• Journal of Korea Trade
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• v.23 no.6
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• pp.66-92
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• 2019

Purpose - Foreign Exchange Rates (FER) have been one of the most significant factors for both Korean exporters and the economy of Korea. The purpose of this study is to evaluate whether exporters with a high level of Exchange Rate Elasticity of Sales (ERES) make the use of earnings management for Income Smoothing (IS). Design/methodology - Income smoothing was obtained using the methodology suggested by Leuz, Nanda and Wysocki (2003). Accruals-based Earnings Management (AEM) was estimated using Discretionary Accruals (DA) calculated by the operant Jones Model developed by Dechow, Sloan and Sweeney (1995). Real Earnings Management (REM) was obtained using the methodologies suggested by Roychowdhury (2006) and Cohen and Zarowin (2010). Data were 2,402 firm years of public listed companies on the KRX, which were not in the financial industry and had a settlement of accounts in December for the period from 2013 to 2017. Findings - Results of the evaluation are as follows. First, companies with higher levels of ERES have relatively lower levels of smoothing of reported income. This might be because a fluctuation in sales caused by an exchange rate fluctuation has a direct impact on the volatility of the reported income. Second, companies with high levels of both ERES and IS have a positive correlation with both AEM and REM. This might be because companies with high levels of IS engage in earnings management to smooth reported income. Specifically, it is possible to assume that for smoothing the reported income, not only AEM but also REM is practiced. Third, companies with high levels of ERES but low levels of IS have a negative correlation with both AEM and REM. This could be interpreted as companies exhibiting low levels of IS due to higher levels of ERES tend to control IS. In addition, such results were supported by firms relying highly on exporting, and are consequently sensitive to exchange rate fluctuation. Therefore, it may conclude that companies with high levels of ERES make the use of earnings management as a means of IS. Originality/value - This study can find its significance from the fact that it is the first study, empirically verifying that companies of Korea, where exportation is a large part, use both AEM and REM as a means for smoothing reported income upon facing exchange rate fluctuations. In addition, it is highly expected that the results of this study could be useful for participants of financial markets when making IS-related decisions.

• Journal of Korea Port Economic Association
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• v.35 no.2
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• pp.61-76
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• 2019

The purpose of this study is to use the EGARCH model and Granger causality test to analyze how the change in the BDI affects the Korean stock price volatility. The main analysis results are summarized as follows. First, according to the results of the mean equation, the change in the BDI is significant in large-cap stocks, as well as in the manufacturing, service, and chemistry indexes, but not in others. This implies that the Korean stock market does not respond appropriately to the maritime market situation; further, the increase in demand for raw materials has not led to a real economic recovery. Second, in the result of the variance equation, the coefficient on the change in the BDI is negative(-), and the change in the BDI is significant for all size indexes. Particularly, the change in the BDI has a greater impact on the volatility of small-cap stocks than that of large-cap stocks. The results of the analysis of the sector indexes were statistically significant for the service, financial, construction, and electric and electronics industries, but not for the manufacturing and chemical industries. In particular, the changes in the BDI have the greatest impact on the construction industry. Third, according to the Granger causality test results, the change in the BDI leads the financial industry and construction industry. There is, however, no relationship between the BDI and the other indexes. This shows that change in the shipping freight index can be used to predict the volatility in the Korean stock market. This can help investors and policymakers make better decisions.

• The Journal of the Convergence on Culture Technology
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• v.8 no.4
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• pp.151-162
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• 2022

Recently, contests for college students have emerged as an important factor in employment through self-development, and parents' psychological control on college students can prevent the development of autonomy by suppressing decisions and expressions without helping their children become independent. Therefore, this study aims to find out how the parental psychological control perceived by college students affects the motivation to participate in the contest through self-determination. As a result of the study, first, it was found that the psychological control of separation anxiety of parental psychological control negatively affects only the competence among self-determination. Second, it was found that achievement-oriented parental psychological control had a negative effect on all factors of self-determination. Third, it was found that among self-determination factors, competence had a positive effect on pleasure, financial reward, and recognition of others, and a negative effect on a sense of accomplishment. Fourth, it was found that the relationship among self-determination factors had a positive effect on pleasure, financial compensation, and recognition of others. The results of this will be used as basic data to understand the motivation of college students to participate in the contest and the psychological control of their parents.

