• Title/Summary/Keyword: Corporate Disclosure

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The Effect of the change in CP class on stock price (CP의 등급 변화가 주가에 미치는 영향)

  • 윤석곤
    • Journal of the Korea Society of Computer and Information
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    • v.4 no.4
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    • pp.244-250
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    • 1999
  • This study aimed to analyze the effect of the change in CP class of a firm on the abnormal yield of its stock price. As a result, it was found that the change in CP class of a firm had an effect on the abnormal yield. That is. the abnormal yield rose when the class of CP rose while it dropped when the class of CP dropped. And it was analyzed that the class of CP in the firm in which its current net gain was great while it dropped in the firm in which the current net gain was small. And it was found that the CP class of the firm with the high debt to equity ratio rose when the CP class of the firm changed, whereas it rose in the firm with the low debt to equity ratio. But it was found that the size of majority shareholders equity rate in a firm, the size of corporate value of the firm, the size of cash flow of the firm and the size of the burden of financial costs of the firm were not related to the abnormal yield of its stock price. This study has its significance in analyzing the effect of the information on the change in CP class of the firm on the capital market. But it has its limitations in the sample firm and the selection of the point in time of disclosure.

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Intellectual Reaction Differences among Market Participants to a Company's Information Disclosure and Trading Behaviors on IPO KOSDAQ (코스닥 IPO 기업 공시에 대한 시장 참가자의 다양한 지능적인 반응의 차이점과 주식 거래 행태)

  • Tsoy, Anzhela;Lee, Ki-Dong
    • Journal of Intelligence and Information Systems
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    • v.20 no.1
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    • pp.103-119
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    • 2014
  • In this paper, we investigate intellectual reaction differences among market participants to various corporate information announcements and the main information prompting investors to trade. Our research is based on IPO companies listed on the KOSDAQ exchange from January 2000 to September 2012 and concentrates on three information disclosures - bonus issue, seasoned equity offer, and new investment in facilities announcements. We find that intellectual market participants react positively to bonus issues and seasoned equity offers, but negatively to new investment announcements. Market trading volume increases before the positive events and all cgroups actively buy shares during these periods. For the negative events, only institution participants show active selling. Overall, institutions act as momentum traders, and individuals and foreigners as contrarian traders. We also discuss the implications of this study.

Information asymmetry and opportunistic behavior of insider : Focusing on fraud event firm (자본시장의 정보불균형과 기업내부관계자의 기회주의적 행태에 대한 실증연구 : 부정사건기업을 중심으로)

  • Lee, Posang
    • Journal of the Korea Convergence Society
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    • v.10 no.11
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    • pp.345-352
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    • 2019
  • This paper examines the opportunistic behavior of corporate insiders and analyzes the relationship between equity change and the possibility of delisting. The findings are summarized as follows. First, the larger the stake reduction of insider, the greater the negative excess return after announcement. In the delisting firm group, there is a significant decrease in equity and statistically significant results in the difference test between the comparative groups. The logistic regression analysis showed that the regression coefficient of equity change was negatively statistically significant, indicating a significant correlation between insider share change and the possibility of delisting. These findings are expected not only to provide useful information for investors, but also to be evidence of capital market information asymmetry.

An Empirical Study on the Effect of R&D Investment on Business Performance by Life Cycle -Focus on China's Small and Medium-sized Enterprises(SME)- (기업수명주기별 연구개발투자가 경영성과에 미치는 영향에 관한 실증연구 -중국 중소상장기업(SME)을 중심으로-)

  • Wang, Lin-Lin;Qing, Cheng-Lin
    • Journal of Digital Convergence
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    • v.17 no.6
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    • pp.43-49
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    • 2019
  • The study divided the life cycle of Chinese companies into three stages from 2011 to 2017, 3,750 small and medium-sized enterprises(SME) used disclosure data to analyze the intensity of R&D investment by company life cycle. The analysis showed that the impact of wealth(ROA) on the performance of R&D investment(RDS) and the next(t) business performance, and research and development investments had a different impact on the company's performance depending on the life cycle of the company. The results of this study are expected to help determine the amount of expenditure related to R&D investment and the time of input of resources in consideration of industrial characteristics and corporate characteristics when making strategic decisions related to R&D investment of companies.

