• Journal of Information Technology Applications and Management
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• v.20 no.4
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• pp.127-149
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• 2013

Competitiveness of service industry in Korea is relatively lower than OECD countries'. Korean government, therefore, has been trying to improve the competitiveness of service industry by accelerating information technology (IT) adoption. Even though most of factors of IT can be contributed to improve the financial performance, it may be affected differently among various industry types and life cycles of companies. Therefore, it is one of very important research issues to analyze the influential effect of IT considering industry types and organizational life cycles in service industries. The purpose of this study is to find out critical success factors of IT which influence financial performance considering different types and life cycles of service industries. We developed the model and identified key success factors of IT adoption as IT system quality, Information quality, IT maintenance, CEO support, IT education of organization, and IT competence of user. Additional analysis of moderating effect by organizational life-cycle and types of service industry are conducted. For data sampling 856 companies are participated and total 2,000 questionnaires are collected. Structural equation modeling method is conducted for statistical analysis. The results show that the model is valid and most of success factors of it are very useful for improving financial performance of service industries except organizational IT education. Moderating effect of industry types and organizational life cycles is valid but partially accepted. The results might be able to provide useful directions and guide lines of IT acceleration in service industries.

• Journal of Korea Port Economic Association
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• v.32 no.2
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• pp.157-178
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• 2016

The purpose of this study is to forecast the ship-management market size and to propose a management improvement scheme to support Korean ship management companies in the stagnating world shipping market. Recently, global shipping companies have begun outsourcing all ship management activities. However, the Korean ship-management market represents just 3.75% of ocean shipping companies' sales, making it necessary to enlarge this market. This study performs a business analysis of ship management companies in Korea. The findings show that these companies' profitability and financial structures are not very good, mainly because of insufficient management ability and small firm sizes. Therefore, we propose that the Korean government supports crew training programs and shipping financial systems.

• Journal of Intelligence and Information Systems
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• v.18 no.4
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• pp.59-77
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• 2012

This study focuses on predicting which firms will increase capital by issuing new stocks in the near future. Many stakeholders, including banks, credit rating agencies and investors, performs a variety of analyses for firms' growth, profitability, stability, activity, productivity, etc., and regularly report the firms' financial analysis indices. In the paper, we develop predictive models for rights issues using these financial analysis indices and data mining techniques. This study approaches to building the predictive models from the perspective of two different analyses. The first is the analysis period. We divide the analysis period into before and after the IMF financial crisis, and examine whether there is the difference between the two periods. The second is the prediction time. In order to predict when firms increase capital by issuing new stocks, the prediction time is categorized as one year, two years and three years later. Therefore Total six prediction models are developed and analyzed. In this paper, we employ the decision tree technique to build the prediction models for rights issues. The decision tree is the most widely used prediction method which builds decision trees to label or categorize cases into a set of known classes. In contrast to neural networks, logistic regression and SVM, decision tree techniques are well suited for high-dimensional applications and have strong explanation capabilities. There are well-known decision tree induction algorithms such as CHAID, CART, QUEST, C5.0, etc. Among them, we use C5.0 algorithm which is the most recently developed algorithm and yields performance better than other algorithms. We obtained data for the rights issue and financial analysis from TS2000 of Korea Listed Companies Association. A record of financial analysis data is consisted of 89 variables which include 9 growth indices, 30 profitability indices, 23 stability indices, 6 activity indices and 8 productivity indices. For the model building and test, we used 10,925 financial analysis data of total 658 listed firms. PASW Modeler 13 was used to build C5.0 decision trees for the six prediction models. Total 84 variables among financial analysis data are selected as the input variables of each model, and the rights issue status (issued or not issued) is defined as the output variable. To develop prediction models using C5.0 node (Node Options: Output type = Rule set, Use boosting = false, Cross-validate = false, Mode = Simple, Favor = Generality), we used 60% of data for model building and 40% of data for model test. The results of experimental analysis show that the prediction accuracies of data after the IMF financial crisis (59.04% to 60.43%) are about 10 percent higher than ones before IMF financial crisis (68.78% to 71.41%). These results indicate that since the IMF financial crisis, the reliability of financial analysis indices has increased and the firm intention of rights issue has been more obvious. The experiment results also show that the stability-related indices have a major impact on conducting rights issue in the case of short-term prediction. On the other hand, the long-term prediction of conducting rights issue is affected by financial analysis indices on profitability, stability, activity and productivity. All the prediction models include the industry code as one of significant variables. This means that companies in different types of industries show their different types of patterns for rights issue. We conclude that it is desirable for stakeholders to take into account stability-related indices and more various financial analysis indices for short-term prediction and long-term prediction, respectively. The current study has several limitations. First, we need to compare the differences in accuracy by using different data mining techniques such as neural networks, logistic regression and SVM. Second, we are required to develop and to evaluate new prediction models including variables which research in the theory of capital structure has mentioned about the relevance to rights issue.

