• Journal of Korea Trade
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• 제27권1호
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• pp.60-78
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• 2023

Purpose - The study analyzed 90 online firms worldwise and observed them for ten years to investigate their investments and firm performance variabilities. This study attemped to verify the existence of agency problems in online firms. Through this, the paper intends to expand the scope of research in the fields of investment and firm value both empirically and in theory. This study also attempted to supplement the insufficient logic of previous studies by analyzing the relationship between investment and profitability. Design/methodology - In this study, the investment is subdivided into over-, under-, and neutral investments, and an empirical analysis of the firm performance was conducted. As investment generally has long-term effects, the impact of a firm's investment on future firm performance and variabilities in firm performance was considered over the short-and medium-term period. Findings - It was found that there was a negative relationship between firms with an overinvestment and future firm performance. Underinvestment has no clear statistically significant results on firm performance. This implies that overinvestment causes more reduction in future firm performance than underinvestment. It was also found that underinvestment and overinvestment significantly increased the variability of firm performance. A positive significance was found between under- and over- investment with a variability of 3 years and overinvestment with a variability of 4 years in the future. A negative relationship was found between neutral investment propensity and future performance variabilities. Neutral investment has less effect on the future performance variability of a firm than a firm's overinvestment and underinvestment. For online firms, underinvestment and overinvestment have a greater effect on the firm's future performance variability than neutral investment. Originality/value - The agency theory predicts that information asymmetry and adverse selection problems exacerbate conflicts of interest among stakeholders, thus firm performance. The study contributed to accumulating research on online firms that are currently underexplored by analyzing the investment behavior of major firms in the online industry.

• 경영과정보연구
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• 제25권
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• pp.43-68
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• 2008

From intuitional viewpoint many researchers have been considering that information technology investment serves to increase the productivity and the profitability of firm. But the empirical studies that have examined the relationship between information technology investment and firm performance have reported mixed findings. In spite of that, recently there has been growing recognition of the importance of assessing information technology investment in determining future performance of firms. This study examines the relationship between investment in information technology and performance of securities companies in Korea. I use Tobin's Q, a financial market-based measure of firm performance and investigates the pure effect of information technology investment on firm performance after controlling for a variety of firm specific variables which may affect on firm performance. This study finds that information technology investment have a significantly positive association with Tobin's Q. This result implicates that information technology investment contributes to a firm's future performance potential.

• The Journal of Asian Finance, Economics and Business
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• 제6권3호
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• pp.305-313
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• 2019

The study examines whether higher CEO compensation is related to unobserved future firm performance in an emerging market, Pakistan. Further, it extends its scope to analyzing the impact of group affiliation and ownership concentration on the relationship between CEO compensation and future firm performance. The study uses an unbalanced panel data consisting of 1508 firm-year observations from 225 non-financial listed companies in Pakistan Stock Exchange (PSX) for period 2005 to 2012. The multiple regression models adjusted to heteroskedasticity and autocorrelation in error terms are used. The study finds that, in general, CEO compensation is positively associated with future operating performance. However, higher CEO compensation leads to lower operating performance in firms that have lower ownership concentration and are affiliated with business groups. When firms are not affiliated with any group and have high ownership concentration, the relationship between excessive CEO compensation and future operating performance becomes insignificant. Given that efficient compensation packages may lead to long term value creation to shareholders and reduce agency problems, this study highlights an important moderating role of ownership concentration and group affiliation of the firms in emerging markets.

• 한국콘텐츠학회논문지
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• 제17권6호
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• pp.319-328
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• 2017

이익조정이란 실제 기업성과대로 이익을 보고하지 않는 경영자의 의사결정에서 비롯된다. 많은 선행연구들은 이익조정이 경영자의 사적 이득을 얻기 위한 기회주의적 행위뿐만 아니라 기업의 미래전망에 대한 경영자의 사적 정보를 전달하는 수단이 될 수 있다고 주장하였다. 본 연구에서는 국내 공공기관의 이익조정과 미래 경영성과와의 관계를 분석함으로써 이익조정의 함축의미를 실증적으로 분석하고자 하였다. 만약 재량적 발생액으로 측정된 당기의 이익조정이 경영자의 사적 정보를 반영하고 있다면 미래 경영성과를 견인하게 되므로 차후기간의 경영성과와 양(+)의 관계를 나타낼 것으로 예상된다. 반대로, 재량적 발생액이 경영자의 기회주의적 이익조정 의사를 반영한다면 이는 차후기간의 경영성과에 부정적인 영향을 줄 것으로 예상된다. 분석결과, 당기의 이익조정은 미래 경영성과와 음(-)의 관계를 나타내었으며, 이러한 관계는 차기 이후 모든 분석기간 지속적으로 나타났다. 위의 결과는 국내 공공기관의 이익조정이 평균적으로는 경영자의 기회주의적 조정동기를 반영하고 있음을 밝히는 실증적 증거라 할 수 있다.

