• Asia pacific journal of information systems
• /
• v.29 no.2
• /
• pp.283-307
• /
• 2019

Although crowdfunding has emerged as a promising route to fundraising success, little is known about the specifics of equity-based crowdfunding. Using a data set of 1,111 start-ups with investment funding totaling over $4.67 billion, we analyzed the association between a start-up's underlying characteristics and its funding outcome. We found that a start-up's funding outcome is positively associated with its human capital, but negatively associated with earlier investors' business experience. Furthermore, our analyses revealed that investors have higher levels of social capital are a noise signal to later investors. These findings shed light on the critical role of human capital, investors' experience, and social capital as credible signals for start-up investment in equity crowdfunding.

• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.2
• /
• pp.395-407
• /
• 2022

This study examines the emotional undercurrents of individual investors. Earlier finance theory was based on the assumption that investors would act rationally. According to the findings, it is the investors' collective expectations and anxieties that have an impact on their investment fortunes. This necessitates a high level of emotional stability on the side of the investors. Investors must have a firm foundation in financial literacy to have the requisite level of emotional stability. This study aims to add to existing theory and practice by analyzing whether investors who have received business-related education are less emotional than those who have not. For the survey inquiry of individual investors, 'fear' and 'love' are considered among the emotional undercurrents of individual investors. The research is based on a survey of 875 individual investors in India, 342 of whom had a business background and the others have none. It has been discovered that no investor, regardless of their level of business education, is emotion-free. Investors with and without a business education display emotional stability in many behavioral aspects of fear and love to varying degrees.

• Journal of Intelligence and Information Systems
• /
• v.21 no.3
• /
• pp.117-129
• /
• 2015

As the Internet becomes ubiquitous, a large volume of information is posted on the Internet with exponential growth every day. Accordingly, it is not unusual that investors in stock markets gather and compile firm-specific or market-wide information through online searches. Importantly, it becomes easier for investors to acquire value-relevant information for their investment decision with the help of powerful search tools on the Internet. Our study examines whether or not the Internet helps investors assess a firm's value better by using firm-level data over long periods spanning from January 2004 to December 2013. To this end, we construct weekly-based search volume for information technology (IT) services firms on the Internet. We limit our focus to IT firms since they are often equipped with intangible assets and relatively less recognized to the public which makes them hard-to measure. To obtain the information on those firms, investors are more likely to consult the Internet and use the information to appreciate the firms more accurately and eventually improve their investment decisions. Prior studies have shown that changes in search volumes can reflect the various aspects of the complex human behaviors and forecast near-term values of economic indicators, including automobile sales, unemployment claims, and etc. Moreover, search volume of firm names or stock ticker symbols has been used as a direct proxy of individual investors' attention in financial markets since, different from indirect measures such as turnover and extreme returns, they can reveal and quantify the interest of investors in an objective way. Following this line of research, this study aims to gauge whether the information retrieved from the Internet is value relevant in assessing a firm. We also use search volume for analysis but, distinguished from prior studies, explore its impact on return comovements with market returns. Given that a firm's returns tend to comove with market returns excessively when investors are less informed about the firm, we empirically test the value of information by examining the association between Internet searches and the extent to which a firm's returns comove. Our results show that Internet searches are negatively associated with return comovements as expected. When sample is split by the size of firms, the impact of Internet searches on return comovements is shown to be greater for large firms than small ones. Interestingly, we find a greater impact of Internet searches on return comovements for years from 2009 to 2013 than earlier years possibly due to more aggressive and informative exploit of Internet searches in obtaining financial information. We also complement our analyses by examining the association between return volatility and Internet search volumes. If Internet searches capture investors' attention associated with a change in firm-specific fundamentals such as new product releases, stock splits and so on, a firm's return volatility is likely to increase while search results can provide value-relevant information to investors. Our results suggest that in general, an increase in the volume of Internet searches is not positively associated with return volatility. However, we find a positive association between Internet searches and return volatility when the sample is limited to larger firms. A stronger result from larger firms implies that investors still pay less attention to the information obtained from Internet searches for small firms while the information is value relevant in assessing stock values. However, we do find any systematic differences in the magnitude of Internet searches impact on return volatility by time periods. Taken together, our results shed new light on the value of information searched from the Internet in assessing stock values. Given the informational role of the Internet in stock markets, we believe the results would guide investors to exploit Internet search tools to be better informed, as a result improving their investment decisions.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.9 no.5
• /
• pp.129-139
• /
• 2014

