• Journal of the Korea Convergence Society
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• v.11 no.1
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• pp.259-266
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• 2020

This study analyzes the effects of the obsolescence assets on the asymmetry of costs. Cost asymmetry refers to a lower percentage of costs when sales fall than increases in costs when sales increase. the obsolescence asset induces various decisions, including high maintenance costs and management improvements and replacement of facilities. This study is to analyze the cost behavior according to those decisions. The analysis showed that the higher the obsolescence of assets rate, we found cost elasticity, with a greater reduction in costs when sales decrease than the increase in costs when sales increase. Second, the lower the cost will not appear as the obsolescence of assets rate increases in case that the concentration of an item of property, plant and equipment is high, and when sales decrease. The above result means that the obsolescence of assets rate acts as operating risk and thus operates resources flexibly according to changes in sales, but when the concentration of property, plant and equipment is high, the decision-making constraint make it difficult for the flexible operation.

• Journal of Convergence for Information Technology
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• v.10 no.11
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• pp.302-312
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• 2020

This study examined whether there is a difference in cost asymmetry between a corporate listed on KOSDAQ and a corporate listed on KOSPI, and whether there is a difference in cost asymmetry depending on the size of the listed corporate. In the previous study, cost asymmetry was examined only for listed corporate, but the difference in size between KOSDAQ-listed corporate and KOSPI-listed corporate was not examined. However, according to many studies, since the characteristics of corporate and firm risks are different between corporate listed on KOSPI and corporate listed on KOSDAQ, or even for listed corporate, such an impact may affect the decision-making of internal resource allocation. The analysis was conducted that there would be a difference in the impact. For this study, the results of analyzing the KOSPI and KOSDAQ markets from 2011 to 2019 using the cost behavior model of Anderson et al. (2003), There was a difference in cost behavior in the KOSPI and KOSDAQ markets. Overall, as in previous studies, Cost Stickiness was appeared. but in the case of the KOSPI market, Cost Stickiness was mitigated.It was found that corporate with large corporate size made the decision to dispose of idle resources more clearly when sales decreased. In addition, it was observed that the higher the foreign investor's ownership ratio, the KOSPI market, and the larger the corporate size, the more clearly the Stickiness of cost was mitigated. This study expands research on cost asymmetry and reveals that there is a difference between the KOSPI market and the KOSDAQ market, and between the size of the corporate, and has a differentiation from previous studies.

• Journal of Digital Convergence
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• v.18 no.5
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• pp.145-155
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• 2020

The purpose of this study investigates the relationship between business strategy and cost behavior according to the corporate life cycle. To do so, I first examine the relationship between cost behavior and business strategy. And then, I analyze the effect of the business strategy on cost behavior conditional upon corporate life cycle based on listed Korean firms from 2000 to 2019. Specifically, the business strategy index is calculated by using the six continuous financial factors and the Prospector and Defender was defined on the score. Also, the corporate life cycle is distinguished based on the cash flow pattern. I find the evidence that the Prospector firms are likely to strengthen the asymmetry of cost behavior (cost stickiness), and examined that such a relationship was most strongly represented in the Introduction. This study is meaningful in that this is a more comprehensive analysis by examining business strategy and cost strategy according to the corporate life cycle and expand the application of financial information by using financial indicators to distinguish business strategies.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.10
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• pp.452-458
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• 2019

The purpose of this study is to analyze how managers' reporting choices affect asymmetric cost behaviors in manufacturing firms in Korea and Japan. In order to analyze the contents, SG&A, COGS, and operating expenses (OE), which were the targets of the previous studies, were analyzed using the operating costs paid in cash (OC) and the operating expenses before depreciation (OEBD) proposed by Shust and Weiss (2014). The differentiation of cost behavior was analyzed. The analysis revealed, first, that both Korea and Japan showed the difference between cost behavior of OE and OC. Specifically, the cost stickiness of OC was higher than that of OE. In particular, it showed that Korea firms have a higher intensity of tangible fixed assets that are weakening the cost stickiness compared to Japanese firms. Second, the occurrence of depreciation costs weakens the cost stickiness in both countries. Lastly, the higher the debt ratio, the more aggressively the cost reduction of Japanese companies. We hope that this study will help to improve the relationship between the two countries at the academic level when the Korea-Japan relationship cools down.

• The Journal of the Korea Contents Association
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• v.18 no.9
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• pp.209-216
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• 2018

This study examines the impact of corporate social responsibility activities (CSR) on cost stickiness. The asymmetrical cost behavior in which the cost reduction rate of a company is lower than the cost increase rate of an increase in sales is called cost stickiness. In this study, we separated the companies with CSR and those without CSR, and then compared their cost behaviors. This study reports that the cost stickiness of the companies performing the CSR is stronger than the companies that did not. This means that the company needs ongoing investments to create value through the CSR, so it is difficult to reduce committed resources involved immediately when sales declines. We expect that the result of this study provides meaningful insight to participants in the capital market by presenting empirical evidence that the firms' CSR can affect the managers' costs decisions.

