• Korean Business Review
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• v.13
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• pp.133-157
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• 2000

This paper investigate to construct a new strategic trading model which contains the broker and overconfident informed trader. Assuming more favorable situation for the broker, this paper construct a two period model. At period I overconfident informed trader and liquidity traders participate to trade. At this time the broker does not execute transaction of his own account. he only transfer customer's order by commission. At period 2, the broker identifies informed trade of previous period and he execute the trade of his own account with liquidity traders. The effects of overconfidence to the expected transaction volume and expected transaction profit, and price variability are summarized as follows: (i) As the degree of overconfidence increases, the expected transaction volume of informed trader increases. Under the restriction of moderate degree of overconfidence, it also increases the expected transaction volume of broker. In sum, overconfidence behavior of informed trader increases the expected transaction volume. (ii) As the degree of overconfidence increases, the both expected profit of informed trader and broker decrease. (iii) As the degree of overconfidence increases, unconditional variances of price for each periods increase. And as the degree of overconfidence increases, the informativeness of prices for each period increase. Finally, some limitations of this paper and direction for further research were suggested.

• Korea Trade Review
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• v.41 no.1
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• pp.67-90
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• 2016

This study examines whether there is any significant relation between executive compensation and future firm performance for the Korean export manufacturing small and medium-sized firms. We sorted the whole sample firms into the sub-groups of 10 deciles by firm size and the KSIC standard. We found the following empirical results. First, Korean export manufacturing small and medium-sized firms typically showed lower or even negative profitability in terms of return on equity and operating profit ratio to sales. Foreign equity ownership is very low with an average of 3.77%. Second, for the firms with higher ratio of excess executive compensation to asset had lower future firm performance. It implies that the typical owner-manager in Korean export manufacturing SMEs earns excess pay, but do not contribute much to firm performance. Third, as for future cumulative abnormal returns for future one- and three-year periods, firms with higher owner-executive pay had lower returns compared with firms with lower pay. So the stock market investors set a lower value on them. Fourth, there is a positive relation between excess executive pay and executive overconfidence, and it implies that owner-CEOs with higher pay may become overconfident, thereby lowering future firm performance somehow.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.5
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• pp.53-68
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• 2014

This study is aimed at analyzing the factors that affect the behaviors of employee's investment, such as a decision making process in a variety of views and proving the extent of how those factors influence on their investment. The basic assumption is that the preceding factors that can be determined by the personal investment propensity, a psychological factor asserted by Behavior Financial Theory and financial-economic and social environment. This study uses Hershey's Investment Behavior Model(2007) as the main analysis tool to explain the investment behavior of individuals and deals with personal investment inclination in the psychological perspective of overconfidence, self-control and the risk tolerance propensity and add the financial and economic factors in terms of financial literacy and economic distress. Also the new preceding social environmental factors like social interaction and the effect of reference group are added to make this research to be more precise. This study analyze the adjustment effect of professional invest-consulting service that affect the fluctuation influence between the individual variables(those factors) and subordination variable(the level of investment satisfaction). The study reveals that overconfidence and self-control in direct ways have a positive effect on the level of investment satisfaction in terms of investment behavior and economic distress has a negative effect on the level of investment satisfaction. The adjustment effect provided by financial experts in investment consulting service is affirmed as the critical factor that increase the influence between self-control and the level of investment satisfaction. To conclude, the research reveals that the psychological factors are the main criteria when the workers as employees have to make investment decisions. To make investors be reasonable, a systematic financial education system provided by experts is needed from the early adolescent stages and financial companies should develop the relevant services of consulting service department as a key financial sector and financial investment products and consulting program and marketing tool pertinent to investors ages, vocational traits and their inclinations.

• Journal of the Korea Convergence Society
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• v.9 no.5
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• pp.157-169
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• 2018

The purpose of this study is to investigate the effect of voluntary purchasing motives on insurance consumer satisfaction. The purpose of this study is to investigate the direct and indirect effects of insurance consumption satisfaction including psychological needs of consumers that induce voluntary purchase motivation based on psychological self-determinism theory. The research hypotheses and models were verified through structural equation analysis using online surveys of 1,225 insurance consumers. As a result of the study, the satisfaction of insurance consumption is increased when purchasing by voluntary purchase motive, in which consumers perceive the necessity of purchasing themselves. The positive perception of insurance consumption autonomy and insurance consumption environment increases the motivation to purchase voluntarily, Respectively. Through this study, it is suggested that excessive marketing of insurance companies and self-confidence of insurance consumers may hinder insurance consumption satisfaction and education of consumption attitudes of financial consumers to raise awareness of autonomous rights and responsibilities of insurance consumers.

