• Management & Information Systems Review
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• v.33 no.4
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• pp.21-38
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• 2014

This study investigates whether and how a firm's cost of equity is influenced by the extent of a firms's name change. Even though corporate name change doesn't give any benefit to investors, it can be a signaling about firm's future valuation. And also, if that signaling has high credibility, it can be decrease information cost and the firm's cost of equity. on the contrary to this, if corporate name change is kind of break with the past and corporate image laundering, it is bad signaling to investors. So it can be increase information risk and the firm's cost of equity. Using yearly cross-sectional regressions of the cost of equity on our proxies for corporate name change, size, beta, market-to-book ratio and other innate risk factor over the 2005-2010, we find that the cost of capital is positively associated with corporate name change after controlling for all other factors. This result implies that corporate name change increase information risk of the business, and thus increase information asymmetries between managers and outside investors with respect to a firm's true future value. This increases information risk, and creates an adverse selection problem, on the part of outside investors. Rational investors therefore demand a premium for bearing this corporate name change-related information risk, which in turn leads us to observe a positive relation between the intensity of corporate name change and the cost of equity.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.5
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• pp.109-121
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• 2023

This paper examines whether angel investors affect startup's financial performance (profitability and growth ratios) in the Korean startup market over 10 years period from 2009 to 2018. In particular, we consider not only the behavior of angel investor such as the investment amount or the type of investments (stocks, bonds) but also the type of angle investor (individual or corporation). Our empirical results are as follows. First, we find that the startup's profitability ratios are higher after the investment of angel investors. However, the growth ratios show different results in assets and sales. Second, we identify that the investment amount of angel investors negatively affects on the startup's growth ratios. Lastly, we find that equity investment such as common stock or preferred stock and the individual angel investors such as personal investment association or professional angels show higher financial performance than bond investment or corporate angel investors. Overall, our findings imply that angel investors positively affect startup's financial performance. In particular, we infer that the superior financial performance is largely attributed to monitor startups by participating as shareholders or to select more carefully by the individual angel investors who may be exposed to more investment risk. In conclusion, our findings support that angel investors play a positive role in the Korean venture investment market.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.5
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• pp.129-139
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• 2014

This study supplements the limitation as much as possible that existing literatures have, and, on the target of new registered businesses to KOSDAQ, this study presents answers to the worries raised earlier by recovering problems on causal relationship direction between foreigner investment and dividend level and by analyzing them with dividend level as an independent variable. First, with the whole samples used, dividend income rate didn't show significant relationship with foreigners' investments. It is similar to study result of the existing literature. A panel analysis, on the target of sample businesses that paid dividends before foreigners' investments originated, showed that foreigners' investments didn't have a significant effect on dividend rate. It means that foreigner investors don't have an effect on dividend level. But, a panel analysis of samples shows that foreigner investments have a significant thesis relationship with dividend level variable, that is dividend return rate, except the businesses which paid dividend before foreigners' investments originated. It means that in case foreign investors' preference is controlled, in the businesses which pay dividends, foreign investors have a significant effect on dividend level to native KOSDAQ. Especially, this study result is very significant, for it shows that dividend return rate, insignificant in existing studies, was significant when foreigners' preferences to the businesses which pay dividends was controlled. It means that the more foreigners' shares increase, the more relative importance of dividend out of all profits increases, compared with all of the amounts at the time, and that foreign investors stick to short-term profit and induce big dividend.

• The Journal of the Institute of Internet, Broadcasting and Communication
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• v.19 no.5
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• pp.25-32
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• 2019

The purpose of this study is to investigate how to make a proper investment in ICO in the market. Previously, companies used to borrow money from banks or to obtain investments from venture capital (VC) and angel investors, but now ICOs are used as a new type of funding and financing model. The ICO sells the tokens or coins created on the blockchain openly online to raise the necessary funds, and provides the market value by paying the tokens or coins as much as the investment amount. According to this study, the limitations of the ICO market are (1) difficulties in evaluating the company, (2) uncertainties in investments, (3) lack of legal safeguards, and (4) measures to secure corporate stability after recruitment. At present, there is no way to cope with this systematically since the ICO is not protected in the legal framework. Nevertheless, we investigated the ways to make proper investment in the existing ICO market. In investing in ICO, investors should (1) consider investment methods and profitability, and (2) verify and judge investment fraud through various channels (ex. Homepage, composition team profile, etc.) and make investments based on this. This study will contribute to the formation of a healthy ICO market by understanding the newly emerged ICO market and studying the considerations when investing in it, thereby contributing to the right investor training and reducing the mass production of consumer damages caused by fraud. The limitation of this study is that the domestic ICO has not yet been examined in the legal framework, so further research is needed when policy changes occur in the future.

