• Asia-Pacific Journal of Business
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• v.12 no.3
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• pp.213-233
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• 2021

Purpose - Our study examines the determinant factors of corporate financial fraud and whether the characteristics of outside directors tend to decrease the fraud in China. Design/methodology/approach - The data come from the enforcement actions of the Chinese Securities Regulatory Commission (CSRC). The multiple regression analysis were hired in order to analyze the data. Findings - Firms that have smaller size, higher debt ratio, or lower return of assets are associated with the incidence of fraud. However, the firms that have a high proportion of outside directors on the board or whose outside directors have a high compensation are less likely to engage in fraud. Our results show that outside directors monitor the actions of managers and thus help deter fraudulent acts. On the other hand, fraud is more associated with the local outside directors rather than outside directors who are from other locations. Since local outside directors tend to be more related with managers of firms, they can lose their independence. Research implications or Originality - Our findings have implications for the design of appropriate outside directors systems for China-listed firms. Moreover, our results imply that recruiting outside directors from other regions can improve the expertise and independence of outside directors in China. Our study contributes to provide more useful information about investors' investment decisions or management oversight and regulators' decisions on audit activities by disclosing information relating to the characteristics of outside directors.

• Asia-Pacific Journal of Business
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• v.12 no.2
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• pp.115-129
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• 2021

Purpose - This study aimed to clarify the effects of tax investigation probability on accounting transparency in KOSDAQ firms by using financial statement. In particular, it was analyzed whether the characteristics of a firm's listed market have a discriminatory effect on the relationship between the tax investigation selection rate (or detection rate) and earnings management. Design/methodology/approach - This paper examines analyzed the effect of tax investigation of the National Tax Service on the earnings management. The sample includes 9,603 firms listed on KOSPI and KOSDAQ from 2011 to 2018, all of which are manufacturing firms. This study conducted correlation and multiple regression analyses to verify the relationship between tax investigation probability and earnings management. The possibility of a tax investigation is the selection rate and the detection rate, and the profit adjustment was estimated at discretionary amount. Findings - As a result of empirical analysis, both firms listed on KOSPI and KOSDAQ markets showed that the higher the tax investigation rates, the more significant the possibility of reducing the earnings management of discretionary accruals. Additionally it was found that in KOSDAQ markets firms, the tax investigation detection rates had a signigicant nagative effect on discretionary accruals. Research implications or Originality - It can be interpreted that firms with a high rates of receiving a tax investigation decrease earnings management consideration of expenses such as additional tax amount due to the tax audit or a decline in corporate image.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.43 no.5
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• pp.659-666
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• 2023

Characterized by boom-and-bust cycles, low entry barriers, and an almost perfectly competitive structure, the construction industry presents a unique challenge for the survival and growth of its constituent companies. A crucial aspect of this challenge is the ongoing monitoring of their financial health and business performance. To understand the typical financial and operational status of construction companies, this study analyzes the financial statements of 6,252 such companies, all of which have undergone at least one external audit between 2000 and 2019. These statements were used to develop combined financial profiles and derive industry averages. The findings indicate that the construction industry experiences limited growth in sales and profitability. High leverage ratios can jeopardize financial stability, pushing companies to seek production efficiency, such as enhancing gross asset turnover. This tendency has been particularly noticeable in the aftermath of the global financial crisis in 2008.

• Journal of Preventive Medicine and Public Health
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• v.56 no.2
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• pp.145-153
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• 2023

Objectives: Although it is difficult to define the quality of stroke care, acute ischemic stroke (AIS) patients with moderate-to-severe neurological deficits may benefit from thrombectomy-capable hospitals (TCHs) that have a stroke unit, stroke specialists, and a substantial endovascular thrombectomy (EVT) case volume. Methods: From national audit data collected between 2013 and 2016, potential EVT candidates arriving within 24 hours with a baseline National Institutes of Health Stroke Scale score ≥6 were identified. Hospitals were classified as TCHs (≥15 EVT case/y, stroke unit, and stroke specialists), primary stroke hospitals (PSHs) without EVT (PSHs-without-EVT, 0 case/y), and PSHs-with-EVT. Thirty-day and 1-year case-fatality rates (CFRs) were analyzed using random intercept multilevel logistic regression. Results: Out of 35 004 AIS patients, 7954 (22.7%) EVT candidates were included in this study. The average 30-day CFR was 16.3% in PSHs-without-EVT, 14.8% in PSHs-with-EVT, and 11.0% in TCHs. The average 1-year CFR was 37.5% in PSHs-without-EVT, 31.3% in PSHs-with-EVT, and 26.2% in TCHs. In TCHs, a significant reduction was not found in the 30-day CFR (odds ratio [OR], 0.92; 95% confidence interval [CI], 0.76 to 1.12), but was found in the 1-year CFR (OR, 0.84; 95% CI, 0.73 to 0.96). Conclusions: The 1-year CFR was significantly reduced when EVT candidates were treated at TCHs. TCHs are not defined based solely on the number of EVTs, but also based on the presence of a stroke unit and stroke specialists. This supports the need for TCH certification in Korea and suggests that annual EVT case volume could be used to qualify TCHs.

