• Journal of Digital Convergence
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• v.14 no.10
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• pp.107-117
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• 2016

This study examines information efficiency of financial information on the firm value for the listed manufacturing companies in Korea stock market in terms of timing pattern of information. We set 3 different test periods based on the financial statement released years - the current year, 90 days before financial statement announcement and the next year. We introduce using the stepwise regression method to examine the effect of financial variables on the stock returns. The financial variables include profitability ratio, growth ratio, stability ratio, activity ratio and market valuation ratio. The results of the study showed that both growth and profitability ratio affected the current year stock returns, while stability and activity ratio affected the next year stock returns. Growth rate of total asset affects both current year and next year stock returns. Our findings imply that the period in which financial information is reflected in the firm value, could vary with the characteristics of financial information.

• Journal of the Korean Regional Science Association
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• v.31 no.3
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• pp.55-77
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• 2015

The purpose of this research is to analyze the influence of the regional location factors to the lifecycle of manufacturing firms in the Seoul Metropolitan Area. A firm has a lifecycle in common like a household. The firm's lifecycle is divided into 4 sections such as formation, dissolution, growth and decline for the manufacturing firms as light industry, heavy industry and high-tech industry. In addition, the regional location factors are divided into 4 categories. As a result of this research, there are differences for the statistically significant location factors. In addition, the value for the explanation ability of each multiple linear regression model (adj. $R^2$) was high in the formation and growth sections than in dissolution and decline sections. It means that the local governments need differentiated policies considering their regional characteristics for the location factors by firm's lifecycle when they established policies for industry or job. From the view point of the public sectors, it is much important to focus on formation and growth of firms.

• Korean journal of food and cookery science
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• v.23 no.2 s.98
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• pp.270-279
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• 2007

The purposes of this study were to analyze the profitability of audited restaurant franchise firms and to investigate the financial variables affecting profitability. This study decomposed profit variation into the three main factors comprising the Du Pont Identity (operating efficiency, asset use efficiency and financial leverage). The operating efficiency of restaurant franchise firms was on the rise until 2004, but dropped dramatically in 2005. Especially, the profit margin dropped from 13.46% in 2004 to 6.54% in 2005. The asset use efficiency has been decreasing since 2003. The total asset turnover ratio, which can be indicative of over-investment, dropped from 1.55 in 2003 to 1.50 in 2005. The financial leverage remained stable after 2002. There were major differences in debt accumulation among the firms, and the current level of debt was thought to be higher in the restaurant industry than in other industries. Based on the results of a multiple regression analysis, we concluded that the factors affecting ROE were the debt-equity ratio, total asset turnover and the size of the firm. The debt-equity ratio and total asset turnover had a significantly positive effect on ROE, while the firm size had a significantly negative effect on ROE. However, the current ratio and sales growth rate were not significant. The finding that firm size and profitability were negatively related implied that restaurant franchise firms should pursue qualitative growth rather than quantitative growth. There was no major difference in profitability between domestic brands and foreign brands. However, the domestic brand was more efficient in terms of asset usage than the foreign brand.

• Journal of Labour Economics
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• v.26 no.3
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• pp.49-75
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• 2003

This paper empirically examines multiskill formation as a critical mechanism of human capital accumulation within the firm. We investigate various factors that foster multiskill formation of the employees at the workplace. We also investigate whether and how multiskill formation of the employees, in tum, affect the labor productivity. Our empirical results are summarized as the following. First, skills of the employees are developed along the sequential path rather than the parallel path. They evolve from the simple-skill to the single-skill, and then to the multi-skill state. Second, multi skilling is stimulated by uncertainty factors of the environment and various human resource management practices such as mutual learning among workers, workers' participation in decision making, and job rotation. Third, the increase in the ratio of multiskilled workers in the firm has a positive impact on the growth of the firm's labor productivity. Our analyses show that the labor productivity growth increases by 0.019 with the increase in multi skilling ratio by 0.1. Fourth, uncertainty and human resource management practices had an indirect impact on labor productivity growth only through multiskilling. These results strongly indicate that multiskilling is a result of human capital accumulation fostered by various human resource management practices.

