• 사회경제평론
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• no.38
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• pp.85-128
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• 2012

This paper aims to provide an evolutionary theory of firm existence and boundaries. We explicitly discuss about the cause of firm existence from the viewpoint of evolutionary economics, combine functionalistic and process-oriented explanation of firm evolution, and propose industry-level theory of firm boundaries. Vertical and horizontal firm boundaries are explained in the same frame.

• Asia-Pacific Journal of Business
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• v.12 no.1
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• pp.57-69
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• 2021

Purpose - The purpose of this study is to investigate the effect of macroeconomic conditions on the relationship between CSR and firm value. Design/methodology/approach - Employing KEJI index as a proxy for a firm's CSR activities, we investigate whether investors discount the value of CSR activity during the economic recession when a firm's bankruptcy risk is high and thus its future sustainability is suspected. Findings - Our empirical result represents that the value of a firm with high CSR score is undervalued during recession, reflecting investors doubt the sustainability of a firm whose CSR score is high when overall economy is exposed to high downside risk. Research implications or Originality - It implies that investors may not regard the CSR activities as an indicator of corporate sustainability. Also, the result represents that stable macroeconomic condition can be one of the important factors to make the CSR activity increase a firm's value.

• Journal of Korea Trade
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• v.23 no.5
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• pp.1-26
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• 2019

Purpose - We examine the disclosures on foreign divestment from China by 77 Korean firms between 2007 and 2016 to identify the effects (and their determinants) on parent firm value. Design/methodology - We analyze how divestment affects firm value by examining the disclosure of divestment from China by Korean firms. Then, we examine the determinants of these disclosure effects using cross-sectional regression analyses. Findings - We find negative effects on parent firm value in the short and medium term, and both the KOSPI and KOSDAQ stock markets show negative correlations between foreign divestment and firm value. The parent firm's financial condition and profitability and the reason for divesting are statistically significant determinants. Practical implications - Most Korean firms in China belong to the manufacturing industry. As a result, divestment signifies a loss of important manufacturing bases and assets. Originality/value - We analyze foreign direct divestment, which has not been studied in detail previously owing to a lack of data. In addition, this research is the first to compare the disclosure effects in the KOSPI market with those in the KOSDAQ market for the same period.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.7
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• pp.197-203
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• 2022

The agricultural sector has an important contribution to the economic development of Vietnam in particular and other countries in general. The growth of enterprises in the industry is an important bridge in promoting the economic development of the country. Currently, the policies of the Government of Vietnam always create favorable conditions for enterprises to conduct business, especially enterprises in the agricultural sector. The study aims to assess factors influencing the profitability of listed firms in Vietnam's stock market. Using 40 enterprises in the agricultural industry listed on the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange and using advanced econometric modeling, dealing with defects in the regression model, the research results show that large-scale firm has higher economic efficiency than small-scale firm. In addition, a firm with higher use of loan capital is associated with a more efficient firm, reflected in the relatively good debt management ability of enterprises in the agricultural sector. Adversely, growth and age do not have any impact on firm performance. Macroeconomic factors do not impact profitability. Finally, the study has some policy implications for developing agricultural businesses in the case of Vietnam.

• Asia Marketing Journal
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• v.25 no.1
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• pp.37-44
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• 2023

Firm innovativeness and financing capacity are critical signals to stakeholders as they are key drivers of firm performance and competitiveness and indicate the firm's ability to fund its operations and growth initiatives. Based on signaling theory, this study investigates the signaling effect of a firm's innovativeness and creditworthiness and examines its signaling effectiveness. Using Korean innovation data and Korea Investors Service financial data for nine years, the findings indicate that a firm's technological innovation has a negative impact on its credit ratings, while non-technological innovation has a positive impact. Furthermore, a firm's credit ratings positively impact its performance. The current study contributes to the literature on signaling theory by exploring the signaling effect of a firm's innovativeness and creditworthiness. The findings provide insights for managers on how to send and monitor signals to stakeholders.

• Asian Journal of Innovation and Policy
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• v.12 no.2
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• pp.155-176
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• 2023

This paper employs datasets from the Enterprise Survey conducted by the World Bank to examine the relationship between four types of innovation defined by the Oslo Manual (OECD, 2005): product innovation, process innovation, marketing innovation, organization innovation, and the firm performance in the selected developing ASEAN economies. The main objective of this paper is to understand the characteristics of innovation activities at the firm level and how various innovation types affect firm performance. The empirical results from ASEAN manufacturing firms reveal that product innovation positively affects firms' performance, while non-technological innovations are negatively related to the performance of firms. The further employed quantile regression provides more insights into the roles of innovation types on different levels of firm performance: while product and process innovations actively contribute to the small and medium-size firms (below 25^th quantile and median), organizational and marketing innovations negatively affect them. Interestingly, the role of process innovation decreases when firm performance grows.

• Asia Marketing Journal
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• v.25 no.4
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• pp.207-218
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• 2024

Considering the rising interest in environmental, social, and governance (ESG) globally, various studies have shown that ESG practice increases firm value; however, there is still much debate. This study focuses on the relationship between ESG practice and firm value. Further, we identify the mechanisms constituting this relationship to address relevant research gaps. Specifically, this study examines the connection between ESG practice and corporate valuation, emphasizing the mediating role of a company's reputation. Using panel analysis of data from 145 Korean firms (2014-2021), the study reveals that ESG practices notably enhance firm value, signaling their significance to stakeholders. Corporate reputation acts as a bridge between ESG efforts and value, with corporate reputation's influence varying across industries. This research presents broad implications for both academic and industrial fields, highlighting the strategic importance of ESG in enhancing firm value.

• Journal of the Korean Operations Research and Management Science Society
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• v.29 no.4
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• pp.135-140
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• 2004

It considers advertising as an instrument to increase the stock of goodwill or reputation. summarising the effects of past and current advertising expenditures carried out by a firm. on the current demand for her goods. A relevant result emerging from the Dorfman-Steiner (1954) condition. establishing that advertising investment is proportional to sales. This paper investigates optimal advertising level between the good firm and the bad firm. So. We knew that between the good firm and the bad firm are establishing the Dorfman-Steiner condition.

• Journal of the Korea Safety Management & Science
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• v.11 no.2
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• pp.27-32
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• 2009

Supports the activity of the disability firm the policy which is active for is unsatisfactory. The positive promotes the activity of the disability firm from the research which sees and raises presents the politic plans for the competitive power improvement of the disability firm the fact that the economic social positions of the disabled person and with the aim.

• East Asian Economic Review
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• v.26 no.4
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• pp.257-277
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• 2022

Does servitization improve manufacturing firms' performance, and in what condition? Following the seminal work of Crozet and Milet (2017), this study analyzes disaggregated firm-level data that covers 40,000 South Korean manufacturing firms surveyed by the Survey of Business Activities of Korea. We compute firm-level servitization intensity with available sales data of each firm by two-digit SIC sub-sectors. We find two novel empirical regularities: Korean servitization intensity distribution shows a very different shape from the French benchmark; Servitized firms tend to perform higher profitability and higher productivity than non-servitized firms.