• Korean Journal of Culture and Social Issue
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• v.21 no.2
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• pp.177-203
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• 2015

The aims of this study were 1) to compare irrational gambling beliefs of gamblers and non-gamblers, 2) to investigate the role of cognitive error on winning probability thinking error, and 3) to examine the relationship between attributional bias and gambling behavior. A total of 248 subjects were recruited for this study. All subjects were classified into non-gamblers, social gamblers and pathological gamblers, and administered self-report questionnaires to measure irrational gambling beliefs, the probability inference error, the attriburional style, and the attributional bias. A pathological gambler group scored highest on irrational gambling beliefs, especially the overestimation of self-ability factor, and a social gambler group and a non-gambler group follow. All three groups scored higher on the magnification of gambling skills than the mean (4.0) of the scale. Pathological gamblers and social gamblers scored higher on the probability thinking error than non-gamblers. Pathological gamblers displayed higher external attribution, lower internal attribution in their daily life events and higher internal attribution in failure situation than social gamblers and non-gamblers. The results indicate that cognitive errors would be a factor that differentiates pathological gamblers from social gamblers and non-gamblers. In predicting gambling behaviors, overestimation of self-ability of irrational gambling beliefs, internal attribution in failure situation, external attribution in daily live event, and probability thinking error were identified as significant factors. It is concluded that a public education about common cognitive bias featured in gamblers might be important in prevention of pathological gambling behaviors.

• Korean Journal of Culture and Social Issue
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• v.13 no.3
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• pp.89-109
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• 2007

This study is an exploratory study on stock investment behaviors of individual investors in psychological perspective. The study is based on many behavioral finance studies which overconfidence of individual investors has an effect on irrational investment decision making and investment behaviors such as excessive trading. Accordingly, this study was to investigate the factors of self-enhancement perception on confidence of investment of individual investors and to find whether these psychological biases lead to irrational investment behaviors. The results indicated that there were sex differences in the factors of self-enhancement perception on individual investors' confidence of investment. In case of male investors, they were confident of their ability of investment but in case of female investors, they were confident of optimistic expectation of return. Also, male investors were more confident of investment than female investors. In addition, the result showed that risky investment behaviors of individual investors were influenced by psychological factors such as favorable self-evaluation, confidence of self-controllability, optimistic expectation of return and confidence of investment in part. This study suggests that further researches need to search after other variables which can mediate between psychological factors and investment behaviors of individual investors.

• Journal of vocational education research
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• v.30 no.4
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• pp.1-22
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• 2011

Paradoxically, leadership has not only positive effects but also negative effects. The purpose of this study is to examine supervisors' dysfunctional leadership behaviors, antecedents and results in order to draw HRD implications for protecting organizations and employees from dysfunctional leaders and provide implications for leadership development. A qualitative research method based on semi-organized interviews with 28 employees from S-group was used. The results of this study show that the dysfunctional leadership behaviors were associated with ten behavioral categories: belittling and insulting the subordinates, authoritative and arbitrary behaviors, self-aggrandizement, biased preference for certain personnel, arrogance, micro-managing, inability to change and adapt, discordance between words and actions, over-dependance on supervisor, lack of ethics and values. Dysfunctional leadership behaviors were casually attributed to 'personal traits & experience', 'task characteristics', and 'internal & external environments of the organization'. Finally, the results of supervisor's dysfunctional leadership behaviors on employees and the organizational effects were 'increased turnover rate', 'declining work efficiency', 'collapsing morale', 'retraining innovative thinking', 'passive working culture', 'discouraging organizational vitality', 'discouraging organizational synergy', 'losing loyalty' and 'declining trust on supervisor'.

