• The Journal of Asian Finance, Economics and Business
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• v.8 no.11
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• pp.223-234
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• 2021

This study aims to examine whether operating cash flows influence banks' financial stability in Pakistan. The study employed annual panel data collected from annual reports of 20 commercial banks listed on the Pakistan Stock Exchange for the year 2011 to 2019. Free cash flow yield was taken as the dependent variable while cash flow ratio was selected as the independent variable, and net interest margin, income diversification, asset quality, financial leverage, the cost to income ratio, advance net of provisions to total assets ratio, capital ratio, financial performance, breakup value per share and bank size were taken as control variables. The study performed ordinary least square technique, random and fixed effects models, Hausman test, Lagrange multiplier test, descriptive and correlation analysis. Results showed that operating cash flows and net interest margin significantly and positively influenced banks' financial stability while the cost to income ratio and advances net of provisions to total assets ratio significantly and negatively associated with banks' financial stability. To improve financial stability, banks should become more cost-effective and enhance their liquidity levels by lowering lending activities. In the future, it would be useful to compare commercial and investment banks, also Islamic and conventional banks in the same research setting.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.9
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• pp.177-187
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• 2021

The purpose of the research to evaluate the efficiency and productivity growth rate of some Vietnamese commercial banks in the period 2008-2020. Using input and output selection theory, the author selected 2 models, estimating the efficiency for model 1 and estimating the yield change for both the models. We have built a model to estimate the efficiency and calculate as well as decompose the productivity growth of Vietnamese commercial banks during the period of active mergers and acquisitions activities in the banking system. Based on the results of the efficiency estimation, TFP shows during mergers and acquisitions, efficiency fluctuates but in an inverted U-shape (increasing from 2008-2011 but decreasing from 2013 to 2020). The estimated results of the impact assessment model show that FDI reduces the efficiency of banks. Productivity analysis shows that 6 out of 23 banks in the study period had positive TFP growth (tfpch > 1) due to technical progress and management efficiency. The findings of this study suggest that Vietnam's commercial banking system has many opportunities to improve operational efficiency in many aspects. In which, there are opportunities to increase credit, improve governance as well as improve the technology level of each bank. In addition, along with traditional products such as deposits and loans, diversification with a wide range of products and services is an important factor to enhance customer experience and demand in commercial banks.

• Journal of Korea Society of Industrial Information Systems
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• v.28 no.6
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• pp.151-171
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• 2023

For the efficient establishment of a channel strategy for banks, this study aims to propose a channel model by classifying channels into types, and carrying out a correspondence analysis per type. A survey of bankers was conducted to visualize categorical data and create a positioning map. As a result, first, 12 banking channels were classified into 4 types based on business processing subjects and places, which were then, further grouped into the categories of full-banking and self-banking. Second, a correspondence analysis according to the classified types was carried out, and it was found that the branch-type is suitable for product description and customer management, while the banking-type is suitable for efficient business processing without time and space constraints. Furthermore, the analysis also showed that the machine-type and banking-type are inappropriate for customer management, and the mobility-type demonstrates low operational effectiveness due to a lack of awareness. The aforementioned findings suggest the need for a hybrid convergence channel that reflects the characteristics of banking tasks and fills in the gaps between the different channels. Third, a channel model was derived by adding a common area to the 2×2 model consisting of the business processing subjects and places. Therefore, this study is meaningful in that it examines the diversification of channels and factors in the division of roles by channel type based on customers' banking channel selection factors, and presents basic research findings for future channel strategy establishment and efficient channel operation.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.38 no.6
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• pp.1021-1028
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• 2018

As entering the international construction market became more difficult than the past, ODA projects can be a breakthrough for domestic engineering companies to enter the international market. However, since many companies compete for limited projects, it is necessary to reinforce the competitiveness of bidding success. The competitiveness is the result of accumulating experience, reputation, and networking through partnering. Therefore, depending on which partnering strategy has been taken over a long period, the bidding success is decided. The objective of this study is to identify the effective partnering strategy for bidding success. For this, the World Bank bid results, focusing on consulting projects in Vietnam, are collected. Using the bid results, inter-firm network representing the partnering relationship is constructed and the Social Network Analysis is conducted. After then, by conducting the Logistic Regression Analysis, effective partnering strategies are suggested. The result shows that the diversification strategy is advantageous for transportation and city development projects and the concentration strategy is advantageous for water projects. The partnering strategy for the consulting project proposed in this study will be used as a reference for the domestic engineering companies to enter the Vietnam construction market in the future.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.1
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• pp.33-50
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• 2014

Though South Korea has world-class volume of Venture Capital Investment, as a share of GDP, early stage venture investments are still short, and investments are concentrated in high technology area and Capital area. Because of the high barriers to entry of the new IPO and M&A market, the venture capital companies undergo difficulties in profit. High-tech ventures face difficulties in raising money from outside investors due to information asymmetry between venture investors and venture companies. To resolve these problems, developed countries's government make a co-funding investment scheme with private sectors and design incentive mechanism such as receiving knowledge of the reputable investors' joint venture. Korean central and local government can benchmark those of things. For example, the expansion of the investment volume with private sector, region-specific matching fund and venture capital's exit path diversification such as M&A through the establishment of a business venture eco-system. At the same time, venture companies are to make an efforts to enhance the ability of screening for venture companies and the value for investment activities through a joint venture investments.

