• Journal of Distribution Science
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• v.16 no.5
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• pp.31-43
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• 2018

Purpose - We examine how a Korean retail firm's social responsibility is related to its financial performances. The traditional view of corporation expects a negative relationship, while the stakeholder theory expects a positive one. Research design, data, and methodology - We adopt the ESG score, published by Korean Corporate Governance Service to measure the level of socially responsible activity for the Korean retail firms. The ordinary least square method is adopted to investigate this relationship. The publicly traded retail firms are examined from 2011 to 2016. Results - We find that the total ESG score is negatively related to ROE but shows no statistically significant relationship with ROA and Tobin's Q value. However, a firm's environmental score is negatively related with both of ROE and ROA. Its social score is no conclusive relationship with the performance measures. The governance score is negatively related to the value of Tobin's Q. Conclusions - This paper generally supports the traditional view of corporate theory, especially in terms of ROE. This evidence is not well aligned with the existing study for Korean corporations generally documenting positive relationships. We find almost no empirical evidence supporting the stakeholder theory of corporation in the Korean retail industry.

• The Journal of Industrial Distribution & Business
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• v.10 no.6
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• pp.7-17
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• 2019

Purpose - The purpose of this study is to explore how advertising for multilevel marketing brands affect the salesperson's activity including customer-salesperson interactivity, work attitude, and perceived and actual performance after the campaign. Research Design, data, and methodology - This study collects experimental data, survey data, and actual sales data and applies statistical analyses such as factor analysis, t-tests, and a structural equation model. Results - The results show that advertising campaign can enhance a salesperson's selling activities and provide wide managerial implications to a multilevel marketing firm by filling the gaps for the field of advertising research. Conclusions - Managerial implications include: i) multilevel marketing firms should consider advertising campaigns as a means of changing customer responses because advertising plays a significant role in increasing familiarity with, and knowledge of, attitudes toward the brand, which also helps salespeople interact with customers; ii) multilevel marketing firms should consider brand advertising as a means to support the sales activities of salespeople including sales effectiveness, work attitudes, and perceived performance, and iii) multilevel marketing firms should consider brand advertising as a means to enhance a salesperson's pride and motivation for selling their brand, which will lead to improved sales performances.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.215-224
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• 2021

This article emphasizes the consequences of exploring the relationship between sustainable development practices and non-financial performing factors. Also, it investigates the combined effects of the transformational leadership style on the relationship between sustainable development practices and non-financial performing factors. Using primary data sources, this study reviews the literature on the relationship between the factors of the effectiveness of sustainable development practices of Jordanian contractors and non-financial performance. A total of 290 questionnaires were personally distributed to contractors in the Amman district in Jordan. Only 253 questionnaires were returned and usable for further analysis, which represents a response rate of 87%. Data was collected from October 2020 until April 2020. Hypotheses were tested through multiple regression analysis, and hypotheses for interacting effect were examined through hierarchical multiple regression analysis. Based on the results of the analysis obtained there is a significant effect on the relationship between sustainable development and non-financial performances. It shows that construction companies involved in sustainability practices will able to improve their performance, which contributed significantly toward the overall firm's performance. Whereas, results from hierarchical multiple regressions showed that transformational leadership had no moderation effect on the non-financial performance in such a way that reaches a higher firm performance level.

• Journal of Korea Trade
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• v.23 no.3
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• pp.52-67
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• 2019

Purpose - This study analyzes the effect of the authorized economic operator-mutual recognition arrangement (AEO-MRA) on the performance of Korean exporters and importers. The effect of the import-export companies' characteristics, such as annual sales, the number of foreign markets, and overseas experience, on the AEO-MRA is deduced; the relationship between this effect and firm performance is analyzed. Design/methodology - An empirical research model was constructed and analyzed using structural equation modeling. The effect of AEO-MRA on logistics and operational performance was derived from the aforementioned characteristics as leading factors of the AEO-MRA. The regulatory influence of cooperation with logistics companies was analyzed in the AEO-MRA effect on logistics performance. Thus, 172 valid samples were obtained from import-export companies certified by the AEO-MRA. Findings - Among the aforementioned characteristics, only "annual sales" has a positive effect on the AEO-MRA, whose effect enhances logistics and operational performances. The AEO-MRA effect did not directly affect operational performance. Owing to the adjustment effect analysis, the AEO-MRA effect and logistics performance relationship is strengthened if the cooperative relationship with the logistics company is higher than a certain level. If this cooperation falls below a certain level, the AEO-MRA effect on logistics performance reduces. Thus, logistics cooperation is an important factor in the AEO-MRA effect and logistics performance relationship. Originality/value - Hinging on the resource-based theory and relational viewpoint, an empirical model that explains the relationship between the AEO-MRA effect and firm performance is established.

• The Korean Journal of Financial Management
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• v.26 no.3
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• pp.31-64
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• 2009

This article investigates the short-term cash flow exposures to Korea's major trading partners' currencies based on the kospi and kosdaq firm data from 2000 to 2008. The cash flow approach allows us to analyze the influence on operational performances of individual firm's hedging strategies. Taken all three foreign exchange rates together, more than 30% of the sample firms exhibit significant exposure. Given that the short-term cash flow is rather easy to hedge, the result proves a poor exchange rate risk management practices of Korean firms. Kosdaq firms are more exposed than Kospi firms. On the contrary to the previous researches using stock prices, the operational cash flows show a positive relationship with the value of foreign currencies. The exchange rate-firm sample further shows that the size and leverage affect the level of exposure.