• Journal of East Asia Management
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• v.4 no.1
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• pp.23-51
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• 2023

We investigate whether the association between management overconfident tone and the level of audit effort measured by audit fees and hours differs depending on the level of earnings management. Prior studies suggest that firms led by overconfident managers are likely to initiate risky investments, report low quality financial statements, and have material weaknesses in internal control system. These characteristics, combined together, result in higher audit risk. At the same time, auditors assess audit risk based on the quality of financial reporting, measured by level of earnings management. As a result, the assess audit risk is likely to reflect the combined effect of management overconfidence and the level of earnings management. In this paper, we investigate whether auditors differentiate the effects of real earnings management (REM) and accrual-based earnings management (AEM) when they assess the audit risk related management overconfident. Using the CEO's letter published in 2018, we measure the CEO's tone representing the degree of overconfidence (i.e., activity). Based on this measure, we find that the positive association between managerial overconfident tone and audit effort is more pronounced as the level of REM is higher. However, we find that the baseline association does not vary depending on the level of AEM. These results suggest that auditors consider the managerial overconfident severer when such characteristic accompany the higher level of REM, which can be outcome of aggressive business decisions possibly leading to the higher audit risks. We further find that these results are stronger for Big 4 auditors and continuing auditors. This paper contributes to the literature and practice as follows. First, we provide contextual evidence on how auditors reflect managerial characteristics in the audit process by documenting that auditors actively increase their audit efforts only when overconfident managerial characteristics are highly likely to lead to audit risk. This result suggests that auditors conduct external auditing considering both the efficiency and effectiveness of the audit process. Second, we suggest that auditors use information obtained from a wide range of sources to identify audit risks. Our results provide evidence of how the auditing standards, which do not provide detailed guidelines for audit risk assessment, are being applied in practice. Finally, our results also enhance the understanding of how audit fees are determined. Combined with the studies related to audit pricing, we provide the important reference for discussion between the auditor and the auditee about the audit fee that has created acute tension after the enforcement of the new External Audit Act.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.19 no.1
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• pp.1-21
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• 2024

Recently, venture capital investment has been shrinking globally due to high interest rates and economic slowdown. Korea is no exception. Due to the downturn in the M&A and public markets, increasing economic uncertainty, and the aftermath of corporate bankruptcies, venture capitalists are facing many difficulties in raising funds. In the changed economic environment, the investment decision factors of venture capitalists have also changed. However, studies on VCs' investment decisions have focused on the general economic environment. This study examines how VCs' investment decision-making factors change during economic recessions and booms. To this end, we interviewed active investors who have experienced both economic recessions and booms to compare how VCs' investment decision factors change: 1) personal characteristics of founders, 2) experience of founders, 3) product/service, 4) market, 5) financial situation, 6) contract terms and 7) venture capital co-investment. The results showed that founder's personal characteristics, experience, and product/service were more important during the economic recession. Market is slightly more important during economic booms. The importance of financial situation and investment conditions increased sharply during the recession compared to the boom. Finally, venture capital co-investment did not differ significantly between recessions and booms. By understanding the investment decision-making factors of venture capitalists in the recent difficult venture investment environment, this study aims to help startups raise funds and survive in a difficult market.

• Journal of the Korean association of regional geographers
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• v.18 no.1
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• pp.101-117
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• 2012

The purpose of this research is to propose a plan on migration policy based on features, through analyzing the migration adaption process and the farming life of the back-to-countryside population throughout the nation. For this, survey has been conducted to find out urban-to-rural migrants' motives and characteristics. The major reason for the migration was the household's financial condition, and the most of migration decisions were made by either one's spouse or parents. The migration fund was primarily spent in early agricultural activities and it was the neighbors who aided them the most whilst teaching them many farming techniques. Some government-supported policies are being highly demanded regarding the lower level of income (than urban life) and difficulties of raising cultivation funds; these two things are what migrants consider as the most inconvenient and suffering matters in farming life. Many surveyee have responded that they would constantly stay in the rural area and continue on their life as a farmer, giving a promising prospect for future farmland life. Based on these trends and features, development strategy regarding elaborate settlement plan of urban-to-rural migration is necessary.

• Journal of the Korean Dietetic Association
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• v.7 no.1
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• pp.87-104
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• 2001

This study was conducted as a part of the project developing the standards of national board test for the dietitian's licence. The purpose of this study was to define the job description of dietitians, and to describe the task elements based on the detailed analysis of the dietitians' work. This study team established the research team which was composed of food and nutrition experts, 7 of registered dietitians and 3 of university professors. Draft job description form was made to fully explain the dietitians' task elements, process and sequence by the research team. Final job description form was confirmed after the validity of 576 task elements was reevaluated upon 4 point scale test based on the frequency, importance, and difficulty by 21 field registered dietitian by the study team. It was also confirmed by the university. This form was formated by following DACUM method which analyzed the job description containing duty, task and task elements. It was organized to include every dietitians' work and to describe the every detailed process of work. Duty was defined as the specific and independent work as a dietitian, and was composed of 17 parts, i.e 10 parts in food supply management area and 6 parts in nutritional care service area and self promotion area. Duties were also divided into 99 tasks containing the 576 detailed task elements to describe definite action, steps and decisions. Seventeen parts are following; menu planning, storage and inventory control, food production, meal service, waste management, sanitation, equipment and facility management, human resource management, financial management, nutrition assessment of life cycle, nutritional assessment of several disease, nutritional assessment in specific condition, medical nutrition therapy, nutritional education, public health nutrition and self promotion. If these protocols are properly performed and presented, they can provide the likelihood that dietetics professionals work as a primary contributors in promoting health care and preventing disease nationally.