• The Korean Journal of Financial Management
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• v.21 no.2
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• pp.125-151
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• 2004

This study tests the price discovery from US Treasury bond markets to Korean bond markets using the daily returns of Korean bond data (CD, 3-year T-note, 5-year T-note, 5-year corporate note) and US treasury bond markets (3-month T-bill, 5-year T-note 10-year T-bond) from July 1, 1998 to December 31, 2003. For further research, we divide full data into two sub-samples on the basis of the start-up of bond valuation system in Korean bond market July 1, 2000, employing uni-variate AR(1)-GARCH(1,1)-M model. The main results are as follows. First the volatility spillover effects from US Treasury bond markets (3-month T-bill, 5-year T-note, 10-year T-bond) to Korean Treasury and Corporate bond markets (CD, 3-year T-note, 5-year T-note, 5-year corporate note) are significantly found at 1% confidence level. Second, the price discovery function from US bond markets to Korean bond markets in the sub-data of the pre-bond valuation system exists much stronger and more persistent than those of the post-bond valuation system. In particular, the role of 10-year T-bond compared with 3-month T-bill and 5-year T-note is outstanding. We imply these findings result from the international capital market integration which is accelerated by the broad opening of Korean capital market after 1997 Korean currency crisis and the development of telecommunication skill. In addition, these results are meaningful for bond investors who are in charge of capital asset pricing valuation, risk management, and international portfolio management.

• The Korean Journal of Financial Management
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• v.25 no.1
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• pp.51-84
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• 2008

We investigate the signaling effect of repurchase preceding new equity issue using Korean data. In a short time span, firms announce stock repurchases and equity offerings. The proximity of two events in Korean firms indicates that those are not independent of each other. In this paper, we test the signaling effect of repurchase on equity offerings on the two measures. One is announcement effect, which is measured as CAR(0, +2). The other is the effectiveness which is measured as CAR(0, +30) because the price movement during this window influences on the price of new issues. Previous studies that stock repurchase convey positive signal to equity offerings-Billet and Xue(2004) and Jung(2004)-construct sample without the limit of time interval between two events. This causes the unclear relation between those because of the long time interval. In this study we consider only samples of being within one year each other to reduce this problem and clarify the signal of repurchase on equity offerings. Korean firms are allowed to repurchase own shares with two different method. One is direct repurchase as same as open market repurchase. The other is stock stabilization fund and stock trust fund which trust company or bank buy and sell their shares on the behalf of firms. Generally, the striking different characteristic between direct repurchase and indirect repurchase is following. Direct repurchase is applied by more strict regulation than indirect repurchase. Therefore, the direct repurchase is more informative signal to the equity offering than the indirect repurchase. We construct two sample firms- firms with direct repurchase preceding-equity offerings and indirect repurchase-preceding equity offering, and one control firms-equity offerings only firms-to investigate the announcement effect and the effectiveness of repurchases. Our findings are as follows. Direct repurchase favorably affect the price of new issues favorably. CAR(0, +2) of firms with direct repurchase is not different from that of equity offerings only firms but CAR(0, +30) is higher than that of equity offerings only firms. For firms with indirect repurchase and equity offerings, Both the announcement effect and the effectiveness does not exist. Jung(2004) suggest the possibilities of how indirect stock repurchase can be regarded as one of unfair trading practices on based on the survey results that financial managers of some of KSE listed firms have been asked of their opinion on the likelihood of the stock repurchase being used in unfair trading. This is not objective empirical evidence but opinion of financial managers. To investigate whether firms announce false signal before equity offerings to boost the price of new issues, we calculate the long-run performance following equity offerings. If firms have announced repurchase to boost the price of new issues intentionally, they would undergo the severe underperformance. The empirical results do not show the severer underperformance of both sample firms than equity offerings only firms. The suggestion of false signaling of repurchase preceding equity offerings is not supported by our evidence.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.23-30
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• 2001