• Journal of Korea Technology Innovation Society
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• v.9 no.4
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• pp.842-864
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• 2006

This paper deals with an empirical study to statistically analyse various financial performances of the selected IPO firms using their investments on research and development(R&D) as an independent variables. The major results of statistical analyses have come up with the followings: 1) The regression analyses for change in average annual total market stock value/total assets over that of R&D expenditures showed the positive relationship, However, those of sales volume and net assets per share showed negative without statistical significances. 2) The statistical analyses in effect of the 3-year average total market stock value/total assets over the 3-year average R&D expenditures resulted in the positive coefficients what are statistically significant at 95% level. 3) Another statistical analysis showed that the financial performances of the IPO finns with deferred assets were better than those of the firms without them. In sum, the degree of investment on R&D by the IPO firms are expected to positively affect their financial performances except the Finns without having proper original technologies.

• STI Policy Review
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• v.9 no.1
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• pp.1-29
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• 2018

With the constant growth of R&D investment, it has been increasingly necessary to evaluate the effectiveness of R&D performance and there is a high emphasis on ensuring the accountability and effectiveness of R&D programs. The evaluation of performance of a firm is especially necessary in times of economic downturn to justify R&D investment. However, there is a marked shortage of clear guidelines as to where and how particular metrics are used to measure the output and outcome of R&D activity in firms. Many firms have difficulties in selecting appropriate indicators for their R&D and financial performances. To fill this gap, this article discusses and presents the findings from the literature in such a way that they become useful for researchers or managers who are in charge of measuring the R&D and business performances arising from innovation activities. Finally, based on the findings about metrics of R&D performance, this article proposes the hypothetical framework to investigate the relationship between technology forecasting, strategic technology planning, and business performance. The framework of this article will assist policy makers, universities, research institutes/national laboratories, and companies to enhance their decision making process in technology development.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.251-265
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• 2021

It seems a common sense that corporate social responsibility (CSR) is a key driver to attain business sustainability. Nevertheless, there has been little research on the performance of socially responsible activities, including economic and environmental responsibility activities in internationally diversified firms. The purpose of this study was to evaluate the effects of CSR activities on management performance. For this evaluation, an empirical analysis was conducted with a total of 2,520 cases, selected from companies listed on the Korea Composite Stock Price Index market for six years from 2013 to 2018. As proxies for management performance, financial date such as a total asset net profit ratio and a total asset-operating ratio were used. A multivariate regression analysis was conducted to test hypotheses. The results of this analysis indicated that firms in the CSR outstanding group are significantly higher than other groups in management performances. In addition, CSR activities of internationally diversified firms positively influence their total asset net profit ratio and total asset-operating ratio. The results suggested that CSR activities of these firms can play a significant role in enhancing management performances amid the economic status of Korea, where a degree of export dependency is high.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.10 no.11
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• pp.3363-3372
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• 2009

Continued jobless growth in economy, coupled with the current economic recession, is aggravating the situation of job market. In order to create more jobs and reduce the economic gap in a society, an independent creative firm of a sole entrepreneurs is suggested as an alternative mean. Understanding entrepreneurial motivations of a sole entrepreneur will be helpful in developing educational programs on starting an independent creative firm and in establishing a relevant government policy. This study, therefore, proposes a new model on entrepreneurial motivations in the independent creative firm and performs case study. The results of the study show that the personal environment and the personal characteristics of entrepreneurs have much effects on motivation of starting the independent creative firms. Among the personal environments, entrepreneurs' educational backgrounds, work experiences, and personal networks have great influences on entrepreneurial motivations. The processes of sustained entrepreneurship involve: (a) the determination of business ideas and goals, (b) the inception of a new business and managerial activities, (c) the entrepreneur's assessment of both intrinsic and extrinsic rewards of business performances, and (d) the adjustment of business ideas and goals in accordance with the results of the assessment. The results of the study could be applied in developing educational programs and consulting guidelines on independent creative firms and in establishing government's supportive policies on the firm.

• Journal of Intelligence and Information Systems
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• v.29 no.3
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• pp.317-340
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• 2023

In a business context, ESG is defined as the use of environmental, social, and governance factors to assess a firm's progress in terms of sustainability. Social media has enabled the public to actively share firms' good and/or bad deeds, increasing public interest in ESG management. Therefore, this study aimed to investigate the association of firm performances with the respective sentiments towards each of environmental, social, and governance activities, as well as comprehensive ESG sentiments, which encompass all environmental, social, and governance sentiments. This study used panel regression models to examine the relationship between social media ESG sentiment and the Return on Assets (ROA) and Return on Equity (ROE) of 143 companies listed on the KOSPI 200. We collected data from 2018 to 2021, including sentiment data from a variety of social media channels, such as online communities, Instagram, blogs, Twitter, and other news. The results indicated that firm performance is significantly related to respective ESG and comprehensive ESG sentiments. This study has several implications. By using data from various social media channels, it presents an unbiased view of public ESG sentiment, rather than relying on ESG ratings, which may be influenced by rating agencies. Furthermore, the findings can be used to help firms determine the direction of their ESG management. Therefore, this study provides theoretical and practical insights for researchers and firms interested in ESG management.