• Journal of Legislation Research
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• no.55
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• pp.193-237
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• 2018

The recent surge in the ISD lawsuit filed against the Korean government is likely to cause major domestic confusion. This is because in most cases, foreign investors have claimed billions of won in damages filed against Korea in the ISD lawsuit. Public opinion will be generated to abolish the ISD lawsuit system, which is included in the international investment agreement, when a decision comes out in the Elliott/Mason case or Lone Star case, which has already been completed by the hearing. It is clear that the ISD clause, which is commonly included in most of the BITs, FTAs, can be a limiting factor in the government's public policy, as shown by many investment disputes. However, it is not necessary to have a negative view of the ISD clause itself, given that it is a system that can protect Korean investors from illegal and inappropriate actions by local governments. Since Korea already allows the system of ISD lawsuits with many countries through FTAs and BITs, and negotiations are underway to sign FTAs with new countries, the possibility that foreign investors will refer to the ISD proceeding further to our government's public policy will increase. In order to prepare for an ISD lawsuit, the Korean government has launched a response team consisting of government practitioners, private scholars, and legal professionals in the central government ministries to review major legal issues that are controversial in the cases of the ISD. In particular, local governments and public institutions, which fail to recognize the importance of international investment regulations and ISD clause, need to share and train relevant information so that all processes for public policy planning and implementation comply with international investment rules such as BITs and FTAs.

• Journal of Intelligence and Information Systems
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• v.22 no.2
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• pp.81-96
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• 2016

As the internet has become widespread and easy to access everywhere, it is common for people to search information via online search engines such as Google and Naver in everyday life. Recent studies have used online search volume of specific keyword as a measure of the internet users' attention in order to predict disease outbreaks such as flu and cancer, an unemployment rate, and an index of a nation's economic condition, and etc. For stock traders, web search is also one of major information resources to obtain data about individual stock items. Therefore, search volume of a stock item can reflect the amount of investors' attention on it. The investor attention has been regarded as a crucial factor influencing on stock price but it has been measured by indirect proxies such as market capitalization, trading volume, advertising expense, and etc. It has been theoretically and empirically proved that an increase of investors' attention on a stock item brings temporary increase of the stock price and the price recovers in the long run. Recent development of internet environment enables to measure the investor attention directly by the internet search volume of individual stock item, which has been used to show the attention-induced price pressure. Previous studies focus mainly on Dow Jones and NASDAQ market in the United States. In this paper, we investigate the relationship between the individual investors' attention measured by the internet search volumes and stock price changes of individual stock items in the KOSDAQ market in Korea, where the proportion of the trades by individual investors are about 90% of the total. In addition, we examine the difference between industries in the influence of investors' attention on stock return. The internet search volume of stocks were gathered from "Naver Trend" service weekly between January 2007 and June 2015. The regression model with the error term with AR(1) covariance structure is used to analyze the data since the weekly prices in a stock item are systematically correlated. The market capitalization, trading volume, the increment of trading volume, and the month in which each trade occurs are included in the model as control variables. The fitted model shows that an abnormal increase of search volume of a stock item has a positive influence on the stock return and the amount of the influence varies among the industry. The stock items in IT software, construction, and distribution industries have shown to be more influenced by the abnormally large internet search volume than the average across the industries. On the other hand, the stock items in IT hardware, manufacturing, entertainment, finance, and communication industries are less influenced by the abnormal search volume than the average. In order to verify price pressure caused by investors' attention in KOSDAQ, the stock return of the current week is modelled using the abnormal search volume observed one to four weeks ahead. On average, the abnormally large increment of the search volume increased the stock return of the current week and one week later, and it decreased the stock return in two and three weeks later. There is no significant relationship with the stock return after 4 weeks. This relationship differs among the industries. An abnormal search volume brings particularly severe price reversal on the stocks in the IT software industry, which are often to be targets of irrational investments by individual investors. An abnormal search volume caused less severe price reversal on the stocks in the manufacturing and IT hardware industries than on average across the industries. The price reversal was not observed in the communication, finance, entertainment, and transportation industries, which are known to be influenced largely by macro-economic factors such as oil price and currency exchange rate. The result of this study can be utilized to construct an intelligent trading system based on the big data gathered from web search engines, social network services, and internet communities. Particularly, the difference of price reversal effect between industries may provide useful information to make a portfolio and build an investment strategy.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.11
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• pp.135-147
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• 2016

Equity-based crowdfunding combines virtual technologies with traditional investing principles. Equity-based crowdfunding is a financing method for startups and small businesses to raise small amounts of capital from a "crowd" of investors. Small businesses can raise capital, advertise product or service, and receive feedback from crowds of investors in exchange for ownership equity in their business. This study examined the operational performance of equity-based crowdfunding in Korea. Data were collected from 125 success and failure equity-based crowdfunding of 75 firms. Results were as follows: First, success firms had a clear vision than failure firms in raising equity-based crowdfunding. Second, success firms had success experiences than failure firms in raising equity-based crowdfunding. Third, success firms had patents to technologies or products that are practical and that customers need. Fourth, success firms had three or more year long-term objectives than failure firms in raising equity-based crowdfunding. Finally, implications of the results were discussed.

