• International Area Studies Review
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• v.21 no.2
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• pp.143-169
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• 2017

This paper empirically examines how capital structure inertia varies across industries and there is different in industries, and whether this fact is explained by product market competition using non-financial firms listed in KOSP market over periods of 1981 to 2015. In empirical test, I find that firms with more competition environment tend to have inertia behavior in making decision of capital structure. This implies that it is explained by debt discipline effect and it is substitution for product market competitions. Also I find that manager tends to take action actively making decision of capital structure when product market competition is low. Also I show that they use debt to constraint the free cash flow. As a result, I conclude that Korean non-financial firms do not have more strong inertia behavior in capital structure rather than U.S. firms. Second, using OLS estimation, inertia effect disappears while there is strong inertia effect in relationship between inertia and product market competition. This result suggests that transaction cost is not key factor in explaining inertia behavior of capital structure.

• Industry Promotion Research
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• v.7 no.4
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• pp.97-108
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• 2022

This paper examined the impact of financing structure on the innovation efficiency of SMEs by constructing an econometric model using panel data of SMEs listed on the SME board from 2010 to 2020 as the research sample. The innovation efficiency of SMEs was measured by the Stochastic Frontier Analysis (SFA), the relationship between financing structure and innovation efficiency of SMEs was examined with the help of the Tobit model, and the corresponding heterogeneity analysis was conducted. Finally, the robustness of the model was tested. It was concluded that the effects of debt and equity financing on the quantitative efficiency of innovation were non-linear and mainly showed an inverted "U" shaped relationship. For innovation quality efficiency, bond financing could positively contribute, while equity financing negatively inhibits. Finally, the corresponding advice was given.

• Journal of Digital Convergence
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• v.14 no.7
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• pp.11-20
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• 2016

This study examines the possibility of implementing the technology financing for export-import based small and medium sized enterprises. Our sample consists of 2,753 small and medium sized enterprises, receiving financial support from the Export-Import Bank of Korea for the period of 2011-2013. We find that only 400(200) firms reserve IPs(patents) annually. Given that IPs are likely to concentrate on manufacturer industries such as electronic components, computers, video, sound and communication equipment manufacturing(KSIC 26), other machinery and equipment manufacturing(KSIC 29), manufacture of motor vehicles and trailers(KSIC 31). We also find that the total assets, sales and R&D expenses of IP holding companies greatly exceeds those of companies without IPs. In addition, IP holding companies' liquidity seems slight edge and the leverage ratio is somewhat lower. However, profitability ratios of IP holding companies are rather than harsh or similar level. 20~30% of IP holding firms show very week credit scores, implying that banks' default risk is expected to be significant.

• Information Systems Review
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• v.22 no.1
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• pp.73-89
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• 2020

This study started to identify the "Forward-looking" of the technology appraisal model introduced to diversify financing methods of SMEs and improve financial accessibility. The multivariate regression analysis was performed by setting the business performance(growth, profitability, and stability) of technology financing companies as dependent variables, technology appraisal items as independent variables, number of employees, age of the company, asset and the Korea Standard of Industry Classification related to firm size and industry characteristics as control variables. As a result of the analysis, the technology appraisal items did not explain the profitability of the company significantly and had a limited explanatory power on growth potential. However, in terms of stability, we confirmed that R&D capacity is a significant variable explaining the debt ratio of technology financing companies. Therefore, it is concluded that the 'Forward-looking' reflection on the growth and profitability of the company should be strengthened in the future adjustment of the technology appraisal model and the development of the technology appraisal model for investment.

• Management & Information Systems Review
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• v.37 no.4
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• pp.63-74
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• 2018

Recently, in the asset management industry, the smart beta strategy, which has an intermediate nature between passive and active strategies, is attracting attention. In this smart beta strategy, value, momentum, low volatility, and quality index are widely used. In this study, we analyzed the quality index which is not clear and complicated to calculate. According to the MSCI methodology, the quality index was calculated using three variables: return on equity, debt to equity, and earnings variability. In addition, we use the index using only return on equity variable, the index using only two variables of return on equity and debt to equity, and the KOSPI index as comparison targets for the quality index. In order to evaluate the performance of the indices used in the analysis, the arithmetic mean return, the coefficient of variation, and the geometric mean return were used. In addition, Fama and French (1993) model, which is widely used in related studies, was used as a pricing model to test whether abnormal returns in each index are occurring. The results of the empirical analysis are as follows. First, in all period analysis, quality index was the best in terms of holding period returns. Second, the quality index performed best in the currency crisis and the global financial crisis. Third, abnormal returns were not found in all indices before the global financial crisis. Fourth, in the period after the global financial crisis, the quality index has the highest abnormal return.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.1
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• pp.133-144
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• 2017