The Relationship between the National Pension Service's Shareholding and Dividend Propensity: Focus on the Changes since the Stewardship Code. (국민연금의 지분율과 기업 배당성향 간의 관계: 스튜어드십 코드 도입 이후 변화를 중심으로)

  • Won, Sang-Hee;Chun, Bong-Geul
    • Asia-Pacific Journal of Business
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    • v.12 no.3
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    • pp.329-342
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    • 2021
  • Purpose - The purpose of this study is to analyze the effect of investment by the National Pension Service, which has a high share as a single fund, on the dividend payout ratio. Design/methodology/approach - This study secured a share through DART of the Financial Supervisory Service and disclosure of the National Pension Service. We also used a fixed-effects model and 2SLS to analyze the data. Findings - First, it was found that there was a possibility of conflicting interests among shareholders concerning the company's dividend payment policy. Second, in the range of 3% to 4.9% of the National Pension Service shareholding, an additional increase in the holding ratio was found to have a positive (+) effect on the dividend rate. Third, after the introduction of the Stewardship Code, it was found that the increase in ownership of the fund had a positive (+) effect on the company's dividend payout ratio, regardless of the share ratio range. Moreover, the relationship between the fund ownership and the dividend payout ratio showed a clear positive relationship when free cash flow was high along investment opportunities were low. Research implications or Originality - First, This study included less than 5% of the share in the analysis. Second, We used the recent changes in fund shareholder activities. Third, We tested an instrumental variable to confirm the relationship between the National Pension Service share and the dividend ratio.

The effect of Big-data investment on the Market value of Firm (기업의 빅데이터 투자가 기업가치에 미치는 영향 연구)

  • Kwon, Young jin;Jung, Woo-Jin
    • Journal of Intelligence and Information Systems
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    • v.25 no.2
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    • pp.99-122
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    • 2019
  • According to the recent IDC (International Data Corporation) report, as from 2025, the total volume of data is estimated to reach ten times higher than that of 2016, corresponding to 163 zettabytes. then the main body of generating information is moving more toward corporations than consumers. So-called "the wave of Big-data" is arriving, and the following aftermath affects entire industries and firms, respectively and collectively. Therefore, effective management of vast amounts of data is more important than ever in terms of the firm. However, there have been no previous studies that measure the effects of big data investment, even though there are number of previous studies that quantitatively the effects of IT investment. Therefore, we quantitatively analyze the Big-data investment effects, which assists firm's investment decision making. This study applied the Event Study Methodology, which is based on the efficient market hypothesis as the theoretical basis, to measure the effect of the big data investment of firms on the response of market investors. In addition, five sub-variables were set to analyze this effect in more depth: the contents are firm size classification, industry classification (finance and ICT), investment completion classification, and vendor existence classification. To measure the impact of Big data investment announcements, Data from 91 announcements from 2010 to 2017 were used as data, and the effect of investment was more empirically observed by observing changes in corporate value immediately after the disclosure. This study collected data on Big Data Investment related to Naver 's' News' category, the largest portal site in Korea. In addition, when selecting the target companies, we extracted the disclosures of listed companies in the KOSPI and KOSDAQ market. During the collection process, the search keywords were searched through the keywords 'Big data construction', 'Big data introduction', 'Big data investment', 'Big data order', and 'Big data development'. The results of the empirically proved analysis are as follows. First, we found that the market value of 91 publicly listed firms, who announced Big-data investment, increased by 0.92%. In particular, we can see that the market value of finance firms, non-ICT firms, small-cap firms are significantly increased. This result can be interpreted as the market investors perceive positively the big data investment of the enterprise, allowing market investors to better understand the company's big data investment. Second, statistical demonstration that the market value of financial firms and non - ICT firms increases after Big data investment announcement is proved statistically. Third, this study measured the effect of big data investment by dividing by company size and classified it into the top 30% and the bottom 30% of company size standard (market capitalization) without measuring the median value. To maximize the difference. The analysis showed that the investment effect of small sample companies was greater, and the difference between the two groups was also clear. Fourth, one of the most significant features of this study is that the Big Data Investment announcements are classified and structured according to vendor status. We have shown that the investment effect of a group with vendor involvement (with or without a vendor) is very large, indicating that market investors are very positive about the involvement of big data specialist vendors. Lastly but not least, it is also interesting that market investors are evaluating investment more positively at the time of the Big data Investment announcement, which is scheduled to be built rather than completed. Applying this to the industry, it would be effective for a company to make a disclosure when it decided to invest in big data in terms of increasing the market value. Our study has an academic implication, as prior research looked for the impact of Big-data investment has been nonexistent. This study also has a practical implication in that it can be a practical reference material for business decision makers considering big data investment.

