• 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.12 no.6
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• pp.49-63
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• 2017

The purpose of this study is to analyze the effects of the collective characteristics of SMEs on M&A activity on the disclosure effect of mergers and long-term business performance after mergers. From 2000 to 2012, we examine 717 cases of small and medium-sized enterprises (SMEs) using multiple regression analysis and difference analysis. The results of this study are as follows. First, it is confirmed that the effect on the merger announcement effect is the same as the previous study on the Korean capital market listed companies except for the effect of diversification, listing effect, and cross-border effect. In addition, we have found that firms with higher performance in the past have higher excess returns in the disclosure effect of mergers and acquisitions. Second, unlike the previous studies that non-related mergers have a positive effect on long-term operating performance, for the characteristics of SMEs with lower market competitiveness than that of average listed companies, SMEs merging with same industry group companies have a positive effect on long-term operating performance. This study provides a new perspective on the merger and acquisition of SMEs by examining the effects of M&A announcement and long-term performance.

• Korean small business review
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• v.41 no.1
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• pp.75-96
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• 2019

This study used age, education, major, working period as CEO's characteristics and examine relationship between these characteristics and R&D Investment. Furthermore this study examined how CEO should react in terms of R&D investment, which is effected by CEO's characteristic in the market. The empirical results are following. (1) When CEO's age are young, they spend much money for R&D investment. And R&D investment which is determined by young CEO has a positive effect on relation of firm value. (2) A higher educational background has a positive effect on R&D investment and will create higher firm value. (3) When CEO's major is competitive in the same industry, it has a positive relationship with R&D investment and its firm value is bigger than though. (4) When CEO working period is long, they showed active to R&D investment. On the other hand, the firm value decreased. This study focused on analyzing the relationship between characteristics of CEO and R&D Investment, furthermore, how R&D investment which effected by CEO's characteristic is contributing in creating the firm value. This results indicate that CEO's characteristics reflect R&D investment and value of venture business. Therefore, CEO's characteristics should be considered financial information and firm value in the market.

• Journal of Digital Convergence
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• v.19 no.8
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• pp.141-149
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• 2021

This study investigated the effect of accounting information on dividend policy as a measure of corporate conservatism from the perspective of the internal accounting management system. The verification is based on a sample of 543 companies listed on securities (excluding KOSDAQ and financial industry) among the Bank of Korea (2019) 「2018 Corporate Management Analysis」 and company analysis of the Korea Productivity Center (financial data disclosed as listed companies as a December settlement company) was composed. Using SPSS 22, empirical analysis was conducted using exploratory factor analysis and regression analysis. The first is the verification related to corporate conservatism and the role of dividend policy, and it is verification of whether internal accounting management influences financial decision-making. Second, if internal accounting management exists, it is a verification of how conservatism and investment policies (in-house reserve, debt borrowing, capital increase, dividends, etc.) affect the corporate value according to accounting information. As a result, from the perspective of the internal accounting management system, it was found that among the variables of accounting information, profitability can have a positive effect on corporate conservatism and dividend policy as a corporate valuation method of reinvestment. In addition, it has been proven that corporate conservatism has an effect on profitability-to-value through capital accumulation and reinvestment such as surplus and internal reserves. In the future, we will study and discuss the complementarity of corporate conservatism and dividend policy in relation to governance structure and improvement of the internal accounting management system.

• Journal of Industrial Convergence
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• v.20 no.12
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• pp.59-70
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• 2022

This study investigates the sensitivity reflected in the accounting earnings differs according to the difference in the characteristics of accounting information such as profit and loss for the same market information. For this, market information and accounting data were analyzed for 11,462 non-financial listed companies listed on the KOSPI and KOSDAQ markets from 2012 to 2020 by using Basu's measurement of conditional conservatism and Ball and Shivakumar's measurement of conservatism. Accounting earnings sensitivity was analyzed according to the combination of information. As a result of the study, it was confirmed that both earnings and losses corporates recognize losses with delay, while losses are recognized quickly by loss corporates and delayed recognition by earnings companies. It was confirmed that more strict conservatism was applied to the losses corporates compared to the earnings corporates by delaying the recognition of earnings while the early recognition of the losses. It provides empirical data on the causality between the asymmetric timeliness and the combined effect of market information and accounting information by verifying that the losses corporates responds sensitively to market information while the earnings corporates does not react sensitively to the market information.

• Management & Information Systems Review
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• v.32 no.2
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• pp.21-46
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• 2013

The purpose of this paper is to find impacts of financial activities-financing and investment of Venture Firms during pre-listing periods on the firms' Venture Firm's listing(delisting). The several ratios financial variables relevant to the financing and investment were examined whether there are difference or not between two venture firms groups. The results of study can be summarized as follows. First, the firms of successful group have fewer numbers of equity financing and higher times of premium in issuing stocks than those of failed firms but there is no significant difference in the required time from startup to listing the KOSDAQ. Second, there is no significant difference in the ratio of capital increase in IPO between two groups but additional survey reveals that the successful firms financed equity in IPO by higher numbers of premium than failed firms, which can makes the major shareholder of the successful firms maintain high rayios share of stock. Third, the ratio of working capital investment of the successful firms is significantly higher than that of failed firms, on the other hand the failed firms' ratios of equipment and repayment investment are higher than those of successful firms. Finally, the ratio of R&D investment has no difference between two groups, this result is against the expectation, which is to be further analyzed.