The Financial Cost in construction industry today is tend to increasing the burden of business management on account of lowered profit due to the mege-competition and decreasing investment of construction, multi-interfacing. system in it's attribute and various unreasonable governeing enactments. It is becoming the most important aspects for the management of construction business on how to preserve the profit from the various risks. The ultimate aims of this study is to pursue the contractual equity between the parties by establishing the fundamentals of framework for the compensation of Financial Charges through the review of the precedent studies and analysis of inquiries. As a result of the study, improvable measures for any practical inequality and/or institutional defects of current public contract system in recovering the Financial Cost incurred to Contractor are delivered as below; (1) $\lceil$Working Rules for Construction Industry Accounting Standards$\rfloor$ shall be amended and supplemented so as the incurred interest to be recognized as an operative cost by live return over the collection period. (2) The long-term phase contract system of which is enforcing contractor to bear the certain losses shall be diminished and/or abolished gradually. (3) The unreasonable legislations on compensation for financial cost in contract conditions shall be improved in response to practical circumstances. (4) The use of Critical-Path Method for Time Management shall be activated together with EVMS. (5) Independent application of Contract Enactments for construction industry shall be adopted.

• Journal of Technology Innovation
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• v.1 no.1
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• pp.157-169
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• 1993

최근, 시장환경 및 생산구조의 변화에 따라 이른바 첨단생산기술(advanced manufacturing technologies)의 개발과 활용이 산업계 및 학계의 큰 관심을 끌고 있다. 그러나 첨단생산기술의 급속한 기술적 발전과 전략적 가치의 증가에도 불구하고 산업에의 확산은 상대적으로 부진한 현실이다. 이러한 현상은 물론 초기 투자의 재원도달 문제에 기인한다고 말할 수 있지만 일차적으로는 적절한 대안을 선정하고 투자의 정당성을 분석하는 방법론의 미비도 그 원인으로 지적되고 있다. 본 고는 전통적(conventional) 생산기술과 비교한 첨단생산기술과 비교한 첨단생산기술의 특성에 대한 이해를 기초로, 새로운 기술대안들을 비교 분석하는 구체적인 기법의 개발에 관한 접근의 방향성과 개념의 틀(framework)을 제시하는 데 그 목적이 있다. 첨단생산기술의 대안선정과 정당성분석은 다음과 몇 가지 특성을 지니고 있다. 첫째, 투자대안의 속성이 다양하며(multi-attribute) 각각의 속성이 상위 적(conflicting)일 수 있다. 둘째, 기술대안들의 잠재적 기능이 생산체제의 신축성과 유연성(flexible)의 제고를 강조하고 있다. 셋째, 개별기술의 통합을 통해 시스템 전체의 상승효과(synergy effect)를 추구하고 있다. 따라서 이러한 특성에 대한 인식을 토대로 정량적이고 전략적인 장·단점에 대한 고려를 포함하는 종합적이고 객관적인 분석의 틀과 기법이 사용되지 않으면 첨단생산기술의 성공적인 도입과 활용은 기대하기 어려운 것이다. 새로운 생산기술의 도입이 공정의 부분적 개선을 위한 소규모 투자일 경우에는 경제성의 분석을 위해서는 전통적인 재무관리(capital budgeting) 기법들이 이용될 수 있고 직접적인 공정개선의 효과분석을 위해서는 시뮬레이션을 적용하는 것이 바람직하다고 할 수 있다. 그러나 기술대안의 규모가 크고 따라서 그 파급효과가 전체공정으로 확산되는 대규모 사업일 경우에는 다양한 장·단점들을 고려하는 종합적인 접근의 틀이 필요하게 된다. 이러한 방법들을 크게 세 가지 형태로 나누어 보면 (1) 모든 대안들에 대해, 모든 요소들에 관한 비교분석을 동시에 실시하는 동시적 접근(simultaneous approach), (2) 대안 또는 요소들을 그 성격에 따라 계층적 구조로 분할하고 단계별로 비교분석을 실시하는 계층적 접근(hierarchical approach), (3) 요소들을 속성에 따라 몇 개의 소그룹으로 나누고 각 그룹에 대해 순차적으로 대안들을 비교분석 함으로써 고려대상이 되는 대안들을 줄여나가는 순차적 접근(sequtial approach)등을 들 수 있다 이러한 접근법들의 장·단점들을 사업의 규모나 복잡성에 따라 달라지게 된다. 또한 동일한 접근방법 내에서도 구체적인 기법의 선택과 개발도 문제의 특성에 따라 달리 결정되어야 한다. 그러나 어떠한 경우에도 오늘날의 첨단생산기술에의 투자는 현금의 흐름에 대한 계량적 분석에만 의존하는 전통적인 기법만으로는 불충분하며 기업목표와 생산조직 전반에 관한 전략적 요소들을 포함하는 종합적인 접근이 바람직하다.

• The Korean Journal of Financial Management
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• v.24 no.2
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• pp.41-79
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• 2007

