• Journal of Distribution Science
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• v.20 no.12
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• pp.117-123
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• 2022

Purpose: This study investigates the relationship between earnings forecasts estimated from a cross-sectional earnings forecast model and firm characteristics such as firm size, sales volatility, and earnings volatility. Research design, data and methodology: The association between earnings forecasts and the aforementioned firm characteristics is examined using 214 firm-year observations with analyst following and 848 firm-year observations without analyst following for the period of 2011-2019. I estimate future earnings using a cross-sectional earnings forecast model, and then compare these model-based earnings forecasts with analysts' earnings forecasts in terms of forecast bias and forecast accuracy. The earnings forecast bias and accuracy are regressed on firm size, sales volatility, and earnings volatility. Results: For a sample with analyst following, I find that the model-based earnings forecasts are more accurate as the firm size is larger, whereas the analysts' earnings forecasts are less biased and more accurate as the firm size is larger. However, for a sample without analyst following, I find that the model-based earnings forecasts are more pessimistic and less accurate as firms' past earnings are more volatile. Conclusions: Although model-based earnings forecasts are useful for evaluating firms without analyst following, their accuracy depends on the firms' earnings volatility.

• Korea Trade Review
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• v.46 no.2
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• pp.245-262
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• 2021

Despite the numerous advantages that CSR engagement can potentially offer, top managers may not always be willing to invest in CSR as they are expected to meet expectations of external constituents in the short run. Given that financial analysts' expectations are important short-term performance targets that top managers are motivated to meet, this study examines how performance relative to earnings forecasts issued by analysts affect top managers' decisions about CSR engagement. Using a sample of publicly listed U.S. firms from 2000 to 2016, we find that top managers are more likely to reduce discretionary expenditure on CSR activities as performance falls below analyst forecasts to improve financial performance in the following fiscal year. As performance exceeds analyst forecasts, top managers are motivated to reduce CSR investments in order to meet higher expectations of analysts. As financial analysts closely monitor the firms that they follow in order to publish investment advice to market participants, we find that analyst coverage weakens top managers' incentive to reduce CSR engagement. Overall, this research sheds meaningful insight into the contextual background in which the top managers are situated in when they make decisions on CSR engagement.

• The Journal of Industrial Distribution & Business
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• v.11 no.1
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• pp.39-47
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• 2020

Purpose: This study investigated the effects of valuation errors on the capital market through the earnings forecasting errors of financial analysts. As a follow-up to Jensen (2005)'s study, which argued of agency cost of overvaluation, it was intended to analyze the effect of valuation errors on the earnings forecasting behavior of financial analysts. We hypothesized that if the manager tried to explain to the market that their firms are overvalued, the analysts' earnings forecasting errors would decrease. Research design, data and methodology: To this end, the analysis period was set from 2011 to 2018 of KOSPI and KOSDAQ-listed markets. For overvaluation, the study methodology of Rhodes-Kropf, Robinson, and Viswanathan (2005) was measured. The earnings forecasting errors of the financial analyst was measured by the accuracy and bias. Results: Empirical analysis shows that the accuracy and bias of analysts' forecasting errors decrease as overvaluation increase. Second, the negative relationship showed no difference, depending on the size of the auditor. Third, the results have not changed sensitively according to the listed market. Conclusions: Our results indicated that the valuation error lowered the financial analyst earnings forecasting errors. Considering that the greater overvaluation, the higher the compensation and reputation of the manager, it can be interpreted that an active explanation of the market can promote the accuracy of the financial analyst's earnings forecasts. This study has the following contributions when compared to prior research. First, the impact of valuation errors on the capital market was analyzed for the domestic capital market. Second, while there has been no research between valuation error and earnings forecasting by financial analysts, the results of the study suggested that valuation errors reduce financial analyst's earnings forecasting errors. Third, valuation error induced lower the earnings forecasting error of the financial analyst. The greater the valuation error, the greater the management's effort to explain the market more actively. Considering that the greater the error in valuation, the higher the compensation and reputation of the manager, it can be interpreted that an active explanation of the market can promote the accuracy of the financial analyst's earnings forecasts.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.2
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• pp.25-32
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• 2019