This study investigates firm-specific financial variables that determine investment or speculative grades from the viewpoint of firms, which are one of the major stakeholders related to the credit rating. We employ an ordered probit model for our analysis with the sample data from 1999 to 2015 for listed firms in the Korean stock markets. For investment grades, operating margin, sales, market-to-book, dividend payment, capital expenditure ratio, and tangible asset ratio have a significantly positive impact on credit ratings. In the subsample for speculative grades, the coefficients of the dividend payment, retained earnings ratio, and capital expenditure ratio are significantly positive while short-term debt ratio and R&D expenditures have a significantly negative impact on credit ratings. For the analysis before and after 2009, when the Credit Information Use and Protection Act was strengthened after the global financial crisis, the coefficients of the capital expenditure ratio, cash ratio, and tangible asset ratio are significantly positive in the subsample for investment grades before 2009, but not significant after 2010. The coefficient of the long-term debt ratio is more significantly negative than that of the short-term debt ratio before 2009, for speculative grades, but short-term debt ratio has a more negative effect on ratings than long-term debt ratio after 2010. Surprisingly, the coefficient of the R&D expenditures is significantly negative in both investment and speculative grades since 2010. Our findings are inconsistent with the conjecture that the increase in R&D expenditures enhances the possibility of creating cash-flow by raising the investment growth opportunity, and thus affects positively the credit rating.

• Korean Business Review
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• v.17 no.2
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• pp.41-61
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• 2004

Before 2003 the companies in Korea should capitalize the interest expenses that are attributable to the acquisition, construction or production of a qualifying assets. However, according to the revised standard which should be applied from 2003, the companies can either capitalize the interest expenses or recognize as an expense when they are incurred. Therefore almost all the companies confronted with the decision making of accounting choices on the interest capitalization. This paper empirically examines which financial characteristics of the companies affect the accounting choice by using logistic regression model and reviews the sufficiency of the foot notes disclosures regarding the capitalized interest. The variables of the financial characteristics are change of debt-equity ratio, borrowing ratio, qualifying assets ratio, firm size and income smoothing. The results of this study are summarized as follows. First, among the financial characteristics, only qualifying asset ratio has the significant difference between capitalized companies and expensing companies. Second, the results of logistic regression indicate that qualifying asset ratio and firm size have the significant influence on the accounting choices. Therefore, I cannot find the evidence supporting that the companies use the accounting choice to manage the financial ratios.

• International Area Studies Review
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• v.20 no.2
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• pp.113-140
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• 2016

This paper first extracts the main basis for the Middle-Income Trap(MIT) to apply these grounds to reality of the Chinese economy. And then confirmed crisis factors of China economy. Also discussed then the economic reforms of China in order to not fall into the MIT. After reviewing previous research extracted six factors the results will correspond to comply with the Chinese economy. Those are 'Over-investment', 'excess capacity' 'reduction of TFP continued,' 'disappearance and the aging of the population bonus', 'excessive debt and structural adjustment and financial instability of the company', 'income unequal expansion', 'low financial and information infrastructure accessibility', and 'low transparency index'. China's policy direction to avoid the MIT generally set properly, but proof that implementation process not easy, was appearing everywhere. After all, China economy should be modified now to a reforms of 'government failure' and promotion of function for ongoing restructuring system in the market. Because of the SDR incorporation from 2015, it is inevitable to face major constraints in the external aspects.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.6
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• pp.283-290
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• 2021

Survival analysis was used to determine whether there are differences in the impact of trade payables on business failure according to the size of the company. A total of 41,781 firms from 1999 to 2019 were analyzed. The analysis period was divided into the entire period and before and after the financial crisis. The trade payable ratio is a proxy variable. The increase in trade payables over the entire period increases the possibility of business failure of Small and Medium Enterprises (SMEs). However, in large firms, a significant relationship between the increase in the trade payable ratio and the possibility of corporate failure could not be confirmed. Second, in SMEs during the sub-periods of 1999-2007 and 2009-2019, it was found that an increase in trade payables acts as a factor that increases the possibility of corporate failure. However, in large corporations, the increase in trade payables in the period from 2009 to 2019 has been shown to reduce the rate of failure. An increase in trade payables is recognized as the active development of business activities or the active use of interest-free debt. Therefore, it was confirmed that the impact of trade payables on corporate failure differs depending on the size of the company.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.30 no.6
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• pp.1271-1278
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• 2020

Deep learning-based profiling side-channel analysis is a powerful analysis method that utilizes the neural network to profile the relationship between the side-channel information and the intermediate value. Since the neural network interprets each point of the signal in a different dimension, jitter makes it much hard that the neural network with dimension-wise weights learns the relationship. This paper shows that replacing the fully-connected layer of the traditional CNN (Convolutional Neural Network) with global average pooling (GAP) allows us to design the inherently robust neural network inherently for jitter. We experimented with the ChipWhisperer-Lite board to demonstrate the proposed method: as a result, the validation accuracy of the CNN with a fully-connected layer was only up to 1.4%; contrastively, the validation accuracy of the CNN with GAP was very high at up to 41.7%.