• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.16 no.4
• /
• pp.101-113
• /
• 2021

This paper inquires the macro-economic factors that may affect the corporate venture capital (CVC) from an industrial organization theory perspective. Unlike existing studies focusing CVC investments related to parent corporates' strategic intention, we identified CVC firm as an independent financial investor affected by macro environment and industrial structure. Specifically, we empirically investigate whether and how industry's boom, exogenous crisis, economic growth, and competition intensity affect the CVC investment for a data set of investment in the U.S. based corporate venture capital industry, 1996-2017. The empirical data analyzed in the study contained a total of 84 U.S. based CVC firms and their 2,306 investments from 1996 until 2017. After conducting a time-series negative binomial analysis, our empirical analyses suggest that the CVC investments are affected negatively by exogenous crisis and competition intensity, and positively by industrial boom and economic growth. we found the significance and direction of our independent variables strongly supported all of our four hypotheses in a highly robust manner. The results of this study are expected to contribute the literatures of corporate venture capital and venture investment by illustrating which macro-economic and industrial structure factors affect CVC investment decision to adapt to dynamic environmental change beside strategic intention of CVC firm's parent corporates.

• The Korean Journal of Financial Management
• /
• v.24 no.2
• /
• pp.81-111
• /
• 2007

The agency relationship between managers and shareholders has the potential to influence decision-making in the firm which in turn potentially impacts on firm characteristics such as value and leverage. Using an agency framework, we examine the relation between ownership structure and capital structure during post-IMF period. We used the balanced panel data for 378 korean listed companies during the 1999-2005. The panel data sets consist of time-series observation on each of 378 cross-sectional units. The results indicate a non-linear U-shaped relation between the level of managerial share ownership and leverage with the relation reaching a minimum at 58.48 per cent of management share ownership. As managerial share ownership increase from a low level, managers have incentive to reduce the debt level for decreasing the financial risk, resulting in a lower lever of debt. However, when corporate managers hold a significant proportion of a firm's shares, managers have incentive to increase the debt level for leverage effects, resulting in a higher lever of debt.

• The Journal of Industrial Distribution & Business
• /
• v.9 no.1
• /
• pp.9-23
• /
• 2018

Purpose - The purpose of this paper is to investigate the potential benefits or detriments of team management on fund performance in the mutual fund market. An additional purpose of this study is to examine the optimal number of managers in a fund industry for superior performance. Research design, data, and methodology - This paper investigates the effect of managerial structure on fund performance in the Korean active mutual fund market between 2001 and 2008. For this, we analyze two risk-adjusted performances measures- the capital asset pricing model (CAPM) and the three-factor model of Fama & French (1993). Results - First, we found that single-managed funds exhibited superior performance. Second major finding was that as the number of managers in a fund increases, the fund performance deteriorates. Finally, the results reveal that the sharpest performance drop occurs when team size increases from a 5-person team to a 6-person team. Conclusions - The results suggest that the management structure can be a source of competitive advantage for fund performance. As considering fund performance is the outcome of managers' decision-making, this study contributes to not only the financial literature but also the literature in other areas, such as management and general business.

• Journal of Navigation and Port Research
• /
• v.36 no.3
• /
• pp.233-243
• /
• 2012

The purpose of this study was to confirm that the formation and influencing factors of ocean governance in Busan. Recently it has been observed that the concept of ocean governance increasingly popular in the field of maritime administration, as the concept helps us understand more comprehensively the new or emerging roles of the government and other stakeholders(private enterprise, citizen, etc) in a rapidly changing environments. Therefore, this study aims to investigate the status of ocean governance and draw alternatives in applying appropriate ocean governance structure of maritime administration in Busan. The result of this study shows that ocean governance level in Busan was not high in some factors such as participation, cooperation, collective decision making. This is caused by the lack of a ocean governance structure. Based on these significant research findings, theoretical and practical implications were discussed.

