• Journal of Industrial Convergence
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• v.15 no.1
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• pp.17-32
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• 2017

The purpose of this study is to evaluate financial models that can predict corporate bankruptcy with diverse studies on evaluation models. The study uses discriminant analysis, logistic model, decision tree, neural networks as analyses tools with 18 input variables as major financial factors. The study found meaningful variables such as current ratio, return on investment, ordinary income to total assets, total debt turn over rate, interest expenses to sales, net working capital to total assets and it also found that prediction performance of suggested method is a bit low compared to that in literature review. It is because the studies in the past uses the data set on the listed companies or companies audited from outside. And this study uses data on the companies whose credibility is not verified enough. Another finding is that models based on decision tree analysis and discriminant analysis showed the highest performance among many bankruptcy forecasting models.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.14 no.11
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• pp.5586-5593
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• 2013

This study investigates how the Corporate Social Responsibility (CSR) performance of a firm is associated with its financial performance in the stock market. Prior studies provide mixed evidence on the relation between CSR and financial performance. This study sheds some lights on the positive effect of CSR on firms' financial performance. Using a unique set of data on CSR performance of Korean firms provided by Morgan Stanley Capital International (MCSI), we find that firms' CSR performance is positively associated with their contemporaneous stock returns and Tobin's Q in the Korean market. This finding suggests that stock market participants value firms' CSR activities. This is the first study that provides empirical evidence on the existence of the positive association between the CSR performance of Korean firms and their financial performance using MCSI data which is considered more reliable than the data used in the prior CSR studies in Korea.

• Journal of Distribution Science
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• v.14 no.6
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• pp.75-80
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• 2016

Purpose - A growing demand for sustainability reporting has placed pressure on firms with non-financial information that affects firm valuation, growth, and development. In particular, a number of researchers have investigated various topics in Corporate Social Responsibility (CSR), non-financial information. Prior studies suggest that CSR may affect corporate outcomes like corporate reporting, financial performance, and disclosures. However, the results from prior studies are not clear whether CSR affects corporate outcomes. This is partially due to the measurement issues with CSR. In this study, we examine whether CSR affects the quality of corporate reporting, one of the popular measures in corporate outcomes. We find an evidence that CSR positively affects the quality of corporate reporting. Research design, data, and methodology - In this study, we collected a unique dataset of CSR from MSCI. Total 169 firms listed in the Korean Stock Exchange from 2011 to 2014 were collected and analysed with the detailed CSR reports. Using a correlation test, we found a weak association between CSR and the quality of corporate reporting. However, the regression tests provided a strong relationship between CSR and the quality of corporate reporting after controlling for other variables that may affect the quality of corporate reporting. Additionally, we calculated the t-statistics based on heteroskedaticity-consistent standard errors (White, 1980). Results - Before we run the regression test, we sort the measures of the two dependent variables into each rating of CSR (from AAA to CCC). The results indicate that the quality of corporate reporting measured by discretionary accruals and performance-matched discretionary accruals monotonically decrease as the CSR ratings increase. This supports our hypothesis. In the regression tests, the coefficient on MJDA (PMDA) is -0.183 (-0.173) and significant at the 5% level. We can interpret the results as CSR affecting the quality of corporate reporting in positive ways. Other coefficients on control variables are consistent with prior studies. For example, the coefficients on both LOSS and LEV are positive and significant at conventional level, meaning that firms with financial difficulty may harm their quality of corporate reporting. Conclusion - We found an evidence that CSR is positively associated with the quality of corporate reporting. This study contributes to the literature in various ways. First, this study extends the line of CSR research by providing additional evidence in the setting of ethical behaviors by managements. This is consistent with the hypothesis and supports the results of prior studies. Second, to the best of my knowledge, this is the first study using the MSCI CSR ratings. In contrast with prior studies using different measures of CSR, the MSCI CSR ratings allow us to provide in-depth analysis. Third, the additional measure of dependent variable (PMDA) allows us to improve the robustness of our results. Overall, the results provided this study to extend the findings in prior studies by providing incremental evidence.

• The Journal of Asian Finance, Economics and Business
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• v.4 no.3
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• pp.35-43
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• 2017

This paper explores the impact of corporate control, measured by ownership structure, on top-executives' compensation in Japan. According to agency theory, the pay-performance link is expected to be affected by the firm's ownership structure. Using a sample of 4,411 firm-year observations (401 firms for the 11-years period from 2001 to 2011) for Japanese non-financial firms publicly traded on the first section and second section of the Tokyo Stock Exchange (TSE), this study demonstrates that institutional ownership (both financial and corporate) is negatively related to the level of executives' compensation. Such finding is in line with efficient monitoring hypothesis which claims that the presence of institutional shareholders provides direct monitoring over managers, limits managerial self-dealing and curves the increase in top-executives pay. On the other hand, the results also show that managerial ownership is positively related to their compensation which supports managerial power theory hypothesis, i.e. management-controlled firms are more likely to extract more compensation from the business than other firms. Overall, this study confirms that corporate control has significant impact on cash compensation paid to Japanese top-executives after controlling the conventional pay-performance relationship.