This study examines the expiration-day effects of stock index futures and options in the Korean stock market. The so-called 'expiration-day effects', which are the abnormal stock price movements on derivatives expiration days, arise mainly from cash settlement. Index arbitragers have to bear the risk of their positions unless they liquidate their index stocks on the expiration day. If many arbitragers execute large buy or sell orders on the expiration day, abnormal trading volumes are likely to be observed. If a lot of arbitragers unwind positions in the same direction, temporary trading imbalances induce abnormal stock market volatility. By contrast, if some information arrives at market, the abnormal trading activity must be considered a normal process of price discovery. Stoll and Whaley(1987) investigated the aggregate price and volume effects of the S&P 500 index on the expiration day. In a related study, Stoll and Whaley(1990) found a similarity between the price behavior of stocks that are subject to program trading and of the stocks that are not. Thus far, there have been few studies about the expiration-day effects in the Korean stock market. While previous Korean studies use the KOSPI 200 index data, we analyze the price and trading volume behavior of individual stocks as well as the index. Analyzing individual stocks is important for two reasons. First, stock index is a market average. Consequently, it cannot reflect the behavior of many individual stocks. For example, if the expiration-day effects are mainly related to a specific group, it cannot be said that the expiration of derivatives itself destabilizes the stock market. Analyzing individual stocks enables us to investigate the scope of the expiration-day effects. Second, we can find the relationship between the firm characteristics and the expiration-day effects. For example, if the expiration-day effects exist in large stocks not belonging to the KOSPI 200 index, program trading may not be related to the expiration-day effects. The examination of individual stocks has led us to the cause of the expiration-day effects. Using the intraday data during the period May 3, 1996 through December 30, 2003, we first examine the price and volume effects of the KOSPI 200 and NON-KOSPI 200 index following the Stoll and Whaley(1987) methodology. We calculate the NON-KOSPI 200 index by using the returns and market capitalization of the KOSPI and KOSPI 200 index. In individual stocks, we divide KOSPI 200 stocks by size into three groups and match NON-KOSPI 200 stocks with KOSPI 200 stocks having the closest firm characteristics. We compare KOSPI 200 stocks with NON-KOSPI 200 stocks. To test whether the expiration-day effects are related to order imbalances or new information, we check price reversals on the next day. Finally, we perform a cross-sectional regression analysis to elaborate on the impact of the firm characteristics on price reversals. The main results seem to support the expiration-day effects, especially on stock index futures expiration days. The price behavior of stocks that are subject to program trading is shown to have price effects, abnormal return volatility, and large volumes during the last half hour of trading on the expiration day. Return reversals are also found in the KOSPI 200 index and stocks. However, there is no evidence of abnormal trading volume, or price reversals in the NON-KOSPI 200 index and stocks. The expiration-day effects are proportional to the size of stocks and the nearness to the settlement time. Since program trading is often said to be concentrated in high capitalization stocks, these results imply that the expiration-day effects seem to be associated with program trading and the settlement price determination procedure. In summary, the expiration-day effects in the Korean stock market do not exist in all stocks, but in large capitalization stocks belonging to the KOSPI 200 index. Additionally, the expiration-day effects in the Korean stock market are generally due, not to information, but to trading imbalances.

