• Journal of Distribution Research
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• v.16 no.3
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• pp.33-75
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• 2011

The ownership structure of a franchise system is determined by the franchisor's strategic choice. A close look at the extant theories and perspectives in economics and management such as resource scarcity theory, agency theory, transaction cost analysis, and mixed ownership theory reveals that firms choose their ownership structure for the sake of economic efficiency, profit potentials, the chance of survival, and other strategic concerns. The present study, on the basis of strategic choice perspective, reviews the divergent theories of a franchise system's ownership structure and its determinants, thus providing a theoretical framework for comparing the contradictory arguments along the several critical dimensions. We also developed and tested the conflicting hypotheses regarding key determinants of ownership structure including firm's age, size, transaction-specific investments, uncertainty, and risk-sharing propensity. Using a FDD (Franchise Disclosure Document) data set of 543 Korean franchisors, we found that the years in business, the total number of employees, days of training, the inverse of the years of franchising, and the requirement of royalty payment have positive relationships with the proportion of company-owned outlets to total number of outlets. On the other hand, the proportion of company-owned outlets was found to have negative relationships with the total number of outlets and the extent of geographic dispersion of outlets, but to have no significant relationships with the initial investment required and the inverse of contract length. Based on the findings, we provide several theoretical and managerial implications for studying ownership structure of franchise systems.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.3
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• pp.518-526
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• 2017

This study analyzed the impact of family firms and their characteristics on how they use debts to analyze the decision-making process of Korean family firms. For analysis, we classified the characteristics of family firms into three categories, through the influence of the relationship between the lack of funds and net debt issuance, which was confirmed as the 'packing order theory' of family firms. There was a total of 4,503 enterprises in the Korean Exchange (KRX). The period of analysis was 10 years, between 2004 and 2014. To summarize, Shyam-Sunder and Myers (1999) validated the packing order theory by presenting a model of family businesses that showed greater applicable to higher packing order theory than a model of non-family businesses. Moreover, the results also confirmed the application of the packing order theory by the family stronger corporate governance and ownership structure. The ownership and governance characteristics of the ruling family has also shown the applicability of higher packing order theory.

• Journal of Environmental Policy
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• v.8 no.4
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• pp.75-94
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• 2009

The process of obtaining third-party financing contacts was analyzed via a two-stage game model: a "signaling game" for the first stage,and a "principal-agent model" for the second stage. The two-stage game was solved by a process of backward induction. In the second stage game, the optimal effort level of the energy saving company (ESCO), the optimal compensation scheme of the energy user, and the optimal payoffs for both parties were derived for each subgame. The optimal solutions forthe different subgames were then compared with each other. Our main finding was that if there is some restriction on ESCO's revenue (e.g. a progressive sales tax) that causes ESCO's revenue toincrease at a decreasing rate, then the optimal sharing ratio is uniquely determined at a level of strictly less than one under a linear compensation scheme, i.e. a unique balance exists. Subgames have a unique equilibrium arrived at separately for each situation,. Within this equilibrium, energy users accept energy audit proposals from H-type ESCOs with high levels of technology, but reject proposals from L-type ESCOs with low levels of technology. While L-type ESCOs cannot attain profits in the third-party financing market, H-type ESCOS can pocket the price differential between L-type and H-type audit fees. Accordingly, revenues in an H-type ESCO equilibrium increase not only in line with the technology of the ESCO inquestion, but also faster than in an L-type equilibrium due to more advanced technology. At the same time, energy users receive some positive payoff by allowing ESCOs to perform third-party financing tasks within their existing energy system without incurring any extra costs.

• The Journal of the Korea Contents Association
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• v.17 no.5
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• pp.8-17
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• 2017

Using 1855 observations from 5 years-371 firms panel data during 2010 to 2014 in Chinese stock exchanges, this study examines the impact of managers' ownership on R & D expenditures. The empirical study finds that when firms are state-owned, managers' ownership have negative relation with the level of R & D expenses as well as the likelihood of executing R & D investment, implying that managers are less likely to invest in high risky projects due to managerial ownership's entrenchment effects to pursue private benefits rather than alignment of interest effect as shareholders. The empirical study also finds that when firms are private-owned, managerial ownership are inverse U shaped related to the level of R & D expenses, implying that managers are less likely to invest in high risky projects due to increasing risk aversion resulting from concentration of private wealth at its high level while managers are more likely to invest in high risky projects due to increasing incentives as shareholders at its low level. The results support that the effects of managerial ownership on R & D expenses may be different according to the ownership type of Chinese listed firms.

• Korean Journal of Construction Engineering and Management
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• v.25 no.1
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• pp.3-12
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• 2024

The donation collection system to secure infrastructure and land necessary for public development projects has been actively applied as an effective means of realizing public interest and the concept of recovering development profits, and has contributed greatly to society in public difficult financial conditions. However, due to the ambiguous legal standards and lack of legal grounds for the operation of the donation collection system, it has been arbitrarily used for administrative convenience in the form of granting a donation collection assistant to install infrastructure. In addition, infrastructure is a facility that is constructed and donated within development profits to obtain licenses, and is promoted to minimize construction costs to improve profitability, posing a risk of poor infrastructure planning, design, and construction, resulting in increased safety and maintenance costs for citizens. Continuous system and legal improvement are needed to improve the excellence, convenience, and safety of facilities that citizens will use for half a century through the improvement of the donation system.

• Journal of Technology Innovation
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• v.31 no.3
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• pp.139-169
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• 2023

This study analyzes the effects of firms' technology innovation(patent applications) on employment(number of workers and proportion of high-skilled workers) and corporate performance(sales per worker), while considering the two-way causal relationships between these variables. We used the three-stage least squares(3SLS) estimation to examine system of equations in which the dependent variables affect each other with a two-year lag wherever relevant, and applied it to firm-level panel data of Korean manufacturers with 100 or more workers. Our data covered the period of 2005-2017. Exogenous variables, such as firms' managerial and other characteristics, were controlled as explanatory variables. The identification variables for each equation included firms' R&D intensity, labor cost per worker(or operation of firms' own R&D center), and investment on worker training. We find that firms' patent applications increased number of workers, proportion of high-skilled workers, and sales per worker; the causal relationships in the opposite direction were also significant. Evidently, firms' technology innovation is critical to the growth and quality improvement of employment as well as sustainable corporate growth.