• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.153-167
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• 2020

Purpose - The purpose of this study is to examine whether social value-related expenditures can be recognized as intangible assets in financial statements. Design/methodology/approach - This study examined social values defined in the economic and management fields and analyzed whether the social values have the characteristics of intangible assets. For this, the general definition of social value was derived from the concept of social value covered in previous studies. Next, we reviewed the definitions and recognition requirements for intangible assets under the current accounting standards. Based on this, we tried to suggest new criteria and disclosure methods for reporting social value-related expenditures that are not currently reported in financial statements as intangible assets in the financial statements and notes. Findings - First, as a criterion for recognizing social value-related expenditure as an intangible asset, we propose a relationship between social value-related expenditure and enterprise value. Where social value-related expenditures have a statistically significant positive impact on corporate value, they are recognized as intangible assets. If social value-related expenditures have a statistically significant negative influence on business value, or the impact of social value-related expenditures on the enterprise value is not statistically significant, it is not recognized as asset. Second, new disclosure plans are proposed according to the combination of intangible assets by category and the relevance of enterprise value. After dividing social value-related expenditures into separate intangible asset categories, if social value-related expenditures have a statistically significant positive impact on corporate value, they are recognized as intangible assets in the financial statements. If expenditures have a statistically significant negative impact on business value, they should be recorded as essential notes. Finally, if the impact of social value-related expenditure on corporate value is not statistically significant, it should be listed as a supplement. Research implications or Originality - This study contributes to the concurrent research in that it is a priori study on whether social value-related expenditure can be recognized as an asset. This study suggests that the economic effect of social expenditure can be recognized in corporate financial statements, thereby providing companies with justification and effectiveness of social value-related expenditure.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.7
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• pp.174-182
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• 2018

Given the ongoing debate in many aspects of finance, more attention may need to focus on corporate R&D expenditures. This study empirically tests financial determinants of R&D expenditures for NYSE-listed and KOSPI-listed firms. Three major hypotheses were postulated to test for corporate R&D outlay. First, proposed variables such as one-year lagged R&D expenditures, market value based leverage, profitability and cash holdings showed significant influence on corporate R&D costs for the sample firms. Moreover, financial factors inclusive of squared one-year lagged R&D expenditures, the interaction effect between one-lagged R&D expenditures and high-growth firm, non-debt tax shield, Tobin's q and a dummy variable to explain differences in accounting treatment between the U.S. and Korea, revealed significant differences between the two samples. Finally, in the conditional quantile regression (CQR) analysis for the R&D-related variables in relation to corporate growth rate, it was found that the NYSE-listed firms had a statistically significant linkage between growth potential and one-year lagged R&D expenditures at lower quantile levels. This study may shed new light on identifying financial factors affecting differences between the U.S. market (as an advanced market) and the Korean market (as an emerging market) regarding the optimal level of R&D investments for shareholders.

• Korean Journal of Legislative Studies
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• v.24 no.1
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• pp.203-239
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• 2018

Responsible government can be achieved when social cleavages are institutionalized via political competition and social interests are represented by responsible parties. This paper aims to investigate the factors that determine welfare expenditures in Korean local governments by analyzing partisanship and political competition factors simultaneously in the same model. This paper also argues that the relationship between the political factors and welfare expenditures in local governments is not linearly increasing as the previous studies claim. This paper examines the welfare expenditures in Korean municipality-level local governments in 2007, 2011, and 2015. The primary findings are: 1) the partisanship of the head of local government and the party distribution of local assembly members have meaningful effect on the welfare expenditures and the divided governments do not show significantly different effect on welfare expenditures from unified governments, which is contrary to the extant studies, 2) the partisan effects of the head and the local assembly vary according to the levels of municipalities (Gu, Gun, and city), mainly due to the difference in types of revenues and expenditures and 3) the relationship between seats shares of progressive parties in local assembly and the welfare expenditure is not linearly increasing one. The effect of seats shares of progressive parties dramatically begins to increase when the seats shares are in 40%-60%. With these findings, this paper highlights the conservative nature of head of local governments with Hannara party (or Saenuri Party), the conservative leaning of independent candidates, and the conservative orientation of local assemblies in the regions dominated by Democratic Party (and its equivalents).

