• Title/Summary/Keyword: Firm-Level Variables

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The Effect of Corporate Social Responsibility on Firm Value to Chinese Companies (중국기업의 사회적 책임이 기업 가치에 미치는 영향)

  • Dai, Meng;Kang, Ho-Jung
    • The Journal of the Korea Contents Association
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    • v.13 no.12
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    • pp.422-427
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    • 2013
  • The cognition for corporate social responsibility of Chinese companies is negative because it increases cost and causes reduction of profit. But interest and execution for corporate social responsibility of Chinese firms is increasing consistently. Purpose of this study is to find effect of corporate social responsibility on firm value to Chinese enterprises. To achieve this purpose, we performed multiple regression method to 647 firms listed on the Shanghai Stock Exchange of China in 2011. Dependent variable is firm value and independent variable is degree of execution of corporate social responsibility to stakeholders. Conclusions of this study are as follows. First, execution of corporate social responsibility for employees, bondholders, government appeared to have a significant positive effect to firm value at 1% significance level. Second, execution of corporate social responsibility for customers appeared to have a significant negative effect to firm value at 1% significance level. Third, execution of corporate social responsibility for stockholders, suppliers appeared to have a weak positive effect on firm value, however these variables showed statistical insignificant.

Networks and Innovative Performance of the Korean Manufacturing Firms

  • Sung, Tae-Kyung
    • Proceedings of the Technology Innovation Conference
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    • 2005.08a
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    • pp.5-28
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    • 2005
  • This paper estimates the effect of networks on innovative performance at the firm level , using Korean Innovation Survey (KIS) dataset Product innovation, product improvement , and process innovation are used as proxies for innovative activity. The explanatory variables such as firm size, market concentration ratio, lagged profitability, foreign ownership, export ratio, firm's age, formal R&D activity, and industrial R&D intensity are yet other considerations. With two year-long (2000 and 2001) data from 1,124 Korean manufacturing firms, we estimated the logistic regression model. The research finding indicates that the external networks have a strong positive effect on innovative output regardless of type of innovation. However, the network effects by partner (other firms or research institutions) vary across the type of innovation. Especially, we found that the user-supplier linkage plays an important role in product ion innovation, product improvement, and process innovation.

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Assessing the Damage: An Exploratory Examination of Electronic Word of Mouth (손해평고(损害评估): 대전자구비행소적탐색성고찰(对电子口碑行销的探索性考察))

  • Funches, Venessa Martin;Foxx, William;Park, Eun-Joo;Kim, Eun-Young
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.188-198
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    • 2010
  • This study attempts to examine the influence that negative WOM (NWOM) has in an online context. It specifically focuses on the impact of the service failure description and the perceived intention of the communication provider on consumer evaluations of firm competence, attitude toward the firm, positive word of mouth and behavioral intentions. Studies of communication persuasiveness focus on "who says what; to whom; in which channel; with what effect (Chiu 2007)." In this research study, we examine electronic web posting, particularly focusing on two aspects of "what": the level of service failure communicated and perceived intention of the individual posting. It stands to reason electronic NWOM that appears to be trying to damage a product’s or firm's reputation will be viewed as more biased and will thus be considered as less credible. According to attribution theory, people search for the causes of events especially those that are negative and unexpected (Weiner 2006). Hennig-Thurau and Walsh (2003) state "since the reader has only limited knowledge and trust of the author of an online articulation the quality of the contribution could be expected to serve as a potent moderator of the articulation-behavior relationship. We therefore posit the following hypotheses: H1. Subjects exposed to electronic NWOM describing a high level of service failure will provide lower scores on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention than will subjects exposed to electronic NWOM describing a low level of service failure. H2. Subjects exposed to electronic NWOM with a warning intent will provide lower scores on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention than will subjects exposed to electronic NWOM with a vengeful intent. H3. Level of service failure in electronic NWOM will interact with the perceived intention of the electronic NWOM, such that there will be a decrease in mean response on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention from electronic NWOM with a warning intent to a vengeful intent. The main study involved a2 (service failure severity) x2 (NWOM with warning versus vengeful intent) factorial experiment. Stimuli were presented to subjects online using a mock online web posting. The scenario described a service failure associated with non-acceptance of a gift card in a brick-and-mortar retail establishment. A national sample was recruited through an online research firm. A total of 113 subjects participated in the study. A total of 104 surveys were analyzed. The scenario was perceived to be realistic with 92.3% giving the scenario a greater than average response. Manipulations were satisfactory. Measures were pre-tested and validated. Items were analyzed and found reliable and valid. MANOVA results found the multivariate interaction was not significant, allowing our interpretation to proceed to the main effects. Significant main effects were found for post intent and service failure severity. The post intent main effect was attributable to attitude toward the firm, positive word of mouth and behavioral intention. The service failure severity main effect was attributable to all four dependent variables: firm competence, attitude toward the firm, positive word of mouth and behavioral intention. Specifically, firm competence for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Attitude toward the firm for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Positive word of mouth for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Behavioral intention for electronic NWOM describing high severity of service failure was lower for electronic NWOM describing low severity of service failure. Therefore, H1a, H1b, H1c and H1d were all supported. In addition, attitude toward the firm for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Positive word of mouth for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Behavioral intention for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Thus, H2b, H2c and H2d were supported. However, H2a was not supported though results were in the hypothesized direction. Otherwise, there was no significant multivariate service failure severity by post intent interaction, nor was there a significant univariate service failure severity by post intent interaction for any of the three hypothesized variables. Thus, H3 was not supported for any of the four hypothesized variables. This study has research and managerial implications. The findings of this study support prior research that service failure severity impacts consumer perceptions, attitude, positive word of mouth and behavioral intentions (Weun et al. 2004). Of further relevance, this response is evidenced in the online context, suggesting the need for firms to engage in serious focused service recovery efforts. With respect to perceived intention of electronic NWOM, the findings support prior research suggesting reader's attributions of the intentions of a source influence the strength of its impact on perceptions, attitude, positive word of mouth and behavioral intentions. The implication for managers suggests while consumers do find online communications to be credible and influential, not all communications are weighted the same. A benefit of electronic WOM, even when it may be potentially damaging, is it can be monitored for potential problems and additionally offers the possibility of redress.