• Journal of Distribution Science
• /
• v.11 no.8
• /
• pp.31-37
• /
• 2013

Purpose - This study aims to strengthen the economic cooperation between Korea and Japan by studying the pattern of trade between them and identifying drawbacks. Thus, it aims to enable trade expansion by analyzing the factors that affect trade and identifying ways to improve them. If economic cooperation is improved, transport and communication costs, as well as the transaction cost of economic exchanges, can be minimized. Research design, data, methodology - The trade intensity index developed by the Japanese economist Yamazawa under his trade intensity theory was used to analyze the trade decision factor of Korea and Japan. Trade structure and decision factors were analyzed for the target period of 2000 to 2012, and the period ranging from 2000 to 2005 was compared with the period ranging from 2005 to 2012. This paper is an analysis of the resultant time series. The data were collected from Korea Traders Association, Korea Customs Office, and UN Comtrade (2000, 2005, 2012) and whole table indexes were calculated by the author. Trade related index was used to analyze the comparative advantage based on time-series analysis statistics data (2000. 2005, 2012) through an analysis of the trade intensity index (TII), revealed comparative advantage index (RCA), and trade specialization index (TSI). Results - The trade intensity index of the industries of Japan and Korea is 1.814 in 2000. The export ratio of Japan against China was slightly higher at 2.128. TII is indicated to be 1.600 in both 2005 and 2012, which means export ratio of Japan against China is considerably maintained in 2005; however, export ratio of Japan against China is diminishing gradually as its index is 1.600 in 2012. Second, as per the trade specialization index of the ship industry in Japan and China, TSI is indicated to be -0.818 in 2000, -0.308 in 2005, and -0.847 in 2012. Generally, it is still closer to -1 and especially, we can see it is more closer to -1 in 2012. Third, as per the revealed comparative advantage index of the ship industry in Japan and China, the RCA index in 2012 is 0.007, which is quite far from 1 as compared to the value in 2000 and 2005. Hence, the Japanese ship industry has a significant comparative disadvantage against the Chinese ship industry. Conclusions - Both countries invest most of their capital in the shipping industry. It is the shipping industry that receives the most capital investment in the two countries is invested and governmental policy funds are needed. As both countries have large shipping industries, this research project is very valuable. Japan and China are compared because they are Korea's neighbors. Also, Korea is strategically located in Northeast Asia and has a history of foreign intrusion from several countries. Therefore, the purpose of this research study is to understand the trade structures of both countries and intensify the economic cooperation between Japan and China.

• Journal of the Economic Geographical Society of Korea
• /
• v.7 no.2
• /
• pp.203-225
• /
• 2004

The purpose of this paper analyzes the characteristics of economic space in Gyeonggi border regions. Especially, this study focuses on understanding the environment enveloped the enterprises because today, largely influenced factor for regional economic development is enterprises. Since 1990's the change of the spacial organization in Korean Capital region has been inducing the functional transformation in Gyeonggi border regions so that new function -beyond military functions- is developed in these regions. By the disindustrialization in core region contributed to the industrialization in periphery, border regions are developed as a concentrated space of traditional industries and small size manufactural firms. The most important pull factor is facility for obtain a factory site and favorable condition of land price. Globally, the reasons to locate enterprise in these regions are found not in positive and progressive strategies but in passive and defensive strategies. Therefore few enterprise carried about influences of economic cooperation between North and South Korea at the moment of decision of their site. The survey reveal that enterprises didn't highly estimate the environment in border regions as their business activities. The first dissatisfied condition is insufficiency of labour and difficulty of access for administrative and high level services, due to geographical separation. Considering the recent tendency of spacial reorganization in Capital region is not always good for border regions, border regions have to employ a policy with the object of ameliorating regional business environments and growing up a potentiality of endogenous development.

• Korea Trade Review
• /
• v.43 no.6
• /
• pp.51-70
• /
• 2018

This study is to define the relationship between capital structure and the market share in the global shipping market, estimating the debt-equity ratio. To analyze the impact of the debt-equity ratio on market share, this study collected data from the 100 largest shipping companies from 2010 to 2017. Results identified that global shipping lines moderate their debt-equity rates to 62%, and all of them strategically utilize debt in order to increase market share in global shipping market. In comparison between the group focused on cargo volume and another group focused on freight rates, it is found that the group focused on cargo volume increase their handling cargo volume through increasing the debt rates. Another group used debt rate for reducing the freight rate and enhancing market power. Furthermore, after classifying the samples into high-growth and low-growth companies, this study compared the group focused on cargo volume and another group focused on freight rates. As a result, the low-growth group showed more significant impacts of the debt rate on market share than the high-growth group. The results of this study provide useful insight for future strategic decision making of shipping lines in the global shipping market.