• The Journal of Society for e-Business Studies
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• v.11 no.4
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• pp.87-106
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• 2006

Today as the scale of e-commerce constantly expands, the number and the amount of the consumer frauds are also increasing very rapidly, without sufficient levels of systematic support to prevent them. Internet Escrow service is one of the promising payment mechanisms, which guarantees secure electronic trades and payments. Especially, if the real-time product delivery information is available via RFID-based track-and-trace environment, the security and efficiency of the Internet Escrow services would be improved a lot. In this research, proposed a novel approach to integrate EPCglobal Network, which is a de-facto standard for RFID-based information network model, with Internet Escrow services. The proposed service model was implemented in the form of "Integrated Financial Platform", which supports the contracts among trading partners and the payment via Escrow services by being fully integrated with bank systems. Using the implemented EPCglobal Network-based Escrow service system, we would be able not only to shorten the money-flow cycle and to develop new kinds of loan services, but also to overcome the problems of existing Escrow services including the lack of product-related information and the delay of purchasing decisions.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.12
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• pp.405-427
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• 1999

Although Uniform Customs and practice for Documentary(UCP) is not a law, it applies to most documentary credits and is binding on all parties unless otherwise expressly stipulated. Besides, Uniform Commercial Code(UCC) Article 5 was codified by the United States and was adopted by every state. Moreover, the New York version of the UCC Article 5-102(4) specifically providing that the UCC does not apply to letters of credit where the parties agree to be governed by the UCP. Identical nonuniform Articles were latter added in Alabama, Arizona, and Missouri. The fact that courts in forty-six of the fifty states are bound by Article 5. Until now, Article 5 of the UCC has probably had an impact on the decisions in New York and the New York common law. Therefore, I examined a few issues on application between Article 5 of the UCC and the UCP. First, although the UCP attempt to introduce a new for examination of document by incorporating "standard practice of financial institutions" and "international banking practice", the standards for documentary compliance are not clear. The UCC attempt to rely on the matter of interpretation for the court, but the UCP would probably be interested in examining in about bank's internal practices as reflected in UCP Articles. Second, the rule for nondocumentary conditions is a useful for stand-by credit transactions under the UCC, but these conditions would probably put the bank in an even worse position in case of documentary credit transactions under the UCP. Third, the UCP does not contain any provision governing the fraud exception, but the UCC codified the fraud and forgery rules developed through American case law. Fourth, the UCP treats the issue of transfer in much more detail than the UCC does. In contract, the UCP's treatment of assignment of proceeds is brief. Finally, I suggest that the fraud exception rules should be prescribed in the UCP in order to protect the issuing bank and the applicant when an unscrupulous party attempts to defraud.

• Journal of Wetlands Research
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• v.8 no.1
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• pp.97-106
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• 2006

This study discusses two canceled dam projects, Youngwol Dam in South Korea and Two Forks Dam in Colorado of the United States. Both of them illustrate how the new paradigm applies to regional water projects because they became victims of environmental opposition in the new paradigm. While the cases have no apparent close relationships and they occurred in different decades, they offer interesting comparisons. They were basically struggles between water development coalitions and environmental protection coalitions on regional water conflicts. The two proposed projects brought about fierce debates on large dam as they embraced a wide-range of environmental, social, and political issues rather than construction of dams themselves. Huge anti-dam oppositions scrapped them at the cost of nearly ten years for decision-makings and enormous financial resources for feasibility studies respectively. It identifies who the policy actors were, what the policy strategies were, and how the water policies evolved in both countries. The decision-makings on the two projects appeared at first glance to be made under formal institutional frameworks, but in actuality, they relied significantly on decisions of the two important political actors. The Korean society began to learn negotiation and cooperation approaches to solve the water conflict by establishing the Joint Task Force Team on Youngwol project in 1999. The team is recognized as a new conflict resolution method in South Korea because a diverse of stakeholder interests voluntarily participated in the decision-making process and discussed water issues directly. Even though the projects resulted in futile fruits in each country, they illustrate the images of the new paradigm that significantly affected in formulating regional water policies in South Korea and the United States.