• Title/Summary/Keyword: Corporate Power

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Top-executives Compensation: The Role of Corporate Ownership Structure in Japan

  • Mazumder, Mohammed Mehadi Masud
    • 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.

The Influence of Corporate Governance on Dividend Decisions of Listed Firms: Evidence from Sri Lanka

  • NAZAR, Mohamed Cassim Abdul
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.2
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    • pp.289-295
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    • 2021
  • This study investigates the role of corporate governance in the dividend decision of 198 non-financial companies listed on the Colombo Stock Exchange of Sri Lanka, over the period from 2009 to 2016. Four corporate governance indicators are used in this study; managerial ownership, the board size, board independence, and CEO duality. Furthermore, this study considers three control variables such as profitability, firm size, and corporate tax. This study employed the Generalized Method of Moments (GMM) model to estimate the regression models on panel data study. The major contribution of this study is exploring the insight into the effect of corporate governance factors on dividend decisions. The results of the study revealed that managerial ownership showed a significant positive impact on the dividend payout ratio. Board size showed a significant positive influence on the dividend payout ratio. Board independence negatively but significantly influenced the dividend payout ratio. CEO duality showed an insignificant negative impact on the dividend payout ratio. In the framework of these CG indicators, Sri Lankan listed firms are recommended to have dispersed ownerships, large Board size and maintain a balance of power and authority by separating the individual who is assuming the position of the CEO from the Chairperson of the Board and maintain at least two independent directors.

Experimental Study on the Hydraulic Power Steering System Noise (유압식 동력 조향장치의 소음에 대한 실험적 연구)

  • Lee, Byung-Rim;Choi, Young-Min;You, Chung-Jun
    • Transactions of the Korean Society of Automotive Engineers
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    • v.17 no.2
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    • pp.165-170
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    • 2009
  • Pressure ripple, vibration and noise level are measured in each parts of the power steering system. MD(Mahalanobis Distance) is calculated by using MTS(Mahalanobis Taguchi System) with measured data, and noise sensitive components are selected. The components applied detail design parameters are made and data is measured. After that MD is calculated also. Mean value and SN ratio can be obtained from the MD. Effective noise reduction technique and dominant design parameters in hydraulic power steering system are introduced.

Nano-scale Inter-lamellar Structure of Metal Powder Composites for High Performance Power Inductor and Motor Applications

  • Kim, Hakkwan;An, Sung Yong
    • Journal of Magnetics
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    • v.20 no.2
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    • pp.138-147
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    • 2015
  • The unique nano-scale inter-lamellar microstructure and unparalleled heat treatment process give our developed metal powder composite its outstanding magnetic property for power inductor & motor applications. Compared to the conventional polycrystalline Fe or amorphous Fe-Cr-Si-B alloys, our unique designed inter-lamellar microstructure strongly decreases the intra-particle eddy current loss at high frequencies by blocking the mutual eddy currents. The combination of optimum permeability, magnetic flux and extremely low core loss makes this powder composite suitable for high frequency applications well above 10 MHz. Moreover, it can be also possible to SMC core for high speed motor applications in order to increase the motor efficiency by decreasing the core loss.

Relationships among CEO Image, Corporate Image and Employment Brand Value in Fashion Industry

