• Korean small business review
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• v.31 no.4
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• pp.67-93
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• 2009

The purpose of this paper is to explore the relations between financial constraints and dividend smoothing of innovative small and medium sized enterprises(SMEs) listed on Korea Securities Market and Kosdaq Market of Korea Exchange. The innovative SMEs is defined as the firms with high level of R&D intensity which is measured by (R&D investment/total sales) ratio, according to Chauvin and Hirschey (1993). The R&D investment plays an important role as the innovative driver that can increase the future growth opportunity and profitability of the firms. Therefore, the R&D investment have large, positive, and consistent influences on the market value of the firm. In this point of view, we expect that the innovative SMEs can adjust dividend payment faster than the noninnovative SMEs, on the ground of their future growth opportunity and profitability. And also, we expect that the financial unconstrained firms can adjust dividend payment faster than the financial constrained firms, on the ground of their financing ability of investment funds through the market accessibility. Aivazian et al.(2006) exert that the financial unconstrained firms with the high accessibility to capital market can adjust dividend payment faster than the financial constrained firms. We collect the sample firms among the total SMEs listed on Korea Securities Market and Kosdaq Market of Korea Exchange during the periods from January 1999 to December 2007 from the KIS Value Library database. The total number of firm-year observations of the total sample firms throughout the entire period is 5,544, the number of firm-year observations of the dividend firms is 2,919, and the number of firm-year observations of the non-dividend firms is 2,625. About 53%(or 2,919) of these total 5,544 observations involve firms that make a dividend payment. The dividend firms are divided into two groups according to the R&D intensity, such as the innovative SMEs with larger than median of R&D intensity and the noninnovative SMEs with smaller than median of R&D intensity. The number of firm-year observations of the innovative SMEs is 1,506, and the number of firm-year observations of the noninnovative SMEs is 1,413. Furthermore, the innovative SMEs are divided into two groups according to level of financial constraints, such as the financial unconstrained firms and the financial constrained firms. The number of firm-year observations of the former is 894, and the number of firm-year observations of the latter is 612. Although all available firm-year observations of the dividend firms are collected, deletions are made in the case of financial industries such as banks, securities company, insurance company, and other financial services company, because their capital structure and business style are widely different from the general manufacturing firms. The stock repurchase was involved in dividend payment because Grullon and Michaely (2002) examined the substitution hypothesis between dividends and stock repurchases. However, our data structure is an unbalanced panel data since there is no requirement that the firm-year observations data are all available for each firms during the entire periods from January 1999 to December 2007 from the KIS Value Library database. We firstly estimate the classic Lintner(1956) dividend adjustment model, where the decision to smooth dividend or to adopt a residual dividend policy depends on financial constraints measured by market accessibility. Lintner model indicates that firms maintain stable and long run target payout ratio, and that firms adjust partially the gap between current payout rato and target payout ratio each year. In the Lintner model, dependent variable is the current dividend per share(DPS_t), and independent variables are the past dividend per share(DPS_t-1) and the current earnings per share(EPS_t). We hypothesized that firms adjust partially the gap between the current dividend per share(DPS_t) and the target payout ratio(Ω) each year, when the past dividend per share(DPS_t-1) deviate from the target payout ratio(Ω). We secondly estimate the expansion model that extend the Lintner model by including the determinants suggested by the major theories of dividend, namely, residual dividend theory, dividend signaling theory, agency theory, catering theory, and transactions cost theory. In the expansion model, dependent variable is the current dividend per share(DPS_t), explanatory variables are the past dividend per share(DPS_t-1) and the current earnings per share(EPS_t), and control variables are the current capital expenditure ratio(CEA_t), the current leverage ratio(LEV_t), the current operating return on assets(ROA_t), the current business risk(RISK_t), the current trading volume turnover ratio(TURN_t), and the current dividend premium(DPREM_t). In these control variables, CEA_t, LEV_t, and ROA_t are the determinants suggested by the residual dividend theory and the agency theory, ROA_t and RISK_t are the determinants suggested by the dividend signaling theory, TURN_t is the determinant suggested by the transactions cost theory, and DPREM_t is the determinant suggested by the catering theory. Furthermore, we thirdly estimate the Lintner model and the expansion model by using the panel data of the financial unconstrained firms and the financial constrained firms, that are divided into two groups according to level of financial constraints. We expect that the financial unconstrained firms can adjust dividend payment faster than the financial constrained firms, because the former can finance more easily the investment funds through the market accessibility than the latter. We analyzed descriptive statistics such as mean, standard deviation, and median to delete the outliers from the panel data, conducted one way analysis of variance to check up the industry-specfic effects, and conducted difference test of firms characteristic variables between innovative SMEs and noninnovative SMEs as well as difference test of firms characteristic variables between financial unconstrained firms and financial constrained firms. We also conducted the correlation analysis and the variance inflation factors analysis to detect any multicollinearity among the independent variables. Both of the correlation coefficients and the variance inflation factors are roughly low to the extent that may be ignored the multicollinearity among the independent variables. Furthermore, we estimate both of the Lintner model and the expansion model using the panel regression analysis. We firstly test the time-specific effects and the firm-specific effects may be involved in our panel data through the Lagrange multiplier test that was proposed by Breusch and Pagan(1980), and secondly conduct Hausman test to prove that fixed effect model is fitter with our panel data than the random effect model. The main results of this study can be summarized as follows. The determinants suggested by the major theories of dividend, namely, residual dividend theory, dividend signaling theory, agency theory, catering theory, and transactions cost theory explain significantly the dividend policy of the innovative SMEs. Lintner model indicates that firms maintain stable and long run target payout ratio, and that firms adjust partially the gap between the current payout ratio and the target payout ratio each year. In the core variables of Lintner model, the past dividend per share has more effects to dividend smoothing than the current earnings per share. These results suggest that the innovative SMEs maintain stable and long run dividend policy which sustains the past dividend per share level without corporate special reasons. The main results show that dividend adjustment speed of the innovative SMEs is faster than that of the noninnovative SMEs. This means that the innovative SMEs with high level of R&D intensity can adjust dividend payment faster than the noninnovative SMEs, on the ground of their future growth opportunity and profitability. The other main results show that dividend adjustment speed of the financial unconstrained SMEs is faster than that of the financial constrained SMEs. This means that the financial unconstrained firms with high accessibility to capital market can adjust dividend payment faster than the financial constrained firms, on the ground of their financing ability of investment funds through the market accessibility. Futhermore, the other additional results show that dividend adjustment speed of the innovative SMEs classified by the Small and Medium Business Administration is faster than that of the unclassified SMEs. They are linked with various financial policies and services such as credit guaranteed service, policy fund for SMEs, venture investment fund, insurance program, and so on. In conclusion, the past dividend per share and the current earnings per share suggested by the Lintner model explain mainly dividend adjustment speed of the innovative SMEs, and also the financial constraints explain partially. Therefore, if managers can properly understand of the relations between financial constraints and dividend smoothing of innovative SMEs, they can maintain stable and long run dividend policy of the innovative SMEs through dividend smoothing. These are encouraging results for Korea government, that is, the Small and Medium Business Administration as it has implemented many policies to commit to the innovative SMEs. This paper may have a few limitations because it may be only early study about the relations between financial constraints and dividend smoothing of the innovative SMEs. Specifically, this paper may not adequately capture all of the subtle features of the innovative SMEs and the financial unconstrained SMEs. Therefore, we think that it is necessary to expand sample firms and control variables, and use more elaborate analysis methods in the future studies.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.8 no.4
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• pp.177-191
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• 2013