Spillover Effects of Patents and strengthening of Intellectual Property Rights on Productivity and Innovation: Intra- and Inter-industry Spillovers of IT Industry (특허권 강화와 특허출원 변화의 기술혁신 및 생산성 파급효과: 산업내 및 IT산업의 산업간 파급효과를 중심으로)

  • Kim, Jeong-Eon;Kang, Sung-Jin
    • Journal of Technology Innovation
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    • v.15 no.1
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    • pp.145-173
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    • 2007
  • Using patent and firm-level panel data for 1982-2001, this study investigates spillover effects of patents and the strengthening of intellectual property rights on Productivity and Innovation. As well as we consider the effect of intra-industry spillovers, we extend the effect to inter-industry spillovers which implies the effects of IT industries on non-IT industries. The empirical results are summarized as follows. First, allowing for firm-level variables, market competition and technological spillovers, the strengthening of intellectual property rights does not play a significant role on innovative activities. Second, while innovative activities of domestic firms affect significantly firms' innovative activities, those of foreign firms do not. Third, innovative activities of IT industries as inter-industry spillovers play a significant role on innovative activities and labor productivities of domestic firms.

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A Study on Managerial Efficiency in Economic Development (경제발전에 있어서의 경영효율에 관한 연구)

  • 권춘식;배수진
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.5 no.7
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    • pp.33-42
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    • 1982
  • The standard theory of production treats human and non-human inputs in the same way. Inert Areas Theory drops this assumption. One distinction is obvious. Human capital, the source of human inputs, can not be purchased outright by firms. Usually what is purchased are units of labor time. What is critical is directed effort, at or beyond some level of skill. Direct effort, however, involves choice and motivation, and these are the critical variables left out of the standard theory. Leibenstein introduces the concept of "inert areas" by which he means "a set of effort positions whose associated levels of utility are not equal but in which the action required to go from a lower to a higher utility level involves a utility cost that is not compensated for by the gain in utility." This idea is used when discussing the behavior of firm's management.f firm's management.

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The Relationship between Productivity and Firm's Performance: Evidence from Listed Firms in Vietnam Stock Exchange

  • NGUYEN, Phong Anh;NGUYEN, Anh Hoang;NGO, Thanh Phu;NGUYEN, Phuong Vu
    • The Journal of Asian Finance, Economics and Business
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    • v.6 no.3
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    • pp.131-140
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    • 2019
  • The study aims to examine the impact of productivity in addition to the policy of increasing the foreign investors' ownership rate on the performance of businesses which were listed on Vietnam's stock exchange market from 2010 to 2017. With the database of 3.961 observations, the study employs a statistical method - multiple regression to estimate the relationship between labor productivity, foreign ownership as well as other firm-level characteristics and firm performance. Research findings show that increasing labor productivity and increasing foreign ownership rates help increase firm performance. In addition, except for financial leverage, variables such as liquidity and firm size have positive effects on firm performance measured by Tobin's Q. These findings have theoretical contributions and practical implications for managers, investors and government in Vietnam. Managers should pay attention to improving labor productivity through employing incentive mechanisms, building a good working environment, investing in technology, etc. in order to enhance the firm performance. Investors could utilize the labor productivity and foreign ownership indicators to select stocks of good companies for investment. For Vietnamese government, relaxing the limit of foreign ownership and accelerating the divesting of State capital in State-owned enterprises could help increase the investment scale of foreign investors and resulting in positive effects on the firm performance.

