• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.6
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• pp.207-214
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• 2021

This study aims to analyze the effect of the level of accounts receivable on firm profitability. It is possible to find the optimal level of accounts receivable that maximizes profitability. In this study, 6,632 samples were selected from manufacturing companies listed on the Korean Stock Exchange from 2001 to 2018. We used the fixed effect panel model to analyze the model equation. There is a positive (+) relationship between the profitability of a company, the Return on Assets (ROA), and accounts receivable (AR). Also, this relationship has a nonlinear relationship or a reverse-U shape. There is an optimal level of accounts receivables, which results in profitability increase up to a certain extent, but subsequently, profitability decreases when accounts receivables exceed this level. In the case of monopoly companies with a higher-than-average market share, the coefficient between accounts receivable and firm profitability is greater than that for competitors with a lower market share than average. It supports the hypothesis that Titman (1984) suggested, that trade credit is important for enhancing corporate profitability. It is confirmed that accounts receivables play an important role in enhancing firm profitability and it is necessary to understand this well from the corporate standpoint.

• Journal of Korea Port Economic Association
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• v.39 no.3
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• pp.123-140
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• 2023

Maritime transportation is one of the oldest means of transportation utilized by mankind, and it has significantly contributed to the advancement of civilization by efficiently transporting bulk cargo at a low cost. The study aim to identify the factors influencing the selection of shipping companies in the bulk shipping market and provide insights for improving the competitiveness of shipping-related companies. To achieve this goal, the Analytic Hierarchy Process (AHP) was employed. For the empirical analysis, previous research, interviews, and a pilot test were conducted to identify five top-level factors such as companies, vessels, operations, services, and transaction factors. Each top-level factor has four sub-factors. The results of the analysis, based on 80 valid questionnaires, are as follows: Firstly, in the selection of shipping companies, the priority of factors influencing the choice of shipping companies was as follows: vessel factors were the most important, followed by company, operations, relationship, and service factors. Secondly, when investigating the priority of sub-factors, the availability/appropriateness of vessels was the most crucial factor, followed by company characteristics, financial soundness, and the company's reputation in order. The implications of these findings suggest that shipowners should focus on securing more suitable vessels and enhancing their reputation in response to shippers' demand. Shippers, on the other hand, should consider maintaining a healthy financial structure as a crucial task in securing competitive shipping service providers.

• Korean Security Journal
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• no.36
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• pp.177-200
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• 2013

As we enter a high industrial society that widens the gap between the rich and poor, demand for the security services has grown explosively. With the growth in quantitative expansion of security services, people have also placed increased requirements on more sophisticated and diversified security services. Consequently, market outlook for private security services industry is positive. However, Korea's private security services companies are experiencing difficulties in finding a direction to capture this new market opportunity due to their small sizes and lack of management-strategic thinking skills. Therefore, we intend to offer a direction of development for our private security services industry using a management-strategy theory and the Analytic Hierarchy Process(AHP), a structured decision-making method. A resource-based theory is one of the important management strategy theories. It explains that a company's overall performance is primarily determined by its competitive resources. Using this theory, we could analyze a company's unique resources and core competencies and set a strategic direction for the company accordingly. The usefulness and validity of this theory has been demonstrated as it has often been subject to empirical verification since 1990s. Based on this theory, we outlined a set of basic procedures to establish a management strategy for the private security services companies. We also used the AHP method to identify competitive resources, core competencies, and strategies from private security services companies in contrast with public companies. The AHP method is a technique that can be used in the decision making process by quantifying experts' knowledge and unstructured problems. This is a verified method that has been used in the management decision making in the corporate environment as well as for the various academic studies. In order to perform this method, we gathered data from 11 experts from academic, industrial, and research sectors and drew distinctive resources, competencies, and strategic direction for private security services companies vis-a-vis public organizations. Through this process, we came to the conclusion that private security services companies generally have intangible resources as their distinctive resources compared with public organization. Among those intangible resources, relational resources, customer information, and technologies were analyzed as important. In contrast, tangible resources such as equipment, funds, distribution channels are found to be relatively scarce. We also found the competencies in sales and marketing and new product development as core competencies. We chose a concentration strategy focusing on a particular market segment as a strategic direction considering these resources and competencies of private security services companies. A concentration strategy is the right fit for smaller companies as a strategy to allow them to focus all of their efforts on target customers in a single segment. Thus, private security services companies would face the important tasks such as developing a new market and appropriate products for such market segment and continuing marketing activities to manage their customers. Additionally, continuous recruitment is required to facilitate the effective use of human resources in order to strengthen their marketing competency in a long term.