• KDI Journal of Economic Policy
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• v.30 no.2
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• pp.27-59
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• 2008

This paper empirically investigates the finance-growth linkage in Korea by utilizing firm-level data of manufacturing industries before and after the 1997 financial crisis. We find that, first, an increase in external finance is associated with a faster subsequent capital accumulation of firms. However, this capital accumulation channel became relatively attenuated after the crisis. Second, the total factor productivity growth effect of external finance has been considerably weak both before and after the crisis. Third, the information production and industry restructuring effects of external finance have also remained weak after the crisis. The limited role of external finance in post-crisis Korea partially reflects sluggish corporate investment and weakening dependence of good credit firms on external finance. The evidence suggests that, in order to effectively sustain economic growth, further reform efforts may be required to strengthen resource allocation and corporate restructuring roles of financial markets and institutions.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.1
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• pp.1-8
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• 2016

Patent management activities are considered to play a key role for technology-based firms under the recent knowledge-based economies. This is because intellectual property, including patents, can act as a system for continuous profit generation by protecting firms' products, processes and services. In Korea, healthcare industry is now regarded as one of the promising next generation industries. Despite the promise of healthcare industry, Korean healthcare product manufacturers are faced with turbulent business changes, such as market opening. Even though there are various industrial studies on the effect of patent management activities on firm outcome, previous studies have hardly paid attention to Korean healthcare product manufacturing firms. For this reason, this study identifies the effect of patent management activities, such as patenting activeness, technical excellence and cooperation degree, on firm outcomes, including financial profitability and firm growth, with respect to the Korean healthcare product manufacturers. In this study, we located 86 Korean healthcare manufacturing firms from KORCHAMBIZ and DART, and then collected the data of their patenting activities and outcomes between 2001 and 2013. By applying factor analysis and regression analysis, our empirical study found that firms' patenting activeness has the significant positive relationship on firms' financial profitability, and firms' patenting activeness and technical excellence have the significant positive relationship on firms' financial growth. Our study is an initial attempt to identify the effect of patent management activities on firm outcome within Korean healthcare product manufacturing industry, and thus its results can be used as the basis to formulate national policies for Korean healthcare product industry.

• Korean Management Science Review
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• v.31 no.1
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• pp.1-15
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• 2014

As the scarcity of natural resources has become apparent, the recycling industry has emerged as a promising one for its growth potential. Yet, the recycling industry still remains undeveloped and inefficient for various reasons. In this study, we focus on firms' recycling processes to understand the current status of recycling firms' value creation activities. With respect to the adopted recycling processes, we empirically investigate the differences in firm characteristics and firm performance. We use the data from Keco (Korea Environment Cooperation) which annually conducts a survey of recycling firms in Korea. We exclusively consider the whole group of plastic recycling industry in order to control for a possible bias in firm performance, stemming from the heterogeneity in processing and recycling of materials other than plastics. We review the descriptive statistics from the sample firms and conduct a series of hierarchical regression analyses. The results show that most of the firms in this industry adopt physical transformation processes with a low-level technology. These firms with physical transformation processes are smaller in size and produce entry level items which do not secure higher margins. The results indicate that the recycling industry largely comprises low value added firms which lack economies of scale and resources for R&D. For the stable growth of the industry, recycling firms must create sustainable values through implementation of technology-driven processes and improvement in product quality. In addition, the government should help build a reliable reverse logistic network, lower the entry barriers, and provide necessary funding for the SMEs in the recycling industry.