This study supplements the limitation as much as possible that existing literatures have, and, on the target of new registered businesses to KOSDAQ, this study presents answers to the worries raised earlier by recovering problems on causal relationship direction between foreigner investment and dividend level and by analyzing them with dividend level as an independent variable. First, with the whole samples used, dividend income rate didn't show significant relationship with foreigners' investments. It is similar to study result of the existing literature. A panel analysis, on the target of sample businesses that paid dividends before foreigners' investments originated, showed that foreigners' investments didn't have a significant effect on dividend rate. It means that foreigner investors don't have an effect on dividend level. But, a panel analysis of samples shows that foreigner investments have a significant thesis relationship with dividend level variable, that is dividend return rate, except the businesses which paid dividend before foreigners' investments originated. It means that in case foreign investors' preference is controlled, in the businesses which pay dividends, foreign investors have a significant effect on dividend level to native KOSDAQ. Especially, this study result is very significant, for it shows that dividend return rate, insignificant in existing studies, was significant when foreigners' preferences to the businesses which pay dividends was controlled. It means that the more foreigners' shares increase, the more relative importance of dividend out of all profits increases, compared with all of the amounts at the time, and that foreign investors stick to short-term profit and induce big dividend.

• Journal of Arbitration Studies
• /
• v.14 no.1
• /
• pp.377-413
• /
• 2004

North Korea and South Korea agreed to refer their investment disputes to arbitration by adopting' Agreed Minutes on Procedures of Settlement of Commercial Disputes' on 16th December 2000. According to the Agreed Minutes, the two Koreas were to establish an arbitration commission within 6 months after the Agreed Minutes had been signed. In 2002, North Korea enacted laws to draw interest of foreign tourists to Mountain Kumgang and to boost investment into the region of Kaesung as it provided in those laws that commercial disputes should be settled by arbitration or judicial procedures. In October 2003, the two Koreas succeeded in adopting another Agreed Minutes as to the establishment and functioning of North-South Arbitration Commission. The fact that the two Koreas have agreed to establish an arbitration commission is meaningful since they are leading their lives quite differently in political, social, and economic sense for more than a half century. Although there still remain doubts as to the North Korean policy on nuclear matters, an arbitration commission could be a cornerstone for the set-up of the dispute settlement system between the two Koreas and a great help for investors from South Korea to pursue their possible legal claims as North Korea is eager to invite South Korean businessmen and other foreign investors to invest in its special economic areas. According to the Agreed Minutes of 2003, the two Koreas are going to adopt procedural rules for the arbitration commission. It will be a great challenge for them to agree on specific issues as to the operation of the arbitration commission. They have to set up a rester of arbitrators respectively and may have to enact or revise their own arbitration laws and rules reflecting the Agreed Minutes of 2000 and 2003. It is quite welcome that the two Koreas have agreed to set up an arbitration commission rather than resort to political or diplomatic means to settle their disputes. The success of the arbitration system between the two Koreas will make sure the safety of investment environment in the northen part of the Korean Peninsula and will bring the peace to the Korean peninsula earlier than expected.

• The Korean Journal of Financial Management
• /
• v.24 no.4
• /
• pp.163-199
• /
• 2007

This paper studies the stock market in which there are two types of investor, institutional and individual, whose information gathering and processing abilities are different. The institutional investor manages large funds and has powerful information sources. Whereas, the individual investor trades with a small amount of money and an information disadvantage. The model assumes that the institutional investor is more experienced and able to acquire relevant information earlier than the individual investor. On these assumptions, this paper shows a price continuation in the short run and a price reversal in the long run. The price continuation, or momentum, in the short run can be explained as follows. The early-informed institutional investor trades a stock, and as a result the stock price changes. Then the late-informed individual investor trades the same stock, and the stock price continues to move in the same direction in the short run. The reason for the price reversal in the long run is that since the individual investor has inferior information on the fundamental value of the stock, he tends to overreact to new information. So the stock price changes over its fundamental value initially and then regresses toward its fundamental value. In sum, both the price continuation and the price reversal are caused by the overreaction of the individual investor. The essay illustrates how these phenomena are stronger in the case where the proportion of the individual investor is higher. It also shows how the stock price goes up when the institutional investor buys a stock, while it goes down when the individual investor buys one.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.40 no.4
• /
• pp.1-9
• /
• 2017

Companies must capture value for sustainable growth. Capturing value is a critical task for companies, particularly when operating own businesses and organizations or starting new business. The business strategy of many companies focuses on capturing the maximum value from customers and other stakeholders. Even though a wide range of studies on value creation and appropriation has been conducted in the strategic management field, most of studies are still conceptual and theoretical. Thus more empirical studies are required to suggest future-oriented value strategy. This study reveals the value creation and appropriation elements in the aviation industry of Korea. The purpose of this study is to understand the trend of value creation and appropriation in the industry. In addition, the relationship between the elements and firm's performance are tested. The firm's performance is defined by that past and future point of views. The sample were collected from Korean Air and Asiana Air. The empirical test shows that the elements of value creation-appropriation have significant impact on firm's performance. Further, the element of value appropriation to customer has a positive impact both on firm's past and future performance. Our results show that investors acknowledge a value-based strategy as a sign of stock valuation. The results of this test correspond with the earlier one, showing that maximizing customers value rather than shareholder value does deliver impressive returns. The finding suggest that companies need to change their strategy to efficiently manage performance. With the test results, we propose a value-based strategy to maximize firm's future financial and stock performance.