  • Ko, Eun-Ju;Taylor, Charles R.;Wagner, Udo;Ji, Hyun-Ah
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.4
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    • pp.307-331
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    • 2008
  • The CEO and the Corporate Image is considered very important in the aspect of marketing. The fact that CEO image itself influences the company or value of the product directly and indirectly has been verified through many cases. Recently, the differentiation of products and services between companies became difficult because the disparity in technique between companies retrenched. As a result, the rate of people who decide to purchase or invest their money based on the corporate image or reputation has been increased. Also in the knowledge society like today, the talented employees are the company's customer and the company's necessity for managing those brains of marketing perspective on how to satisfy and attract the customers is being embossed. The Fashion industry is one of the most value-added industry and in those value-added businesses, the most important factor is the human resources' knowledge power. However the study of the relationships among the CEO image, the corporate image and employment brand value in fashion industry has not been carried out yet. This research considers that dynamic relationship exists among the CEO image, corporate image and employment brand value that affects a company's main goal of pursuing benefits and intends to investigate the relationships of the three concepts. The specific purposes of this study were, 1) to analyze the impact of CEO image on a corporate image, 2) to analyze the impact of corporate image on employment brand value, 3) to analyze the impact of CEO image on employment brand value, 4) to analyze whether corporate image plays a mediating role in the relationship between CEO image and employment brand value or not. A survey design with a structured questionnaire was employed for this research. A convenience sample of 398 subjects was selected from two groups, which are university students majoring in fashion and practitioners working in fashion industry. For the data analysis, descriptive statistic (i.e., frequency, percentage), factor analysis, and multiple regression analysis were used by utilizing SPSS 12.0 for Windows program. The results for this research are as follows, first, the study of the impact of CEO image (i.e., Managerial Competence, Reliability/Leadership, Personal Attractiveness) on corporate image (i.e., Product Image, Corporate Social Responsibility Image, Corporate Cultural Image) brought conclusion that the CEO image generally affected the corporate image in fashion industry. Managerial Competence and Reliability/Leadership affected Product Image, Corporate Social Responsibility Image and Corporate Cultural Image. However, while CEO's Personal Attractiveness affected Product Image and Corporate Social Responsibility Image, it did not affect Corporate Cultural Image. Second, the study of the impact of corporate image on employment brand value brought conclusion that corporate image (i.e., Product Image, Corporate Social Responsibility Image, Corporate Cultural Image) affected employment brand value. Corporate Cultural Image affected employment brand value the most and then the Corporate Social Responsibility Image and Product Image. Third, the study of the impact of CEO image on employment brand value brought conclusion that CEO image (i.e., Managerial Competence, Reliability/Leadership, Personal Attractiveness) affected the employment brand value. CEO's Reliability/Leadership affected the employment brand value the most and then CEO's Personal Attractiveness and CEO's Managerial Competence. Forth, the study examined whether corporate image plays a mediating role in relationship of CEO image and employment brand value and concluded that it does. Corporate image played a full mediating role between CEO's Managerial Competence and employment brand value while it played a partial mediating role between CEO's Reliability/Leadership and CEO's Personal Attractiveness. This study is meaningful in a sense that it examines the relationship among the CEO image, corporate image and employment brand value which has not been carried out yet in fashion industry. It will ultimately contribute to the success of a fashion company by providing useful information of establishing strategies for managing proper the CEO and the corporate image to the fashion company and operating the talented employees.

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The Study on the Efficient Quality Improvement Activity based on Creation of Quality Culture (품질문화의 조성을 통한 효율적 품질개선 활동에 관한 연구)

  • 이원희
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.17 no.30
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    • pp.193-198
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    • 1994
  • The quality culture, part of the corporate culture, is an operating philosophy of quality management of the corporation. Ultimately it assures and maintains the customer satisfaction and promotes the customer-oriented corporate management In this paper, to help meet the consumers' diversified demand and prepare the turning point of development of competitive power according to the recent rapid industrial change, proposes the efficient methods of qualify improvement activity based on creation and fixation of quality culture.

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Welding process for manufacturing of Nuclear power main components (원자력 발전 주기기 제작에 적용되는 용접공정)

  • Jung, In-Chul;Kim, Yong-Jae;Shim, Deog-Nam
    • Proceedings of the KWS Conference
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    • 2010.05a
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    • pp.43-46
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    • 2010
  • As the nuclear power plant has been constructed continuously for several decades in Korea, the welding technology for components manufacturing and installation has been improved largely. Standardization for weld test and qualification was also established systematically according to the concerned code. The welding for the main components requires the high reliability to keep the constant quality level, which means the repeatability of weld quality. Therefore the weld process qualified by thorough test and evaluation is able to be applied for manufacturing. Narrow gap SAW and GTAW process are usually applied for girth seam welding of pressure vessel like Reactor vessel, steam generator, and etc. For the surface cladding with stainless steel and Inconel material, strip welding process is mainly used. Inside cladding of nozzles is additionally applied with Hot wire GTAW and semi-auto welding process. Especially the weld joint having elliptical weld line on curved surface needs a specialized weld system which is automatically rotating with adjusting position of the head torch. The small sized pipe, tube, and internal parts of reactor vessel requests precise weld processes like an automatic GTAW and electron beam welding. Welding of dissimilar materials including Inconel690 material has high possibility of weld defects like a lack of fusion, various types of crack. To avoid these kinds of problem, optimum weld parameters and sequence should be set up through the many tests. As the life extension of nuclear power plant is general trend, weld technologies having higher reliability is required gradually. More development of specialized welding systems, weld part analysis and evaluation, and life prediction for main components should be taken into a consideration extensively.

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Corporate Default Prediction Model Using Deep Learning Time Series Algorithm, RNN and LSTM (딥러닝 시계열 알고리즘 적용한 기업부도예측모형 유용성 검증)