• Journal of Digital Convergence
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• v.18 no.4
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• pp.177-191
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• 2020

This study examines the effect of the self-overviewing attributes derived from agency problem on the cost behavior in franchise industry. To solve the research problem, we developed the proxies for self-overviewing attributes of domestic franchise CEO and used Anderson et al. (2003)'s cost behavior model to test hypothesis. Moreover, we grouped the self-overviewing variables for additional test. We find that operating costs are more sticky for firms which present higher CEO's self-overviewing attributes in franchise industry. Second, we find that the greater the self-overviewing tendency, more strengthened cost stickiness when sales decrease. This study is meaningful in that we developed proxies for self-overviewing propensity, such as the hypodermic behaviors of franchise CEO, which have not been performed in previous studies, to enhance future studies of franchise CEO. Futhermore, we empirically provide the effects of CEO's self-overviewing attributes on the operating costs behaviors, suggesting useful information to franchise stakeholders such as prospective start-ups, franchisee and investors.

• Proceedings of the Korea Water Resources Association Conference
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• 2009.05a
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• pp.255-259
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• 2009

1997년 하수종말처리장의 민간위탁을 시작으로 국내 수도산업의 효율화에 대한 논의는 정부부처와 전문기관, 학계 등을 중심으로 제시되어 왔다. 수도산업 구조개편 논의는 지방상수도와 하수도산업의 규모의 영세성을 극복하기 위한 수직적 수평적 통합, 지방자치단체의 직영으로 인한 비효율성 제거를 위한 경영형태의 변화 등 크게 두 가지 흐름으로 정리할 수 있다. 상 하수도 사업의 수직적 수평적 통합은 주로 164개 수도사업자를 대략 9개 또는 12개 대규모 권역, 26개 또는 31개 중규모 권역으로 통합하는 방안들이 논의되고 있는데, 이와 같은 광역화 방안에 대해서는 정부부처, 연구기관, 전문가그룹 등에서 전반적인 합의가 형성되고 있다. 하지만 경영형태의 변화는 공사화와 민영화가 가장 큰 논의의 흐름으로, 이에 대해서는 집단과 지역 등 이해관계자간 상이한 견해들로 사회적인 합의를 이루지 못하고 있다. 한편 선진 수도사업을 구축하고 있는 프랑스, 네덜란드, 이스라엘 등지 에서는 수도산업의 효율성뿐만 아니라 공공성 제고 관점에서 구조적인 변화를 꾀하고 있다. 프랑스 파리시는 과거 150여 년 동안 유지되어 오던 수도사업의 민간운영을 전문공기업에 의한 위탁운영 방식으로 전환하는가 하면, 이스라엘은 정부와 민간기업간의 역할 분리를 통하여 물산업 수출국가로 발전하였다. 또한 네덜란드에서는 민영화 도입을 둘러싼 사회적 역량을 보다 발전적인 방향으로 유도하고자 법률로써 민영화를 금지하였다. 이에 본 연구는 글로벌 수도산업의 구조적인 변화 등을 살펴봄으로써 국내 수도산업이 효율성과 공공성을 제고하기 위한 경영 개선에 앞서 고려되어야 할 선결과제를 다음과 같이 제시한다. 첫째, 본 연구에서 살펴본 글로벌 수도산업의 구조적 변화(민영화에서 전문공기업화)는 수도사업의 정보의 비대칭성 및 투자저하가 효율적인 규제 메커니즘 부재에서 비롯되었다는 인식에서 추진되었다. 반면 국내시장은 산업 경제 전반이 정부주도로 이루어짐에 따라 적절한 규제의 틀과 문화가 정착되어 있지 않을 뿐만아니라 규제를 위한 전문인력도 상당히 부록한 실정이다. 따라서 효과적인 민영화의 도입을 위해서는 인적 제도적 인프라 형성이 선결과제이다. 둘째, 신규 또는 개량 투자에 대한 수요 발생, 생산원가에 미달하는 요금회수율 등은 민영화 도입 이후요금인상의 압박요인으로 작용할 것이다. 따라서 생산원가를 저감시키기 위한 광역화, 통합관리체계 등에 의한 원가절감 노력을 통하여 수도산업을 효율화하고 요금회수율을 현실화 등의 과제가 선결되어야 할 것이다.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.13 no.6
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• pp.521-528
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• 1988

Into the telecommunications industry, which had been monopolistic, a few advanced countries introduced competition through 70's and 80's. And this trend is going on worldwide. The introduction of competition into the industry is made mainly in the long distance, international and enhanced market. This liberalisation results from the fundamental change of the cost function. Suggesting that the cost comprises of that of the facility sector and that of the operation sector there exists the economies of scale in the facility sector in general. The major ground for the monopolistic industrial structure in the past was the natural monopoly depending on the economies of scale. But the rapid advance of the technology by a large margin. This decrease has resulted in the change of the cost function. That is while there exists the economies of scale in the smaller production scale, the average cost increases beyond a certain scale. This means that the natural monopoly collapsed, and that the competitive structure is more efficient than the monopolistic structure. But, because there exists economies of scale in the smaller scale, the desirable number of players, which could result in efficient industry structure depends on the market size. Such correlation between technological level market size and the degree of regulation is found in the case of U.S.A., Japan and U.K., where deregulation policy of the telecommunications market has already been carried out. In U.S.A., which has the largest market and the highest technological level the degree of regulation is lowest. Also in the order of Japan and U.K. the regulation is severer. Japan and U.K. are likely to liberalize still more, as the technology advances and the market grows. This article is just the beginning of the research, and this hypothesis requires more detailed research.