6th Industry reduced agricultural income and rural areas, the economic downturn is going to be activated is attracting attention as an alternative. 6th industry means that the integrated or linked, the manufacture and processing of secondary industry based on primary industry, the distribution and service of tertiary industry. Park Geun-hye government to realize the creative economy in agriculture as an alternative to specifically evaluate the 6th industries and suggests various policy alternatives. In addition, to support the development of models and analysis of best practices, including sleep studies are in progress. However, the 6th Industry management body for performing management level, technical level, the leader in comprehensive evaluation of competencies and indicators on the development of an evaluation study is insufficient. In this regard, the present study performed 6th industry management body for the management level, technical level, the leader competency evaluation indicators to develop a comprehensive evaluation by utilizing AHP method was developed indicators. The results achieved in Korea As different countries and the FTA as cheap agricultural imports increased 6th industry revenues associated with the management body is very likely to be worse. The endless competition to survive in the most important of the strategy for each individual project management body to operate on their own, rather than to strengthen internal capacity by strengthening linkages with other industries, products, and services that promote the sale will be. This also is that you need to improve revenue management body. Thus, all 6th industry management body at the location of their efforts to gain the trust of consumers will require, moreover, for each management body to build cooperation between the various measures will be sought. In addition to the smart era rapidly changing needs of customers, depending on the life cycle of products and services are getting faster and the new consumer is getting more and more tend to find new products. Thus, customers and management body 6th industry changes quickly and accurately predict market trends, and also to market new products and services that further efforts would be needed.

