• Journal of Korean Society for Quality Management
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• 제42권3호
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• pp.361-372
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• 2014

Purpose: In this paper, we investigate whether the endeavors for 6 sigma quality management by a firm have positive effects on its financial performance and the length of 6 sigma implemented period affects its financial status. Methods: We conduct the analysis using the data from Workplace Panel Survey 2009. We use multiple linear regression in order to analyze the relationship between the efforts for quality management and financial performance. Specifically, the return on assets (ROA) and return on equity (ROE) are investigated as dependent variables and the efforts for quality management as independent variable. The Box-Cox transformation and Cook's distance are also used. Results: As a result of the analysis, the indication is that companies that put effect into the six sigma quality management have a positive result in its financial status. In detail, the efforts for six sigma quality management have positive effects on total asset turnover ratio and six sigma implemented period on net income to net sales ratio. Additionally, companies with longer(shorter) period of six sigma program have more (less) improvement in its financial status. Conclusion: It can be concluded that the company's efforts for quality management positively influence financial performance.

• Journal of the Korea Academia-Industrial cooperation Society
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• 제20권11호
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• pp.151-156
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• 2019

This study aims to develop a distress prediction model and to evaluate distress prediction power for the food services industry by using 2017 food service industry financial ratios. Samples were collected from 46 food service industries, and we extracted 14 financial ratios from them. The results show that, first, there are eight ratios (financial ratio, current ratio, operating income to sales, net income to assets, ratio of cash flows, income to stockholders' equity, rate of operating income, and total asset turnover) that can discriminate failures in food service industries and the top-level food service industries. Second, by using these eight financial ratios, the logit function classifies the top-level food service industries, and failures in the food service industry can be estimated by using logit analysis. The verification results as to accuracy in the estimated logit analysis indicate that the model's distress-prediction power is 89.1%.

• Korean Management Science Review
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• 제32권1호
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• pp.113-131
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• 2015

We examine the relationship between firms' environmental (E), social (S), and governance (G) factors, with their financial performance in order to provide an empirical rationale for CSV (creating shared value) pursuing both of firms' profitability and CSR (corporate social responsibility). The financial performance is classified into four aspects such as profitability, stability, efficiency, and cash-flow, and each of these aspects is measured by two financial ratios respectively. To measure the firms' ESG performance, we employ the published performance grades by the Korea Corporate Governance Service for a three year span, from 2011 to 2013. Total of eight regression analyses are performed. The results show that firms' non-financial performance in general has statistically significant positive relationships with return on assets, return on net sales, and cash-flow from operating activities ratio, while it has negative relationships with net working capital ratio, asset turnover ratio, and cash-flow from investing activities ratio. It has no significant relationships with debt ratio and equity turnover ratio. The results imply that firms' non-financial performance may have a negative impact on some financial performance such as liquidity and efficiency in a short term, but it would eventually improve the firms' profitability and cash-generating ability, which provides an empirical evidence for the concept of CSV, and motivates the firms to participate in social contribution activities without sacrificing their profitability for their respective sustainablity management.

• Journal of the Korea Academia-Industrial cooperation Society
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• 제17권7호
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• pp.348-356
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• 2016

The concept of license sales and its business model, which was introduced by Dolby 40 years ago, was implemented by Intel in the form of their promotional strategy "Intel Inside" and became the basis for Sharp's Plasmacluster. This strategy proved to be useful in securing stable profitability and competitiveness in the market, as it is designed to (i) license technology, which is an intangible asset, and (ii) combine various communication activities and management strategies to create a brand for the licensed technology. Although the concept and theory of "Technology Brand Marketing" are not fully understood, we know that they exist and are fully functional. Many corporations have branded their technology, though their intention may not be as clear as that of Dolby or Intel. This paper introduces the technology brands of advanced Japanese corporations in different sectors that have striven to earn credibility through "Technology Brand Marketing" and the possibilities this has opened up for them.

• Journal of Korea Port Economic Association
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• 제33권4호
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• pp.99-116
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• 2017

This paper analyzes the characteristics of change in economic indicators logistics business performance indicators in Japan over the past decade. We compare the differences in management performance of groups related to logistics business strategy. This is because we want to show that the logistics business strategy is reflected in the management performance. Research methods include correlation analysis, crossover analysis, and variance analysis. The main results are as follows. First, logistic companies' sales are highly correlated with economic indicators such as GDP, trade value, and stock price. Second, there is a correlation between the business sectors and the proportion of tangible assets. It is understood that different business strategies are appropriate for each industry and each period. Third, the effects of business strategy variables on business performance variables were significant. In particular, the interaction effect of three variables showed a difference in the effect on the yield. The results of this study provide a better understanding of how logistics companies achieve a high performance in the changing economic environment over the past decade.

