• Journal of Technology Innovation
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• v.2 no.1
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• pp.170-190
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• 1994

The importantce of a development of competitiveness in domestic construction industry is growing as some of domestic construction markets is scheduled to open to foreign competing firms with higher level of construction technology and management. A national level of competitiveness in domestic construction industry and firms are partially, but significantly, affected by a technology level and a characteristics of production pattern. The purpose of the study is mainly to analyze and identify a technology level, production pattern and a development stage of R&D activities of domestic construction industry and firms. Based on these findings the study draws on a concluding remarks and derives technology policy implications. Results of analysis in the study impliy that (1) competitiveness of domestic construction firms(industry) in terms of technology level is relatively weak as compare to that of advanced foreign competing firms, (2) degrees of substitution of capital for labor are seemed to be relatively high, (3) R&D (investment) activities of domestic construction firms are generally spread out in forms of import, adjustment and betterment, and (4) only a small number of big domestic construction firms are seemed to afford to R&D investment for research facilities and equipments, but not enough for higher level of R&D man-power. The study suggests that technology policy for construction industry should be based on a fundamental policy directions. For example the increase in size and heightened quality level of R&D man-power should be placed in a top priority in policy agenda. Sound and specific policy items should be developed for planning and design, and maintenace and inspection technology in order to lead domestic industry to compete with foreign firms with full strength.

• Management & Information Systems Review
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• v.25
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• pp.203-222
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• 2008

This thesis examines whether accounting information-earnings and book values-has the value relevance in the KOSDAQ. The study is motivated by previous studies which have examined the value relevance of accounting information. Prior researches have focused on KSE(Korea Stock Exchange). But, prior researches have not examined the value relevance of accounting information in KOSDAQ. So, this study examined the value relevance of accounting information which is disclosed by firms on KOSDAQ and whether accounting information between firms on KOSDAQ and KSE has the discriminative value relevance, underlying the expectation that KOSDAQ firms will have higher future profitability than KSE firms. In other words, book-value multiples of KOSDAQ firms is higher than book-value multiples of KSE firms and earnings multiples of KOSDAQ firms is lower than earnings multiples of KSE firms. The value relevance of accounting information is examined by a valuation framework presented by Ohlson(1995), which expresses the stock-price as a function of both earnings and book values of equity. The results indicate that accounting information of KOSDAQ has significant explanatory power for stock price over the 2005-2007 period. KOSDAQ firm are divided by Venture firms and Small to Mid size firms. KOSDAQ Venture firms have the discriminative value relevance, compared with KSE firms. But, KOSDAQ Small to Mid size firms have not the discriminative value relevance, compared with KSE firms.

• Knowledge Management Research
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• v.13 no.5
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• pp.1-13
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• 2012

This study investigates whether firm-specifics affect forecast accuracy using a sample of IPO firms in Korea. The forecasts accuracy can be differentiated depending on firm specifics. This study uses the foreign investor, intangible asset and patents as firm specifics. The analysts are divided into two groups by firm-specifies(foreign investors ratio of low and high, intangible asset ratio of low and high, patents of acquisition) and also examine the degree of analysts's forecast accuracy over the two groups. and examined the degree of the analysts' forecast accuracy over the two groups. The sample is composed of 460 IPO (Initial Public Offering) firms listed on the KOSDAQ (Korean Securities Dealers Automated Quotations) for the period from 2001 to 2009. The analysts' forecast accuracy is much higher in the group of high foreign investor but is lower in the group of high intangible assets and patents. Also, the group of high foreign investors respectively interacts with group of high intangible assets ratio and group of patents of acquisition. In result, The analysts' forecast accuracy is higher because foreign investor is decreased information asymmetry. This study compares suggests that patents may be helpful for predicting forecast accuracy.

• International Area Studies Review
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• v.14 no.2
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• pp.79-105
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• 2010

This paper investigates empirically the impact of foreign investors on a firm's dividend and investment decision making in Korean stock market. Empirical results using the sample firms in non-financial firms listed in Korean stock market whose settlement month are December, we find that foreign investors who declared participation in management didn't exert significant impact on dividend increase. In the case of investment, foreign investors exerts significant impact on R&D investments. Using Hausman-Taylor Instrumental Variable method, we controlled endogeneity problem related with foreign ownership and dividend and investment policy. The contribution of this paper is that the purpose of foreign investors whether or not participate in management is the most critical point and the impacts of foreign investors on dividends and investment are different whether they participate in management or not.

• Journal of Korea Trade
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• v.26 no.3
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• pp.45-62
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• 2022