• Annals of Clinical Neurophysiology
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• v.2 no.2
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• pp.89-94
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• 2000

Purpose : Carpal tunnel syndrome (CTS) is a disorder of median nerve at wrist. It is usually diagnosed through clinical manifestation and nerve conduction study (NCS). However, sometimes, NCS does not provide a reliable evidence to reach the diagnosis. Thus, authors performed this study to determine whether NCS was correlated with specific parameters measured on magnetic resonance imaging (MRI) which might become a potential complemental diagnostic tool. Methods : We performed MRI in 34 wrists of 18 patients with clinical manifestations of CTS and pathologic nerve conduction values and analyzed them at levels of the distal radioulnar joint, pisiform and hook of hamate, Results : Increase in the cross-sectional area of the median nerve at the pisiform level and flattening, increased signal intensity, and contrast enhancement of the median nerve at levels of the pisiform and hook of hamate were statistically significant. Change in cross sectional areas between the distal radioulnar joint and hamate and the signal intensities at levels of pisiform and hamate were well correlated with the median nerve conduction velocity. Conclusions : Characteristic MRI findings in CTS reported previously were well demonstrated and some of MRI parameters are well correlated with nerve conduction study. MRI, despite cost, may help in evaluating CTS.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.2
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• pp.21-29
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• 2017

Stock investment becomes one of the most popular investments in these days, and the ultimate goal of investors in the stock market is to maximize profits and minimize losses, in order to achieve this, investors will select based on investment information. namely, the information about the company which we interest is essential to stock investors. Also, investors are affected by their propensity to invest according to their attitude toward risk. With these situations, this research tried to show the private investors' actual performance of Investment by studying individual investors' propensity and Information explore. The purpose of this study is to analyze the effect of investors' propensity and information search on investment satisfaction. The questionary method required some sample surveys. The data of the practical analysis was carried out with the on-line researching method. The researching time was from the 1st of Dec. 2016 to the 15th of Dec. 2016. Of the 357 questionnaires submitted, 7 were deemed inappropriate or incomplete; thus, 350 questionnaires were used in the final analysis of the study. For analysis methodology, this research is using SPSS 21.0 along with analytic techniques, such as implementation of basic statistical analysis, reliability, and regression analysis. The practical analysis results are as follows; Among the investment propensities, profit propensity, analytical propensity, and investment propensity has a significant effect on investment performance. On the other hand, brokerage firm information, firm accounting information, private information has a statistically significant effect on investment performance. Finally, we confirmed the mediating role of investment sentiment.

• Journal of East Asia Management
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• v.4 no.1
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• pp.23-51
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• 2023

We investigate whether the association between management overconfident tone and the level of audit effort measured by audit fees and hours differs depending on the level of earnings management. Prior studies suggest that firms led by overconfident managers are likely to initiate risky investments, report low quality financial statements, and have material weaknesses in internal control system. These characteristics, combined together, result in higher audit risk. At the same time, auditors assess audit risk based on the quality of financial reporting, measured by level of earnings management. As a result, the assess audit risk is likely to reflect the combined effect of management overconfidence and the level of earnings management. In this paper, we investigate whether auditors differentiate the effects of real earnings management (REM) and accrual-based earnings management (AEM) when they assess the audit risk related management overconfident. Using the CEO's letter published in 2018, we measure the CEO's tone representing the degree of overconfidence (i.e., activity). Based on this measure, we find that the positive association between managerial overconfident tone and audit effort is more pronounced as the level of REM is higher. However, we find that the baseline association does not vary depending on the level of AEM. These results suggest that auditors consider the managerial overconfident severer when such characteristic accompany the higher level of REM, which can be outcome of aggressive business decisions possibly leading to the higher audit risks. We further find that these results are stronger for Big 4 auditors and continuing auditors. This paper contributes to the literature and practice as follows. First, we provide contextual evidence on how auditors reflect managerial characteristics in the audit process by documenting that auditors actively increase their audit efforts only when overconfident managerial characteristics are highly likely to lead to audit risk. This result suggests that auditors conduct external auditing considering both the efficiency and effectiveness of the audit process. Second, we suggest that auditors use information obtained from a wide range of sources to identify audit risks. Our results provide evidence of how the auditing standards, which do not provide detailed guidelines for audit risk assessment, are being applied in practice. Finally, our results also enhance the understanding of how audit fees are determined. Combined with the studies related to audit pricing, we provide the important reference for discussion between the auditor and the auditee about the audit fee that has created acute tension after the enforcement of the new External Audit Act.