• Journal of Labour Economics
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• v.35 no.1
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• pp.111-136
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• 2012

This paper investigates effects of family size on private tutoring expenditures, using a data set drawn from the Korean Longitudinal Survey of Women & Families (KLoWF). To deal with endogeneity of family size, the paper employs an instrumental variable (IV) method in which the sex of the first-born of the family is used as an IV. The results suggest that quantity-quality trade-offs of children within a family function in a way that varies by the sex of the child. While the effect of an increase in family size on private turoring expenditures of a second-born daughter is negative, the effect for a second-born son is indeterminate. The result for daughters implies that high costs of raising a child are likely to explain low birth rates of Korea.

• Journal of Distribution Science
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• v.17 no.10
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• pp.41-48
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• 2019

Purpose - This study investigates whether financial analysts consider the intangible investment implicit in selling, general, and administrative (SG&A) expenditures to forecast firms' future earnings. Research design, data, and methodology - Using 52,609 U.S. firm-year observations spanning 1984-2016, this study examines the association between the Intangible investment implicit in SG&A expenditures and properties of analysts' earnings forecasts. To estimate the Intangible investment of SG&A, I decompose SG&A excluding R&D and advertising expenditures into maintenance and investment components following Enache and Srivastava (2017). Results - The main results show that analysts' earnings forecast errors and dispersion in analysts' forecasts increase with the intangible investment derived from SG&A because the investment component of SG&A affects future earnings and the uncertainty of those earnings. However, these results are weakened in the wholesale and retail industries where firms have a higher level of investment component of SG&A. I attribute the weaker results to low R&D expenditures in those industries. Conclusion - This study indicates that financial analysts incorporate the intangible investment of SG&A into their earnings forecasts differently across firms and industries. Furthermore, this study supports the argument for the separate reporting of the investment nature of SG&A from other operating expenses such as maintenance nature of SG&A.

• Journal of the Korean Home Economics Association
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• v.27 no.4
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• pp.21-39
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• 1989

This paper is to determine the clothing and footwear of urban household consumption expenditures and an analysis of historical data from relevant literature. Particularly, time-series and cross sectional analysis techniques are adopted in analysing the patterns of clothing and footwear consumption expenditures of urban households. Finally, this paper estimates consumption expenditures in the future by comparing these revealed data with the Korea and Japan. Annual Report on the family Income and Expenditure Survey and M.R.A. in S.P.S.S. were used. The results can be summarized as follows: 1. The proportion of the clothing and footwear expenditure has decreased with the increase of income in urban household during 1976-1987. 2.1) Household consumption function by Income group, the Lower group is higher than the other group. 2) Household consumption function by Occupation of household head. Income elasticity estimation in administrative managerial workers is higher than the other group. 3) Household consumption function by Family size. Income elasticity estimation in 6 Persons is higher than the other group. But 4 Persons is higher in 1986. 4) Household consumption function by Age of household head. Income elasticity estimation in 50 Years and over is higher than the other group. 3. Comparison of characteristics of clothing and footwear consumption expenditures in Korea and Japan were M.R.A. Generally, the priority correlation order for Korea is Outwear, Sweaters and Shirt, Other clothing. For Japan, the order is Sweaters and Shirts, Underwear, Services.

• Journal of the Korean Home Economics Association
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• v.48 no.3
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• pp.71-86
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• 2010

The purpose of this study was to find the characteristics of university education expenditure and how university education expenditure affected household finance such as total household expenditure after excluding education expenditure, savings, and debts respectively. The data were drawn from the 8th Korean Labor & Income Panel Study conducted by the Korean Labor Institute, and 563 households with children attending university were selected. The t-test, F-test (Duncan's multiple range test as post hoc test), OLS, and Heckman's two-step estimation were utilized by SAS 9.1 and SPSS 12.0 for Windows. The results were as follows: First, average annual tuition was found to be 6,170,000won(21.5% of total annual household expenditures) and average annual private education expenses were 4,920,000won(15.9% of total annual household expenditures). Second, the higher the household income levels, the more spent on university education, whereas the higher the household income level, the lower the household expenditure-to-university education ratio. Third, tuition and private education expenses had a negative impact on household expenditures after excluding education expenditure.