• 산업경영시스템학회지
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• 제40권4호
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• pp.1-9
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• 2017

Companies must capture value for sustainable growth. Capturing value is a critical task for companies, particularly when operating own businesses and organizations or starting new business. The business strategy of many companies focuses on capturing the maximum value from customers and other stakeholders. Even though a wide range of studies on value creation and appropriation has been conducted in the strategic management field, most of studies are still conceptual and theoretical. Thus more empirical studies are required to suggest future-oriented value strategy. This study reveals the value creation and appropriation elements in the aviation industry of Korea. The purpose of this study is to understand the trend of value creation and appropriation in the industry. In addition, the relationship between the elements and firm's performance are tested. The firm's performance is defined by that past and future point of views. The sample were collected from Korean Air and Asiana Air. The empirical test shows that the elements of value creation-appropriation have significant impact on firm's performance. Further, the element of value appropriation to customer has a positive impact both on firm's past and future performance. Our results show that investors acknowledge a value-based strategy as a sign of stock valuation. The results of this test correspond with the earlier one, showing that maximizing customers value rather than shareholder value does deliver impressive returns. The finding suggest that companies need to change their strategy to efficiently manage performance. With the test results, we propose a value-based strategy to maximize firm's future financial and stock performance.

• 한국경영공학회지
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• 제23권4호
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• pp.125-141
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• 2018

As global competition is intensifying, companies are entering not only developed markets but also emerging and developing countries. In emerging and developing countries, business-to-governmental relations are an essential factor influencing the firm performance. The purpose of this research is to examine the effects of corporate political activities on firm performance. Using the BEEPS data developed by the EBRD and the World Bank, the effect of various bribery activities regarded as corporate political activities on the firm performance was examined. Also, the moderating effect of competition type on the firm performance was proved. As the results, the bribery contribution, which is a corporate political activity, has a positive effect on the firm performance. Specifically, when infrastructure bribery occurred, costs and sales were higher, and when permission bribery was granted, profits, costs, and sales were higher. In addition, the effect of bribery as a corporate political activity on firm performance is moderated by competition type. These findings have academic and practical implications for empirical analyzing of SMEs' firm performance, guidelines suggestion for entry into the other countries, generalization possibility of using credible data, developing and designing export support systems and programs. Finally, limitations of the research and future research directions were discussed.

• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.277-287
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• 2021

This article systematically reviews the adoption of total quality management (TQM) implementation and corporate social responsibility (CSR) initiatives on firm performance. A total of 233 published documents from 1996 to 2020 in international journals have been collected and listed on the SCOPUS database. It aims to fill the existing literature gap regarding TQM and CSR practices and point out a future research agenda. This study employed a systematic literature review approach to review those manuscripts related to TQM, CSR topics focused on firm performance. Consequently, the results stressed that TQM and CSR are excellent tools and have a similarity to support the firms to attain corporate sustainability; however, TQM practices have given more interest than CSR initiatives. Moreover, the results highlighted that only a few articles are interested in simultaneously combining TQM and CSR initiatives although this idea is rising in recent years. Thus, the statistical findings indicated several research gaps that remain unaddressed. It is worthy of considering TQM and CSR integration; however, other scholars need to identify the critical success factors that could enable TQM practices or barriers to CSR adoption. Particularly spending more attention on the transitional economies context, which is considering a promising future research context.

