• Journal of the Korea Convergence Society
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• v.11 no.1
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• pp.259-266
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• 2020

This study analyzes the effects of the obsolescence assets on the asymmetry of costs. Cost asymmetry refers to a lower percentage of costs when sales fall than increases in costs when sales increase. the obsolescence asset induces various decisions, including high maintenance costs and management improvements and replacement of facilities. This study is to analyze the cost behavior according to those decisions. The analysis showed that the higher the obsolescence of assets rate, we found cost elasticity, with a greater reduction in costs when sales decrease than the increase in costs when sales increase. Second, the lower the cost will not appear as the obsolescence of assets rate increases in case that the concentration of an item of property, plant and equipment is high, and when sales decrease. The above result means that the obsolescence of assets rate acts as operating risk and thus operates resources flexibly according to changes in sales, but when the concentration of property, plant and equipment is high, the decision-making constraint make it difficult for the flexible operation.

• The Korean Journal of Franchise Management
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• v.12 no.1
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• pp.35-44
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• 2021

Purpose: This study examines the opportunism moderating effect by the startup experience in the relationship between franchisor and franchisees. In the case of a franchise system that has a continuous relational exchange transaction, relationship management is a very important activity because the relationship management between franchisor and franchisees improves the quality of the relationship. Nevertheless, there is insufficient of research on opportunism, which is a negative factor in managing the relationship between franchisor and franchisees in continuous relationship. Research design, data and methodology: This study, we explore the cause of opportunism based on transaction cost theory through prior research and establish a research model based by goal incongruity, uncertainty, information asymmetry, transaction specific assets, the relevance to determinant of opportunism and the startup experienced which is a moderating variable. To verify several hypotheses, the data were collected from 300 out of 1,760 domestic franchisees and analyzed using multiple regression analysis with SPSS program. Results: The findings are as follows. Goal incongruity did not affect opportunism. Opportunism increased as uncertainty increased, and as information asymmetry increased, opportunism increased. An opportunism decreased as transaction specific assets increased. Moreover, the findings show that startup experience only plays a moderating role in the relationship between information asymmetry and opportunism. Therefore, 4 out of 8 hypotheses were supported. Conclusions: The findings show that uncertainty, information asymmetry, and transaction specific assets are the determinants of opportunism. In addition, the results of the analysis of the moderating role of startup experience show that the less entrepreneurial experience, the greater the influence of information asymmetry on opportunism. Our findings mean that maintaining a successful relationship between franchisors and franchisees is possible when franchisors provide knowledge sharing, goal sharing, environmental sharing, and management information sharing to franchisees. In addition, the findings of this study shows that the contract content and management should be changed according to the entrepreneurial experience. In other words, the franchisors must share and integrate the accumulated franchisees' and franchisors' experience with the franchisees to create a synergy that can lead to successful bilateral relationship maintenance, which in turn reduces opportunism.

• Asia Marketing Journal
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• v.15 no.3
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• pp.53-77
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• 2013

