• Management & Information Systems Review
• /
• v.34 no.2
• /
• pp.193-206
• /
• 2015

The purposes of this paper are to investigate the impact of managers' agency problem on asymmetrical behavior of SG&C and to examines whether or not the corporate governance mechanisms can have any moderating effects on Asymmetrical behavior of SG&C. To test empirically the above mentioned purposes, we gathered firm-year data of manufacturing firms from 2007 to 2012 and the sample firms are listed on the Korean Stock Exchange. The findings of this research are summarized as follows: Firstly, for those firms whose agency problems are high, the stickiness of SG&A increases as sales variation. The results imply that managers are not willing to reduce their perquisite consumption in proportion with sales reduction. Secondly, we investigate how corporate governance mechanisms influence the cost stickiness behaviors of SG&A for those firms whose agency problem are high(above the median value of free cash flow used as a proxy of agency problem). The results are that as the effectiveness of corporate governance mechanisms improve the cost stickiness of SG&A mitigation except for the insider ownership. These results show that agency problem has impact on the asymmetrical behavior of SG&A. And effective governance mechanisms have moderate effects on the reducing stickiness behavior of SG&A caused by agency problem.

• Information Systems Review
• /
• v.9 no.2
• /
• pp.41-66
• /
• 2007

The e-marketplace is a virtual marketplace where buyers and sellers meet in order to conduct transactions through the intermediation of market-makers. For the success of an e-marketplace, it is crucial for the market-maker to induce both buyers and sellers to make active transactions in it. However, their participation is frequently deterred by potential risk factors caused mainly by the inherent, structural complexity of the e-marketplace. Therefore, it is a critical challenge for the market-maker to identify and manage the transactional risk perceived by both the buyers and sellers. In this paper, we investigate the sources of buyers' and sellers' perceived risks and their mitigating factors in the e-marketplace. Specifically, we derive an analysis framework based on the economic theory of agency relationship. The framework includes four sources of the risks(perceived information asymmetry, fears of seller opportunism, fears of buyer opportunism, and concerns about market-maker's role incompleteness) and five mitigators of the risks(website informativeness, trust in market-maker, trust in seller, product diagnosticity, and social presence). Then, we empirically verify the framework through a case study on four successful e-marketplaces, and provide implications and strategies for the market-maker to effectively manage the transactional risks.

• Management & Information Systems Review
• /
• v.29 no.3
• /
• pp.71-96
• /
• 2010

This article firstly reviewed Permanent Established(PE) concept of OECD and UN model tax treaty and compared it with that of Korean Corporate Income Tax Law(CITL). The various factors regarding profit like ways of deciding the local source profit, scope and calculation method which will be imputed to PE were also reviewed. Based on above, standard PE judgement basis and calculation method of local source profit were also studied by using actual cases in foreign corporation which performs plant construction & sales in Korea. Accordingly to properly solve the conflict regarding international tax and to protect the tax authority against the foreign corporation in Korea, by standing on equality, I now propose followings for the better concept of PE in Korea. Firstly, the article that a building site or construction or installation project constitutes a PE only if it lasts more than 6 months should be modified to reflect OECD model convention's criteria of 12 months. Second, the scope of 'subordinate attorney' which is regarded as PE under CITL is now including 'holding-delivery attorney', 'order attorney', and 'assurance attorney' as well as 'contract attorney'. This is overly limit the activities of foreign corporation. It had better be loosened only to include 'contract attorney' as OECD provisions. Third, the CITL limits the cases of preparatory and/or auxiliary place which is not regarded as PE, thus limit the foreign corporations' business by expanding the concept of PE. This had better be eased. Fourth, in deciding the amount of local source profits, the CITL stipulates to split the profits by the relevant contribution of transaction parties through 'profit split method'. To solve the conflict, the ways of profit split must be better clarified through providing object and detailed standard and basis.