Legal Research about the Public Offering of Director Compensation (이사보수의 공개에 관한 법적 연구)

  • Kwon, Sang-Ro
    • The Journal of the Korea Contents Association
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    • v.12 no.10
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    • pp.169-177
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    • 2012
  • Due to the influences of global financial crisis, countries are putting their efforts on the enhancement of appropriateness and transparency of director compensation. In several countries including Germany, the United States, the United Kingdom, France, and Italy, listed companies and financial institutions in certain levels make public announcement for compensations of individual directors, not the averages. Recently, even Asian countries including China, Hong Kong, and Singapore are introducing individual director compensation public announcement policies. On the other hand, in cases of companies, which must submit annual reports, under current Korean capital market laws and enforcement ordinances, they are obligated to mention 'total wage paid to all executives in that business year' on the annual report, but does not have to mention individual wages of each executive. About this, at the 17th national assembly, revised bill for the Securities and Exchange Act for companies to mention wages of each executive. The financial world is opposing to open individual director compensation to the public as they concern about the shrinking of outstanding human resources recruitment, breach of corporate confidence, privacy invasion, deterioration of labor-management relations, and downfall of the executive's management will as director compensation will be standardized downward; however, if public opening of individual director compensation is forced, domestic companies will prepare more objective and rational standards when they calculate director compensations, and moreover, it will prevent arbitrary intervention of dominant shareholders. Therefore, to clearly and efficiently control director compensation, we need regulations for obligating public opening of individual director compensation.

A Study for Acquiring ISO 30301 Standard Certification in Public Institutions (공공기관에서 기록경영시스템 표준(ISO 30301) 인증 획득을 위한 연구)

  • Park, Jeong-joo;Rieh, Hae-young
    • Journal of Korean Society of Archives and Records Management
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    • v.22 no.1
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    • pp.83-107
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    • 2022
  • Although the ISO 30301 Management Systems for Records (MSR) Standard has established a standard system for records management to be promoted at the management level, only a few institutions have been certified, and there are few known cases. The purpose of this study is to present essential requirements for the establishment of MSR suitable for public institutions that want to acquire ISO 30301 standard certification, and through excellent cases of success in practice, various matters related to certification were used to help in the introduction of the ISO 30301 standard. In this study, cases of certified public institutions, local government funding agencies, and certification bodies (CB) were investigated and analyzed. In addition to the analysis of internal documents obtained through information disclosure requests, interviews were conducted with four public agency employees and one certification body auditor to capture the know-how and expertise of the individuals in charge who went through the certification screening process. Through the case study, the scope of the performance was divided into 1 to 5 stages so that organizations that want to acquire the certification can effectively obtain a certification, and the ISO 30301 Standard Certification Process was presented. Lastly, five ways were proposed to ensure that certification could be obtained effectively and practically.