• Journal of the Korea Society of Computer and Information
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• v.19 no.10
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• pp.125-133
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• 2014

This paper develops a bankruptcy prediction model on an Artificial Neural Network for hotel management. A bankruptcy prediction model has a specific feature to predict a bankruptcy of the whole hotel business after evaluate bankruptcy possibility on the basis of business performance data of each branch. here are many traditional statistical models for bankruptcy prediction such as Multivariate Discriminant Analysis or Logit Analysis. However, we chose Artificial Neural Network because the method has accuracy rates of prediction better than those of other methods. We first selected 100 good enterprises and 100 bankrupt enterprises as experimental data and set up a bankruptcy prediction model by use of a tool for Artificial Neural Network, NeuroShell. The model and its experiments, which demonstrated high efficiency, can certainly provide great help in decision making in the field of hotel management and in deciding on the bankruptcy or financial solidity of each branch of serviced residence hotel.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.24 no.4
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• pp.95-102
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• 2010

As the electric power industry is evolving into competitive market scheme, a new paradigm is required for the operation of market. Traditional dispatch algorithm was built based on the optimization model with an objective function and multiple constraints. Commercial market simulator followed the concept of the microeconomic model used in the dispatch algorithm, which is called as analytic method. On analytic method it is prerequisite to procure the exact data for the simulation. It is not easy anymore for each market participant to access to other participants' financial information while it used to be easy for monopoly decision maker to know all the information needed for the optimal operation. Considering the changing situation, it is required to introduce a new method for estimating the market price. This paper proposes an empirical method based on stochastic processes expected to build a capacity planning and long term contracts.

• Environmental and Resource Economics Review
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• v.24 no.4
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• pp.607-627
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• 2015

As observed and experienced in EU ETS, allowance price volatility is one of major concerns in decision making process for $CO_2$ abatement investment. The problem of linearly non-separable profits functions could emerge when one power company holds several power plants with different technology specifications. Under this circumstance, conventional analytical solution for investment option is no longer available, thereby calling for the development of numerical analysis. This paper attempts to develop a Monte-Carlo least squares model to analyze investment options for power companies under emission trading scheme regulations. Stochastic allowance price is considered, and simulation is performed to verify model performance.

• Journal of Korea Port Economic Association
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• v.35 no.4
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• pp.31-50
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• 2019

The retail industry has been coping with changes in the retail market environment for the past decade or so. Using a total of 14 companies, this study aims to reveal the effect of differences in sales channels and retail business styles on the management performance of retail companies. The financial statements of these companies were used to analyze the five key indicators of their management performance. As research variables, sales channels, retail business style and business period were used as factors affecting their management performance. ANOVA or MANOVA was performed to test differences in management performance between groups according to the number of factors. The effect of three factors on the management performance of retail companies was found to be significant. The multi-comparison test revealed significant differences among retail business styles in terms of the five key indicators. TV home-shopping performed better than others in terms of stability and profitability. Internet and mobile shopping companies performed poorly in terms of profitability compared to others and performed higher than department stores in terms of growth, activity, and productivity.

• Journal of Digital Convergence
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• v.13 no.3
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• pp.155-165
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• 2015

Bankruptcy prediction has been one of the important research topics in finance since 1960s. In Korea, it has gotten attention from researchers since IMF crisis in 1998. This study aims at proposing a novel model for better bankruptcy prediction by converging three techniques - support vector machine(SVM), fuzzy theory, and genetic algorithm(GA). Our convergence model is basically based on SVM, a classification algorithm enables to predict accurately and to avoid overfitting. It also incorporates fuzzy theory to extend the dimensions of the input variables, and GA to optimize the controlling parameters and feature subset selection. To validate the usefulness of the proposed model, we applied it to H Bank's non-external auditing companies' data. We also experimented six comparative models to validate the superiority of the proposed model. As a result, our model was found to show the best prediction accuracy among the models. Our study is expected to contribute to the relevant literature and practitioners on bankruptcy prediction.

• Journal of Information Technology Applications and Management
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• v.13 no.1
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• pp.149-166
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• 2006

During the past several years, a number of attempts have been made to develop computer applications for the farm business. However, none of them truned out properly applicable to small farms occupying more than 90% of the total agri-business in number as they failed to take it into consideration that small farm, typically a private busines is quite different by nature from the large-scaled farm corporate. Small-sized farming is usually done on the houshold basis, and thus there is no distinction between the household and the business economy. In addition, small farm managers are mostly lacking knowledge or skills of both computers and accounting. This study, therefore, aims at the design and implementation of the financial management and accountign information system for small farms, with an attempt to relax constraints and resolve pitfalls revealed in previously developed applications. The following principles were introduced for the study : 1) The user-system interfaces have to be managed in the natural language as much as possible, so that the users can operate the system without any professional terms. 2) Household accounting has to be seperarte by some means from the business accounting, so that small farm businesses can manage their finance and accounting as necessary. 3) The system has to be designed so as not only for the users to manage transactional data but to analyse historical data in multiple dimensions for their decision-makings. The results from this study would perhaps help not only for the farmers but for the educators, policy makers, and counselors for the farming.

• Journal of the Korea Society of Computer and Information
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• v.18 no.10
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• pp.183-192
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• 2013

This paper examines the impact of the strategic leadership of CEOs after M&A on resistance to change and on perceived performance. Most M&A research has focused on the strategic, financial and economic aspects, while studies on leadership and employee behavior have been limited. CEO leadership is critical to a successful M&A. Recently, strategic leadership has been attracting more attention. Strategic leadership can be defined as a person's ability to anticipate, envision, maintain flexibility, think strategically and to work with others to initiate changes that will create a viable future for an organization. It can also reduce resistance and improve perceived performance. So this paper used empirical studies from the IT industry after M&A.