth after the 2000s may lead to an increase in equity issues, this result is rather surprising. Meanwhile, net stock repurchases of assets are considerably disproportionate between the large (-50.11%) and the small firms (-15.66%) for the 2000s. Conclusions - Stock issuance of retail firms is not in line with the traditional seasoned equity offering based on information asymmetry. The net stock issuance of the small firms in the retail industry can be interpreted as part of an effort to reorganize business and solicit new investment to resolve degenerating business performance. For large firms, on the other hand, the net repurchase can be regarded as part of an effort to rearrange business for efficiency and amplifying synergy across business sections through spin-off. These results can help the government establish a support policy on retail industry according to size.

• International Commerce and Information Review
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• v.3 no.2
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• pp.1-16
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• 2001

This study discusses some theoretical implications for efficient utilization of the global E-commerce in a world of uncertainty by beginning with measures of risk and return for the global E-commerce, and by moving to risk and return for a efficient transaction portfolio of many risky methods of transaction. Decision rules are developed to show how individuals choose optimal transaction portfolios that maximize their expected utility of wealth. First, the individuals will generally want to allocate positive amount to the global E-commerce, which requires that the expected marginal utility of wealth equals zero. Secondly, the optimal transaction portfolio will be determined by finding the point of tangency between the efficient trading line and the hightest indifference curve in the mean-variance plane. Thirdly, if the global E-commerce is positively correlated with wealth, it must have an expected return that is higher than the risk-free transaction methods in order to compensate for its risk. Fourthly, on the other hand, if the global E-commerce is negatively correlated with wealth, it will have an expected return that is less than the risk-free transaction methods. Finally, the valuation of global E-commerce depends on the degree of individual's risk aversion and the covariance between the expected return of total wealth and the return of global E-commerce.

• Proceedings of the Korea Water Resources Association Conference
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• 2010.05a
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• pp.273-277
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• 2010

This research was performed to examine changes in the timing of the growth of crops along with changes in temperatures due tochanges and to analyze the change of water-supply-reliability by adding an analysis of the change of agricultural water supply patterns in the basin area of Miryang dam in Korea. Had-CM3 model from U.K. was the tool adopted for the GCM model, a stochastic, daily-meteorology-generation-model called LARS-WG was alsoused for downscaling and for the climate change scenario (A1B) which represents Korea's circumstances best. First of all, to calculate changes in the timing of the growth of crops during this period, the theory of GDD was applied. Except for the period of transplanting and irrigation, there was no choice but to find the proper accumulated temperature by comparing actual temperature data and the supply pattern of agricultural use due to limited temperature data. As a result, proper temperatures were found for each period. $400^{\circ}C$ for the preparation period of a nursery bed, $704^{\circ}C$ for a nursery bed's period, $1,295^{\circ}C$ for the rice-transplanting period, $1,744^{\circ}C$ for starting irrigation, and $3,972^{\circ}C$ for finishing irrigation. To analyze future agricultural supply patter changes, the A1B scenario of Had-CM3 model was adopted, and then Downscaling was conducted adopting LARS-WG. To conduct a stochastical analysis of LARS-WG, climate scenarios were generated for the periods 2011~2030, 2046~2065, 2080~2099 using the data of precipitation andMax/Min temperatures collected from the Miryang gauging station. Upon reviewing the result of the analysis of accumulated temperatures from 2011~2030, the supply of agricultural water was 10 days earlier, and in the next periods-2046~2065, 2080~2099 it also was 10 days earlier. With these results, it is assumed that the supply of agricultural water should be about 1 month ahead of the existing schedule to meet the proper growth conditions of crops. From the results of the agricultural water supply patterns should be altered, but the reliability of water supply becomes more favorable, which is caused from the high precipitation change. Furthermore, since the unique characteristics of precipitation in Korea, which has high precipitation in the summer, water-supply-reliability has a pattern that the precipitation in September could significantly affect the chances of drought the following winter and spring. It could be more risky to make changes to the constant supply pattern under these conditions due to the high uncertainty of future precipitation. Although, several researches have been conducted concerning climate changes, in the field of water-industry, those researches have been solely dependent on precipitation. Even so, with the high uncertainty of precipitation, it is difficult for it to be reflected in government policy. Therefore, research in the field of water-supply-patterns or evapotranspiration according to the temperature or other diverse effects, which has higher reliability on anticipation, could obtain more reliable results in the future and that could result in water-resource maintenance to be safer and a more advantageous environment.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.6
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• pp.71-86
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• 2023

