• Journal of Digital Convergence
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• v.12 no.3
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• pp.177-187
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• 2014

We investigate the association between tax strategy and investment efficiency focusing on manager's investment decision. Specifically, we examine the effect of manager's tax avoidance on the firm's investment level. The result show that as the degree of tax avoidance becomes higher firm's over investment increases. This result implies that the available resources generated from firm's tax avoidance induces over investment. Prior researches have been interested in the effects of firm's tax strategy on firm value. However, there is little literatures regarding the effects of firm's tax strategy on management's real investment decisions which provides the important implications about the mechanisms between tax strategy and firm value. In this respect, our research provides a meaningful results which demonstrates the effects of firm's tax strategy on manager's real investment decisions. This will provide useful implications for the investors and government regarding manager's tax avoidance behavior.

• Journal of Korea Trade
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• v.27 no.1
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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.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.15 no.7
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• pp.1405-1414
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• 2011

This paper analyzes the impact of the change in telecommunication regulation on network investment such as the integration of telecommunication service. The integration of telecommunication service plays a role of separating the behavior regulation from entrance regulation and reducing a entrance constraints. Therefore, it is expected that the market spill over effect is high through the improvement of behavior regulation such as interconnection regulation, facilities provisions, retail price regulation, bundling, number portability of VoIP. This paper discusses the critical factor affecting the decision making process in respect of the firm level and analyzes the impact path guiding investment and innovation. Finally, the paper proposes the guideline for telecommunications policy.

• Journal of Korea Trade
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• v.23 no.7
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• pp.147-155
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• 2019

Purpose - As the U.S.-China trade war has become considerably worse, the Chinese government is considering applying non-tariff barriers to trade, especially local contents rule. The main purpose of this research is to check whether it is suitable for Korean investors to invest in the current Chinese capital market. Design/methodology - In order to check the stability of the recent Chinese capital market, we investigated the behavior of foreign equity investment (including Korean equity investment) in the Chinese capital market after China announced the Shanghai-Hong Kong Stock Connect (SH-HK Connect). In this paper, we researched whether international portfolio investment would or would not contribute to an increase the volatility of an emerging market's stock market (Chinese capital market) when foreign investors make investment decisions based on the objective of short-term gains by rushing into countries whose markets are booming and fleeing from countries whose markets are falling. Findings - The empirical results indicate that foreign investors show strong, negative feedback trading behavior with regard to the stock index of the Shanghai Stock Exchange (SSE), and when the performance of foreign investors in the Chinese stock market was fairly good. Also, we found evidence that the behavior of foreign investors significantly decreased volatility in SSE stock returns. Consequently, the SH-HK Connect brought on a win-win effect for both the Chinese capital market and foreign investors. Originality/value - It appeared that the Chinese capital market was very suitable for Korean investors after the China's declaration of the SH-HK Connect. However, the win-win effect was brought on by the Chinese government's aggressive capital control but the capital controls could possibly cause financial turmoil in the Chinese capital market. Therefore, Chinese reform in industrial structure and the financial sector should keep pace with suitable capital control policies.

• Journal of the Korean Data and Information Science Society
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• v.25 no.1
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• pp.107-117
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• 2014

The main purpose of this study is to propose a portfolio investment strategy based on investor types information. For improvement of investment performance, artificial intelligence techniques are used to construct a portfolio. Among many artificial intelligence techniques, cluster analysis is applied to select securities and genetic algorithm is applied to assign the respective weight within the portfolio. Empirical experiments in the Korean stock market show that proposed portfolio investment strategy is practicable and superior strategy. This result implies that analysis of investor's trading behavior may assist investors to make an investment decision and to get superior performance.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.99-106
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• 2020

CEOs Overconfidence can bring potentially risky early decisions to businesses, along with large enterprise free cash flow that can bring different investment decisions with CEOs Overconfidence. Especially in the context of Vietnamese enterprises, CEOs are often influenced by behavioral psychology about overconfidence in investment decisions (due to individual cultural characteristics as well as operating financial markets also depend on many factors outside the market). Therefore, the authors study the impact of overconfidence and cash flow on investment in Vietnamese to find the internal relationship between these three factors in the financial environment in Vietnam. With 480 companies listed on the Vietnam Stock Exchange from 2014 to 2018 (companies have continuous reports), the regression analysis results with panel data (FEM, GLS models, correction of robust and GMM dealing with endogenous problems) have shown Overconfidence has a positive impact on investment. At the same time, the results also indicated that enterprises with overconfident CEOs and large cash flows tend to invest less than enterprises with low cash flow. The results of this study have shown the behavioral behavior of CEOs in Vietnamese enterprises that exist under both prospect theory and effective market theory.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.16 no.9
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• pp.5982-5988
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• 2015