• KDI Journal of Economic Policy
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• v.13 no.1
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• pp.35-63
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• 1991

Currently, Korea's banking industry holds a sizable amount of non-performing loans which stem from the government-led bailout of many troubled firms in the 1980s. Although this burden was somewhat relieved with the aid of banks' recapitalization in the booming securities market between 1986-88, the insolvent credits still resulted in low profitability in the banking sector and have been detrimental to the progress of financial liberalization and internationalization. This paper surveys the corporate bailout experiences of major advanced countries and Korea in the past and derives a rationale for readjustment measures against non-performing loans, in which rescue plans depend on the nature of the financial system. Considering the features of Korea's financial system and the banking sector's recent performance, it discusses possible means of liquidation in keeping with the rationale. The conflict of interests among parties involved in non-performing loans is widely known as one of the major constraints in writing off the loans. Specifically, in the case of Korea, the government's excessive intervention in allocating credits has preempted the legitimate role of the banking sector, which now only passively manages its past loans, and has implicitly confused private with public risk. This paper argues that to minimize the incidence of insolvent loan readjustment, the government's role should be reduced and that the correspondent banks should be more active in the liquidation process, through the market mechanism, reflecting their access to detailed information on the troubled firms. One solution is that banks, after classifying the insolvent loans by the lateness or possibility of repayment, would swap the relatively sound loans for preferred stock and gradually write off the bad ones by expanding the banks' retained earnings and revaluing the banks' assets. Specifically, the debt-equity swap can benefit both creditors and debtors in the sense that it raises the liquidity and profitability of bank assets and strengthens the debtor's financial structure by easing the debt service burden. Such a creditor-led or market-led solution improves the financial strength and autonomy of the banking sector, thereby fostering more efficient resource allocation and risk sharing.

• Journal of Convergence for Information Technology
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• v.10 no.11
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• pp.324-331
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• 2020

This study used the financial information of 29 Regional public hospitals registered in the HASPA. Regional public hospitals analyzed the ratio of operating financing by management activities and how they affect net profit. The results of the study, Regional Public Hospitals ratio of fund financing for management activities was 83.50 percent for medical revenues, 9.53 percent for Incidental Revenue of Medical, 4.54 percent for Contribution Revenue, 4.42 percent for Other non-medical profits, 1.21 percent for depreciation Expense and 0.73 percent for Amount of reserve for unique purpose project. As a result of examining the effect of financing by management operation on net profit, the ratio of operating funds by medical revenue, by incidental revenue of medical, by contribution revenue and by other non-medical profits had a positive impact on net profit of Regional public hospitals. And It has been confirmed that the ratio of amount of reserve for unique purpose project has a negative impact on net profit. Therefore, it is necessary for Regional public hospitals to manage costs in consideration of revenues and internal reserves.