• Cartoon and Animation Studies
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• s.42
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• pp.151-175
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• 2016

The game industry has evolved from mobile games to PC online games after the smart-phone industry was opened up. In this environment, the game industry has rather been negatively developing its commercials means than the sufficient fundamental entertainment to the users. Especially, many games were released with better graphic qualities yet poor originality, continuing to be popular without enhancing the market itself. Moreover, the user's recognition level has improved. The users share their online gaming experience easily with the development of network environment. They receive the feedbacks on the quality of the game through the online channels and media by sharing them together. The high margin of the game industry will lead to the negative feedbacks of the users, effecting them to critique the content although the market looks good for now. The game industry's evolution has to be reviewed in the perspective of users, to look back at the successful cases of the past before the mobile era by analyzing and indicating the quality of the games and content's direction. This research is focused on the success factors of from the user's point of view, which has been widely claimed as a popular game franchise publicly before the mobile games had risen. WOW has been the most successful MMORPG game with its user record of 1.2 million till now. For these reasons, this study analyzes 's success factors from the user's point of view by configuring five expert groups, sequentially applying expert group survey, interview, Jobs-to-be-done and Fishbein Model as UX methodologies based on the business model to see through its long term rein in the industry. Consequently, The success factors from the user side of MMORPG provides an opportunity for the users to interact deeply with the game by (1) using well designed 'world view' over 10 years, (2) providing 'national policy' that is based on the locations of the users' culture and language, (3) providing 'expansions' with changes in time to give the digging elements to the users.

• Journal of Intelligence and Information Systems
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• v.21 no.4
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• pp.111-131
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• 2015

There are only a handful number of research conducted on pattern analysis of corporate distress as compared with research for bankruptcy prediction. The few that exists mainly focus on audited firms because financial data collection is easier for these firms. But in reality, corporate financial distress is a far more common and critical phenomenon for non-audited firms which are mainly comprised of small and medium sized firms. The purpose of this paper is to classify non-audited firms under distress according to their financial ratio using data mining; Self-Organizing Map (SOM). SOM is a type of artificial neural network that is trained using unsupervised learning to produce a lower dimensional discretized representation of the input space of the training samples, called a map. SOM is different from other artificial neural networks as it applies competitive learning as opposed to error-correction learning such as backpropagation with gradient descent, and in the sense that it uses a neighborhood function to preserve the topological properties of the input space. It is one of the popular and successful clustering algorithm. In this study, we classify types of financial distress firms, specially, non-audited firms. In the empirical test, we collect 10 financial ratios of 100 non-audited firms under distress in 2004 for the previous two years (2002 and 2003). Using these financial ratios and the SOM algorithm, five distinct patterns were distinguished. In pattern 1, financial distress was very serious in almost all financial ratios. 12% of the firms are included in these patterns. In pattern 2, financial distress was weak in almost financial ratios. 14% of the firms are included in pattern 2. In pattern 3, growth ratio was the worst among all patterns. It is speculated that the firms of this pattern may be under distress due to severe competition in their industries. Approximately 30% of the firms fell into this group. In pattern 4, the growth ratio was higher than any other pattern but the cash ratio and profitability ratio were not at the level of the growth ratio. It is concluded that the firms of this pattern were under distress in pursuit of expanding their business. About 25% of the firms were in this pattern. Last, pattern 5 encompassed very solvent firms. Perhaps firms of this pattern were distressed due to a bad short-term strategic decision or due to problems with the enterpriser of the firms. Approximately 18% of the firms were under this pattern. This study has the academic and empirical contribution. In the perspectives of the academic contribution, non-audited companies that tend to be easily bankrupt and have the unstructured or easily manipulated financial data are classified by the data mining technology (Self-Organizing Map) rather than big sized audited firms that have the well prepared and reliable financial data. In the perspectives of the empirical one, even though the financial data of the non-audited firms are conducted to analyze, it is useful for find out the first order symptom of financial distress, which makes us to forecast the prediction of bankruptcy of the firms and to manage the early warning and alert signal. These are the academic and empirical contribution of this study. The limitation of this research is to analyze only 100 corporates due to the difficulty of collecting the financial data of the non-audited firms, which make us to be hard to proceed to the analysis by the category or size difference. Also, non-financial qualitative data is crucial for the analysis of bankruptcy. Thus, the non-financial qualitative factor is taken into account for the next study. This study sheds some light on the non-audited small and medium sized firms' distress prediction in the future.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.14 no.7
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• pp.3232-3237
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• 2013