This study is about what effect the proverb of the stock has on the investment behavior by the stock investors. It confirmed if the investors knew the stock proverb that had been used in the stock market for a long time, examined the stock investors applied this content to the real investment process, analyzed if the application influenced the investment result. For this, this study selected total 29 stock proverbs about the investment principle, diversified investment, item selection, time of buying and selling, and value tendency which were being used in the stock market and frequently quoted in the stock-related literature to conduct a questionnaire targeting 191 stock investors and analyze the result. As a result of the analysis, it was confirmed the investors of 14% applied the stock proverb to invest and created the profit through it. It is expected the stock investors and the stock market used the analyzed stock proverb statistics through these helpful study and results to apply to the stock investment.

• Industry Promotion Research
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• v.8 no.2
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• pp.11-19
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• 2023

The purpose of this study is to analyze the effect of economic uncertainty on business innovation. To this end, Ahir et al. (2018) World Uncertainty Index (WUI) is selected as a proxy for economic uncertainty, while total R&D investment (RD), capitalized R&D investment (RD_A), expensed R&D investment (RD_E), and the proportion of capitalized R&D investment to total R&D investment (RD_R) are selected as variables representing business innovation. The research findings showed that economic uncertainty (WUI) had a statistically significant positive (+) relationship with total research and development investment (RD), asset-based research and development investment (RD_A), and the proportion of asset-based research and development investment (RD_R). This relationship remained the same even after controlling for managerial opportunistic accounting behavior (DACC; discretionary accruals). These findings suggest that companies focus on research and development investment as an opportunity for management innovation even in the face of economic uncertainty. The results of this study are significant in demonstrating the validity and effectiveness of government support for industrial promotion under economic uncertainty.

• Korean Management Science Review
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• v.32 no.3
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• pp.91-103
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• 2015

This study recognizes that there is a correlation between the movement of the financial market and the sentimental changes of the public participating directly or indirectly in the market, and applies the relationship to investment strategies for stock market. The concerns that market participants have about the economy can be transformed to the search terms that internet users query on search engines, and search volume of a specific term over time can be understood as the economic trend of big data. Under the hypothesis that the time when the economic concerns start increasing precedes the decline in the stock market price and vice versa, this study proposes three investment strategies using casuality between price of domestic stock market and search volume from Naver trends, and verifies the hypothesis. The computational results illustrate the potential that combining extensive behavioral data sets offers for a better understanding of collective human behavior in domestic stock market.

• Journal of Korea Society of Digital Industry and Information Management
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• v.15 no.2
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• pp.87-99
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• 2019

The purpose of this study is to examine an organizational ICT(Information and Communication Technology) performance by ICT investment and policy consistency of government organizations. As the rapid development of ICT is becoming an essential element of social culture, the ICT operation of bureaucratic government also is becoming important. The central government has invested substantially new ICT for improving the quality of nationwide service and to promote administrative efficiency. However, various departments of government occur frequently duplication investments of ICT, and budget conflicts between organizations caused difficulties in maximizing ICT competency. I will confirm the ICT operational performance by ICT investment behavior and organizational work competency as well as the significance of ICT policy consistency. The method of study used a structural equation. The research model set ICT investment behavior as independent variables, organizational work competencies and policy consistency as mediations, and operational performance as dependencies. As a result of the research, New ICT interests show negative effects that caused work change between government organizations and government-funded body. But, New ICT convergence shows positive effects on increasing the two competency variables. The two competency variables show negative effects that caused changes in ICT policy consistency and show no impact on the ICT operational performance. The ICT policy consistency shows a positive effect on enhancing ICT operational performance. The study contribution explain updated the contingency theory and because the ICT policy consistency is essential, negotiation between government organizations will be important. Future research will require a qualitative study through interviews in government organizations about consistency enhance of ICT policy.