The Prediction of Export Credit Guarantee Accident using Machine Learning (기계학습을 이용한 수출신용보증 사고예측)

  • Cho, Jaeyoung;Joo, Jihwan;Han, Ingoo
    • Journal of Intelligence and Information Systems
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    • v.27 no.1
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    • pp.83-102
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    • 2021
  • The government recently announced various policies for developing big-data and artificial intelligence fields to provide a great opportunity to the public with respect to disclosure of high-quality data within public institutions. KSURE(Korea Trade Insurance Corporation) is a major public institution for financial policy in Korea, and thus the company is strongly committed to backing export companies with various systems. Nevertheless, there are still fewer cases of realized business model based on big-data analyses. In this situation, this paper aims to develop a new business model which can be applied to an ex-ante prediction for the likelihood of the insurance accident of credit guarantee. We utilize internal data from KSURE which supports export companies in Korea and apply machine learning models. Then, we conduct performance comparison among the predictive models including Logistic Regression, Random Forest, XGBoost, LightGBM, and DNN(Deep Neural Network). For decades, many researchers have tried to find better models which can help to predict bankruptcy since the ex-ante prediction is crucial for corporate managers, investors, creditors, and other stakeholders. The development of the prediction for financial distress or bankruptcy was originated from Smith(1930), Fitzpatrick(1932), or Merwin(1942). One of the most famous models is the Altman's Z-score model(Altman, 1968) which was based on the multiple discriminant analysis. This model is widely used in both research and practice by this time. The author suggests the score model that utilizes five key financial ratios to predict the probability of bankruptcy in the next two years. Ohlson(1980) introduces logit model to complement some limitations of previous models. Furthermore, Elmer and Borowski(1988) develop and examine a rule-based, automated system which conducts the financial analysis of savings and loans. Since the 1980s, researchers in Korea have started to examine analyses on the prediction of financial distress or bankruptcy. Kim(1987) analyzes financial ratios and develops the prediction model. Also, Han et al.(1995, 1996, 1997, 2003, 2005, 2006) construct the prediction model using various techniques including artificial neural network. Yang(1996) introduces multiple discriminant analysis and logit model. Besides, Kim and Kim(2001) utilize artificial neural network techniques for ex-ante prediction of insolvent enterprises. After that, many scholars have been trying to predict financial distress or bankruptcy more precisely based on diverse models such as Random Forest or SVM. One major distinction of our research from the previous research is that we focus on examining the predicted probability of default for each sample case, not only on investigating the classification accuracy of each model for the entire sample. Most predictive models in this paper show that the level of the accuracy of classification is about 70% based on the entire sample. To be specific, LightGBM model shows the highest accuracy of 71.1% and Logit model indicates the lowest accuracy of 69%. However, we confirm that there are open to multiple interpretations. In the context of the business, we have to put more emphasis on efforts to minimize type 2 error which causes more harmful operating losses for the guaranty company. Thus, we also compare the classification accuracy by splitting predicted probability of the default into ten equal intervals. When we examine the classification accuracy for each interval, Logit model has the highest accuracy of 100% for 0~10% of the predicted probability of the default, however, Logit model has a relatively lower accuracy of 61.5% for 90~100% of the predicted probability of the default. On the other hand, Random Forest, XGBoost, LightGBM, and DNN indicate more desirable results since they indicate a higher level of accuracy for both 0~10% and 90~100% of the predicted probability of the default but have a lower level of accuracy around 50% of the predicted probability of the default. When it comes to the distribution of samples for each predicted probability of the default, both LightGBM and XGBoost models have a relatively large number of samples for both 0~10% and 90~100% of the predicted probability of the default. Although Random Forest model has an advantage with regard to the perspective of classification accuracy with small number of cases, LightGBM or XGBoost could become a more desirable model since they classify large number of cases into the two extreme intervals of the predicted probability of the default, even allowing for their relatively low classification accuracy. Considering the importance of type 2 error and total prediction accuracy, XGBoost and DNN show superior performance. Next, Random Forest and LightGBM show good results, but logistic regression shows the worst performance. However, each predictive model has a comparative advantage in terms of various evaluation standards. For instance, Random Forest model shows almost 100% accuracy for samples which are expected to have a high level of the probability of default. Collectively, we can construct more comprehensive ensemble models which contain multiple classification machine learning models and conduct majority voting for maximizing its overall performance.