This study was carried out to evaluate the economic value of Tyvek planting technique in Korean citrus. The Tyvek planting technique was developed by national institute of horticultural and herbal science in Korea rural development administration. This technology could be used to improve efficiency and practicality of cultivation of citrus. The research results show that the technological value of Tyvek planting technique was evaluated 42,163(discount rate 6%)-55,018(discount rate 8%) million won. IRR is greater than discount rate(6-10%). NPV is greater than zero. B/C ratio IRR is greater than 20. The economic validity of Tyvek planting technique is identified by the results of technology evaluation.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.1
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• pp.243-248
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• 2014

This study was carried out to evaluate the economic value of development of separation and purification techniques of flavonoid in citrus using IRR, NPV. The separation and purification techniques of flavonoid of citrus was developed by national institute of horticultural and herbal science in Korea rural development administration. This technology could be used to improve efficiency and practicality of cultivation of citrus. The research results show that the technological value of separation and purification techniques of flavonoid of citrus was evaluated 3,155(scenario 1)~6,518(scenario 2) million won. IRR was 28.3%~61.2%, which was greater than discount rate(11.9%). NPV is 5,541~18,773 million won. Therefore, the economic validity of development of separation and purification techniques of flavonoid of citrus is identified by the results of technology evaluation.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.9
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• pp.251-257
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• 2017

Private banking, which is a part of the financial services industry, is an investment advisory business targeting high-net-worth individuals (HNWIs). The demand for asset management services, which isexpanding in the world market as well as in the Asia-Pacific region, is rapidly increasing in Korea as the low-growth, low-interest environment has stabilized. In Korea, the private banking business is ahead of growth, and the evaluation and compensation system of playing institutions remains a challenge. While the aging of the population increases the demand for services, the increasing competition and regulations have decreased the profit margins in the industry. In this paper, a business model is derived from a professional service quality model. Modular advisory services, value-proposition through sophisticated services, and investment expertise with increased clarity would help wealth management firms pursue their opportunities. By interviewing the experts of wealth management banks, this study constructsa business model with elements derived from a relevant literature review. The contribution of this research is to enable these institutions to understand the key factors affecting their financial performances, in order to improve them. This study is limited by one of the research models, and it will be necessary to conduct an empirical test in the future.

• International Commerce and Information Review
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• v.18 no.3
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• pp.73-100
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• 2016

This study focused on the Korean Stock Market so as to recognize the actual Korea-China FTA effect in the firm level. The result are as follows. First, lifting embargo even before the FTA actually took into effect influenced negatively to the firms listed in Korean Stock Market unlike the expectations that effectuation could influence positively to Korean economy. Secondly, the industries that China has attracted more foreign investors than Korea have shown declining returns as they positioned comparative disadvantages in Korea. In this regard, foreign shares delivered signaling effects to domestic investors in Korea. Thirdly, information for effectuation(embargo lifting) has reflected in the stock prices immediately as it leaked in the industries expecting the negative impact, while investors showed the tenancy to retain the action until the FTA actually took into effect in the industries expecting the positive impact.

• Journal of the Korean Institute of Intelligent Systems
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• v.24 no.4
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• pp.379-384
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• 2014

This paper proposes a Cournot model that can be used to analyze the strategic behaviors of generation companies which try to maximize their profits in an imperfectly competitive electricity and carbon markets. The proposed model consists of two parts. First, the strategic behaviors of generation companies are modeled based on the Cournot theory. Second, the market operation is modeled based on the assumption that the market operator tries to maximize the total social welfare in consideration of environmental welfare. To find the Nash equilibrium of the proposed model, the two-level optimization technique is used. The proposed method has been applied to an illustrative example of oligopolistic markets. We found that the proposed method has strong potential to analyze the influence of the strategic biddings of the generation companies and the impact of renewable generator on markets where the competitiveness of the markets is not fully developed.

• Journal of the Korean Data and Information Science Society
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• v.20 no.6
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• pp.1061-1073
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• 2009

Stock price index option investing is a scientific investment method and various index and investment strategies have been developed. The purpose of this study is to apply the variety of option investment strategies that have been introduced in the market and validate them using past option trading data. Option data was based on an actual stock exchange market tick data ranging from September 2001 to January 2007. Visual Basic is used to propose an option back-testing model. Validation process was carried out by transferring the tick data into ten-minute intervals and empirically analyzed. Furthermore, most option-related strategies have been applied to the model, and the usefulness of each strategies can be easily evaluated. As option investment has high leverage followed by high risks and profit, the optimal option investment strategy should be used according to the market condition at the time to make stable profit with minimum risk.