• Journal of Korea Technology Innovation Society
• /
• v.21 no.4
• /
• pp.1474-1492
• /
• 2018

This study empirically analyzes the direct effects of government support for SMEs (project success) and indirect effects (sales growth) focusing on the differences between financially difficult firms (so-called 'zombie' firms) and 'normal' firms. If the zombie firm has a problem in technology development (success of the project) and the economic resilience capability (sales growth), then excluding them from the government's R&D support programs would enhance the overall efficiency of the programs. If not, government R&D could complement the market failure and play a positive role in revitalizing marginal firms. In this study, we collected data about 7,575 firms who participated in seven government R&D programs in 2013 and 2014. As a result of the logistic regression analysis, we did not find evidence that the likelihood of success for zombie firms was lower than that for the normal firms. However, the tendency of sales growth after the project was smaller for the zombie firms than for the normal firms. For zombie firms, we also found that firms that succeeded in the project were more likely to increase sales than those that failed.

• Journal of Labour Economics
• /
• v.34 no.3
• /
• pp.1-28
• /
• 2011

This paper empirically tests the theory that labor demand elasticity of unionized firms would be smaller than that of nonunionized firms, using the Korean firms' panel data for 1990-2009. The major findings are the following: First, the estimates of labor demand elasticity of unionized firms are in the range of 0.34-0.49, less than a half of those of nonunionized firms, hence supporting the theory. Second, the unionized firms are more rigid in dynamic adjustment of employment than nonunionized firms. Finally, there are no significant differences between unionized and nonunionized firms in the elasticity of substitution.

• Journal of Information Technology Applications and Management
• /
• v.21 no.1
• /
• pp.165-176
• /
• 2014

This paper was tried to show the improvement model for software industry structure in Korea regarding to have the global level of competence in Korean software firms. To suggest the improvement model for software industry structure, the detailed status about software industry which as in the supply and demand perspectives and comparativeness dimension were analysed. Also to this model the special survey results from the 35 professionalists in the software industry were included. This improvement model suggests the big software firms have to consider the economy of the scale, and to enter global IT market, the other SMEs have to pursuit themselves as a specified technology firms. So it is good for the oversea project collaboration with the solution provider firms and IT service firms. And it is desirable to make a the economy of scale regarding as the solution venture startup, M&A, networking the software firms as supply chain. Also the development of new business model for new market and firms with the high-tech business competency will be required.

• The Journal of Information Systems
• /
• v.14 no.1
• /
• pp.107-124
• /
• 2005

ERP systems are comprehensive sorfware packages that seek to integrate the complete range of lbusiness processes and functions in order to present a heuristic perspectives of a firm from a single information and information technlogy architecture. The ERP systems have delicate internal controls with built-in devices. It is known that the delicate internal controls help to enhance the accounting transparency. We empirically investigate the relationship between the ERP systems inplementations and an accounting transparency. In order to measure the accounting transparency differences, we compare the ERP systems implementation firms with firms which did not implement the ERP systems by 6 financial ratios (accruals, net profit margin, operation cash folo to sales, total debt to equity, accounts receivable changes, assets quality). Data are collecte from 135 firms implemented the ERP systems and 135 firms non-implemented the systems (the firms listed in the Korea Stock Exchange). We analyze financial statements from 270 firms for the period 2001-2003 to ezamine the 6 financial ratios differences. The results of 810 firms analyses over the 3-year period indicate that the ERP systems implementation firms show the statistically significant differences in the accrual ratio, the net profit margin ratio, operating cash flow to sales ratio, and total debt to equity ratio from the ERP systems non-implementation firms. But there is statistically no differences between the two groups for accounts receivable changes to sales ratio and assets quality.

• The Journal of Asian Finance, Economics and Business
• /
• v.5 no.4
• /
• pp.9-20
• /
• 2018

Global rating agencies, such as Moody's and S&P, have assigned credit ratings to corporate bonds issued by Japanese firms since 1980s. Local Japanese rating agencies, such as R&I and JCR, have more market share than the global raters. We examine the yield spreads of 1,050 yen-denominated corporate bonds issued by financial firms in Japan from 1998 to 2014 and find no evidence that bonds rated by at least one global agency are associated with a significant reduction in the cost of debt as compared to those rated by only local rating agencies. Unlike non-financial firms, the reputation effect of global rating agencies does not exist for Japanese financial firms. We also observe that firms with less information asymmetry are more likely to acquire ratings from Moody's or S&P. Additionally, the firm's financial profile does not affect its choice to seek out ratings from global raters. Our findings are contradictory to those by Han, Pagano, and Shin (2012), who employ bonds issued by non-financial firms in Japan. Our conjecture is that the asymmetric nature of financial firms makes investors less likely to depend on a credit risk assessment by rating agencies in determining the yields of new bonds.