Purpose - Using unexpected changes in geopolitical tensions on the Korean peninsula as a quasi-natural experimental setting, we examine whether and how geopolitical risks travel across borders through firm-level imports and exports linkages. We also test whether the effects are driven by either imports or exports and assess whether firms can effectively hedge themselves against geopolitical risks. Design/methodology - We focus on a series of unanticipated geopolitical events taken place in Korea in 2018. Making use of the shocks to geopolitical climate, we identify five milestone events toward peace talks. We employ the event studies methodology. We examine heterogenous firm-level stock price reactions around key event dates depending on firms' exposure to geopolitical risks. As a measure of firms' exposure to geopolitical risks in Korea, we utilize a text-based measure of firm-level trade links. When a firm announces and discusses its purchase of inputs from Korea or sales of outputs to Korea in their annual disclosure filings, we define a firm to have a trade relationship with Korea and have exposure to Korean geopolitical risks. Similarly, we use a measure of a firm's hedging policies based on a firm's textual mention of the use of foreign exchange derivatives in their annual disclosure. Findings - We find that U.S. firms that have direct trade links to Korea gained significantly more value when the intensity of geopolitical risks drops compared to firms without such trade links to Korea. The effects are pronounced for firms purchasing inputs from or selling outputs to Korea. We find that the effectiveness of foreign exchange hedging against geopolitical risks is limited. Originality/value - We document the international transmission of geopolitical uncertainty through trade linkages. Export links as well as import links serve as important nexus of transmission of geopolitical risks across borders. Hedging strategies involving foreign-exchanges derivatives do not seem to insulate firms again geopolitical risks. With the recent movements of localization and reshuffling of the global value chain, our results suggest a significant impact of geopolitical risks in Korea on the construction of the global value chain.

• International Commerce and Information Review
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• v.11 no.4
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• pp.183-214
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• 2009

We identify key theoretical approaches, constructs, and primary variables of interest that exist in the foreign market entry mode articles. This provides fertile ground for continued development in our foreign market entry mode research. Using the integrated framework, this paper examines the determinants of foreign market entry mode choice by Korean firms and the impact of the entry mode choice on performance in a unified model. Using a database of KIS-VALUE in Korea from 2003 to 2005, we find that the hypothesized effects of related factors on entry modes are partially supported.

• Journal of Korea Port Economic Association
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• v.22 no.1
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• pp.105-124
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• 2006

We, in this paper, suggest the Yeosu internationalization strategy for holding the 2012 World EXPO in Yeosu successfully, First of all, we analyze some problems that hinder the internationalization of Yeosu. Our analysis, also, provides several strategic solutions to those problems by foreign direct investment, international trade, hub port development, and international tourism. first strategy is to create a more favorable business environment for foreign investors. Foreign direct investment is the most effective way to internationalize the specific district. Second strategy is to expand the export of small and medium-sized firms in Yeosu. Especially, local firms with agricultural/fishery products have to develop various new products and introduce the effective international marketing strategy. Final strategy is to develop the hub port in Yeosu and the new tourist resources to attract foreign tourists.

• Korean small business review
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• v.42 no.3
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• pp.195-220
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• 2020

In this study, we examined the effects of major shareholder's holdings and foreign shareholder's holdings on capital structure with the samples of listed non-financial firms in KOSPI and KOSDAQ. More specifically, we conduct the data on 7,074 large firms and 2,394 SMEs(Small-Medium Enterprises) before and after the adoption of K-IFRS from 2002 to 2019. The main results can be summarized as follows. The results indicate that the adoption of K-IFRS affects the capital structure of large firms more than SMEs. The major shareholder's holdings and the foreign shareholder's holdings of the large and SMEs listed on the KOSPI and the KOSDAQ market have a significant effect on the leverage ratio. It can be seen that major shareholders of large firms and SMEs reduce the leverage ratio by recognizing the use of debt as financial risk. In addition, it can be seen that regardless of whether or not K-IFRS is adopted, foreign shareholders recognize the use of debt as financial risk and reduce the leverage ratio in order to reduce the investment risk.

• Journal of Korea Trade
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• v.24 no.1
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• pp.35-58
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• 2020

Purpose - This study examines the determinants of foreign direct investment (FDI) location choice for Chinese firms, focusing on the agglomeration effect for firms of the same nationality. Design/methodology - The empirical data are China's inward FDI from the top 19 economies (excluding tax havens and Taiwan) in terms of FDI during 1997-2015 and China's outward FDI from the top 18 economies (excluding tax havens). This study uses a random effects generalized least squares model for panel data analysis. Findings - The results confirm that both host countries' costs and market conditions and the degree of agglomeration affect these countries' attractiveness for FDI inflows. Specifically, agglomeration has a significant effect on China's inward and outward FDI. This study confirms that the agglomeration of firms of the same nationality has predictive power for multinational enterprises' FDI location choices. The host countries' real GDP and trade openness also positively affect FDI inflows. Interestingly, however, China's production cost has a positive effect. Thus, inward FDI aimed at entering the Chinese market is increasing in recent years relative to the previous efficiency-seeking FDI. Inward FDI in China is therefore the market-entry type, whereas outward FDI by Chinese firms is the market-oriented type. Originality/value - These results suggest that the effects of the potential determinants of Chinese outward FDI are similar to those of inward FDI as China's trade liberalization progresses.

• Journal of Technology Innovation
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• v.6 no.2
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• pp.54-79
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• 1998

Entering the 1990s, Korean economies experienced the high-cost and low-efficiency situation which evetually caused many Korean firms led to relocate their production facilities to lower labor cost countries. This paper aims to draw out the characteristics of FDI and to evaluate the impacts of FDI in manufacturing sectors. Firstly, we try to categorize the indutries into three groups, labor intensive, capital intensive, and the technology intensive industries figuring out the characteristics of FDI of Korean firms. Secondly, we compare the three categories by grouping high and low foreign investment areas using value added data. Thirdly, we analyse the impacts of foreign production relocation the number of firms, production volume and jobs creation in Korea during the period 1991-1996. This paper concludes that the FDI of Korean firms concentrates to labor intensive industry and the hollowing effect caused by FDI was observed partially in the labor intensive industry.