• The Journal of Industrial Distribution & Business
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• v.12 no.3
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• pp.43-49
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• 2021

Purpose: This study attempted to examine the risk of stock price plunge according to the firm's management strategy. Prospector firms value innovation and have high uncertainties due to rapid growth. There is a possibility of lowering the quality of financial reporting in order to meet market expectations while withstanding the uncertainty of the results. In addition, managers of prospector firms enter into compensation contracts based on stock prices, thus creating an incentive to withhold negative information disclosure to the market. Prospector firms' information opacity and delays in disclosure of negative information are likely to cause a sharp decline in share prices in the future. Research design, data and methodology: This study performed logistic analysis of KOSPI listed firms from 2014 to 2017. The independent variable is the strategic index, and is calculated by considering the six characteristics (R&D investment, efficiency, growth potential, marketing, organizational stability, capital intensity) of the firm. The higher the total score, the more it is a firm that takes a prospector strategy, and the lower the total score, the more it is a firm that pursues a defender strategy. In the case of the dependent variable, a value of 1 was assigned when there was a week that experienced a sharp decline in stock prices, and 0 when it was not. Results: It was found that the more firms adopting the prospector strategy, the higher the risk of a sharp decline in the stock price. This is interpreted as the reason that firms pursuing a prospector strategy do not disclose negative information by being conscious of market investors while carrying out venture projects. In other words, compensation contracts based on uncertainty in the outcome of prospector firms and stock prices increase the opacity of information and are likely to cause a sharp decline in share prices. Conclusions: This study's analysis of the impact of management strategy on the stock price plunge suggests that investors need to consider the strategy that firms take in allocating resources. Firms need to be cautious in examining the impact of a particular strategy on the capital markets and implementing that strategy.

• Journal of Korea Technology Innovation Society
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• v.10 no.3
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• pp.509-530
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• 2007

This paper examined the relationship between innovation and firm performance by integrating industry competitive context and firm-level knowledge constructs. After controlling for firm site, age, and the presence of a union, cross-section analysis of survey data from 1,419 medium sized manufacturing firms yielded following findings. The first was the expected positive relationship between firm-level innovation and firm knowledge and also industry dynamism, as measured by the intensity of industry-level R&D. This results indicate that industries with greater aggregate levels of R&D intensity are home to higher rates of firm-level innovative activity and managers must increase their numbers of technical staff and the level of training. But the interaction between firm knowledge and industry dynamism was non-significant. Second, innovation was not significantly related to firm performance, as measured by revenue growth. This relationship was not moderated by industry dynamism and firm level knowledge. In high and low technology sectors, the relationship between innovation and performance was non-significant, consistent with the full-sample analysis. The results suggest that the effects of firm-level knowledge assets and investments in training don't work in different ways in different industry settings. This research used three control variables to analyze innovation and firm performance. Firm age was negatively associated with firm performance and did not significantly predict innovation. Firm size was positively associated with innovation and performance in the low-technology sector. The presence of a labor union was not a significant with respect to innovation.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.363-370
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• 2020

The paper aims to investigate the impact of budgetary goal on profit growth directly and indirectly through managerial performance. Two main characteristics of budgetary goal mentioning in the study are the clarity of budget goal and the difficult of budget goal. Data of the research collected from survey with 197 department managers and supervisors of 80 SMEs in Hanoi and Ho Chi Minh City who have budgeting responsible. Firstly, by using quantitative research method Cronbach's Alpha and Exploratory Factor Analysis, the research show that characteristic of budgetary goal has significant and positive impact on profit growth directly. Secondly, the regression analysis among variables show that budget goal clarity was positively and significantly related to growth of sale revenue, growth of profit and managerial performance. Therefore, the empirical findings show that that managerial performance has mediating role in the relationship between budgetary goal characteristic and financial performance. The findings of this study suggest that that managers need focus on setting clearer and more difficult but attainable budget goals to increase firm performance. This paper also provides a new insight the relationship between managerial performance and financial performance. Budgetary goal characteristics still have positive but insignificant impact on growth of sales revenue.