• The Korean Journal of Financial Management
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• v.27 no.2
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• pp.63-84
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• 2010

We investigate whether FX hedging materially increases firm value by testing the valuation effect of Foreign Exchange Risk Insurance in Korea, using our sample of 84 listed firms with 617 observations between 2000 and 2008, Employing Tobin's Q as a proxy of firm value and foreign exchange risk insurance as a proxy of hedging instrument, we find a positive relation between firm value and the use of foreign exchange risk insurance. The hedging premium is statistically significant and is on average 7.4% of sample firm value. We also find our empirical results consistent with the preceding evidence that firm uses the hedging instrument in order to alleviate economic frictions and then hedging causes an increase in firm value.

• Environmental and Resource Economics Review
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• v.18 no.1
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• pp.139-158
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• 2009

With the sample of Middle East crude oil imported to South Korea, this study empirically analyzes the effectiveness of the risk management strategies using derivatives such as futures and options. Assuming the hedging period of one to twelve months, it considers a spot purchasing strategy, 1 : 1 futures hedge strategy, OLS-based minimum-variance futures hedge strategy, buying call option strategy, and collar transaction strategy. According to the ex-ante result, using the derivatives of futures or options makes lower the procurement costs when the crude oil prices is increasing. With the hedging period less than or equal to six months, the hedging strategy using futures turns out to be superior in terms of procurement cost reduction and hedging effectiveness improvement. In contrast, the hedging strategies of buying call option and collar transaction would generate better results when the hedging program last over six months.

• Knowledge Management Research
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• v.22 no.4
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• pp.87-101
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• 2021

ESG Investment is emerging as a trend and common sense in the financial market. ESG Investment is an investment method that simultaneously pursue social sustainability and investment returns from a long-term perspective by reflecting non-financial factors such as environment, society and governance in addition to corporate financial performance in investment decisions. This study checked how the characteristics of ESG investment have been changed after Covid-19. Afterwards, it was confirmed that Covid-19 actually acted as a negative factor in the securities market by applying VAR model. At the same time, it was demonstrated that ESG indices of the US and Korea outperformed their benchmark in terms of return and risk during the pandemic regime. The result of this study hints that the importance of ESG investment will be unchanged after Covid-19. At the same time, it suggests that managers should avoid passive ESG management and engage in strategic ESG management based on knowledge management.

• Journal of the Korean Society of Fisheries and Ocean Technology
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• v.55 no.3
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• pp.264-272
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• 2019

The aim of this study is to analyze the relationship between international oil price as a fuel cost in overseas fisheries and skipjack tuna price as a part of main products in overseas fisheries using monthly time series data from 2008 to 2017. The study also tried to analyze the change of fishing profits by fuel cost. For a time series analysis, this study conducted both the unit-root test for stability of data and the Johansen cointegration test for long-term equilibrium relations among variables. In addition, it used not only the Granger causality test to examine interactions among variables, but also the Vector Auto Regressive (VAR) model to estimate statistical impacts among variables used in the model. Results of this study are as follows. First, each data on variables was not found to be stationary from the ADF unit-root test and long-term equilibrium relations among variables were not found from a Johansen cointegration test. Second, the Granger causality test showed that the international oil prices would directly cause changes in skipjack tuna prices. Third, the VAR model indicated that the posterior t-2 period change of international oil price would have an statistically significant effect on changes of skipjack tuna prices. Finally, fishing profits from skipjack would be decreased by 0.06% if the fuel cost increases by 1%.

• The Journal of the Korea Contents Association
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• v.13 no.11
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• pp.829-844
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• 2013

This study performed comprehensive tests on the four hypotheses on the capital structures for the firms listed in the KOSPI during the period from 2006 to 2011. It may be of concern to find any financial profiles on firms' leverage across the book- and market-value bases since there was relatively little attention drawn to any financial changing profile of the leverage surrounding the period of the pre-and the post-global financial crises. The findings of this study may also be compared with those of the previous related literature, by which it may be expected to enhance the robustness and consistency of the results across the different classifications on capital markets. It was found that three explanatory variables such as PFT, SIZE, and RISK, were found to be the statistically significant attributes on leverage during the tested period. Moreover, the outcome by the Fisher Exact test showed that a firm belonging to each corresponding industry may possess its reversion tendency towards the industry mean and median leverage ratios.