• Journal of Korea Trade
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• v.26 no.4
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• pp.39-62
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• 2022

Purpose - Along with the growing awareness of environmental sustainability, international green entrepreneurship is expected to realize international sustainable development (ISD) by introducing ecological innovation results, using fewer resources consumption, and reducing negative environmental impacts. Building upon contingency theory and social network theory, this paper attempts to explore the role of home country-based networks (technology ties and business ties) as contingent factors that might impact the effectiveness of entrepreneurial orientation (EO) in promoting ISD among green ventures. Design/methodology - Original data were collected from 127 green ventures in China based on the random sampling technique. These green ventures mainly focus on the lower use of energy or materials, lower CO2 emissions, and higher ecological benefits located in the Fujian province, which highlights green economic growth and economic cooperation with international markets. Moderated hierarchical linear regression analysis was conducted to test our hypotheses concerning the main relationship between EO (innovativeness, proactiveness, and risk-taking) and ISD as well as the moderating effects of home country-based networks (technology ties and business ties) on the main relationship. Findings - Empirical results indicate that: first, both innovativeness and proactiveness positively affect ISD; second, both technology ties and business ties at home might significantly strengthen the positive relationship between innovativeness (or proactiveness) and ISD. However, this study did not find significant moderating effects of technology ties or business ties at home on the relationship between risk-taking and ISD. Originality/value - Since previous literature often gives more focus on the host country context of social networks, this study shifts to a home country-based network context. Therefore, our research might enrich the international green entrepreneurship literature by empirically investigating the contingent value of home country-based networks in the relationship between EO and ISD in the context of an emerging economy such as China.

• Korean Journal of Construction Engineering and Management
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• v.6 no.2 s.24
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• pp.120-128
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• 2005

ISO 9001, the quality management system issued by the International Organization for Standardization, is being used by architectural design and engineering firms in order to strengthen the capability of business activities through the implementation of the international and advanced quality management systems. However, there have been significant problems in stable implementation and settlement of ISO 9001 in construction industry, which seem to be caused by key employees' lack of proper recognition and comprehension. The purpose of this research, accordingly, is to find and analyze nonconformity results which were found when the third party registrars audited the conformity of companies' quality management systems for ISO 9001 certification especially in architectural design and engineering firms. For this purpose this research was conducted by a cluster analysis of 647 audit reports out of representative 15 architectural design and engineering firms that have been audited periodically from 1997 to 2003 by the third party registrars. The analysis showed that the most frequent problems were generated in the areas of $\ulcorner$Design and Development$\lrcorner$ , $\ulcorner$production and Service Provision$\lrcorner$ , and $\ulcorner$General requirements$\lrcorner$ of the quality management system. The following, the areas of $\ulcorner$Monitoring and Measurement$\lrcorner$ and $\ulcorner$purchasing$\lrcorner$ were also analyzed as main factors which caused frequent nonconformity results. This research also shows that the corrective actions for nonconformity results are closely connected with the whole management activities in architectural design and engineering firms. Consequently, corrective actions for disposition of nonconformities should be implemented more specifically in order to settle and activate the quality management systems in architectural design and engineering firms.