• Korean Journal of Human Ecology
• /
• v.14 no.4
• /
• pp.613-629
• /
• 2005

This research analyzes household financial structures and ratios to understand factors of household utility. Its main themes are as following: First, what kinds financial structures are found at each level of income? Second, how are they different by the level of income? Third, what factors contribute to appropriate financial ratios? The themes are supported by the texts on financial ratios from both inside and outside of Korea and proved by the Korean Labor and Income Panel Survey, the fifth annual edition. The households are exempted that do not support the household principle record in the principle and household economy record. Accordingly, this survey is from a financial structure analysis of 3,762 households. The analysis utilizes SPSS Window (Version 10.0) program. The following are the results: First, the income level 4 and above, in which the increasing number indicates a higher level of income, are highly ranked on the income-expense level and the asset-debt rate. Also, level 4 has a strong financial structure, whereas level 1 does not. Apparently, the management of the household is complicated by debt redemption and a lower level of assets. Second, Ratio 1, Ratio 2, Ratio 4, and Ratio 5 are different by the level of income. Third, the level of income contributes to the appropriate financial ratio. The financial safety and prospective financial structure at each income level is an important variable. Households with a high income, in particular, have to balance their finances and capital, reducing liabilities and increasing the total assets. In other words, the family must hold assets to enhance efficiency according to the character and income level of the household. This research is a useful resource for such a decision-making as to improve household financial structure stability. Also, it can be adopted to evaluate financial products for specific households and be used for economic and social welfare planning to predict how households influence the nationwide economy.

• Journal of Intelligence and Information Systems
• /
• v.18 no.4
• /
• pp.59-77
• /
• 2012

This study focuses on predicting which firms will increase capital by issuing new stocks in the near future. Many stakeholders, including banks, credit rating agencies and investors, performs a variety of analyses for firms' growth, profitability, stability, activity, productivity, etc., and regularly report the firms' financial analysis indices. In the paper, we develop predictive models for rights issues using these financial analysis indices and data mining techniques. This study approaches to building the predictive models from the perspective of two different analyses. The first is the analysis period. We divide the analysis period into before and after the IMF financial crisis, and examine whether there is the difference between the two periods. The second is the prediction time. In order to predict when firms increase capital by issuing new stocks, the prediction time is categorized as one year, two years and three years later. Therefore Total six prediction models are developed and analyzed. In this paper, we employ the decision tree technique to build the prediction models for rights issues. The decision tree is the most widely used prediction method which builds decision trees to label or categorize cases into a set of known classes. In contrast to neural networks, logistic regression and SVM, decision tree techniques are well suited for high-dimensional applications and have strong explanation capabilities. There are well-known decision tree induction algorithms such as CHAID, CART, QUEST, C5.0, etc. Among them, we use C5.0 algorithm which is the most recently developed algorithm and yields performance better than other algorithms. We obtained data for the rights issue and financial analysis from TS2000 of Korea Listed Companies Association. A record of financial analysis data is consisted of 89 variables which include 9 growth indices, 30 profitability indices, 23 stability indices, 6 activity indices and 8 productivity indices. For the model building and test, we used 10,925 financial analysis data of total 658 listed firms. PASW Modeler 13 was used to build C5.0 decision trees for the six prediction models. Total 84 variables among financial analysis data are selected as the input variables of each model, and the rights issue status (issued or not issued) is defined as the output variable. To develop prediction models using C5.0 node (Node Options: Output type = Rule set, Use boosting = false, Cross-validate = false, Mode = Simple, Favor = Generality), we used 60% of data for model building and 40% of data for model test. The results of experimental analysis show that the prediction accuracies of data after the IMF financial crisis (59.04% to 60.43%) are about 10 percent higher than ones before IMF financial crisis (68.78% to 71.41%). These results indicate that since the IMF financial crisis, the reliability of financial analysis indices has increased and the firm intention of rights issue has been more obvious. The experiment results also show that the stability-related indices have a major impact on conducting rights issue in the case of short-term prediction. On the other hand, the long-term prediction of conducting rights issue is affected by financial analysis indices on profitability, stability, activity and productivity. All the prediction models include the industry code as one of significant variables. This means that companies in different types of industries show their different types of patterns for rights issue. We conclude that it is desirable for stakeholders to take into account stability-related indices and more various financial analysis indices for short-term prediction and long-term prediction, respectively. The current study has several limitations. First, we need to compare the differences in accuracy by using different data mining techniques such as neural networks, logistic regression and SVM. Second, we are required to develop and to evaluate new prediction models including variables which research in the theory of capital structure has mentioned about the relevance to rights issue.

• Journal of Mechanical Science and Technology
• /
• v.14 no.4
• /
• pp.369-379
• /
• 2000

In industrial production-distribution systems, production and purchasing rates, associated inventories, and sales are very critical for the profits of each component in the system. The objective of this study is to investigate an effective information control scheme for a production -distribution system by automatic feedback control techniques. In this work, a dynamic control scheme that has an integrated -error with state-feedback and filtering (ISFF) is proposed as a new algorithm for a dynamic controller. Generalized formulations of the dynamic control are proposed in the continuous-time and discrete-time cases. A methodology for an evaluation of ISFF controller gains using the eigen structure property is presented. When an upper-limit is imposed on the production capability by available factory space and capital equipment, supervisory control is provided to avoid integrator-windup and deterioration of system performance.