• Journal of the Korea Society of Computer and Information
• /
• v.7 no.2
• /
• pp.196-204
• /
• 2002

This paper examines the price discovery role of the KOSPI 200 futures index for its cash index. It was used the intrady data for KOSPI 200 and futures index from July 1998 to June 2001. The existing Preceding study for KOSPI 200 futures index was used the data of early market installation, but this study is distinguished to use a recent data accompanied with the great volume of transaction and various investors. We established three hypothesis to examine whether there is the price discovery role in the KOPSI 200 futures index and the characteristics of that. First, to examine whether the lead-lag relation is induced by the infrequent trading of component stocks, observations are sorted by the size of the trading volume of cash index. In a low trading volume, the long lead time is reported and the short lead time in a high volume. It is explained that the infrequent trading effect have an influence on the price discovery role. Second, to examine whether the lead-lag relation is different under bad news and good news, observations are sorted by the sign and size of cash index returns. In a bad news the long lead time is reported and the short lead time in a good news. This is explained by the restriction of"short selling" of the cash index Third, we compared estimates of the lead and lag relationships on the expiration day with those on days prior to expiration using a minute-to-minute data. The futures-to-spot lead time on the expiration day was at least as long as other days Prior to expiration, suggesting that "expiration day effects" did not demonstrate a temporal character substantially different form earlier days. Thus, while arbitrage activity may be presumed to be the greatest at expiration, such arbitrage transactions were not sufficiently strong or Pervasive to alter the empirical price relationship for the entire day. for the entire day.

• Management & Information Systems Review
• /
• v.38 no.3
• /
• pp.187-210
• /
• 2019

Companies shall hold social responsibility as a member of the social community. Corporate social responsibility uses corporate resources, yet it plays important roles in reducing social imbalance. Their responsibilities are highly associated with the corporate sustainability. Many earlier studies on the association between corporate social responsibility and corporate sustainability have been attempted. Yet it should be mentioned that they do not show a variety of realities as linearity between dependent variables and independent variables were assumed. Thus, this study aims to analyze Markov blanket, a node of minimum descriptive variables that relieve a rigid assumption among variables and affect corporate sustainability by using Bayesian network. Sensitivity analysis was used to elicit how other variables affect by reflecting the complex reality when real factors are changed. As an important result of this study, the firm's future earnings sustainability is naturally related to operating earnings, and as the corporate governance structure is sound, the firm is able to steadily fulfill its social responsibility. However, the fact that the size of a company is large does not mean that it is in good compliance with corporate laws. This would not be unrelated to the fact that many of today's companies are not complying with the law and are suffering social condemnation. Results from this study will serve as a useful analytic tool when investors and creditors showing interests in corporate sustainability for assessing the value of companies and making investment decisions. Moreover, they can be used as references for relevant agency supervising capital markets to establish or improve appropriate institutions aimed at improving corporate sustainability.

• Journal of Arbitration Studies
• /
• v.24 no.2
• /
• pp.33-52
• /
• 2014

Although climate change is a global scale question, some concerns have been raised that principles of investment arbitration may not adequately address the domestic implementation of climate change measures. A recent ICSID investment arbitration of Vattenfall v. Germany with regard to the investor's alleged damages from the phase-out of nuclear plants is a salient climate change case. The 2005 Kyoto Protocol was made to reduce greenhouse gas emissions and it provides a number of flexible mechanisms such as Joint Implementation (JI) and Clean Development Mechanism (CDM). Implementation of the Kyoto Protocol allows dispute settlement through investor-state arbitration. Any initiation of stricter emission standards can violate the prohibition on expropriations in investment agreements, regardless of the measures created to reduce greenhouse gas emissions. The effect-based expropriation doctrine can charge changes to existing emission standards as interference with the use of property that goes against the legitimate expectation of a foreign investor. In regulatory chill, threat of investor claims against the host state may preclude the strengthening of climate change measures. Stabilization clauses also have a freezing effect on the hosting state's regulation and a new law applicable to the investment. In the fair and equitable standard, basic expectations of investors when entering into earlier carbon-intensive operations can be affected by a regulation seeking to change into a low-carbon approach. As seen in the Methanex tribunal, a non-discriminatory and public purpose of environmental protection measures should be considered as non-expropriation in the arbitral tribunal unless its decision would intentionally impede a foreign investor's investment.