• The Korean Journal of Air & Space Law and Policy
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• v.28 no.1
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• pp.115-157
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• 2013

Some contracting States of the Convention on International Civil Aviation (commonly known as the Chicago Convention) issue FAOC(Foreign AOC and/or Operations Specifications) and conduct various safety audits for the foreign operators. These FAOC and safety audits on the foreign operators are being expanded to other parts of the world. While this trend is the strengthening measure of aviation safety resulting in the reduction of aircraft accident, it is the source of concern from the legal as well as economic perspectives. FAOC of the USA doubly burdens the other contracting States to the Chicago Convention because it is the requirement other than that prescribed by the Chicago Convention of which provisions are faithfully observed by almost all the contracting States. The Chicago Convention in its Article 33 stipulates that each contracting State recognize the validity of the certificates of airworthiness and licenses issued by other contracting States as long as they meet the minimum standards of the ICAO. Consequently, it is submitted that the unilateral action of the USA, China, Mongolia, Australia, and the Philippines issuing the FOAC to the aircraft of other States is against the Convention. It is worry some that this breach of international law is likely to be followed by the European Union which is believed to be in preparation for its own unilateral application. The ICAO established by the Chicago Convention to be in charge of safe and orderly development of the international civil aviation has been in hard work to both upgrade and emphasize the safe operation of aircraft. As the result of these endeavors, it prepared a new Annex 19 to the Chicago Convention with the title of "Safety Management" and with the applicable date 14 November 2013. It is this Annex and other ICAO documents relevant to the safety that the contracting States to the Chicago Convention have to observe. Otherwise, it is the economical burden due to probable delay in issuing the FOAC and bureaucracies combined with many different paperworks and regulations depending on where the aircraft is flown. It is exactly to avoid this type of confusion and waste that the Chicago Convention aimed at when it was adopted in 1944. The State of the operator shall establish a system for both the certification and the continued surveillance of the operator in accordance with ICAO SARPs to ensure that the required standards of operations are maintained. Certainly the operator shall meet and maintain the requirements established by the States in which it operate. The authority of a State stops where the authority of another State intervenes or where the former has yielded its power by an international agreement for the sake of international cooperation. Hence, it is not within the realm of the State to issue FAOC towards foreign operators for the reason that these foreign operators are flying in and out of the State. Furthermore, there are other safety audits such as ICAO USOAP, IATA IOSA, FAA IASA, and EU SAFA that assure the safe operation of the aircraft, but within the limit of their power and in compliance with the ICAO SARPs. If the safety level of any operator is not satisfactory, the operator could be banned to operate in the contracting States with watchful eyes until the ICAO SARPs are met. This time-honoured practice has been applied without any serious problems. Besides, we have the new Annex 19 to strengthen and upgrade with easy reference for contracting States. We don't have no reason to introduce additional burden to the States by unilateral actions of some States. These actions have to be corrected. On the other hand, when it comes to the carriage of the Personal or Pilot Log Book, the Korean regulation requiring it is in contrast with other relevant provisions of USA, USOAP, IOSA, and SAFA. The Chicago Convention requires in its Articles 29 and 34 only the carriage of the Journey Log Book and some other certificates, but do not mention the Personal Log Book at all. Paragraph 5.1.1.1 of Annex 1 to the Chicago Convention even makes it clear that the carriage in the aircraft of the Personal Log Book is not required on international flights. The unique Korean regulation in this regards giving the unnecessary burden to the national flag air carriers has to be lifted at once.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.432-438
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• 2011

The purpose of the present thesis is to develop bankruptcy prediction models capable of being applied to the Korean construction industry and to deduce an optimal model through comparative evaluation of final developed models. A study population was selected as general contractors in the Korean construction industry. In order to ease the sample securing and reliability of data, it was limited to general contractors receiving external audit from the government. The study samples are divided into a bankrupt company group and a non-bankrupt company group. The bankruptcy, insolvency, declaration of insolvency, workout and corporate reorganization were used as selection criteria of a bankrupt company. A company that is not included in the selection criteria of the bankrupt company group was selected as a non-bankrupt company. Accordingly, the study sample is composed of a total of 112 samples and is composed of 48 bankrupt companies and 64 non-bankrupt companies. A financial ratio was used as early predictors for development of an estimation model. A total of 90 financial ratios were used and were divided into growth, profitability, productivity and added value. The MDA (Multivariate Discriminant Analysis) model and BLRA (Binary Logistic Regression Analysis) model were used for development of bankruptcy prediction models. The MDA model is an analysis method often used in the past bankruptcy prediction literature, and the BLRA is an analysis method capable of avoiding equal variance assumption. The stepwise (MDA) and forward stepwise method (BLRA) were used for selection of predictor variables in case of model construction. Twenty two variables were finally used in MDA and BLRA models according to timing of bankruptcy. The ROC-Curve Analysis and Classification Analysis were used for analysis of prediction performance of estimation models. The correct classification rate of an individual bankruptcy prediction model is as follows: 1) one year ago before the event of bankruptcy (MDA: 83.04%, BLRA: 93.75%); 2) two years ago before the event of bankruptcy (MDA: 77.68%, BLRA: 78.57%); 3) 3 years ago before the event of bankruptcy (MDA: 84.82%, BLRA: 91.96%). The AUC (Area Under Curve) of an individual bankruptcy prediction model is as follows. : 1) one year ago before the event of bankruptcy (MDA: 0.933, BLRA: 0.978); 2) two years ago before the event of bankruptcy (MDA: 0.852, BLRA: 0.875); 3) 3 years ago before the event of bankruptcy (MDA: 0.938, BLRA: 0.975). As a result of the present research, accuracy of the BLRA model is higher than the MDA model and its prediction performance is improved.