• The Korean Journal of Applied Statistics
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• v.23 no.5
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• pp.783-797
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• 2010

Based on the importance of asset allocation in the return of an investment portfolio, this article attempts to verify the appropriateness of mutual funds as means of investment to obtain optimal asset allocation. The return-based style analysis is applied to determine a mutual fund's allocation(or a style) among a set of specified asset classes. Assuming a particular investor who defines a range allowed a fund's style to differ from its original one, it is examined whether or not the fund style is continued over an investment time horizon. After verifying the fact that the original style of the investment fails to remain unchanged from the empirical analysis limited to domestic equity mutual funds, we further investigated the reasons for the style drift. Despite several limitations of the analysis, it yields the conclusion that domestic equity mutual funds do not seem to be an appropriate investment tool to achieve a target asset allocation.

• 한국신재생에너지학회:학술대회논문집
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• 2010.11a
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• pp.140-140
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• 2010

최근 정부가 저탄소 녹색성장을 새로운 국정비전으로 제시하고 혁신적 그린에너지 기술개발을 위해 연평균 20%이상의 R&D 예산을 증액하고 있는 상황에서 연구개발결과의 상용화율 제고를 위한 연구기획, 평가, 관리시스템의 개선이 시급한 실정이다. 특히 선진국의 경우 최근 3년간 에너지분야 R&D의 상용화율이 미국 35.9%, 유럽 46.8%로서 24.2%인 한국에 비해 매우 높다고 할 수 있다. 이와같은 격차가 존재하는 것에 대해서 다양한 요인을 생각해볼 수 있겠지만, 크게 시장적인 또는 산업적인 측면에서의 중요도를 기준으로 연구과제를 선정하지 못하고 있다는 점과 연구개발결과를 효율적으로 사업화하고 있지 못하고 있다는 점을 생각해볼 수 있다. 특히 에너지 분야는 대규모 자금의 초기소요 및 개발기술 상용화기간의 장기화등으로 인해 사업화 실적이 타산업대비 매우 저조한 편이다. 이와같은 연구결과의 사업화와 관련된 문제점을 극복하기 위한 노력으로 국내에서 다양한 형태의 기술사업화 지원프로그램이 운영괴고 있으나, 에너지 분야에 특화된 프로그램은 부족한 상황이다. 반면에 미국의 경우, 재생에너지 R&D분야 전문투자자 그룹인 클린테크그룹 등을 중심으로 2002년부터 현재까지 다수의 녹색기술분야에 특화된 기술사업화 지원 프로그램을 운영하고 있다. 그 결과 현재까지 약 9년간 총 16억$의 투자유치에 성공함으로써 민간투자 활성화 역할을 담당하고 있다. 따라서 국내의 경우에도 이와같은 에너지 R&D 결과를 효과적으로 사업화로 연계시킬 수 있는 관련 프로그램 등이 시급히 도입되어야 할 것이다. 본 논문에서는 국내의 사업화 부진문제를 해결하기 위한 하나의 방안으로서 올해부터 정부주관으로 시행되고 있는 녹색인증사업을 활용하여 사업화가 유망한 기술 및 기업을 선별하고, 이에 대해 사업화 지원을 위한 후속프로그램을 적극 지원함으로써 연구개발결과의 경제적 활용도를 획기적으로 개선하는 방안을 제시하고자 한다. 또한 사업화 지원프로그램의 효율성을 높이기 위해 수도권, 영남권, 호남권 등 지역별 TP 등을 중심으로 기술사업화 협력 네트워크를 구축하고, 이를 기반으로 한 수요기술조사, 기술마케팅, 투자자유치 등의 관련프로그램을 개발하여 전단의 시스템과 융합시킴으로써 향후의 정부주도 R&D결과의 상용화율을 제고할 수 있는 시스템을 제안하고자 한다. 이에는 에너지 R&D분야별 기술적 시장적 특징분석, 지역별 산업특성과 기술공급 서플라이 체인분석을 토대로 한 기술이전 잠재수요기업 투자자를 대상으로 한 맞춤형 기술사업화 프로그램 등이 포함된다. 마지막으로 제안된 시스템에 대한 타당성 검증을 위해 올해년도에 시행한 녹색인증 기술사업화 연계프로그램 및 기술사업화 협력네트워크 활용사례 등을 분석하고, 향후 발전방향으로서 기술사업화 유관기관간간 기술사업화 정보교환 및 사업화 유망기술 기업 마케팅 등을 기본내용으로 한 시장지향적 녹색에너지 R&D 관리 시스템 구축방안을 제시하고자 한다.

• The Korean Journal of Financial Management
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• v.21 no.1
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• pp.1-32
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• 2004

This paper investigates the stock price and the volume behavior on the ex-dividend day using the December fiscal year firms listed on the Korea Stock Exchange from 1998 to 2000. Using the samples of voluntarily preannounced dividend-raying firms prior to the end of fiscal you, this study corrects the major limitations on previous studies -Kim, S. (1997) and Kim, S. (2003)- which were based on the perfect foresight assumption for firms' upcoming dividends. Also, this paper examines the information content of dividend more properly, since the preannounced date for the upcoming dividend payment is employed for the first time as the event date. Empirical results show that the announcement effects of cash and/or stock dividend is significant around the event date. The ex-dividend day stock returns are negative as expected for the samples of voluntarily preannounced cash dividend-paying firms.