• Korean small business review
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• v.43 no.1
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• pp.1-33
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• 2021

This study explores differential value implications of R&D expenditure across firms, especially in terms of growth potential of small businesses. Analyzing Korean listed firms for the period from 1982 to 2014, we document the followings. First, large firms, defined as the top quintile group based on market capitalization, have spent higher R&D expenditure compared to small (bottom quintile group) and medium (middle quintile groups) firms and the difference between groups has enlarged over time. Relatedly, the persistence of R&D spending, measured by the association between current R&D expenditure and cumulative future R&D expenditure over the next five years, is lowest in small firms. Second, R&D of large (small) firms are more (less) likely to generate operating profits over the next five years. Additional analyses suggest that the relation between R&D and gross margin is strongest in large firms, suggesting that R&D underlies their competitiveness in the product market. Third, small firms have borne the highest uncertainty related to R&D investment proxied by the association between current R&D and volatility of future earnings. As a result, the likelihood of R&D leading to future patents is also lowest in small firms. Fourth, the probability of moving up to the next size group within the next five years is significantly lower in small firms than others. Finally, we find that the divergence in R&D expenditure between large and small firms is positively associated with product market concentration. Overall, our findings confirm the small business growth trap in relation to R&D investment.

• Journal of Korea Port Economic Association
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• v.31 no.4
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• pp.1-15
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• 2015

During global recessions, such as the 2008 financial crisis, Korean shipping companies have been undergoing a liquidity crisis that is comparably worse than other shipping companies worldwide. One of the reasons behind this repetitive vicious cycle can be the lack of ability to foresee the future by analyzing and understanding the volatile shipping market. Traditionally, in order to assimilate the shipping market, larger Korean shipping companies have been purchasing market reports published by Europe-based research companies and shipping brokers, leading to a digital divide by company size. To resolve this issue, the Maritime Exchange Information Center (MEIC) has been publishing shipping market reports that include essential shipping information such as freight rates by different routes; commodity trends for iron ore, grain, and coal; ship-building trends for new-building, second-hand, and demolition markets; as well as bunker price and port congestion. This research was conducted to analyze the effectiveness of four variables-information usefulness, market reflection, information composition, and latest information-on information satisfaction. If the information satisfaction was found to be adequate, the analysis of actual proof was used to determine if the customers would be willing to purchase MEIC's report when it is chargeable. All the four variables were found to have positive effects on information satisfaction. In particular, latest information was found to directly affect the intention to purchase. Furthermore, high information satisfaction was related to the intention to purchase.

• 한국신재생에너지학회:학술대회논문집
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• 2011.05a
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• pp.76.2-76.2
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• 2011