As advertising and promotions are categorized as operating expenses, managers tend to reduce marketing budget to improve their short term profitability. Gauging the value and accountability of marketing spending is therefore considered as a major research priority in marketing. To respond this call, recent studies have documented that financial market reacts positively to a firm's marketing activity or marketing related outcomes such as brand equity and customer satisfaction. However, prior studies focus on the relation of marketing variable and financial market variables. This study suggests a channel about how marketing activity increases firm valuation. Specifically, we propose that a firm's marketing activity increases the level of the firm's product market information and thereby the dispersion in financial analysts' earnings forecasts decreases. With less uncertainty about the firm's future prospect, the firm's managers and shareholders have less information asymmetry, which reduces the firm's cost of capital and thereby increases the valuation of the firm. To our knowledge, this is the first paper to examine how informational benefits can mediate the effect of marketing activity on firm value. To test whether marketing activity contributes to increase in firm value by mitigating information asymmetry, this study employs a longitudinal data which contains 12,824 firm-year observations with 2,337 distinct firms from 1981 to 2006. Firm value is measured by Tobin's Q and one-year-ahead buy-and-hold abnormal return (BHAR). Following prior literature, dispersion in analysts' earnings forecasts is used as a proxy for the information gap between management and shareholders. For model specification, to identify mediating effect, the three-step regression approach is adopted. All models are estimated using Markov chain Monte Carlo (MCMC) methods to test the statistical significance of the mediating effect. The analysis shows that marketing intensity has a significant negative relationship with dispersion in analysts' earnings forecasts. After including the mediator variable about analyst dispersion, the effect of marketing intensity on firm value drops from 1.199 (p < .01) to 1.130 (p < .01) in Tobin's Q model and the same effect drops from .192 (p < .01) to .188 (p < .01) in BHAR model. The results suggest that analysts' forecast dispersion partially accounts for the positive effect of marketing on firm valuation. Additionally, the same analysis was conducted with an alternative dependent variable (forecast accuracy) and a marketing metric (advertising intensity). The analysis supports the robustness of the main results. In sum, the results provide empirical evidence that marketing activity can increase shareholder value by mitigating problem of information asymmetry in the capital market. The findings have important implications for managers. First, managers should be cognizant of the role of marketing activity in providing information to the financial market as well as to the consumer market. Thus, managers should take into account investors' reaction when they design marketing communication messages for reducing the cost of capital. Second, this study shows a channel on how marketing creates shareholder value and highlights the accountability of marketing. In addition to the direct impact of marketing on firm value, an indirect channel by reducing information asymmetry should be considered. Potentially, marketing managers can justify their spending from the perspective of increasing long-term shareholder value.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.1
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• pp.281-288
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• 2019

This study examines the relationship between R&D intensity and disclosure. R&D activities are essential in bringing innovation to companies. However, R&D activities are naturally uncertain and increase information asymmetry. Thus, firms with high R&D activities are more likely to have the incentive to communicate the potential of R&D investment to the market through voluntary disclosure and, concurrently, resolve information asymmetry. Meanwhile, incentives to less voluntary disclosure exist because of the proprietary cost and the risk of competitiveness loss. Furthermore, the uncertainties inherent in R&D activities caused the possible decrease in the information accuracy. For the two opposing views, this study investigates the relationship between R&D intensity and disclosure frequency using the Regulation Fair Disclosure data in Korea. Moreover, the relationship between R&D intensity and usefulness of the information disclosed is also examined. Using firm sample listed in the 2011-2016 Korea Stock Market, results show that firms with high R&D intensity make disclosures more frequent. Subsequently, the analysis using forecast sample shows that management forecast error is higher in firms with high R&D intensity. This research contributes to the existing literature by presenting evidence that R&D intensity is a significant factor affecting manager's disclosure behavior and information usefulness.

• Journal of Convergence for Information Technology
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• v.11 no.4
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• pp.230-241
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• 2021

This study has attempted to provide an important understanding about the information asymmetry in markets through empirical analysis on how the disclosure of low quality can increase demand even in the short run. More specifically, this study has extended the previous findings from the related literature by considering the effect of information search cost and providing empirical evidences about the effect of voluntary disclosure of low quality, using an experimental method with purchase scenarios. The results from our analysis show that reduced perceived risk have an important effect on sharing negative information, while the effect of information search cost is minimal. We also explain the circumstances whereby the information disclosure of a seller with low-quality product can enhance not only the seller's profitability but also customers' welfare by increasing the market demand and the demand for the seller claiming high quality.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.58 no.3
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• pp.586-590
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• 2009

Recently, an AC Plasma Display Panels(PDP) with the metal sustain electrodes have been reported in order to reduce the manufacturing cost of the AC PDP. However, the luminance and efficacy of the AC PDP with metal electrodes are worse than those of the AC PDP with ITO electrodes. In this paper, various ${\prod}$type metal electrodes are suggested, in order to improve the electro-optical characteristics of the AC PDP with metal electrodes. Among the suggested electrode types, luminance of Hump electrode structure is higher by $40\;cd/m^2$ and discharge current of Asymmetry electrode structure is lower by 5% than those of Pi electrode structure, respectively. Moreover, $T_1$ of Hump electrode structure is reduced to 10% as compared with Pi electrode structure in address period for ADS driving scheme. In all aspects, the characteristics of Hump and Asymmetry electrode structure show best performance.

