• Journal of Digital Convergence
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• 제14권9호
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• pp.199-214
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• 2016

There is a negotiation between management and labors about paying incentive at the every end of the year. This result causes the conflict between management and labors. The successful operation of incentive system is based on respect and common benefit between workers and managers. The manager-trust is the power of leading reciprocality. This research started from the issues of companies with incentive system at this year. This research analysed the influence of manager-trust by the fairness of incentive system. and how HRM system affects the manager-trust through the strength of the HRM system. It appeared in a survey that shows the fairness of incentive system and manager-trust effect positive matter. As a result of the control effect in the strength of the HRM system, the relationship between distributive justice and manager-trust shows that Distinctiveness, consistency, and consensus have the control effect. Although the Distinctiveness has control effect, consistency and consensus didn't have control effect in the relationship between perceptual justice and manager-trust.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• 제16권5호
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• pp.143-158
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• 2021

The purpose of this study is to suggest a direction for enhancing the mutual trust level between employees and managers by examining the effect of job satisfaction of electric power companies's employees and performance-oriented remuneration paid to them on awareness level of organizational justice and a trust in manager. Based on a significant positive relationship between employee's job satisfaction and trust in a manager, a significant positive relationship between employee's job satisfaction and perception of organizational justice, and a positive relationship between organizational justice and trust in manager, it was possible to confirm the mediating role of organizational justice between job satisfaction and a trust in manager. In addition, although performance-oriented remuneration did not have a significant effect on trust in manager directly, it was found to have a significant negative effect on distributive justice and procedural justice, but for interactional justice did not appear to have a significant influence. Because the autonomy of the labor budget is quite limited due to the government's total regulation on the size of the labor budget for public enterprises and due to the government's evaluation of management of public enterprises, it can be explained as having a negative effect on the perception of organizational justice. In addition, since the partial mediating effect of distributive justice and interactional justice was confirmed in the relationship between job satisfaction and trust in manager, the mediating effect of procedural justice was insignificant, it was confirmed that the need to establish and operate an internal HR management system based on smooth communication that employees can satisfy and accept can have a significant impact on trust in manager. On the other hand, because the negative complete mediating effect of distributive justice and procedural justice between performance-oriented remuneration and trust in manager was significantly confirmed, It is showing that employees' negative perceptions of performance distribution procedures and distribution results had a negative effect on trust in manager. The results of this study suggest that employees will perceive the organization as fair, and trust the manager who is the decision maker, when they are fully rewarded for their performance, with job satisfaction, a fair evaluation of their efforts, even if there are various factors that can influence managers to be trusted by their employees.

• The Journal of the Korea Contents Association
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• 제19권4호
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• pp.394-402
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• 2019

This study examines the effect of managerial ownership on the value of firms' cash holdings. According to the management entrenchment hypothesis, managers have incentives to make decisions that can undermine shareholders' value for their own private interests. In this situation, as the managerial ownership increases, investors may evaluate that the cash held by the company may be utilized inefficiently and the value of the cash holdings may decrease. On the other hand, based on the incentive alignment hypothesis, the value of cash holdings may increase as investors perceive cash holdings to be effectively used to increase corporate value as managers' interests are in agreement with shareholders. Empirical results show that the value of cash holdings decreased as managerial ownership increased. This study finds a contribution in that it presents empirical evidence on whether the cash held by the company is differentially evaluated according to the level of the managerial ownership.

• Journal of Industrial Convergence
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• 제20권11호
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• pp.105-112
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• 2022

The purpose of this study is to examine the moderating effect of the reporting earnings strategy on the relationship between managerial ability and manager performance-reward sensitivity. Both upward and downward adjustments can occur in the direction of management performance adjustment according to the manager's reporting earnings strategy. was found to decrease performance-based performance-reward sensitivity. The underreporting strategy is hypothesized that, although additional compensation is paid for the performance of the reporting strategy according to the manager's ability, the level of compensation increases, but this type of compensation will decrease the performance-reward sensitivity because this type of compensation is irrelevant to the actual performance of the manager. This is the result of indirectly confirming that discriminatory compensation is provided for upward and downward adjustment of business performance according to the reporting earnings strategy.

• The Journal of the Korea Contents Association
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• 제16권3호
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• pp.439-446
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• 2016

This research examines the effect of outside director system which has been legislated after financial crisis in Korea. Outside director system is based on agency theory which assumes that a manager is selfish and opportunistic in situation where ownership and management of a firm is separated. In this situation, outside director system has an important function to monitor and keep in check a manager. Thus, we examined that outside director system works as a monitoring mechanism in Korea. And we tested that above effect is weakened in family CEO firms where it is different from assumption of agency theory in Korea. According to empirical result with 282 sample firm, it is confirmed that outside director system reduces agency cost. In family CEO firms, however, this agency cost-reducing effect becomes weak. This result suggests that outside director system needs be cautiously managed without focusing on only monitoring function.

