• The Journal of Asian Finance, Economics and Business
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• v.8 no.11
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• pp.1-10
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• 2021

This paper compares the performance of Fama-French three-factor and five-factor models using a dataset of 20 Pakistani commercial banks for the period 2011 to 2020. We focus on an emerging economy as the findings from earlier studies on developed countries cannot be generalized in emerging markets. For empirical analysis, twelve portfolios were developed based on size, market capitalization, investment strategy, and growth. Subsequently, we constructed five Fama-French factors namely, R_M, SMB, HML, RMW, and CMA. The OLS regression technique with robust standard errors was applied to compare the predictive power of both the Fama-French models. Further, we also compared the mean-variance efficiency of the Fama-French models through the GRS test. Our empirical analysis provides three unique and interesting findings. First, both asset pricing models have similar predictive power to explain the expected portfolio returns in most cases. Second, our results from the GRS test suggest that there is no noticeable difference in the mean-variance efficiency of one asset pricing model over the other. Third, we find that all factors of both Fama-French models are statistically significant and are important for explaining the volatility of expected commercial bank returns in the context of Pakistan.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.373-385
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• 2021

The objective of the study is to empirically investigate the impact of bank capital on the lending behavior of Vietnamese commercial banks from 2007 to 2019. Lending behavior is captured by two dimensions, including the quantity (loan growth) and quality (credit risk) of loans. Instead of investigating loan growth and credit risk separately, we combine these two aspects in our study and further develop the interaction term between capital buffers and credit risk to capture the asymmetric impact. We apply the dynamic model (regressed by the generalized method of moments) and the static models (regressed using the fixed effects, random effects, and the pooled regression approach) to perform regressions. The results show that banks with higher capital ratios tend to expand lending more, while the risk of credit portfolios is controlled at lower levels at these banks. Further analysis reveals that credit risk mitigates some aspects of the relationship between bank capital and loan expansion. The patterns remain robust across alternative measures and econometric techniques. The study provides insightful policy implications for bank managers and regulators in the process of upgrading capital resources to ensure the safety and soundness of the banking industry in an emerging country.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.841-848
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• 2021

This study seeks to investigate Key Audit Matters (KAMs) reporting of Thai listed companies in Thailand, and examines the influence of KAMs reporting on corporate financial performance. Data were collected from 180 companies listed in Thailand during 2016 to 2018, which accounted to 540 annual reports. KAMs reporting was quantified by content analysis from the audit reports, while financial performance and corporate characteristics were collected from the corporate annual reports. Descriptive analysis and multiple regressions were performed to analyze the data. The study results reveal that there was an increasing of KAMs reporting in audit report of listed companies in Thailand in terms of both number of issues and number of words across the observed period. The regression analysis indicates that was a significant and negative influence of words counted as KAMs reporting on financial performance, while there was no influence of KAMs reporting issue on the performance. Moreover, there was a negative relationship between corporate complexity and financial performance, while audit type had a positive correlation with financial performance. This study shows significant contribution on the implication of KAMs in an emerging economy and the role of KAMs as a communication device between auditor and stakeholders.

• Journal of Korea Trade
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• v.27 no.2
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• pp.77-95
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• 2023

Purpose - This study aims to identify the importance of subsidiary entrepreneurship as a key factor when MNE attempts to invest in challenging overseas markets. Through the simultaneous consideration of institutional theory and entrepreneurship theory, this study would like to examine how Korean subsidiaries in the Middle East improve their performance locally. Design/methodology - To reflect the characteristics of emerging markets, this study conducted a survey of Korean subsidiaries in the Middle East in cooperation with KOTRA and analyzed the hypotheses using a structural equation model based on 249 valid responses. Findings - The findings of this study are as follows. First, we found that institutional and business distance would positively affect subsidiaries' entrepreneurship. The result that subsidiaries' entrepreneurship is positively affected by institutional and business distance implies that attempts to close the difference between heterogeneous markets would increase subsidiaries' innovative proactiveness, such as R&D and creative marketing strategies. Second, we confirmed that the institutional and business distance positively mediate the subsidiaries' entrepreneurship growth, leading to high performance. Therefore, Korean subsidiaries are required and prepared to establish strategies to better understand institutional and business distances in advance and reduce the liability of foreignness by conducting customized research and training programs before sending Korean expatriates to local subsidiaries in the Middle East. Originality/value - This study contributed to institutional and entrepreneurship theory by proving the traditional relationship between institutional and business distance to subsidiaries' performance and the mediation of subsidiary entrepreneurship.

