• Journal of Digital Convergence
• /
• v.18 no.12
• /
• pp.243-249
• /
• 2020

This study analyzes the earnings management that can occur in the process of public offering in the process of SMEs reducing cost of capital, risks and seeking opportunities for direct financing. Since a company is subject to strict supervision during the IPO process, it is possible to prevent the phenomenon that the company value evaluated in the market is underestimated, or to perform earnings management in consideration of overestimation. This study attempted to verify the degree of earnings management through discretionary accruals and actual earnings management values that can affect the earnings ratio of the IPO of a company. For this study, total accruals were calculated and analyzed through discretionary accruals, sales, costs, and actual earnings management adjustments from production activities. As a result of the analysis, discretionary accruals, which are the countermeasures for earnings management during the listing process, have a positive(+) relationship in both the stock price return and the sales adjustment value, which can be viewed as a factor that induces high valuation. As a result of this, there may be a risk of adverse selection for the benefit amount, and information asymmetry may exist for public offering stocks. This study can provide useful guidelines for evaluating corporate value to domestic SMEs and investors that do business with Chinese companies as well as China through the current and type of earnings management of Chinese listed companies.

• The Korean Journal of Financial Management
• /
• v.25 no.2
• /
• pp.137-164
• /
• 2008

This paper examines the operating performance of firms that for a four-year period, held more than 15% of their assets in cash and cash equivalents. During next four years, operating performance of firms maintaining high cash persistently is greater than the performance of firms matched by size and industry or firms adopting transitory high cash policy. Furthermore, the effect of persistent cash holdings on operating performance depends on the ownership structure and the level of information asymmetry. Foreign investors deteriorate the operating performance of high cash firms, suggesting that potential M&A and the pressure of excessive dividend reduce the usefulness of cash. The level of information asymmetry enhances the operating performance for the firms adopting persistent high cash policy. It suggests that cash holdings reduce the costly external financing and underinvestment problem for firms with high information asymmetry.

• Journal of Korea Technology Innovation Society
• /
• v.11 no.2
• /
• pp.287-313
• /
• 2008

Even though the pre-feasibility study was introduced in 1998, it mainly has focused on transportation social overhead capital(SOC) such as road and railroad. Last year, however, the government newly launched R&D project area for the pre-feasibility study. This paper tries to analyze the pre-feasibility study methodology and system that applied to R&D facility, cluster, and sized R&D infrastructure projects. In depth study of economic, policy, and AHP analysis, this paper shows that the preliminary feasibility study have some caveats and suggests a way of improvement for making up for limitation. Main suggestions are as follows; First, to improve the fit in R&D sector analysis, using consistent method is important. Second, technology analysis is essential for R&D evaluation. Third, technology experts should take part in AHP analysis.

• International Area Studies Review
• /
• v.15 no.2
• /
• pp.247-273
• /
• 2011

This study analyzes the impacts on the M&A and greenfield of macroeconomic variables of home and host countries, after identifying current status and characteristics of the M&A and greenfield related to the entering way of Korean firms in China. Main empirical results are summarize as follows. First, as for foreign exchange variable, the decreased value of Korea won shows the negative correlations with both of the greenfield and M&A. Second, the real interest rate of Korea to measure the cost of capital is not significant statistically. Third, while the host country's stock market index, Shanghai Comprehensive Index, shows the expected negative correlations with the investment in the case of small & medium firm and light industry, it shows the positive correlations which is not consistent with general expectation in the case of large firm and heavy industry. Fourth, the openness of host country shows the positive correlations with both of the greenfield and M&A. Finally, in regard to the M&A, China's GDP to measure the market size of host country is not significant statistically while it shows the strong positive relationship with the greenfield investment.

• The Korean Journal of Financial Management
• /
• v.22 no.1
• /
• pp.1-36
• /
• 2005

In this study, we analyzed determinant factors of leverage ratio and debt maturity for Korean firms in the simultaneous equation system using 2SLS (two stage least square) method under assumption that two variables are jointly determined in the capital structure decision. As a result of the analysis, we found that leverage ratio and debt maturity are positively related. Also, as for determinant factors of debt maturity, agency cost hypothesis, asset maturity matching hypothesis, signalling and liquidity risk hypothesis are all generally supported, and further leverage ratio are significantly positively related with firm size, but negatively related with default risk. However, when we divided samples into groups according to bank debt level and Chaebul affiliation, with contrast to existing study which worked on similar issues with OLS, we found no evidence supporting the argument that the information asymmetry problem is less severe in firms with more bank debt, whereas information asymmetry and financial constraint problems are more severe in non-Chaebul affiliated firms.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.16 no.6
• /
• pp.3870-3881
• /
• 2015

This study examined one of the contemporary issues on debate to identify any significant financial determinants on the cash holdings of the cheabol firms in the Korean domestic capital markets. Several important findings on the financial characteristics affecting the cash holdings were evidenced by utilizing various methodologies for statistical estimations. Financial or managerial implications with discussion were provided for the pronounced factors such as CASHFLOW, MVBV, REINVEST, and AGENCY. Assuming that the chaebol firms were overall subject to the financial constrains, they may increase or stockpile cash reserves as internal capital for future investment opportunities or repayment of existing debt, rather than external financing burdened by a high cost of capital. Given the on-going controversy on the optimal level of corporate cash holdings coupled with any foreseeable capital transfer among the associated nations through the investment vehicles such the FTAs (Free Trade Agreements) or TPP (Trans-Pacific Pacts), any empirical findings of the study may shed new light on identifying financial determinants which may significantly affect the level of cash holdings for the business conglomerates, the 'chaebol' firms, in the Korean capital markets.