• Asian Pacific Journal of Cancer Prevention
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• v.16 no.18
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• pp.8619-8623
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• 2016

Background: Breast cancer is a common disorder in women, constituting one of the main causes of death all over the world. The purpose of this study was to determine the diagnostic value of the breast tissue diseases by the help of thermography. Materials and Methods: In this paper, we applied non-contact infrared camera, INFREC R500 for evaluating the capabilities of thermography. The study was conducted on 60 patients suspected of breast disease, who were referred to Imam Khomeini Imaging Center. Information obtained from the questionnaires and clinical examinations along with the obtained diagnostic results from ultrasound images, biopsies and thermography, were analyzed. The results indicated that the use of thermography as well as the asymmetry technique is useful in identifying hypoechoic as well as cystic masses. It should be noted that the patient should not suffer from breast discharge. Results: The accuracy of asymmetry technique identification is respectively 91/89% and 92/30%. Also the accuracy of the exact location of identification is on the 61/53% and 75%. The approach also proved effective in identifying heterogeneous lesions, fibroadenomas, and intraductal masses, but not ISO-echoes and calcified masses. Conclusions: According to the results of the investigation, thermography may be useful in the initial screening and supplementation of diagnostic procedures due to its safety (its non-radiation properties), low cost and the good recognition of breast tissue disease.

• Journal of the Korean Institute of Intelligent Systems
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• v.24 no.1
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• pp.96-101
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• 2014

Wind power is the fastest growing renewable energy source in the world and it is expected to remain so for some times. Recently, there is a constant need for the reduction of Operational and Maintenance(O&M) costs of Wind Energy Conversion Systems(WECS). The most efficient way of reducing O&M cost would be to utilize CMS(Condition Monitoring System) of WECS. CMS allows for early detection of the deterioration of the wind generator's health, facilitating a proactive action, minimizing downtime, and finally maximizing productivity. There are two types of faults such as mass unbalance and aerodynamic asymmetry which are related to wind turbine's rotor faults. Generally, these faults tend to generate various vibrations. Therefore, in this work a simple fault detection algorithm based on spectrums of vibration signals and simple max-min decision logic is proposed. Furthermore, in order to verify its feasibility, several simulation studies are carried out by using GH-bladed software.

• The Journal of the Korea Contents Association
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• v.15 no.7
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• pp.531-543
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• 2015

Benjamin, Lusht, and Shilling(1998) suggested that the level of deposit can be used as a tool to resolve the problem of adverse selection by the leaseholder under the circumstance of information asymmetry. In this respect, this research aims to verify how the level of deposit and monthly rent mitigate the problem of information asymmetry existing in the office market in Seoul. So far, the analysis of the office market in Seoul has been difficult due to the fixed rate of deposit and monthly rent. This research attempts to adopt the concept of occupancy cost, a global standard indicator that would replace the default risk of monthly payment for analyzing the market. As a result of a series of empirical analysis, the lessors tend to add about 9 percent of risk premium to the occupancy cost to hedge against the default risk of monthly payment. It allows for estimating at what extent one should reflect the leaseholder's default risk of monthly payment for operating deposit and monthly rent in the office building lease market.

• Proceedings of the Korean Society for Noise and Vibration Engineering Conference
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• 2007.11a
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• pp.918-922
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• 2007

Aero-pulsation noise, generally caused by geometric asymmetry of a rotating device, is considerable source of annoyance in passenger cars using the turbocharged diesel engine. Main source of this noise is the compressor wheel in the turbocharger system, and can be reduced by after-treatment such as silencers, but which may increase the manufacturing cost. More effective solution is to improve the geometric symmetry over all, or to control the quality of components by sorting out inferior ones. The latter is more effective and reasonable than the former in view of manufacturing. So, an appropriate discrimination method should be needed to evaluate aero-pulsation noise level at the production line. In this paper, we introduce the accurate method which can measure the noise level of aeropulsation and also present its evaluation criteria. Besides verifying the reliability of a measurement system - a rig test system -, we analyze the correlation between the results from rig tests and those from vehicle tests. The gage R&R method is carried out to check the repeatability of measurements over 25 samples. From the result, we propose the standard specification which can discriminate inferior products from superior ones on the basis of aero-pulsation noise level.