• Journal of Technology Innovation
• /
• v.14 no.3
• /
• pp.71-92
• /
• 2006

There may exist differences in R&D patterns between multinational enterprises and domestically owned firms located in catching-up countries. This paper examines the differences in R&D patterns between different ownership in Korea. In order to do this, the paper has conducted the in-depth interview of the major multinational and local firms. The interviewed firms has been selected mainly from the telecommunication, semiconductor and display industries. The paper reveals that multinational firms tend to focus on sales-oriented R& while domestically owned firms are likely to cover the range of development, applied and basic research. The most outstanding difference lies in the length of R&D period. The domestic firms apparently turn out to conduct longer period R&D projects than multinational firms. In addition it is revealed that local firms need to develop their own capability, whereas foreign companies in Korea can acquire advanced technology and scientific knowledge from the R&D centers in their home countries. On the basis of the research findings, this paper discusses some implications and recommendations for Korea and other catching-up countries.

• Korean Management Science Review
• /
• v.30 no.2
• /
• pp.79-95
• /
• 2013

In this study, we empirically examine the impact of win-win growth effort of domestic large firms on their financial performance. Specifically, we classify the financial performance into three aspects such as profitability, stability and efficiency, select corresponding financial ratios to each aspect, and analyze the causal relationship between the firms' win-win growth effort and each of the financial ratios. In addition, we figure out the impact of the firms' win-win growth effort on their stock rate of return. From the analysis, we show that the win-win growth effort has a positive impact on the firms' profitability, stability and stock prices; however, it does not give statistically significant impact on the firms' efficiency with even negative impact on it. These results imply that the firms' win-win growth effort could bring about inefficiency in their business operations, but the effort could increase the firms' profitability and make their financial structure more stable. Furthermore, the effort could enhance the firms' image of leading CSR (corporate social responsibility), which in turn increase their stock values.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.8
• /
• pp.25-31
• /
• 2020

The purpose of this paper is to examine a financial distress premium in the emerging market. A risk-return trade-off of negative book equity (NBE) and distress firms is empirically analyzed using data from the Stock Exchange of Thailand. This research employs Ohlson's (1980) bankruptcy model as a measurement of distress risk. The results indicate that distress firms outperform solvent firms in the Thai market and deny distress anomaly often found in the developed market. Fama-Frech (1993) three-factor model and Carhart (1997) four-factor model verify the existence of a distress premium in the Thai capital market. Risk-seeking investors demand greater compensation for bearing risks of distress firms' going concern. This paper provides fresh evidence that default risk is a significant explanatory factor in pricing stocks in the emerging market. Also, this study sheds light on the role of NBE firms in asset pricing. Most studies eliminate NBE firms from their sample. However, NBE firms yield superior average cross-sectional returns, albeit with higher volatility. Investors are rewarded with distress risks associated with NBE firms. The outperformance of NBE firms is statistically significant when compared to the overall market. The NBE premium disappears when factoring size, value, and momentum in time-series analysis.

• Journal of Information Technology Services
• /
• v.18 no.4
• /
• pp.39-53
• /
• 2019

This article analyzes the effects of regulation that restrict the conglomerate firms to participate in the public procurement of software. The regulation was implemented in 2013, and this article analyzes five years of firm performance before and after 2013 through DID (difference-in-difference method). In particular, this article analyzes how restrictions on conglomerate firms' participation in public software procurement affect middle and small firms performance. As a result, small-size firms achieve relatively positive results in private sector revenues compared to mid-size firms. However, there was no significant difference between the mid-size and small-size firms in profit margin. This study implies that the new policy is needed to improve the small and medium-size firms revenues on the private market by leveraging the public procurement market which restricted the conglomerate firms to participate. This can be done by complementing the regulation in line with servitization paradigm.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.4
• /
• pp.819-826
• /
• 2021

This study aims to determine the impact of product consumption strategy and financial autonomy on the competitiveness of technology firms in Vietnam. This study employs panel data of 27 technology firms collected from listed financial statements of the business for the period (2010-2019). The study also uses some indicators reflecting the macroeconomic situation of the economy collected from the World Bank. Instead of Exploratory Factor Analysis which has been used before, the study uses the feasible generalized least squares (FGLS) estimation as the main method. The FGLS corrects the variance changes and autocorrelation on the dataset of these Vietnamese technology firms. The results reveal that the strategy of product consumption and financial autonomy positively affect the competitiveness of technology firms. These are also two core factors of the technology industry, which have a strong impact on the increase in the competitiveness of firms. The findings of this study suggest that technology firms do not need to invest in many long-term assets, but mainly in short-term assets in order to quickly respond to the strategies for consuming new technology products of the business. In addition, the increase in Gross Domestic Product per capita also positively affects the increase in the competitiveness of technology firms.