In the Korean capital market, there are three credit rating agencies. Potential credit ratings based on credibility in the financial market are calculated independently for each rating agency. It often happens that despite the fact that the grades of the rating agencies are the same and have the same rating system, their actual ratings are different, even for the same firm. In such circumstances, investors may wonder why. In this study, we assume that the cause is the information environment in which the company operates. The credit ratings of rating agencies are mainly classified into bonds or commercial papers. The bonds are rated primarily for long-term of three years or more, and commercial papers specify ratings for less than one year. The information environment to be verified in this study was observed with a commercial paper. Under the assumption the larger the analyst following is, the more transparent is the information environment, we analyzed the influence of the number of analysts following on the degree to which ratings conflicted among credit rating agencies. The results of our analysis confirmed that opinion conflict among credit rating agencies is clearly reduced for companies with good information environments.

• Journal of Korean Society of Occupational and Environmental Hygiene
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• v.23 no.3
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• pp.243-249
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• 2013

Objectives: This study assessed the status of domestic industrial hygiene laboratories using data from on-site investigation for revision of quality control systems in 2012-2013. Methods: The target laboratories were 60 industrial hygiene laboratories chosen by random selection and nationwide distribution which had participated in on-site investigations for revision of quality control systems from March 2012 to August 2013. The investigation was performed on-site following standard quality control procedures. The score between each group was compared using Mann-Whitney and Kruskal-Wallis tests, and the correlation between analytical career, sex, academic major of analyst and score of analytical performance was expressed as Spearman's rank correlation coefficient. Results: The assessment revealed that the items to be improved, in sequence, were effort at staff training (score 65.5), ability to calculate data (score 73.4), establishment of internal quality control guidelines (score 75.7), laboratory facilities (score 77.1), degree of understanding and skill at gas chromatography (score 77.1). Analysis performance showed a positive correlation with career of analyst (r=0.56, p<0.01). Conclusions: The practice of on-site investigation for quality control systems showed the current status of industrial hygiene laboratories in the first trial. There were many laboratories which needed improvement and development of analytical systems. This assessment can provide information for the systematic operation and improvement of facilities at each laboratory. Further practice of this investigation will lead to a proficiency testing and accreditation system for autonomous quality control as is the practice in many countries, rather than mandatory practice by legal regulation.

• Asia pacific journal of information systems
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• v.10 no.2
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• pp.71-95
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• 2000

Despite repeated exhortation about the importance of social and human dimensions of systems development, socio-organizational issues continue to be neglected and ignored in the current information systems practice. A review of the human information processing literature suggests that the reasons for this continuing lack of attention to social issues may be found in the limitations of human cognition and information processing capacities. Bostrom and Heinen(1978) and Kumar and Bjorn-Anderson(1990) also suggest that the inadequate attention to social problems and issues by the analyst could originate from the analysts limited problem perception. This research explores how the representation forms of information systems(IS) methodology used in understanding and modeling the problem situation affect such systems development problem perception. Typically, a system development methodology prescribes the use of system models(i.e., system representations) to understand, analyze, evaluate, and design the information system. Given the size and complexity of information systems, and the abstraction and simplification underlying the modeling process, system representations usually depict only a limited set of aspects of the system. Thus, a methodology whose representations are limited to technical aspects will tend to limit the analyst's perspective to a technical one only(Kumar & Welke, 1990). Following the same line of argument, in contrast, it is the conjecture of this study that a methodology which specifies both social and technical aspects of IS development will help the analyst develop a more comprehensive view of the IS problem domain. Based on the above concept, a theoretical model was first developed which explained the systems analysts cognitive process. Drawing on this model, a research model was developed hypothesizing the impacts of representation forms on problem identification. The model was tested using a laboratory experiment with 70 individual subjects. A special computer software was developed with a hypermedia authoring tool to conduct the experiments in order to avoid experimenter biases and to maintain consistency in administrating repeated experiments. The program, designed to replace the experimenter, consisted of functions such as presenting the subjects with problem material, asking the subjects questions, and saving the typed answers of the subjects. The results indicate that representation forms strongly influence problem identification. It was found that the use of the socio-technical representation form led to the findings of more social problems than the use of technical representation form. The results imply significant effects of representation forms on problem findings and also suggest that the use of adequate representation forms may help overcome dysfunctional effects of our limited information processing capacity.