• Information Systems Review
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• v.10 no.1
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• pp.21-45
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• 2008

Over the years a lot of organizations or enterprises are spending the majority of their IT budgets on IT resources procurement and maintenance. IT resources are typically duplicated in each Region, Division, and/or Business Unit. The biggest sources of cost savings come directly from the reduction in maintenance cost and the elimination of duplicated resources. Global corporations are investing heavily in shared services implementations in order to stay competitive in an industry environment. A number of financial services firms have turned to IT shared services to reduce the level of IT asset and infrastructure redundancies. Recently, Korean financial services industry is moving to diversification(bank, securities, insurance, etc.) and consolidation(M&A, strategic alliance, etc.), and wants the elimination of duplicated IT resources. This research is intended to find out and demonstrate the factors having a significant effect on adoption of IT shared services center in finance services industry.

• The Journal of the Korea Contents Association
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• v.18 no.1
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• pp.196-209
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• 2018

This study is founded on banks' profitability factors. Unlike the previous study in terms of diversification of the banks' funding structure, this research performs multiple regression analysis during the entire period and examines the comparative analysis of before and after the financial crisis. the study establishes hypotheses by using the wholesale funding ratio as a key focus variable with 8 explanatory variables and the operating profit on assets as a profitability index. The Loan-deposit rate gap, the Number of stores and the Non-performing loan ratio prove to be a significant profitability factor for all periods of time. Korean banks are also more profitable when their the Loan-deposit rate gap get bigger and the Number of stores grows. The wholesale funding ratio is analyzed to have no statistically significant effect on the profitability of banks. Rather than being influenced by macroeconomic indicators, it is indicated that the situation of individual banks and other financial environments have been affected. And banks increase profitability as banks increase their loan after the financial crisis. The empirical analysis shows that profitability factors have periodical distinctions, and in this aspect, this research has implications. The study needs to be expanded to cover the entire domestic banking sector, in consideration of the profitability of the banking industry in the future.

• KDI Journal of Economic Policy
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• v.14 no.2
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• pp.3-27
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• 1992

In 1988, the government provided to the low income people 34.1% of the stocks of Pohang Iron & Steel Company through the People's Share Program of Privatization for the first time, and then in 1989 21% of the share of the Korea Electric Power Corporation were also provided to the low income classes through the same way. The purpose of the People's Share Program was known to be to support the low income classes through participating the profit of public enterprises, and also to expand the capital market through the diversification of stock holding structure. Initially, the government planned that the government share of enterprises such as the Citizens National Bank, the Korea Telecommunication Authority would be sold to the low income classes through the People's Share Program step by step. The income support policy, however, was no longer driven after 1989 when the overall stock prices started to decline. In this paper we tried to measure the effect of the privatization scheme of the public enterprises through the People's Share Program. The problems of the People's Share Program of the Pohang Iron & Steel Commpany and the Korea Electric Power Corperation were also identified. Several implications of the privatization scheme of the public enterprise through the People's Share Program by stages were found. The People's Share Program was found to be a non-stable policy measure for the income support of low income classes. The efficiency impact of the privatization through the People's Share Program was found to be non-significant.

• Korean Journal of Construction Engineering and Management
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• v.12 no.2
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• pp.3-11
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• 2011

There are several causes to recalculate the contract amount in public construction projects. Among them, the escalation clause was introduced in 1969 and now the condition to recalculate the cost is effective after 90 days from the date of contract and the rate of fluctuation should be more than 3% from the date of bidding. The two calculation methods for the rate of fluctuation are item-adjustment and index-adjustment. According to the results of investigation into 4 public institutions and 163 projects, all of them have used the method of index-adjustment and the rate of projects that spend over 6 months obtaining the approval of contract amount adjustment is more than 90%. The reason for spending lots of time is caused by problems of the calculation method on the price fluctuation rate. Therefore, it is necessary that the calculation method should be diversified to cope with the problems and a option of the builder should be expanded as well. Furthermore, if the way to apply correction factors to construction price index and average index based on the producer and consumer price index made by the bank of Korea is added, then the duration will be reduced without additional expenses. This study proposed the diversification of the calculation method using price fluctuation rate and builders' expanded options as improvement on the managerial method of Price Fluctuation System for the prompt and efficient contract amount adjustment.

• Journal of the Economic Geographical Society of Korea
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• v.17 no.1
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• pp.129-146
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• 2014

This paper investigates how industrial diversity affects unemployment and employment instability from the perspective of the regional economy. Through this analysis, we examine how the industry-specific policy to promote some industry strategically in most of areas affects the stability of the regional economy. We measure Herfindahl indexes using the 1993-2010 data of 16 regions in Korea, and use panel regression model for empirical analysis. The main results from this empirical analysis are summarized as follows. First, we confirm that the industrial structure of most regions has been changed to the direction of specialization in 1990s and to the direction of diversification in 2000s through analyzing the changes in the values of Herfindahl indexes during the given period. Second, we find from the estimation results of panel regression model that the higher industrial diversity in most of regions is, the lower the unemployment rate is. However, a statistically significant relationship between industrial diversity and employment instability only partially confirmed. Third, there exist high unemployment rate and employment instability in most metropolitan areas, but it is hard to say that this relationship is highly statistically significant. From the results of the empirical analysis, it is likely that the industry-specific policies such as the regional strategic industry development policies unlike policy goals make the unemployment rate to rise and economic instability to increase. From the viewpoint of employment aspects, the strategies to increase industrial diversity would be desirable rather than those to specialize in the industrial structure.