• Journal of the Korean Society of Clothing and Textiles
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• v.29 no.6
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• pp.885-895
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• 2005

The purpose of this study was to find out the most pursuasive social stratification variables affecting the attitude toward foreign luxury goods and the purchase frequency and examined the difference in the attitude toward foreign luxury goods and the purchase frequency among groups divided by age and social stratification variables. The subjects were 521 married women over 25 years old living in Seoul and Kyong-gi province areas. The data were analyzed by multiple regression, ANOVA, Duncan's multiple range test, frequency and percentage. Social stratification was measured by family's monthly income, educational and occupational levels of married women's and their husbands' for an objective method while economic levels, social status, consumption levels, and cultural levels were used fer a subjective method. The results were as follows; first, the most explainable variables influencing the attitude toward foreign luxury goods and the purchase frequency were age and women's educational levels examined by the objective method of social stratification. Second, according to the subjective method of social stratification, the attitude toward foreign luxury goods and the purchase frequency were affected by age, economic levels, consumption levels, and cultural levels. Consumption levels which showed actual expense per family were the most explainable variable in the purchase frequency.

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