• The Journal of Society for e-Business Studies
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• v.26 no.3
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• pp.155-174
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• 2021

This study noted the emergence of the Resell investment within the fashion market, among emerging investment techniques. Worldwide, the market size is growing rapidly, and currently, there is a craze taking place throughout Korea. Therefore, we would like to use shoe data from StockX, the representative site of Resell, to present basic guidelines to consumers and to break down barriers to entry into the Resell market. Moreover, it showed the current status of the Resell craze, which was based on information from various media outlets, and then presented the current status and research model of the Resell market through prior research. Raw data was collected and analyzed using the XGBoost algorithm and the Prophet model. Analysis showed that the factors that affect the Resell market were identified, and the shoes suitable for the Resell market were also identified. Furthermore, historical data on shoes allowed us to predict future prices, thereby predicting future profitability. Through this study, the market will allow unfamiliar consumers to actively participate in the market with the given information. It also provides a variety of vital information regarding Resell investments, thus. forming a fundamental guideline for the market and further contributing to addressing entry barriers.

• The Journal of the Korea Contents Association
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• v.14 no.5
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• pp.322-331
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• 2014

The objective of this study is to examine the effect of regional globalization and its impact to globalized company. As emerging markets evolve from the periphery to the core of marketing practice, we will need to figure out their unique characteristics. Emerging markets are distinctly different from mature markets. Because of market heterogeneity it is important to segment customer and find out their characteristics for the companies. In this research we explores how inward internationalization, susceptibility to global consumer culture affect consumer's brand attitude and adoption of global brand. This study examines various strategic issues in the context of China. The result suggest that inward internationalization is an antecedent factor of susceptibility to global consumer culture and also influence to brand attitude and brand adoption positively. Several implications for Korean content providing companies and marketing strategies are discussed.

• Journal of Digital Convergence
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• v.14 no.3
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• pp.219-226
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• 2016

The aim of this study is to suggest the strategic implications for manufacturing 3.0 in Korea by reviewing an innovation approaches of German that is a source of manufacturing innovation in Europe. Today, growth potential of korean economy has been weakened by the rise of emerging economies. Furthermore, technological advantage of emerging economies has been strengthened. In this situation, Korea needs to make efforts to enhance global competitiveness. The growth of developing countries provides a new opportunities for Korea for export demand. However, this situation can be recognized as threats for Korea because Korea has to compete with those countries to expand market share. In this regard, reviewing the approaches of manufacturing innovation in German is important because German keeps remaining a high levels of competitiveness in spite of a rise of emerging economies and European recession. To do this, this research can give hints to advance the industrial policy improvements.

• International Area Studies Review
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• v.15 no.3
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• pp.349-368
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• 2011

The emergence of new multipolar world economy along with the predominant growth of emerging economies encourages these emerging countries to internationalize their currencies. Currently the discrepancy between qualification and status of international currency is easily observed, and the emerging market currencies are no doubt underestimated considering their share of the world's economic size and trade volume. This paper studies the determinant factors of currency internationalization for five key currencies (US Dollar, Yen, Euro, Pound, and Swiss Franc). The analysis shows economic size, trade volume, and the stability of price and exchange rate are most important. Based on this result, Chinese Yuan is forecast to become a new international currency in the near future. Therefore, Korea needs to preempt the issue of regional economic integration, and even currency integration, by taking into account the possibility of internationalized Yuan.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.5
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• pp.221-234
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• 2014

Recently, the Chinese beef consumption market has faced a sudden surge. With China's beef imports reaching $1.33 billion in 2013, the global market closely monitors China's rising consumption of beef. Because there have been no exports of Korean beef (Hanwoo) to China previously, the negative effects of opening of beef market between South Korea and China are speculated as the South Korean government advances FTA negotiations further with China. In order to prepare for the opening of beef market between the two nations and to understand Hanwoo's export competitiveness, our research team conducted a market research on beef price and quality in Beijing and Shanghai. Based on our research, we deduced the price of Hanwoo and analyzed the price competitiveness of Hanwoo in the emerging Chinese beef market. Based on the market research, the price competitiveness of Hanwoo's topside/inside, rib and loin are well-positioned compared to Chinese and imported high-end beef group in Beijing and Shanghai market. Specifically, the price competitiveness of Hanwoo's topside/inside and loin are dominant in Beijing while that of rib and loin are dominant in Shanghai.

• International Commerce and Information Review
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• v.19 no.4
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• pp.127-145
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• 2017

The study focuses on the ICT industry, which is considered future growth engine. Tthe main objective of the research is to examine the extent of the competitiveness of the Chinese ICT industry, which is rapidly emerging as a competitor of the ICT industry in Korea. The ICT items subject to primary analysis of this study were computer and peripherals items. Analysis methods used were MSI (Market Share Index), EBI (Export Bias Index), and MCA (Market Comparative Advantage). The analysis period was from 2008 to 2016, and the analysis dater used were the export-import data provided by KITA. According to the study, Korean market share of Chinese computers and peripherals items has continued to increase, exports concentrated on the Korean market are intensifying, though the degree of competitiveness gained by the Korean market is quite strong. In particular, 852851, 847160 items have the largest competitiveness in the Korean market compared to other items used in this study. The implications of this study for the Korean market are as follows: i) improvement of quality with price ii) convergence product development between computer and peripherals items and consumer -friendly design development, and iii) marketing efforts to improve product awareness so that consumers recognize Korean computer and peripherals products.