• The Journal of Industrial Distribution & Business
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• v.10 no.12
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• pp.35-42
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• 2019

Purpose : This study examines The impact of human resource investment in internal control on stock price crash risk. Effective internal control ensures that information provided is complete and accurate, financial statements are reliable. By overseeing management, internal control systems can reduce agency costs between management and outside parties. In Korea, firms have to disclose information about internal control systems. The working experience of human resources in internal control systems is also provided for interested parties. If a firm hires more experienced internal control personnel, it can better facilitate the disclosure of information. Prior studies reported that information asymmetry between managers and investors increases future stock price crash risk. Therefore, the longer working experience internal control personnel have, the lower probability stock crashes have. Research design, data and methodology : This study analyzed the association between the working experience of internal control personnel and crash risk using regression analysis on KOSPI listed companies for fiscal years 2016 through 2017. The sample consists of 1,034 firm-years of non-financial firms whose fiscal year end on December 31. Career spanning data of internal control personnel was collected from internal control reports. The professionalism(IC_EXP) was measured as the logarithm of the average working experience of internal control personnel in months. Negative conditional skewness(NSKEW) and down-to-up volatility (DUVOL) are used to measure firm-specific crash risk. Both measures are based on firm-specific weekly returns derived from the expanded market model. Results : We find that work experience in internal control environment is negatively related to stock price crashes. Specifically, skewness(NSKEW) and volatility (DUVOL) are reduced when firms have longer tenure of human resources in internal control division. The results imply that firms with experienced internal control personnel are less likely to experience stock price crashes. Conclusions : Stock price crashes occur when investors realize that stock prices have been inflated due to information asymmetry. There is a learning effect when internal control processes are done repetitively. Thus, firms with more experienced internal control personnel could manage their internal control more effectively. The results of this study suggest that firms could decrease information asymmetry by investing in human resources for their internal control system.

• Journal of the Korean Society for Aeronautical & Space Sciences
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• v.50 no.1
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• pp.59-66
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• 2022

In order to solve the problem of urban traffic congestion, Urban Air Mobility (UAM) concept using Electric Vertical Take-off and Landing (eVTOL) aircraft has been gaining popularity, and many domestic and international studies are underway. However, since these aircraft inevitably fly over densely populated areas, it is essential to ensure safety, which starts with accurately analyzing the crash risk. In this paper, the locations and impact speeds of crash are computed using six degree-of-freedom simulations of an eVTOL aircraft in a fixed-wing mode. System malfunction was modeled by a sudden loss of thrust with control surfaces being stuck during cruise. Because most of these eVTOL aircraft are still under development, a methodology of constructing a six degree-of-freedom dynamics model from generic specification is also developed. The results show that the crash locations are highly concentrated right under the aircraft within a square that has an edge length similar to the cruise altitude. Speed distribution is more complicated because almost identical crash locations can be achieved by two very different paths resulting in a large variation in the speeds.