• The Korean Journal of Financial Management
• /
• v.21 no.2
• /
• pp.27-63
• /
• 2004

Since the 1980s, many multinational corporations have been issuing stocks on foreign stock exchanges, not only to enhance their investor base and liquidity, but also to diversify risks. The phenomenon has also been intensified by the rapid financial globalization and securitization trends. The main purpose of this study is to look into the long-run performance of MNCs' cross-listings of stocks on foreign stock exchanges. We use the event study and cross-sectional regression methods. We obtained some interesting empirical results about the long-run effect of cross-listings. First before the listing data the effect of cross-listing is to increase the underlying stock Vice in the local market. It may be caused by expectation of lower risk and cost of capital. However, after the listing data the stock price has been declining, even if it is not significant. Second, we examine the difference in the long-run cross-listing effect, which may be caused by the listing direction. When listing is made from a less developed market to a more developed market, the effect is better than that in the reverse direction. Furthermore, the effect is worse, when the listing company's home country is the U.S. Third, there is a negative relation between CARs and underlying stock liquidity in the local market, So it implies that a firm, whose underlying stocks are very liquid in the local market should carefully value cross-listing based upon the cost and benefit analysis. Last, but not the least we find that the long-un cross-listing effect is better, when a listing firm's ROE is higher.

• Journal of Energy Engineering
• /
• v.15 no.2 s.46
• /
• pp.83-95
• /
• 2006

This study is to establish a national vision of the hydrogen economy and design a roadmap to materialize it. A goal is set to supply 15% of final energy consumption with hydrogen energy in Korea by 2040. Selecting the transportation sorter as the main target, more than 50% of vehicles on the road will be replaced with fuel cell vehicles (FCVs) while $20{\sim}30%$ of electricity demand in the residential and commercial sectors might be replaced with power generation by fuel cells. If this goals were attained as planned, primary energy demand would be reduced by 9%, resulting in improved energy mix in which fossil fuel consumption is greatly reduced whereas renewable energy increases by 47%. Furthermore, GHG emissions will be reduced by 20% and self-sufficiency in energy is enhanced up to 23%. If the hydrogen economy is to materialize, the government needs to implement institutional arrangements such as new legislations, organizations, and fiscal measures to facilitate the process. In addition, the private sector's participation is highly recommended to mobilize fund needed for the huge investment to build an infrastructure in preparation for the hydrogen economy. Arrangements for codes and standards are also required to promote industrialization of fuel cells and hydrogen production and consumption.

• Journal of Korean Society of Forest Science
• /
• v.55 no.1
• /
• pp.59-67
• /
• 1982

The objectives of this report is to evaluate the contribution of forest investments by the forest owners for the developments of private forests in the villages where the forest production, especially, chestnut production is active. The results obtained are as follows : 1) Newly purchased forest lands of 526 hectares, 71 percent, in 741 hectares by 96 farmers were replanted with chestnut trees for chestnut production. 2) As the chestnut production is considered to be the unique source of the early capital return in management of forests, selling and buying of forest lands in the area surveyed are enhanced to reforest the forest land with chestnut seedlings. 3) Most of new farmers being engaged in plantation and production of chestnuts in the forests are employees of private industries and government agencies, and merchants in neighboring towns. 4) All materials and expenses for formation of chestnut orchards are generally supplied by forest land owners. 5) Active buying and selling of newly established chestnut bushes are surely served as the estate in the area, thus, the trading of the bushes of young chestnut seedling also enhances the forest as the estate. 6) The management of forest established with chestnut orchards is a special form for forest investment, it makes possible to encourage imputing of capital to the new form of forests, chestnut orchards, and it could be a good possible model for private forest development as compared with that of government funding.

• Journal of the Korean Geographical Society
• /
• v.28 no.4
• /
• pp.379-391
• /
• 1993

Present-day world economy is characterized by : technology nationalism, economic regionalism, market protectionism, multinational corporations, efc. All nations are striving for intensifying national economic rivalry and seeking after their own interests above everything else. Many regions of the world are also forming trading blocs, which could negatively affect nonmember states. The ultimate way to meet these difficulties is to establish production facilities in the countries imposing trade regulations. However, as the existing models of direct forrign investment (DFI) do not account for the particular nature of Korean firm's DFI activities, a new point of departure is imperative. It is because of this that Korean firms have only limited firm-specific advantages, the basic precondition of extant DFI theories, compared with their developed counterparts.