• Cartoon and Animation Studies
• /
• s.36
• /
• pp.121-145
• /
• 2014

Operating under the principle of user-benefit maximization and democratic user-control, cooperatives are being spot-lighted as a business model satisfying the various social, financial needs. In Korea, the Law of Cooperative was enacted as of December 2012, which has enabled the establishment of cooperatives in variety of industry fields. This study is to discuss the expected effect and validity of marketing cooperative as a solution for insufficient sales revenue in international distribution of Korean animation. The interviews with Korean animation studios found out the key problems of overseas distribution, which are; 1) lack of marketing expertise and weak organization, 2) lack of ancillary rights exploitation due to the deals based upon all rights package with the broadcasters who are not interested in ancillary business, 3) lack of localized marketing support in each territory. The solution for these problems takes large and long-term marketing investment and it is far beyond the capabilities of small Korean animation studios. Marketing cooperative can provide services not available otherwise such as in-depth market research which will help the improvement of international marketing expertise. Also. as the cooperative carries enough volume of animation catalogue, it can increase negotiation power satisfying the various needs of buyers. Also, it can provide the precise marketing support for each territory by integrating every process of value chain, from TV broadcasting, merchandising, and digital media platform. Above all, a clear benefit of marketing cooperative is that, because of its user-benefit and user-control principle, the principal-agent problem can be minimized while it maximizes the profit for member studios.

• Journal of Digital Convergence
• /
• v.18 no.8
• /
• pp.111-118
• /
• 2020

This study conducted an empirical analysis of SSE-listed companies to verify the effects of evaluation and disclosure of internal control systems on the agency costs management and controlling shareholders. Agency costs can affect the valuation of accounting information as asymmetry of information in the relationship between a company and its stakeholders, or induce financial costs as an adverse selection. If the firm's agency costs are reasonable, the valuation of the company can also move in a relatively positive direction. In this study, the evaluation information of the internal control system was analyzed through sales management ratio and equity ratio as substitute variables to analyze the relationship between management and agent costs of the controlling shareholders. In addition, independent control ratio, capital balance ratio, and company scale were used as control variables, as a result of the analysis, the evaluation information of internal control was found to be related to the agency costs of managers and governance structure. This study can be conducted to positive factors in evaluating the reliability and corporate value of accounting information according to the evaluation of internal control of SSE-listed companies and helps to understand the financial reporting environment.

• International Commerce and Information Review
• /
• v.19 no.3
• /
• pp.129-150
• /
• 2017

The Hallyu, or Korean Wave, has recently been proliferating around the world focusing on Asia. With the development of China's economy and the improvement of their people's living standards, Chinese consumption has been growing quickly. In cosmetic industry, Chinese consumers tend to prefer international brands including Korean cosmetics. There are various ways for Chinese consumers to purchase international brand cosmetics. One of them is overseas purchase via buying agent. This study is designed to exam various determinants of the overseas purchase. Based on empirical findings, product price and functionality can play an important role in terms of the overseas purchase. Also, moderating effects of an external factor(importing country's favorability) was empirically investigated. The results of SEM(Structural Equation Modeling) show that the relationship between consumer openness and overseas purchase via buying agent can be positively moderated by the favorability.

• Management & Information Systems Review
• /
• v.36 no.4
• /
• pp.21-32
• /
• 2017

Motivated by the recent cases of negligent social responsibility as manifested by foreign luxury fashion brands in Korea, this study investigates whether agency costs depend on the sustainability of different types of corporate governance. Agency costs refer either to vertical costs arising from the relationship between stockholders and managers, or to horizontal costs associated with the potential conflicts between majority and minority stockholders. The firms with luxury fashion brand could spend large sums of money on maintenance of magnificent brand image, thereby increasing the agency cost. On the contrary, the firms may hold down wasteful spending to report a gaudily financial achievement. This results in mitigation of the agency cost. Agency costs are measured by the value of the principal component. First, three ratios are constructed: asset turnover, operating expense to sales, and earnings before interest, tax, and depreciation. Then, the scores of each of these ratios for individual firms in the sample are differenced from the ratios for the benchmark firm of S-OIL. S-OIL was designated as the best superior governance model firm for 2013 by CGS. We perform regression analysis of each agency cost index, luxury fashion brand dummy and a set of control variables. The regression results indicate that the agency costs of the firms with luxury fashion brand exceed those of control group in the fashion industry in the part of operating expenses, but the agency cost falls short of those of control group in the part of EBITD, thus the aggregate agency costs are not differential of those of the control group. In sensitivity test, the results are same that the agency cost of the firms are higher than those of the matching control group with PSM(propensity matching method). These results are corroborated by an additional analysis comparing the group of the companies with the best brands with the control group. The results raise doubts about the effectiveness of management of the firms with luxury fashion brand. This study has a limitation that the research has performed only for 2013 and this paper suggests that there is room for improvement in the current research methodology.

