• Management & Information Systems Review
• /
• v.29 no.4
• /
• pp.207-223
• /
• 2010

One of the important prudential regulations is the capital regulation. The current domestic and international capital regulation sets the minimum capital requirement according to the size of risk which is the simple sum of market risk and credit risk. However the portfolio theory suggests that, due to the effect of diversification, the total risk is less than the summation of market and credit risk. This paper investigates and does empirical test to verify the diversification effect in measuring financial firm's integrated risk. We verify the diversification effect between the market risk and credit risk. This paper's contribution is to present the empirical evidence that, considering the relationship between market and credit risk, the integrated risk is less than sum of them. This implication is that the surplus capital may be used for the other purposes, therefore enhancing capital allocation efficiency in view of society as a whole.

• The Journal of Industrial Distribution & Business
• /
• v.10 no.9
• /
• pp.19-24
• /
• 2019

Purpose - In the digital era, technology advancement enables goods and services to be produced more efficiently but also create economy risk in the global economy including Indonesia. Previous studies stated that the risk can be mitigated through export diversification. This study investigates strategy to expand the markets for existing products and explore the potential market. Research design, data, and methodology - The criteria was followed using a review and considerations combination through the Focus Group Discussion (FGD) to determine the priority product in trading house of Indonesia. This study implemented market share to explore those products' markets and compare it to other ASEAN countries. Results - The Indonesian potential products are T-shirts, singlets and other vests of textile materials, knitted or crocheted (excluding cotton); food preparations; medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes; soap in the form of flakes, granules, powder, paste or in aqueous solution; and cocoa powder, not containing added sugar or other sweetening matter. The market analysis also showed that Indonesia still had not optimally accessed yet the largest market in the world for each product. Conclusions - The government should focus more on increasing the competitiveness of those products, particularly in those global marketplaces.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.3
• /
• pp.31-38
• /
• 2021

The study investigates the diversification behavior of Islamic stocks against US financial uncertainty. Considering limitations found in the literature, a comprehensive index of financial uncertainty (FU) is used, developed by Jurado, Ludvigson, and Ng (2015). The empirical analysis uses monthly data from four Islamic markets - Saudi Arabia, Malaysia, Indonesia, and Turkey - for the period from January 2010 to September 2019. Results of the bivariate EGARCH models show that Islamic stocks can be used for diversification purpose against the financial uncertainty of the US because the volatility of US uncertainty does not propagate in the Islamic stock markets. Moreover, findings show that the spillover effect of financial uncertainty varies with the FU forecast horizon. The spillover effect of FU increases with an increase in the FU forecast horizon and becomes significant over 3-month and 12-month periods in the case of Saudi Arabia. The current volatility of Islamic stock returns is independent of the size of shocks in past volatility. The leverage effect and asymmetry have been found in Saudi Arabia and Malaysia. The findings validate the arguments of the literature that Islamic markets are resilient facing uncertainties and perform well during crisis periods. The findings are important for investors in making better portfolio decisions.

• Journal of architectural history
• /
• v.29 no.2
• /
• pp.7-18
• /
• 2020

The purpose of this study is to examine the construction industry of Korea from the 1920s to the 1930s by analyzing activities of construction-contractors trying to overcome the recession of the construction industry and intensified competition in the industry. In this paper, I looked at the activities of Hanazono Sakichi as concrete examples. First of all, with the strategy of the vertical integration, by manufacturing and selling building materials, Hanazono Sakichi expanded his company and the scope of contract business. The second, he attempted to diversify related projects. Through related diversification, he seemed to have earned not only land management profit but also advantages from related construction. These aspects were not only seen by Hanazono's activities but also by other contractors'. On the other hand, a few contractors have taken over a trust company to secure the funds for land management. Attempts to maximize personal interests through the expansion and diversification of contractors' business can be seen as overcoming the pre-1920s environment, where almost construct works were ordered under the government, and creating opportunities for the private sector to work and make profit by themselves. In the end, it can be mentioned that 'the contractor' established 'the construction industry' through this process.

• Asia-Pacific Journal of Business
• /
• v.12 no.3
• /
• pp.117-136
• /
• 2021

Purpose - The research is aimed at investigating the dynamics of economic cooperation among countries which share historical and genetic affinity. Research design, data, and methodology - The study analyzed historical and genetic affinity after reviewing related thesis data on countries with historical relations studied by domestic historians. After that, it was applied to the method of designating the counterparts for economic cooperation and suggesting economic cooperation measures within a comprehensive range. Results - Economic cooperation with the counterparts should complement the ongoing economic cooperation with each country among their planned national strategies. Korea proposes such matters in a way that cooperates and develops to obtain mutual economic benefits. Among the associated countries, Mongolia is for the underground resource processing industry, Turkey for the investment of companies advancing into neighboring countries, Kazakhstan for the diversification of business centered on the manufacturing industry, Uzbekistan for the modernization and diversification of industrial production, Turkmenistan for the localization of resource-based industries and Export promotion, Hungary for the increase in investment in line with the East-ward policy, Finland is for the cooperation in the knowledge-based industry. Conclusion - This economic cooperation can raise Korea's international status to the next level and further strengthen our voice right in the international community.