• Journal of Korean Academy of Nursing Administration
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• v.17 no.2
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• pp.147-157
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• 2011

Purpose: This study was done to investigate factors affecting perceived financial burden of medical expenditures. Method: The participants were 2,024 inpatients who were enrolled in a survey on the benefit coverage rate of the National Health Insurance in 2006. The collected data were analyzed using t-test, ANOVA-test, Mann-Whitney-test, Kruskal-Wallis-test, Chi-square test and logistic regression. Results: The crucial factors for perceived financial burden were age, job, equivalence scale, ratio of annual family income vs medical expenditure, and private health insurance. Perceived financial burden was higher for people who were older, who were unemployed, whose medical expenditures were high compared to annual family income, whose index of family equalization was low and for those who had no private health insurance. Conclusion: The results of the study indicate a demand for system reform that will enable management of no-pay hospital bills in the National Health Insurance to decrease the medical expense of people in the low-income bracket.

• The Korean Journal of Pain
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• v.30 no.2
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• pp.142-150
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• 2017

Background: There have been few studies about pain using a big data. The purpose of this study was to identify the prevalence of pain, and trends of pain associated with chronic diseases and personal out-of-pocket medical expenditures over time. Methods: Subjects were 58,151 individuals, using the Korea Health Panel from 2009 to 2013. Chi-square and multinomial logistic regression were conducted to identify the prevalence and odds ratios (ORs) of pain. Repeated measures ANOVA was used to find the trend over these 5 years. Results: Prevalence of mild and severe pain was 28.1% and 1.7% respectively. The ORs of mild and severe pain were 1.6 and 1.4 in females compared with males. From 2009 to 2013, numbers of chronic diseases producing mild pain were 2.1, 2.4, 2.8, 2.9, and 3.1 and those producing severe pain were 3.0, 3.4, 3.9, 4.2, and 4.4, respectively. After applying the average South Korean inflation rate by year over 5 years, the annual, personal out-of-pocket medical expenditures (unit: ￦1,000) for mild pain were 322, 349, 379, 420, and 461, and those for severe pain were 331, 399, 504, 546, and 569, respectively (P < 0.0001). Conclusions: The pain prevalence was 29.8%. The numbers of chronic diseases and the personal out-of-pocket medical expenditures revealed increasing trends annually, especially in those with pain. Therefore, to eliminate and alleviate the pain, there needs to be further study for developing a systemic approach.

• Human Ecology Research
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• v.56 no.5
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• pp.461-472
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• 2018

Using a sample of third grade middle school students from the forth wave of Children and Youth Panel Survey in 2012, the mediation effects of private educational expenditure between parenting styles and children's academic performance were investigated by applying factor, cluster, tobit, and two stage regression analysis. The major results were as follows. First, four types of parenting style were identified. The most frequent parenting style was ambivalent parenting (tiger parenting) which was followed by authoritative parenting. Second, compared to permissive parenting style, ambivalent, authoritative, and authoritarian parenting styles were significantly associated with more private educational expenditures. Third, more private educational expenditures were significantly associated with higher academic performance of children. I found both a full mediation effect of private educational expenditure for ambivalent and authoritarian parenting styles, and a partial mediation effect for authoritative parents. Authoritative parenting style has a negative moderating effect on the relationship between household income and private educational expenditure, along with a positive direct effect on the academic performance of children. The results suggested that an authoritative parenting style was related with higher academic performance of children with less private educational expenditures compared to other parenting styles. The results also implied that the public policies to enhance authoritative parenting style among parents would be effective to reduce household's private educational expenditures.