• Health Policy and Management
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• v.12 no.2
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• pp.43-75
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• 2002

This study focuses on the factors that make the financial structure of hospitals in Korea different, and on recommended courses of action that could be very helpful to hospitals in maintaining a sound financial structure. Data used in this study were collected from 132 hospitals with complete general data of present conditions as well as financial statements. They were chosen from the 174 hospitals that passed the standardization audit undertaken by the Korean Hospital Association from 1996 to 2000 for the purpose of accrediting training hospitals. The dependent variable in this study is financial structure. It consists of liabilities as against total assets (total liabilities to total assets, short-term liabilities to total assets, long-term liabilities to total assets, short-term borrowings to total assets, long-term borrowings to total assets). The independent variables are ownership type, hospital type, location, whether or not a representative is a director of the hospital, the possibility of changing a hospital director, bed size, period of establishment, asset structure, profitability, growth, tax shields, business risk, competition. The factors that appear to have the strongest impact on the liabilities to total assets of all the hospitals sampled are ownership type, hospital type, profitability, tax shields, and business risk. It was found that not-for-profit private hospitals and for-profit private hospitals have more liabilities than public hospitals, and tertiary medical institutions have less liabilities than the secondary general hospitals. Moreover, hospitals earning more at the expense of high business risk have a distinct tendency to lower liabilities. Concerning the current ratio, it was found that factors such as ownership type, hospital type, period of establishment, asset structure, and business risk are the more significant variables. The current ratio of public hospitals is higher than that of both not-for-profit private hospitals and for-profit private hospitals, and the current ratio of tertiary medical institutions is higher than that of general hospitals. As business risk is higher in hospitals compared to other businesses, the current ratio becomes higher; this is because it is assumed that for fear of bankruptcy, hospitals lessen liabilities to total assets. On the other hand, as hospitals become older, the fixed assets to total assets become lower. It is remarkable that in hospitals, the factors affecting liabilities to total assets have an opposite regression coefficient sign against factors affecting current ratio. It brings out the same results borne out by the old financial theories and researches, in which a lot of the liabilities of hospitals are considered as the cause of worsening liquidity. Therefore, it is very important for hospitals to maintain a sound financial structure in order to survive using the rational acquisition and maintenance of capital.

• Journal of Korean Society of Transportation
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• v.28 no.2
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• pp.151-159
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• 2010

This paper presents a research result that was performed to develop a more accurate freeway crash prediction model than existing models. While the existing crash models only focus on developing crash relationships associated with highway geometric conditions found on a short section of a crash site, this research applies a different approach considering the upstream highway geometric conditions as well. Theoretically, crashes occur while motorists are in motion, and particularly at freeways vehicle speed at one specific point is very sensitive to upstream geometric conditions. Therefore, this is a reasonable approach. To form the analysis data base, this research gathers the geometric conditions of the West Seaside Freeway 269.3 km and six years crash data ranging 2003-2008 for these freeway sections. As a result, it is found that crashes fit well into Negative Binomial Distribution, and, based on the developed model, total number of crashes is inversely proportional to highway curve length and radius. Contrarily, crash occurrences are proportional to tangent length. This result is different from existing crash study results, and it seems to be resulted from this research assumption that a crash is influenced greatly by upstream geometric conditions. Also, this research provides the expected effects on crash occurrences of the length of downgrade sections, speed camera placements, and the on- and off- ramp presences. It is expected that this research result is useful for doing more reasonable highway designs and safety audit analysis, and applying the same research approach to national roads and other major roads in urban areas is recommended.