• The Journal of Industrial Distribution & Business
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• 제8권5호
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• pp.87-93
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• 2017

Purpose - This paper investigates whether managerial overconfidence is associated with firm-specific crash risk. Overconfidence leads managers to overestimate the returns of their investment projects, and misperceive negative net present value projects as value creating. They even use voluntary disclosures to convey their optimistic beliefs about the firms' long-term prospects to the stock market. Thus, the overconfidence bias can lead to managerial bad news hoarding behavior. When bad news accumulates and crosses some tipping point, it will come out all at once, resulting in a stock price crash. Research design, data and methodology - 7,385 firm-years used for the main analysis are from the KIS Value database between 2006 and 2013. This database covers KOSPI-listed and KOSDAQ-listed firms in Korea. The proxy for overconfidence is based on excess investment in assets. A residual from the regression of total asset growth on sales growth run by industry-year is used as an independent variable. If a firm has at least one crash week during a year, it is referred to as a high crash risk firm. The dependant variable is a dummy variable that equals 1 if a firm is a high crash risk firm, and zero otherwise. After explaining the relationship between managerial overconfidence and crash risk, the total sample was divided into two sub-samples; chaebol firms and non-chaebol firms. The relation between how I overconfidence and crash risk varies with business group affiliation was investigated. Results - The results showed that managerial overconfidence is positively related to crash risk. Specifically, the coefficient of OVERC is significantly positive, supporting the prediction. The results are strong and robust in non-chaebol firms. Conclusions - The results show that firms with overconfident managers are likely to experience stock price crashes. This study is related to past literature that examines the impact of managerial overconfidence on the stock market. This study contributes to the literature by examining whether overconfidence can explain a firm's future crashes.

• Journal of Information Technology Services
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• 제16권4호
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• pp.15-31
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• 2017

This study analyzes 45 Korea IT service companies from 2012 to 2016 using DEA analysis. Large enterprises, medium enterprises and small and medium enterprises (SMEs). CCR model and BCC model were used for efficiency analysis. Among the various analytical objects, the decision objects which yield the maximum output with minimum input are compared with other analysis objects. The relative inefficiency was measured through this, and Technical Efficiency (TE), Pure Technology Efficiency (PTE), Scale Efficiency (SE), scale profit, reference frequency were analyzed. Also, we analyzed the Technology Gap Ratio (TGR), which is the distance between production function and Meta-Frontier for each firm, using Meta-Frontier analysis. Finally, the Tobit model is used to analyze the sources of efficiency and inefficiency. The inputs are assets, capital, and employees, and the output factor is sales. The analysis shows that large firms are achieving technological achievements more efficiently than small and medium enterprises. As a result, medium-sized enterprises and SMEs can improve efficiency overall through efficient operation of workforce and appropriate combination of inputs such as assets and capital. Also, as a result of the influence factor analysis, it was found that the ratio of the managed asset ratio and the management cost ratio were significant factors influencing the efficiency of the IT service companies. This study suggests the efficiency analysis using DEA for many Korea IT service companies. Inefficient parts of each company are classified according to size and technology. Also, we identify the most efficient companies and analyze the causes of those companies whose profits are lower than their size.

• Journal of Korea Society of Digital Industry and Information Management
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• 제15권4호
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• pp.197-212
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• 2019

The purpose of this study is to identify the maturity stages of venture firms through classification analysis, which is widely used as a big data technique. Venture companies should develop a competitive advantage in the market. And the maturity stage of a company can be classified into five stages. I will analyze a difference in the growth stage of venture firms between the survey response and the statistical classification methods. The firm growth level distinguished five stages and was divided into the period of start-up and declines. A classification method of big data uses popularly k-mean cluster analysis, hierarchical cluster analysis, artificial neural network, and decision tree analysis. I used variables that asset increase, capital increase, sales increase, operating profit increase, R&D investment increase, operation period and retirement number. The research results, each big data analysis technique showed a large difference of samples sized in the group. In particular, the decision tree and neural networks' methods were classified as three groups rather than five groups. The groups size of all classification analysis was all different by the big data analysis methods. Furthermore, according to the variables' selection and the sample size may be dissimilar results. Also, each classed group showed a number of competitive differences. The research implication is that an analysts need to interpret statistics through management theory in order to interpret classification of big data results correctly. In addition, the choice of classification analysis should be determined by considering not only management theory but also practical experience. Finally, the growth of venture firms needs to be examined by time-series analysis and closely monitored by individual firms. And, future research will need to include significant variables of the company's maturity stages.

• The Journal of the Institute of Internet, Broadcasting and Communication
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• 제15권6호
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• pp.303-309
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• 2015

The construction process and safety management are an important means of the total projects for the decision-making. As an important management tool of cost, resources and risks of the project, the analysis and evaluations are recorded as an important asset of company. Also, it has become a safety device that could reduce risk factors repeatedly by the decision-making methods for the future similar projects. Component-based software, by reusing the useful part, which was prepared without newly developing all that, by building a new software product, the long-term continuous/steady through the provision of a component-based software, by securing a sales base, it should be the development and supply a wide range of applications. In this paper, we propose the construction process control systems for increasing modifiability of process creation and modification for business efficiency in accordance with the diverse trends in the construction process as a low-cost niche through a component-based software supplier to solve these problems.

• Journal of the Korea Academia-Industrial cooperation Society
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• 제6권5호
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• pp.384-390
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• 2005

The purpose of this study is to test empirically the effects of Entry Barriers for the stock prices of Venture Business using the Ohlson Model which is modifying and extending in terms of growth and the potential growth energy. Because the traditional Ohlson model(1995) on which the firm's value is determined only based on abnormal earnings and book value have numerous limitations when we evaluate the value of venture Businesses with high technology and new emerging market. In order to overcome these limitations, We can introduce items of net sales growth ratios and industrial property-to-net asset ratios into as proxy variables of the growth and potential growth energy. In the process of analyzing these research tests, we have set three kinds of hypotheses and tested then empirically compared with KOSDAQ ordinary listing business and KOSDAQ venture businesses between long-term analysis and short-term analysis. According to the degree of concentration reflecting HHI index, our empirical research were performed in depth. Therefore, the results of this study show us that all three kinds of Hypotheses are accepted.