• Journal of the Korea Convergence Society
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• v.13 no.5
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• pp.219-228
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• 2022

In order to improve audit quality, it is essential to understand the occurrence of disagreement between auditors and managers, and this study aims to analyze the impact of Business Strategies on audit risk and accounting audit delay. To this end, we conducted an empirical analysis using sample 2,910 firm-year data from 2018 to 2020 of KOSPI-listed and KOSDAQ-listed companies. The results of the empirical analysis of this study are as follows. First, compared to the companies of defender type, prospectors can expand audit procedures for new products, R&D costs, and intangible assets, and increase audit delays due to disagreement between managers and auditors. Second, compared to KOSPI-listed companies, the prospectors in KOSDAQ are more likely to have lower financial reporting quality, which further increases audit delays. The results of this study analyzed whether a company's Business Strategy affects the possibility of disagreement between an auditor and a company, and verified whether there is a difference in the audit report lag by stock market. The results of this study show that auditors' strong duty of care is needed for the companies of prospector type with high audit risk, and it is meaningful to present reinforced audit systems and specific guidelines for the companies of prospector type through the definition of prospector type. It also enables the expansion of research to identify the relationship between non-financial factors and audit risks that make up the companies of prospector type.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.8
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• pp.4881-4894
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• 2014

This study selected 83 manufacturing firms that had been delisted from the KOSDAQ market from 2009 to 2012 and the sample firms for the two-paired sampling method were compared with 83 normal firms running businesses with same items or in same industry. The 75 financial ratios for five years immediately before delisting were used for Mean Difference Analysis with those of normal firms. Fifteen variables assumed to be significant variables for five consecutive years out of the analysis were used to in the Dichotomous Classification Technique, Logistic Regression Analysis and Discriminant Analysis. As a result of those three analyses, the Logistic Regression Analysis model was found to show the greatest discrimination. This study is differentiated from previous studies as it assumed that the firm's failure proceeded slowly over long period of time and it tried to predict the firm's failure earlier using the five years' historical data immediately before failure, whereas previous studies predicted it using three years' data only. This study is also differentiated from the proceeding comparative studies by its statistically complex Multi-Variate Analysis and Dichotomous Classification Analysis, which general stakeholders can easily approach.

• Journal of Convergence for Information Technology
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• v.11 no.9
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• pp.94-108
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• 2021

This study is to identify the internal and external factors of a company that can affect the rate of change in the inventory turnover ratio. In addition, by appropriately managing or responding to these factors, changes in the inventory turnover ratio do not occur abruptly, so that the company's business and financial performance can be improved. To confirm this, factors such as gross profit margin, cash flow volatility, advertising expenses, inflation, exchange rate rise, and leading economic index were selected, and these factors were predicted to affect the change rate of inventory turnover. Data of 85,878 companies were obtained from domestic securities listings, KOSDAQ listings, and externally audited companies, and multiple regression analysis was performed using the data. Gross profit margin and cash flow volatility have a significant positive (+) effect, advertising expenses have a negative (-) significant effect, and inflation and exchange rate rises have a negative (-) significant effect. As an influence, the leading economic index was tested to have a significant positive (+) effect. Through this, it is suggested that manufacturing companies can improve their business performance and achieve operational efficiency by well understanding and appropriately managing factors that can affect the change rate of inventory turnover.

• 한국벤처창업학회:학술대회논문집
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• 2008.04a
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• pp.143-178
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• 2008

This study is to look into the spin-off ventures which was incorporated based on the technology developed by public research institute, but underwent difficulties confronted during the development stages focused on the growth process and the factors contributed to their success. The case study was conducted with i-Sense Co., Ltd. which is a ventures organized by professors as a form of research based spin-off venture. i-Sense Co., Ltd. is a new-technology based ventures to produce self-tester for blood sugar level which was incorporated by Prof. Cha, Keun-sik and Prof. Nam, Hak-hyun of Department of Chemistry in Kwangwoon University along with the graduate course students of the Research Laboratory of the University. The two professors operated the Chemical Sensor Research Center at the Kwangwoon University where they produced many preliminary research outputs related with bio-sensors. They also executed the service works at the specialized company they established for research development to make research fund. They established i-Sense Co., Ltd. with the aim to carry out the research they want to. But contrary to the initial intention of the founders of the company, i-Sense Co., Ltd. has grown up as manufacturing company which produces and sells the self-tester for blood sugar level and is expected to be listed by Initial Public Offering (IPO) on the KOSDAQ in 2008. This study is to analyze the foundation and the growth process of i-Sense Co., Ltd. as successful research based spin-off ventures, to find out the factors contributed to their success by enabling them to overcome the difficulties experienced during the growth process, and eventually to provide with suggestive meanings in policy and practical point of view that leaded the research based spin-off ventures to success.