• Physical Therapy Korea
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• v.19 no.2
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• pp.48-58
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• 2012

The objective of this study was to evaluate the effects of mirror therapy on motor function recovery following a stroke through a systemic review and meta-analysis. In total, nine of the 48 studies were identified from search engines between 1997 and 2011, as well as from a review of the reference lists of each identified study. The quality of each study was assessed using Jadad scale, and the effect size was calculated as a Cohen's effect size using MetaAnalyst (Beta 3.13). The overall effect size of the mirror therapy was 2.005 (95% confidence interval=1.041~2.970) in a random-effects model. This finding suggests that mirror therapy is beneficial for improving motor function following a stroke. The results from the subgroup analysis according to categorical variables were as follows: First, the effect size was larger for an onset time of less than 1 year (1.166) than for a duration of 1 year or more (.668). Second, the effect size of unpublished dissertations (1.610) was larger than published articles (1.221). Third, motor recovery of upper extremities (1.609) had a greater effect than motor recovery of lower extremities (.903). The major limitation of this study is the relatively small study population. Therefore, further individual studies of mirror therapy should be conducted in order to generalize the effects. In addition, mirror therapy supervised by a physical therapist should be recognized as a potential approach to manage motor function following a stroke and recommended to patients to improve their motor function.

• Journal of Distribution Science
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• v.17 no.10
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• pp.41-48
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• 2019

Purpose - This study investigates whether financial analysts consider the intangible investment implicit in selling, general, and administrative (SG&A) expenditures to forecast firms' future earnings. Research design, data, and methodology - Using 52,609 U.S. firm-year observations spanning 1984-2016, this study examines the association between the Intangible investment implicit in SG&A expenditures and properties of analysts' earnings forecasts. To estimate the Intangible investment of SG&A, I decompose SG&A excluding R&D and advertising expenditures into maintenance and investment components following Enache and Srivastava (2017). Results - The main results show that analysts' earnings forecast errors and dispersion in analysts' forecasts increase with the intangible investment derived from SG&A because the investment component of SG&A affects future earnings and the uncertainty of those earnings. However, these results are weakened in the wholesale and retail industries where firms have a higher level of investment component of SG&A. I attribute the weaker results to low R&D expenditures in those industries. Conclusion - This study indicates that financial analysts incorporate the intangible investment of SG&A into their earnings forecasts differently across firms and industries. Furthermore, this study supports the argument for the separate reporting of the investment nature of SG&A from other operating expenses such as maintenance nature of SG&A.

• The Journal of Information Systems
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• v.33 no.1
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• pp.207-226
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• 2024

Purpose This study aims to develop a job model for data convergent talents to meet the rapidly changing demands of the data industry. To create a job model, we first define and categorize data convergent talents with balanced competencies in data technology and domain knowledge, and then develop a job model by investigating job areas, scope, activities, and competencies. Design/methodology/approach The research is conducted using the following procedures and methodology. First, we conduct a current status survey on data talent demand, data talent policies, data talent programs, and curricula at home and abroad; second, we collect opinions on the jobs and competencies required for data convergent talents and curricula for talent development through in-depth interview with experts; and third, we present the job areas and job activities of data convergent talents derived from the previous status survey and expert opinions based on the National Competency Standards(NCS). Findings The research findings indicate that there are total of six job roles for data convergent talents, including data scientist, data planner, data architect, data developer, data engineer, and data analyst. It was observed that each of these roles requires the development of common competencies within their respective fields, followed by a need for further specialization into specific competencies within each professional domain.

• Fire Science and Engineering
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• v.29 no.5
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• pp.79-87
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• 2015

The placement of Korean fire-fighting administrative power in urban areas shows regional unbalance. In an ideal system, all citizens would be provided with equal fire protection and rescue services, but this is usually difficult to realize due to regional conditions or budget problems. In the case of Busan Metropolitan City, we deduced that it is impossible for half of the buildings to receive rescue services within 5 min, and the conditions are much worse for areas with long or wide fire-fighting service regions. The approach vulnerability for the existing emergency rescue squad locations was assessed. The results revealed that if a rescue team's location is shifted, the improvement effect will be virtually insignificant because of their geographical position. Therefore, this study suggests the establishment of additional rescue squads. It is proven that adding 5 rescue centers in the following locations could solve the problem of approach vulnerability: Bukbu, Gangseo, Geumjeong, Gijang, and Haeundae, in order of effectiveness. The number of buildings in the areas is 53,546.