• Journal of Digital Convergence
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• v.16 no.2
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• pp.27-36
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• 2018

Financial IT evaluation methods have been unable to satisfy firms' requirements. There has been a growing demand for more comprehensively and non-financially measuring the IT performance. We developed a process-based approach in evaluating impacts of IT on primary activities. In this research we proposed a model that uses the corporate objective of IT and strategic fitt as the core independent variables in measuring the IT effect. Based on the data collected from the management variables of the 125 companies located in Korea, the companies were classified into the 4 different groups according to their corporate objective for IT: un-oriented, operations oriented, market oriented and dual oriented. Through the empirical analysis, we were able to demonstrate that the management of the companies showing a higher orientation level perceives a better IT investment performance, and this shows that the corporate objective for IT serves as a useful index for measuring the IT investment effect. In this research, it was also demonstrated that the strategic alignment has a positive influence on perceiving the IT investment effect.

• Journal of Digital Convergence
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• v.21 no.2
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• pp.33-40
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• 2023

In this study, we aim to examine the impact of corporate social responsibility implementation, which is a major concern in previous research, on investment efficiency. The research method will be a qualitative study with reference to existing previous research. The three main claims to be addressed in this study will be summarized, and the research variables and research models will be described. As a result of the study, based on existing previous research, this study presented three issues to examine how a high level of corporate social responsibility performance increases investment efficiency. First, we argue that a company's high level of social responsibility will be positively related to investment efficiency. Second, it is argued that investment efficiency will be positively related to individual CSR components that represent the interests of primary stakeholders. Third, it is argued that companies with too high a CSR index and companies with a too low CSR index will have less correlation with investment efficiency. The contribution of this study will be to more accurately understand the impact of CSR on corporate investment efficiency. In the future, it is hoped that additional discoveries will be made through research that adopts the three claims presented in this study as hypotheses and empirically analyzes them. The Journal of Digital Policy & Management. This space is for the abstract of your study in English.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.4
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• pp.1654-1662
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• 2011

This paper investigates how does cash holdings have effect on investment-cash flow sensitivity in korea firms over the period 1981-2009. According to $\"{O}$.Arslan et al.(2006), I expect that financially constrained firms have more cash holdings. and financially constrained cash-rich firms are likely to have less investment-cash flow sensitivity especially in the financial crisis period. Using financial constraint classification variables(firm size, dividend, cash holdings), we divide whole sample firms into financially constrained firms and financially unconstrained firms, and then I compare investment-cash flow sensitivity in pre-financial crisis(1981-1996), financial crisis(1997-1998) and after-financial crisis(1999-2009) period. This paper's findings are as follows: First, under no financial constraint classification conditions, cash-poor firms exhibit greater investment-cash flow sensitivity than cash-rich firms do during 1981-2009 period except financial crisis period. These findings support the hypothesis that firms have more cash holdings less investment-cash flow sensitivity except in financial crisis period. In financial crisis period, cash holdings have no effect on investment-cash flow sensitivity. Second, this paper findings are somewhat different as $\"{O}$.Arslan et al.(2006)'s. Under the financial constraint classification conditions, financially unconstrained firms have more investment-cash flow sensitivity rather than constrained firms have. The reason is that both dividend and firm size are not a complete classification criteria variables. And there exists other possible determinants of investment-cash flow sensitivity. Finally, this paper find that there are common determinants of corporate cash holdings in all periods. This paper suggests that cash flow and market to book ratio are positive determinants of corporate cash holdings but short-term debt, investment and firm size are negative determinants of corporate cash holdings.

• Journal of Venture Innovation
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• v.2 no.1
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• pp.131-151
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• 2019

This paper is conducted to find out if the previous corporate internal reservation has a significant effect on current investment and dividend payments by using the dummy variables of each classified industry. The results of the research show that previous corporate internal reservation had a significant effect on current material investments in following fields - manufacturing industries, technical services, wholesale and retail industries, information services, construction and transportation industries - over two years. Especially, investments in tangible assets were more effective than those in development expenses. In human resource investment, previous corporate internal reservation had a significant effect on current human investments in fields of manufacturing, technical services, information services and transportation industries. Among them, investments in education training expense and welfare benefit expense were more effective than those in wages. In the dividend section, previous corporate internal reservation had a significant effect on current dividends in the fields of manufacturing, wholesale and retail, information services, transportation industries, and in other businesses. Among them, Expenditure on dividend amounts was found to be more effective than that on dividend ratio. This paper contributed to the field in a way of empirically demonstrating the effects of previous corporate internal reservation on current investments and dividends by using the method of industrial classification. On the other hand, it also has a limitation since collecting precise taxation data was practically difficult. Therefore, a further developed study is required to find out the standard which shows exactly how much the measured results of the regression analysis reflect the effects of the government policies. Moreover, it is considered necessary for the government to devise policies on vagueness and uncertainties in the domestic and overseas economic and business environments so that companies can conduct investment with confidence.