A Research Framework of Studying Longevity of Strategic Alliances (전략적 제휴의 수명에 관한 이론적 연구)

  • Kim, Joong-Wha
    • Korean Business Review
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    • v.13
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    • pp.247-262
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    • 2000
  • This study proposes a conceptual framework that can help to investigate strategic alliances. Based on the framework, this study identifies the factors that affect longevity of strategic alliances, highlighting the network structure in which a firm is embedded as an important variable, along with other environmental-level and firm-level variables such as environmental volatility, nationality, and previous experience with strategic alliances. In this study, the network structure of existing alliances in which a firm is embedded constitutes a form of social capital and is hypothesized to partially explain the longevity of a strategic alliance. In addition, the significance of other factors is appreciated.

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Imitation, Technology, and Firm Performance: The Korean Firms Case in China

  • Kim, Woo-Hyoung;Chen, Bo;Hwang, Jin-Soo
    • Journal of Korea Trade
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    • v.25 no.4
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    • pp.128-145
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    • 2021
  • Purpose - The main purpose of this study is thus to investigate the contingent effect of imitation strategies on firm performance in transition economies such as China, focusing on pure and creative imitation. Design/methodology - We conducted a survey targeting department heads of each company who have more than 10 years work experiences. We assessed that the ability to gain trust and to access information from high-ranking informants would be greater if the firms were from the same country - Korea - as the lead researcher. A total of 200 highly reliable samples were obtained, which could effectively explain the nine variables set in the study. Relevant hypotheses were tested using a hierarchical linear model (HLM). Findings - The findings suggest that SMEs' technology level also had a positive impact on performance. Firms with better technology had a positive impact on performance, irrespective of pure or creative imitation. This reflects the cases where many Korean SMEs entering China without high technology level lose their competitiveness due to Chinese firms' technology catch-up within a short period of time. Originality/value - SMEs that lack technology and know-how need to focus on pure imitation strategies. It is possible that SMEs can perform creative imitation, but it seems difficult under the current circumstances. Therefore, SMEs with limitations in technology and know-how should maintain their competitive advantage for a while, by maintaining their pure imitation strategy.

Predictability of Overnight Returns on the Cross-sectional Stock Returns (야간수익률의 횡단면 주식수익률에 대한 예측력)

  • Cheon, Yong-Ho
    • Asia-Pacific Journal of Business
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    • v.11 no.4
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    • pp.243-254
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    • 2020
  • Purpose - This paper explores whether overnight returns measured from the last closing price to today's opening price explain the cross-section of stock returns. Design/methodology/approach - This study is conducted using the Korean stock market data from 1998 to 2018, obtained from DataGuide database. The analysis begins with portfolio-level tests, followed by firm-level cross-sectional regressions. Findings - First, when decile portfolios sorted on the daily average of overnight returns in the previous months, the highest decile portfolio exhibits a significant negative risk-adjusted return. This suggests that stocks with higher average overnight returns are temporarily overvalued due to buying pressure from investors. Second, at least 6 months of persistence exists in average overnight returns, which is in line with the results reported by Barber, Odean and Zhu (2009) that investor sentiment persists over several weeks. Finally, Fama-MacBeth cross-sectional regression of expected returns after controlling for a variety of firm characteristic variables such as firm size, book-to-market ratio, market beta, momentum, liquidity, short-term reversal, the slope coefficient for overnight returns remains negative and statistically significant. Research implications or Originality - Overall, the evidence consistently suggests that overnight return is considered as a new priced factor in the cross-section of expected returns. The findings of this paper not only adds to finance literature, but also could be useful to practitioners in making stock investment decision.

Analysis of the Factors Affecting MIS Success : Focusing on the Small Business of Manufacturing Industry in Korea (경영정보시스템의 성공과 실패에 대한 요인 분석 : 우리나라 제조업 분야의 중소기업을 중심으로)

  • Kang, Byeong-Gu
    • Asia pacific journal of information systems
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    • v.5 no.1
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    • pp.236-257
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    • 1995
  • Not much attention has been paid to the characteristics of successful MIS in small business in Korea. This study compares the characteristics of successful MIS with those of less successful MIS of manufacturing industry in Korea in terms of micro level, macro level, and personal level. The micro level consists of those variables relating to the system development and maintenance while the macro level consists of the environmental variables relating to the information systems. The personal level measures a personal EDP experience. A mail survey was sent to small manufacturing companies to collect the data for the hypothesis tests. And 81 usable questionnaires were returned for data analysis. This study performs the validity of the categorization of variables in terms of three levels. The results shows that this categorization is appropriate but the personal level. As the personal experiences of EDP in Korea used to come up with those of the organization, the variables in the personal level have high correlations with those in the macro level in empirical testing. As the personal level, however, is different dimension from the macro level in theoretical aspect, the level is maintained separately throughout the study. The data were analyzed with MANOVA and two group discriminant analysis. The analyses reveal that the characteristics of successful MIS are different from those of less successful MIS in terms of three levels. And the micro level is more important than the macro level to develop successful MIS. That is because the organizations have relatively few experience in dealing with information systems, they have not developed unique information systems which are adjusted to their organizational characteristics. Those findings seems to be important determinants of success for the MIS in a firm.

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