석탄으로부터 합성석유를 생산하는 상용기술을 도입하여 건설하고 이와 더불어 원천기술 개발을 위한 국산화 기술 개발을 병행하여 향후 고유가 시대를 대비한 국가 에너지 안보 확립과 국내 기술 개발의 가속화를 추구해야 할 필요성이 대두되고 있다. 본 타당성 조사는 3종류의 석탄(호주 Wyong탄, 인도네시아 NTC탄, 인도네시아 KBB탄)으로부터 가스화에 의하여 합성석유스를 생산하는 공정에 대한 타당성 조사(Feasibility Study, FS)를 Class 5(하한 -50~-20%, 상한 30~100%)의 정확도로 수행하는 것을 내용으로 하고 있다. 플랜트의 규모는 합성석유 기준으로 20,000배럴/일이다. 플랜트의 건설을 위해서 광양제철소 슬래그처리장 내 12만평 부지에 조성 중인 포스코 SNG 생산공장 부지의 일부를 사용하는 것을 기준으로 하였다. 일반적으로 석탄의 종류에 따라서 가스화기의 종류 및 성능이 결정된다. 본 타당성 조사 연구에서 선정된 3종류의 석탄의 조성, 발열량, 회분 함량 등의 특성을 고려하여 각각의 석탄에 적합한 현존하는 상용급 가스화기를 선정하였다. 해당 석탄이 가스화기 종류에 따라 적절한 전처리 과정(건조, 분쇄, 슬러리화)을 거친 후 가스화기에 공급되는 것을 가정하여 석탄의 원소분석 조성, 발열량, 회분함량, 회분조성, 회 용융점 등의 변수에 따라서 각각 해당 가스화기에서 가스화되었을 때의 생성되는 합성가스의 조건을 시뮬레이션을 통하여 얻었다. 가스화기 시뮬레이션 결과를 토대로 합성석유 및 합성천연가스 생산을 위한 공정의 물질수지식 및 에너지수지식이 계산되었으며 이로부터 각 공정에서 발생되는 부생성물과 폐기물에 대한 양이 결정되고 이를 처리하는 방안 등도 제시되었다. 실증시설은 20,000배럴/일 규모의 CTL 및 전기 병산 시설이 적합하다. 더 큰 규모 공장은 투자비가 너무 커서 유가 또는 석탄가 변동에 따라 사업의 수익성이 크게 변하여 위험도가 큰 단점이 있기 때문이다. CTL 공장에 전기 병산이 추천되는 이유는 산소생산공장(APU), 압축 등 석탄전환공장에는 자체적인 전기수요가 막대하여 따로 스팀터빈용 발전소를 운영하므로 이를 효율적으로 대체하고자 하기 때문이다. 즉, 석탄가스화에 의해 기름을 최대한 만들고 미반응가스는 가스터빈 및 스팀터빈의 복합발전에 의해 고효율로 전기를 생산하면 최소의 비용으로 최대한 전기를 생산하여 자체소비 전력을 충당하고 남는 전기는 판매하여 수익률을 높일 수 있다.

• Korean Business Review
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• v.19 no.2
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• pp.261-274
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• 2006

Airline business operates in the 21st century within fast changing market environment and fierce competition. Management of airline companies has faced the need for vast adaptation to new trends in the growth of world economy that are cardinal changes in marketing environment due to quick development of Internet and IT, transport price competition and, as a consequence, low profit margin, diversified customer wants and needs, lack of investment needed for new aircraft equipped with the latest high tech innovations, unpredictable oil price changes, and exchange rate fluctuations. This study is aimed to evaluate the quality performance of cabin service, to analyse, further, the issues that appeared to be the most significant among customers' answers to questionnaire, to explore the relationships between these issues and customer satisfaction, to highlight the essential questions to address, and to provide some practical suggestions. The five dimensions (such as tangible, reliability, responsiveness, assurance, and empathy) were adopted to examine the relationship between the service quality and customer satisfaction of Mongolian and non-Mongolian passengers travelling by the MIAT. According to findings of analysis made with use of the SERVPERF model, it can be concluded that Mongolian travellers' satisfaction was effected by 'Tangible' and 'Responsiveness' dimensions of service quality, whereas the 'Empathy' dimension has more impact on the satisfaction of non-Mongolian.

• Management & Information Systems Review
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• v.35 no.4
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• pp.123-140
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• 2016

This study investigates whether tax subsidy is associated with the information effect of future earnings (Future Earnings Response Coefficient, hereafter 'FERC'). Prior studies related with tax subsidy suggest that high- tax subsidy is associated with high-Conservatism. And high-tax subsidy is associated with low-information asymmetry. The hypothesis is tested by using sample firms listed on the Korean Stock Exchange from the year of 2002 to the year of 2009 inclusively. We followed methodology of Tucker and Zarowin (2006). We find that the regression coefficient for tax $subsidy{\times}X_{t3}$ shows a significant positive sign. Also, we performed additional test after controlling for variables related with FERC. The regression coefficient for tax $subsidy{\times}X_{t3}$ is consistent with main results. This result means that the changes in the current stock price of higher-tax subsidy contain more information about their future earnings than the changes in the stock price of lower-abnormal audit hours. The evidence suggests that investors positively understand high-tax subsidy.