• Journal of Intelligence and Information Systems
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• v.29 no.2
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• pp.85-100
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• 2023

Corporate ESG performance (environmental, social, and corporate governance) reflecting a company's strategic sustainability has emerged as one of the main factors in today's investment decisions. The traditional ESG performance rating process is largely performed in a qualitative and subjective manner based on the institution-specific criteria, entailing limitations in reliability, predictability, and timeliness when making investment decisions. This study attempted to predict the corporate ESG rating through automated machine learning based on quantitative and disclosed corporate financial information. Using 12 types (21,360 cases) of market-disclosed financial information and 1,780 ESG measures available through the Korea Institute of Corporate Governance and Sustainability during 2019 to 2021, we suggested a deep neural network prediction model. Our model yielded about 86% of accurate classification performance in predicting ESG rating, showing better performance than other comparative models. This study contributed the literature in a way that the model achieved relatively accurate ESG rating predictions through an automated process using quantitative and publicly available corporate financial information. In terms of practical implications, the general investors can benefit from the prediction accuracy and time efficiency of our proposed model with nominal cost. In addition, this study can be expanded by accumulating more Korean and international data and by developing a more robust and complex model in the future.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1249-1256
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• 2021

This study investigates the company value determinant by observing the effect of financial performance and Corporate Social Responsibility (CSR) and its role in moderating performance achievement. The macro-economy variables such as inflation and interest rate are also used as the controlling variable. This research employs the sample of manufacturing companies of the food and beverage sub-sector listed on the Indonesia Stock Exchange. This study used panel data from 2013 to 2017, with the moderating regression analysis. The result shows that the profitability of the current or previous period affects the company's value. CSR and company size affect the company value at the next period shows that stock price, which reflects the investor's perception today, will be affected by the CSR, Size, and Return On Asset of the previous year. CSR also shows that it can be the substitute for profitability since a company that performs CSR is the one that has a good performance. The regression moderating model and the profitability of the previous period have a higher explanatory power than the higher R square value in explaining company value.

• The Korean Journal of Franchise Management
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• v.14 no.2
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• pp.19-30
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• 2023

Purpose: Corporate management is under pressure to contribute to social values beyond profit-seeking, and interest in ESG (Environment, Social, Governance) is increasing worldwide. In the recent global climate change crisis and the COVID-19 pandemic, the importance of non-financial values such as ESG is increasing. Therefore, the purpose of this study is to prepare a strategy for future ESG management activities by analyzing the impact of it on corporate performance by food companies. Research design, data and methodology: ESG-related research trends, ESG activities, and corporate performance were analyzed. After that, a regression analysis was conducted to identify the relationship between ESG evaluation grade and corporate performance. Result: ESG management activities measured by ESG scores did not significantly affect the return on assets, one of the variables of corporate performance. However, as a result of setting the return on equity as a dependent variable, ESG management activities have a nonlinear relationship with corporate performance, and ESG management activities have a positive effect on corporate performance when investment in ESG management activities is reasonable. Conclusions: These results show that food companies should engage in an appropriate level of ESG management activities to improve corporate performance.

• Journal of Digital Convergence
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• v.13 no.2
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• pp.105-113
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• 2015

If the watchdog role of good corporate governance, corporate executives and reduce agency costs and information asymmetries. Corporate governance score higher because enterprise internal control systems and financial reporting system is well equipped with the company management is enabled and corporate performance is higher because the high financial credit rating. Under these assumptions and hypotheses set up this study corporate governance (CGI) has been studied demonstrated how the financial impact on the credit rating (CFR). Findings,

relevant corporate governance (CGI) and financial credit rating was found to significantly affect the positive (+), Regression coefficient code is expected code of positive (+), the value

indicated by the value of all positive. The results of corporate governance (CGI) has showed excellent results, such as the more predictable will increase the credit score financial rating. The results of this study will have more CGI-credit financial rating the greater good. This study might be expected to provide a useful guide that corporate social responsibility, the company with a good governance and oversight systems enable to to get a higher credit rating in practice and research.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.49-55
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• 2023

Business is an important entity in every economy with its role in job creation, budget contribution, and national output. It can be said that enterprises are also one of the leading units that play a key role in implementing digital transformation, grasping science and technology, and improving labor productivity. Developing a team of enterprises that are both strong in quantity and strong in quality is an urgent requirement in many countries, including Vietnam. Vietnam is a developing country and home to many textile and garment enterprises operating due to the advantages of cheap labor and a large market, the textile and garment industry is capable of creating many jobs for the economy. Studying the factors affecting corporate financial performance across 250 textile and garment enterprises in Hanoi capital and Bac Ninh province, the research results show that when enterprises have the ability to mobilize capital, the cost is cheap, appropriate, and optimal, most businesses often achieve higher business efficiency and financial performance. In contrast, enterprises that are difficult to raise capital in the economy often achieve low financial efficiency and financial performance. The study also confirms the role of human capital in enterprises, enterprises with high human capital often achieve high profits.

• The Korean Journal of Financial Management
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• v.21 no.2
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• pp.1-25
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• 2004

From the perspective of corporate governance, we examine the acquirers' performance of mergers and acquisitions. The empirical results of our study show that outside active shareholders, such as block shareholders or institutional shareholders, affect acquirers' performance in M&A's : the ownership of outside active shareholders is positively correlated with the performance of acquirers. However, the ownership of insiders, such as that of encumbent manners or major shareholders, does not have any significant effect on the performance of M&A's. We also found that the ownership of foreign investors increased its explanatory power after the financial crisis of Asia. Since the current literature concludes that the improvement of corporate governance would enhance the shareholders' wealth, the results of our study implies that outside active investors, rather than insiders, are playing an important role in the corporate governance.