Although starting a business plays a key role in strengthening national competitiveness and creating jobs, it is recognized as a risky choice. Failure to start a business can result in a wide range of negative effects, such as loss of personal wealth as well as deterioration of national competitiveness. This study considers startups that have reached a level of sustainable growth by achieving performance above the minimum profitability and sales standards for KOSDAQ listing, or achieved EXIT through sale or listing, as successful startups. based on the practical experiences of 23 successful entrepreneurs and Based on perception, the importance and priorities of startup success factors were derived through stratification analysis (Analytic Hierarchy Process, AHP), and interviews were conducted. In particular, using the ERIS model, we comprehensively analyze various variables of a start-up by considering the four elements of the entrepreneur, resources, industry, and strategy, and examine the changes and importance of success factors according to the characteristics of each growth stage of the start-up. As a goal, we specifically identified the challenges and opportunities faced by entrepreneurs at each stage. As a result of the study, the order of importance of the top factors of success factors in the start-up period was found to be the entrepreneur, resources, industry, and strategy. In particular, the importance of the entrepreneur's entrepreneurship spirit, special capabilities, general capabilities, and human resources was emphasized. The order of importance of the top factors of success factors during the growth period was found in the following order: entrepreneur, resources, industry, and strategy. In particular, the importance of general capabilities, entrepreneurship, and human and organizational resources was emphasized. This study is significant in that it analyzes startup success factors from the perspective of successful entrepreneurs and provides useful insights and directions to entrepreneurs and policy makers.

• Journal of Chest Surgery
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• v.32 no.5
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• pp.422-427
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• 1999

Background: Tachycardia induced heart failure model would be the model of choice for the dilated cardiomyopathy. This more closely resembles the clinical syndrome and does not require major surgical trauma, myocardial ischemia and pharmacological or toxic depression of cardiac function. When heart failure is progressive, application of new surgical procedures to the faling heart is highly risky. It has been shown that recovery trajectory from heart failure is a new method in decreasing animal mortality. The purpose is to establish the control datas for recovery trajectory in the canine heart failure model. Material and Method: 21 mongrel dogs were studied at 4 stages(baseline, at the heart failure, 4 and 8 weeks after recovery). Heart failure was induced during 4 weeks of continuous rapid pacing using a pacemaker. Eight weeks of trajectory of recovery period was allowed. Indices of left ventricular function and dimension were measured every 2 weeks and the hemodynamics were measured by use of Swan-Ganz catheterization and thermodilution method every 4 weeks. Values were expressed as mean${\pm}$standard deviation. Result: 4(20%) dogs died due to heart failure. Left ventricular end-diastolic volume at the 4 stages were 40.8${\pm}$7.4, 82.1${\pm}$21.1, 59.9${\pm}$7.7 and 46.5${\pm}$6.5ml. Left ventricular end-systolic volume showed the same trend. Ejection fractions were 50.6${\pm}$4.1, 17.5${\pm}$5.8, 36.3${\pm}$7.3, and 41.5${\pm}$2.4%. Blood pressure and heart rate showed no significant changes. Pressures of central vein, right ventricle, pulmonary artery, and pulmonary capillary wedge showed significant increase during the heart failure period, normalizing at the end of recovery period. Stroke volumes were 21.5${\pm}$8.2, 12.3${\pm}$3.5, 17.9${\pm}$4.6, and 15.5${\pm}$3.4ml. Blood norepinephrine level was 133.3${\pm}$60.0pg/dL at the baseline and 479.4${\pm}$327.3pg/dL at the heart failure stage(p=0.008). Conclusion: Development of tachycardia induced heart failure model is of high priority due to ready availability and reasonable amenability to measurements. Recovery trajectory after cessation of tachycardia showed reduction of cardiac dilatation and heart function. Application of new surgical procedures during the recovery period could decrease animal mortality.