• 품질경영학회지
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• 제49권3호
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• pp.313-326
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• 2021

Purpose: Prior studies have sought to find antecedent to improve firm performance. However, research on compensation systems and employees' psychological mechanisms have been relatively limited. In this sense, this study has investigated the impact of compensation gap between TMT and employees on firm performance, and explored the factors that affect the above relationship. Specifically, this study analyzed the direct impact of compensation gap on firm performance. In addition, the process of compensation gap to firm performance is assumed to be significantly influenced by employees' recognized promotion system and satisfaction with TMT. Therefore, we examined moderating effects of both promotion probability and opportunity, and satisfaction with TMT on the relationship between compensation gap and firm performance. Methods: For empirical test, financial variables were collected from TS-2000 database, and moderating variables were collected form Job Planet for listed firms in Korea. We conducted hierarchical regression analysis to test hypotheses. Results: The findings of empirical analysis are as follows. First, compensation gap between TMT and employees had a positive effect on firm performance. Second, when promotion probability and opportunity was high, the effect of compensation gap on firm performance was strengthened. Third, when satisfaction with TMT was high, the positive effect of compensation gap on firm performance was also strengthened. Conclusion: Our findings have expanded prior research on human resource management and labor relation by identifying the positive role of compensation gap between TMT and employees on firm outcome. Moreover, our results also indicated that promotion probability and opportunity, and satisfaction with TMT, which has not been addressed well in previous studies, were important conditions enhancing the positive relationship between compensation gap and firm performance. Finally, this study suggest several theoretical and managerial implication with future research direction.

• The Journal of Asian Finance, Economics and Business
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• 제7권8호
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• pp.247-257
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• 2020

This study aims to examine the effects of integrated performance measurement on firm success of beverage businesses in Thailand. Integrated performance measurement, organizational commitment, organizational citizenship behavior, and firm success are the main variables of the study. In this study, all 653 beverage businesses from Department of Business Development, Ministry of Commerce, Thailand are the samples of the study. The data collection was provided during February - April, 2016. A mail survey procedure via questionnaire was used for data collection. 163 responses were received. Of the surveys completed and returned, 159 were usable. The structural equation model (SEM) is conducted to examine the effects of integrated performance measurement on organizational commitment, organizational citizenship behavior and firm success. The results show that integrated performance measurement positively influences organizational commitment, organizational citizenship behavior and firm success. Organizational commitment positively affects both organizational citizenship behavior and firm success while organizational citizenship behavior positively impacts firm success. In summary, integrated performance measurement as a strategic management accounting approach is a key determinant of firms' business outcome. Firms need to support their resources and capabilities in developing, implementing, utilizing, and maintaining integrated performance measurement. Potential discussion, conclusion, and suggestions and directions for future research are highlighted.

• Journal of Information Technology Applications and Management
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• 제30권6호
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• pp.31-52
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• 2023

The government's various support policies have helped Korea's SMEs and startups to grow from the beginning to the end, from domestic companies to exporters. In particular, direct business support policies such as financial support, R&D projects, and export support have been effective in helping a large number of entrepreneurs and startup companies to establish themselves in the market and have achieved tangible results every year since the establishment of the Ministry of SMEs and Startups. As such, the government is making significant efforts to create and promote various types of support policies and to help companies utilize them in their business. However, this study aims to analyze the factors that affect the satisfaction of government policies and the achievement of managerial performance from the companies' perspective and to suggest the purpose of government support policies and the direction companies should take. Specifically, this study categorizes entrepreneurial self-efficacy into marketing, innovation, management, risk-taking, and financial management, using the relationship model of self-efficacy and collective efficacy to ultimately lead to practical results for SMEs and startups support policies. It uses perceived firm efficacy as a variable to reveal the influence relationship. In addition, the direct and mediating effects of entrepreneurial self-efficacy and policy satisfaction on managerial performance were analyzed to determine what SMEs and startups support policies should do. The results showed that, first, among the five components of entrepreneurial self-efficacy, innovation, and risk-taking efficacy positively affected perceived firm efficacy. Second, the specific components of entrepreneurial self-efficacy, marketing, and financial management efficacy positively influenced policy satisfaction. Third, we found that perceived firm efficacy positively influenced policy satisfaction and managerial performance, which are factors of SMEs and startups' policy performance. Specifically, perceived firm efficacy positively influenced policy satisfaction managerial performance. Fourth, we found that policy satisfaction positively influenced managerial performance.