• Asia Marketing Journal
• /
• v.22 no.2
• /
• pp.87-98
• /
• 2020

HANSSEM is a furniture company that leads the market of residential space in Korea. The goal of this case study is to focus on how HANSSEM copes with IKEA, the world's largest furniture retailer after entering the Korean market in December 2014. IKEA's entry into Korea is possible to destroy the existing orders in the retail industry and reduce the profit of incumbent local players by realigning industry relationships. However, HANSSEM achieved rapid growth with the largest market share in the furniture market through its internal capabilities. The authors propose the main success factors in three ways: (1) residents-database including apartment floorplans in Korea, (2) high-quality human services provided by construction and A/S (After-sales Service), (3) channel diversification that provides comprehensive consultations (e.g., flagship stores, home shopping channels, stores in marts, and interior dealers). Especially, there have been various consumer needs in Korean market, such as creating their own stylish space economically. HANSSEM meets customer's needs by reinforcing the space-package (complete-interior is provided to customer in a package rather than combining individual piece of furniture) and opening showrooms, which makes customers freely experience the products and receive detailed consultations on interior designs by alleviating customers' difficulties in decorating their homes. Based on HANSSEM's outstanding activities and new investments, we look forward to seeing that HANSSEM will achieve its ultimate goal of maintaining the position of number one furniture company by attaining customer satisfaction through higher quality in Korea.

• Korean Management Science Review
• /
• v.29 no.2
• /
• pp.167-184
• /
• 2012

Business diversification is inevitable to survive under the current competitive business environments. The advent of new businesses makes corporate governance more complicated through corporate combinations. Recent introduction of new accounting standard, International Financial Reporting Standards(IFRS), accelerates the need for corporate governance analysis. This study analyses the complex corporate governance system and its relation to the business performance using social network analysis. Corporate inter-governance networks can be visualized easily in a social network diagram. 552 corporate governance data are empirically analysed in the Korean stock market. The changes in In-Degree between networks are positively related with the changes in corporate sales volume. We can find the same results using operating profits as corporate performance proxy. The results show that social network analysis technique can be applied to investments in the stock markets.

• The Journal of Society for e-Business Studies
• /
• v.18 no.3
• /
• pp.177-193
• /
• 2013

The study investigated how did Credu pioneer Korean e-Learning market and reinforce their core competencies and how did they promote business diversification analyzing type of learning motives and examining Credu real cases. Under the fierce competition in the current e-Learning market, Credu has maintained their core competencies and strengthened an active communication channels with customers with focusing on investment to core businesses. Credu has introduced more adventurous and challenging products and services with creating a new model for the types of learning motives. This study could introduce the new perspective about the type of learning motives in e-Learning area. Also, the case study of successful e-Learning company, Credu, could contribute to make more spread e-Learning market techniques in this field in practice.

• Proceedings of the CALSEC Conference
• /
• 1999.07a
• /
• pp.95-108
• /
• 1999

The purpose of this study is to find the diversification of the methodology of KM (knowledge management) Benchmarking which has been developed rapidly as a new managing paradigm all over the world for the 21th century. In particular, at the point of that it has been going to be inevitable for domestic companies to adopt and utilize a knowledge management system as the pending assignment for surviving in the 21th century, this study thus can enable them to support an adoption of KM and suggest directions for companies. Therefore, the successful cases of KM adoption all through the world have been analyzed by this study with the classifications of the industrial fields, work-flows from the view point of learning organizations and information technologies. As a result, the KM type bearing the specific of the respective industry has not been unrolled, and the common element in the analysis of work-flows has been found. Based on the result, it is desirable for the companies to adapt KM, extracting necessary work field for KM. Consequently speaking, they need to benchmark and adopt the KM methodology based on the extracted results.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.7
• /
• pp.349-360
• /
• 2020

The study aims to empirically examine the determinants of bank margins from Pakistan, an emerging South Asian economy. To elucidate the importance of the Pakistani banking sector, secondary data has been used, which was extracted from the annual accounts of twenty-four Pakistani scheduled commercial banks (20 conventional, four full-fledged Islamic) over a sample period of 2006 to 2017. The factors identified in the dealership model and the subsequent empirical developments in the dealership model categorized as bank-specific, diversification, regulatory, and industry concentration are analyzed by applying the most-common linear dynamic panel-data estimator, the Generalized Method of Moments (GMM) estimator, developed by Arellano and Bond (1991). The findings reveal that, among the bank-specific variables, funding cost, credit risk, managerial efficiency, market share, and operating cost are significant predictors of bank margins. For diversification variables employed in the study, both variables including net non-interest income and asset diversity are as well significant predictors of bank margins. It is also found that the market concentration variable proxied by the Herfindahl-Hirschman Index (HHI) is significantly predicting bank margins. Subsequently, one of the regulatory variables, the opportunity cost of holding reserves, and one bank-specific variable, the degree of risk aversion, are insignificant in the model.