• The Journal of the Korea Contents Association
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• 제16권3호
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• pp.346-353
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• 2016

This research examines the effect of family member in board of directors. In Korea, the ownership and management of a firm is not thoroughly separated and most of firms are managed by controlling family. These family officers have same intent with family CEOs who identify themselves with the firm and want to hand over it to their descendants. Thus, family officers will influence positively on firm performance. Besides, the moderating effect of professional CEO on the above relation will be also positive. It is because professional CEO will be curbed by family officers in board of directors. Under this condition, the potential self-interest seeking behavior will be minimized and the specialty of professional CEO will be manifested. 2,456 firm-year panel data are gathered in manufacturing listed firms from 2004 to 2010 and the result suggests that hypotheses are supported.

• Journal of Digital Convergence
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• 제11권3호
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• pp.221-232
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• 2013

Setting organization justice and executive characteristics as independent variables, job satisfaction as dependent variable and trust as mediating variable for small and medium enterprise, this study intended to corroboratively identify the mutual impact between independent variables and dependent variables. The study shows that the distribution justice, procedure justice and interaction justice of organization justice wholly have positive(+) impact on job satisfaction and leadership characteristics, impact characteristics and psychological characteristics of executive characteristics wholly have positive(+) impact on job satisfaction, thereby having mediating effects through trust perceived by employees. Namely, if the job efficiency and moment is enhanced by increasing employees' job satisfaction, the productivity of enterprise will be heightened after all and its profitability will be improved in the long run.

• Journal of Digital Convergence
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• 제12권3호
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• pp.177-187
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• 2014

We investigate the association between tax strategy and investment efficiency focusing on manager's investment decision. Specifically, we examine the effect of manager's tax avoidance on the firm's investment level. The result show that as the degree of tax avoidance becomes higher firm's over investment increases. This result implies that the available resources generated from firm's tax avoidance induces over investment. Prior researches have been interested in the effects of firm's tax strategy on firm value. However, there is little literatures regarding the effects of firm's tax strategy on management's real investment decisions which provides the important implications about the mechanisms between tax strategy and firm value. In this respect, our research provides a meaningful results which demonstrates the effects of firm's tax strategy on manager's real investment decisions. This will provide useful implications for the investors and government regarding manager's tax avoidance behavior.

• Industry Promotion Research
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• 제4권1호
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• pp.45-55
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• 2019

The purpose of this study is to examine the effects of common competency, managerial competency, and job competency, which are perceived management consultants' competencies, on organizational performance and management characteristics of these managers. The hypothesis 2 shows that the influence of the management consultant capacity and the management performance on the Hypothesis 1 and the moderating effect of the hypothesis 2 management characteristics are as follows. First, common competence, management competence, and job competence, which are H1 management consultant capacities, have been shown to have a positive (+) influence on financial performance and non - financial performance. Second, the characteristics of manager in H2 were partially shown by the common competence between management consultant capacity and management performance. Therefore, in order to establish a corporate sustainability management system and implement it strategically, a consulting firm should select a consultant with excellent management consultant capability and execute management consulting. In addition, management consultants were required to have diverse learning, experience and management plans to improve their qualitative performance. Despite the fact that managerial characteristics represent partial regulatory roles, they actively play a central role in the survival and development of corporations, requiring active publicity so that the organizational characteristics of managers can be understood.

• Journal of Technology Innovation
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• 제30권3호
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• pp.1-34
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• 2022

This study examines the effect of CEO age on the value relevance of R&D which is the relationship between R&D expenditures and firm value. The value relevance of R&D expenditures is higher in companies with current older CEOs, while the relationship in companies with younger CEOs is lower than that of other companies. These results suggest that older CEOs tend to be conservative and make prudent R&D investment decisions. Because they make systematic investment decisions with rich experience, they are expected to have higher investment performance in the market. On the other hand, young CEOs choose risky investments in order to have their abilities highly evaluated in the labor market. The market places a high degree of risk on the R&D decision-making of young CEOs. Next, we analyze whether the age of the replaced CEOs affects the relationship between R&D expenditures and firm value. The result shows that the change of management increases the effect of R&D expenditure on firm value. However, in the case of being replaced by a younger CEO, this positive relationship becomes lower than that of other companies, showing results consistent with the case of the current younger CEO. The samples are analyzed by dividing them into conglomerates and non-conglomerates. In conglomerates, the age of the replaced CEOs does not affect the value relevance of R&D expenditures. Only non-conglomerates showed a negative (-) effect on the replaced younger CEOs. These results suggest that conglomerates maintain the stability of R&D management and performance so that the performance of R&D expenditures is not significantly affected by the age of the replaced CEOs. The reason is that mutual checks and support are coordinated within the group through decentralization of work and systematization of decision-making. This study shows evidence that the relationship between R&D expenditure and firm value according to the age of the replaced CEO is a phenomenon that only occurs in non-conglomerates. This phenomenon suggests that conglomerates are stably managing their R&D performance regardless of the change of CEOs or the characteristics of the CEOs.