• Electronics and Telecommunications Trends
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• v.37 no.6
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• pp.1-10
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• 2022

Artificial intelligence (AI) has rapidly diffused across industries and societies as nations' essential strategic technology. In innovative technology, such as AI, a startup leads to technological innovation and significantly impacts the expansion of relevant industries. Thus, this study examined the trend of AI startup venture capital (VC) investments globally, focusing on ① noteworthy VC investment statuses (the number and size of the investment, company establishment, and corporate collection), ② the characteristics of each key nation's investments, and ③ the characteristics of each submarket's investments. Among the 11 countries, the results showed that Korea ranked near the bottom for absolute quantitative measures, including the number and size of investments, company establishment, and corporate collection. However, Korea has built a foundation of catching up with what AI-leading countries have established, considering Korea's high growth rate in the number and size of investments and a recent mega-round. This study has practical implications in that it determined the AI startup VC investment status of Korea's rival countries, not only G2 (US and China). The results can be used in policy-making. Furthermore, identifying the AI industry's submarkets and analyzing each market's VC investment status could be used to establish strategies for the AI industry and R&D.

• Knowledge Management Research
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• v.21 no.1
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• pp.137-150
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• 2020

This study analyzes not only the direct impact of R&D investment on corporate growth for 578 private firms in 2007-2016, but also whether corporate innovation activities play a role as a mediating parameter between R&D investment and corporate growth. For this purpose, we classify companies into IT and non-IT companies and measure the mediating effect by dividing innovation activities into the number of registered patents, applied patents, and sum of them. In addition, this study is based on both the systemGMM which is considered to be effective in solving the endogenous problems caused by the cross-sectional analysis in previous studies and ML-SEM which is a new method recently, and then compares two results. According to the empirical results, innovation activities has a role as partly mediating parameter on sales growth in non-IT companies. On the other hands, in IT companies, the increase in R&D investment leads to a decrease in sales of the company, and the increase in innovation activities increases the sales of the company. However, it was confirmed that IT companies also had positive effects by adjusting the lag of the R&D. In other words, this suggests that securing patents is more important than R&D investment for direct sales growth of IT companies. It is also evidence that immediate introduction of technology is necessary to respond to the speed of technological change since the cycle time of technologies of the IT field is relatively shorter compared to that of other fields.

• The Journal of Industrial Distribution & Business
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• v.6 no.4
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• pp.27-37
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• 2015

Purpose - This study first explores the possible dynamic relationship between ownership structure and firm performance using a panel of 4,900 Chinese-listed small- and medium-sized enterprises (SMEs) from 1999 to 2012. Research design, data, and methodology - We address this issue through a dynamic panel model using a method of moments (GMM) technique and dynamic simultaneous equations to alleviate the potential endogenous problem: unobserved heterogeneity, simultaneity, and dynamic endogeneity. Results - Under the framework of dynamic endogeneity, firm performance has a significantly positive influence on ownership, but not vice versa. Ownership and performance can be explained by their owned lagged values, respectively. Moreover, intertemporal endogeneity exists among ownership, investment, and performance through the application of system dynamic equations, which implies that the relationship among ownership structure, investment, and firm performance is dynamic by nature. Conclusions - This study also significantly contributes to a better understanding of dynamic corporate governance by providing further empirical evidence from the largest capital market in the Asian region.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.6
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• pp.175-181
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• 2022

Malmendier and Tate (2005) and Aktas et al. (2019) suggested that overconfident managers will invest if they have sufficient internal funds. Still, they will save internal funds instead of reducing investment if they have insufficient internal funds because they perceive more substantial financial constraints than other managers. This study examines whether overconfident managers will not invest when the financial crisis makes it difficult to raise external funds. In particular, during the financial crisis in Japan, banks simultaneously provided active monitoring and financing to firms with strong relationships with banks. Therefore, this study can also examine the relationship between overconfident managers and bank behavior by focusing on Japanese firms. This study examines whether overconfident managers increase their investment in firms with strong relationships with banks during the financial crisis. The results of this study showed that overconfident managers, especially their firms with strong relationships with banks, reduce investments more than other managers during the financial crisis. This study suggests that Japanese banks reduced financial constraints and exerted strong corporate governance on Japanese firms during the financial crisis.

• Journal of Korean Society of Forest Science
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• v.99 no.6
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• pp.816-826
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• 2010

The purpose of this study is to investigate the types and processes of corporate philanthropy programs on forestry in Korea 500 largest companies. The result shows that 75 companies of Korea 500 companies (15.0%) participated in corporate philanthropy program related to forestry and there are 113 programs that those companies are proceeding. The types of 108 programs can be divided into 5 parts; 1) volunteer work, 2) creating forests & management, 3) one-time planting work, 4) forest education, 5) training experts & job creation. Among them, volunteer work (55.6%) and creating forests & management (29.6%) showed high proportion. The process of programs depends on their types. The volunteer and one-time planting work were mainly proceeded directly by corporate volunteer organization. But creating forests & management, forest education and training experts & job creation were usually proceeded in consort with local governments, NPOs and NGOs, and so on. These results show that Korean corporate philanthropy in forestry is progressing to strategic philanthropy through participation and partnership of various social groups. This shows the possibility to progress corporate community investment (CCI) with forest education and training experts & job creation.

• 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.