• Proceedings of the KOR-KST Conference
• /
• 1997.12a
• /
• pp.1-12
• /
• 1997

우리 나라 자동차운송산업에 존재하는 지입제(위탁관리제)는 과거부터 논란의 대상이 되어 왔다. 1950년대 말부터 시작된 육운 분야의 직영화 정책은 노선버스나 택시의 경우 비교적 성공적인 결과를 가져왔으나 화물자동차운송과 전세버스분야에서 만큼은 아직도 대다수 사업장에서 지입제가 관행화된 제도로 남아 있다. 지입제도는 비효율적이고 전근대적인 경영기법으로 인식되고 있으며 산업발전의 저해요인 보기도하고 불가피하다고 평가되기도 하였다. 본 논문에서는 지입제를 단순하게 비합리적인 제도라고 보기보다는 나름대로의 장점을 가지고 있어 합법적 또는 비합법적인 형태로 지금까지 유지되고 있다고 본다. 지입제는 정보가 비대칭적인 상황에서 기업조직을 통해 생산과 판매를 하기보다는 시장거래를 통한 계약을 통하여 운송서비스를 생산 및 판매를 함으로써 유인일치를 달성시킬 수 있다는 것을 보여주고 있다. 장거리를 운행하는 운송사업의 경우 사업자와 고용운전자는 노동성과에 대한 비대칭적인 정보를 가질 수밖에 없게 된다. 이는 대리문제를 야기시켜 기업조직에 의한 운송서비스의 공급은 생산비용을 상승시킨다. 반면 자동차운송서비스는 생산단위를 분리하기 위한 비용이 비교적 적어 독립적인 운영이 가능하다. 따라서 차량을 1대씩 분리하여 사업권을 시장거래하는 지입제를 운송사업자와 운전자는 선택하게 된다는 것이다.

• Proceedings of the KOR-KST Conference
• /
• 1997.12b
• /
• pp.1-14
• /
• 1997

우리나라 자동차운송산업에 존재하는 지입제(위탁관리제)는 과거부터 논란의 대상이 되어왔다. 1950년대 말부터 시작된 육문 분야의 직영화 정책은 노선버스나 택시의 경우 비교적 성공적인 결과를 가져왔으나 화물자동차운송과 전세버스분야에서 만큼은 아직도 대다수 사업장에서 지입제가 관행화된 제도로 남아 있다. 지입제도는 비효율적이고 전근대적인 경영기법으로 인식되고 있으며 산업발전의 저해요인 보기도하고 불가피하다고 평가되기도 하였다. 본 논문에서는 지입제를 단순하게 비합리적인 제도라고 보기보다는 나름대로의 장점을 가지고 있어 합법적 또는 비합법적인 형태로 지금까지 유지되고 있다고 본다. 지입제는 정보가 비대칭적인 상황에서 기업조직을 통해 생산과 판매를 하기보다는 시장거래를 통한 계약을 통하여 운송서비스를 생산 및 판매를 함으로써 유인일치를 달성시킬 수 있다는 것을 보여주고 있다. 장거리를 운행하는 운송사업의 경우 사업자와 고용운전자는 노동성과에 대한 비대칭적인 정보를 가질 수밖에 없게 된다. 이는 대리문제를 야기시켜 기업조직에 의한 운송서비스의 공급은 생산비용을 상승시킨다. 반면 자동차운송서비스는 생산단위를 분리하기 위한 비용이 비교적 적어 독립적운영이 가능하다. 따라서 차량을 1대씩 분리하여 사업권을 시장거래하는 지입제를 운송사업자와 운전자는 선택하게 된다는 것이다.

• KDI Journal of Economic Policy
• /
• v.35 no.2
• /
• pp.133-166
• /
• 2013

This study analyzes the relationships between soft dollar(brokerage commission) and characteristics of funds, and between brokerage commission and return on funds, using the data on equity funds of Korea from June 2008 to November 2011. The result confirms a statistically significant negative relationship between management & sales fees and brokerage commission, meaning that rather than raising management & sales fees, which could be easily recognized by investors, it is through brokerage commission, a hidden cost, which asset management firms indirectly compensate for their services. Meanwhile, the analysis on the relationship between brokerage commission and return on funds reveals that higher brokerage commissions lead to lower return on funds, meaning at least in short-term no contribution to increasing returns in the future. These results suggest the need for streamlining the system to alleviate conflicts of interest between investors and management firms in addition to effectively controlling for principal-agent problems.