  • Cha, Sungjae;Kang, Jungseok
    • Journal of Intelligence and Information Systems
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    • v.24 no.4
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    • pp.1-32
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    • 2018
  • In addition to stakeholders including managers, employees, creditors, and investors of bankrupt companies, corporate defaults have a ripple effect on the local and national economy. Before the Asian financial crisis, the Korean government only analyzed SMEs and tried to improve the forecasting power of a default prediction model, rather than developing various corporate default models. As a result, even large corporations called 'chaebol enterprises' become bankrupt. Even after that, the analysis of past corporate defaults has been focused on specific variables, and when the government restructured immediately after the global financial crisis, they only focused on certain main variables such as 'debt ratio'. A multifaceted study of corporate default prediction models is essential to ensure diverse interests, to avoid situations like the 'Lehman Brothers Case' of the global financial crisis, to avoid total collapse in a single moment. The key variables used in corporate defaults vary over time. This is confirmed by Beaver (1967, 1968) and Altman's (1968) analysis that Deakins'(1972) study shows that the major factors affecting corporate failure have changed. In Grice's (2001) study, the importance of predictive variables was also found through Zmijewski's (1984) and Ohlson's (1980) models. However, the studies that have been carried out in the past use static models. Most of them do not consider the changes that occur in the course of time. Therefore, in order to construct consistent prediction models, it is necessary to compensate the time-dependent bias by means of a time series analysis algorithm reflecting dynamic change. Based on the global financial crisis, which has had a significant impact on Korea, this study is conducted using 10 years of annual corporate data from 2000 to 2009. Data are divided into training data, validation data, and test data respectively, and are divided into 7, 2, and 1 years respectively. In order to construct a consistent bankruptcy model in the flow of time change, we first train a time series deep learning algorithm model using the data before the financial crisis (2000~2006). The parameter tuning of the existing model and the deep learning time series algorithm is conducted with validation data including the financial crisis period (2007~2008). As a result, we construct a model that shows similar pattern to the results of the learning data and shows excellent prediction power. After that, each bankruptcy prediction model is restructured by integrating the learning data and validation data again (2000 ~ 2008), applying the optimal parameters as in the previous validation. Finally, each corporate default prediction model is evaluated and compared using test data (2009) based on the trained models over nine years. Then, the usefulness of the corporate default prediction model based on the deep learning time series algorithm is proved. In addition, by adding the Lasso regression analysis to the existing methods (multiple discriminant analysis, logit model) which select the variables, it is proved that the deep learning time series algorithm model based on the three bundles of variables is useful for robust corporate default prediction. The definition of bankruptcy used is the same as that of Lee (2015). Independent variables include financial information such as financial ratios used in previous studies. Multivariate discriminant analysis, logit model, and Lasso regression model are used to select the optimal variable group. The influence of the Multivariate discriminant analysis model proposed by Altman (1968), the Logit model proposed by Ohlson (1980), the non-time series machine learning algorithms, and the deep learning time series algorithms are compared. In the case of corporate data, there are limitations of 'nonlinear variables', 'multi-collinearity' of variables, and 'lack of data'. While the logit model is nonlinear, the Lasso regression model solves the multi-collinearity problem, and the deep learning time series algorithm using the variable data generation method complements the lack of data. Big Data Technology, a leading technology in the future, is moving from simple human analysis, to automated AI analysis, and finally towards future intertwined AI applications. Although the study of the corporate default prediction model using the time series algorithm is still in its early stages, deep learning algorithm is much faster than regression analysis at corporate default prediction modeling. Also, it is more effective on prediction power. Through the Fourth Industrial Revolution, the current government and other overseas governments are working hard to integrate the system in everyday life of their nation and society. Yet the field of deep learning time series research for the financial industry is still insufficient. This is an initial study on deep learning time series algorithm analysis of corporate defaults. Therefore it is hoped that it will be used as a comparative analysis data for non-specialists who start a study combining financial data and deep learning time series algorithm.

The Effect on Small Business Management Performance through Connection Support based on Corporate Analysis (기업진단을 통한 연계지원이 중소기업 경영성과에 미치는 영향)

  • Cheong, Hae-Sock;Yoo, Woo-Sik
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.34 no.4
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    • pp.17-24
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    • 2011
  • The government supports politic funds to Small Business having difficulties of insufficient capital and weak assets. Also the effect of governmental politic funds are evaluated better than the effect of substitute loans of the commercial bank. Especially governmental politic funds contribute to the external growth of the enterprise sales and the increment of total assets size. It is necessary however related supporting programs with funding provision to reduce the risk of insolvency politic funds of small business and reinforce the competitive power of company. This paper introduces the model of the corporate diagnosis system of the Small Business Corporation as part of these intention and analysis supported companies' management performance last four years and proposes direction of development.

Corporate credit rating prediction using support vector machines

  • Lee, Yong-Chan
    • Proceedings of the Korea Inteligent Information System Society Conference
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    • 2005.11a
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    • pp.571-578
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    • 2005
  • Corporate credit rating analysis has drawn a lot of research interests in previous studies, and recent studies have shown that machine learning techniques achieved better performance than traditional statistical ones. This paper applies support vector machines (SVMs) to the corporate credit rating problem in an attempt to suggest a new model with better explanatory power and stability. To serve this purpose, the researcher uses a grid-search technique using 5-fold cross-validation to find out the optimal parameter values of kernel function of SVM. In addition, to evaluate the prediction accuracy of SVM, the researcher compares its performance with those of multiple discriminant analysis (MDA), case-based reasoning (CBR), and three-layer fully connected back-propagation neural networks (BPNs). The experiment results show that SVM outperforms the other methods.

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