• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.29-37
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• 2020

This research seeks to determine the influence of investment opportunity set (IOS); profitability (Return on Assets - ROA), liquidity, business risk and firm size on debt policy. We used 42 manufacturing companies registered on the Indonesian Stock Exchange (Bursa Efek Indonesia) as object research. We used purposive sampling method to determined samples, consider the period observation from 2012 to 2016, and produce 168 units analysis. Data analysis uses the multiple regressions with the SPSS tools. The results of the study found that companies' debt policies in Indonesia are negatively affected by the liquidity. Investment opportunity set (IOS) has negative effect on debt policy. Meanwhile, ROA, Return on Invested Capital (ROIC), and firm size of a company has no impact on debt policy. These findings indicate that Indonesian manufacture companies do not see the high investment opportunity set and profitability as a policy basis for increasing debt. Moreover, the high profitability also does not cause companies to increase their debt ratio. Our study indicates that Indonesian manufacture companies use internal funds to fund their investment. This finding is a concern for creditors, as they can now see the ability of the companies, and especially their performance, in determining their credit policies.

• Proceedings of the Korean Statistical Society Conference
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• 2003.05a
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• pp.43-48
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• 2003

We consider a consumption and investment problem where an investor's investment opportunity gets enlarged when she becomes rich enough, i.e., when her wealth touches a critical level. We derive optimal consumption and investment rules assuming that the investor has a time-separable von Neumann-Morgenstern utility function. An interesting feature of optimal rules is that the investor consumes less and takes more risk in risky assets if the investor expects that she will have a better investment opportunity when her wealth reaches a critical level.

• Management & Information Systems Review
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• v.29 no.4
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• pp.333-357
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• 2010

Purposes of this paper are to investigate whether managers' compensation is sticky as accounting performance(ROA) vary or not and explore further what factors influence the managers' compensation stickiness. To empirically study the stickiness of managers' compensation, we used the financial data from manufacturing firms lised in the Korea Stock Exchange(1,000 firm-year data for 4 years). The results are as follows : First, managers' compensation is sticky with respect to change in accounting performance. That is, the increase in managers' compensation as accounting performance increases is greater than the decrease in managers' compensation in respect to equivalent decrease in accounting performance. Second, the degree of managers' compensation stickiness increases when managers have influence and contribution to firm value. Specifically, the degree of stickiness is positively associated with investment opportunity set, intangible assets' value, uncertainty of firms' operating environment, complexity of organizational hierarchy. But firms' size reversely impacts on the degree of managers' compensation stickiness.

• Journal of Distribution Science
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• v.17 no.9
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• pp.117-125
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• 2019

Purpose - We investigate how to increase consumer incentives to buy public offering funds, resulting in activating the public offering fund market. In particular, this study aims to find ways to expand diversity and to improve efficiency of public offering fund. The public fund market of Korea has been stagnant in recent years. However, the public offering fund market plays a very significant role in terms of consumer welfare. Since only a few wealthy investors can participate in the private equity market, the stagnation in the public offering fund market usually reduces the opportunity of consumer's buying funds thus ultimately affecting their future wealth. Research design, data, and methodology - To attain our purpose, the 'factor-based portfolio strategy' has been considered. It is an alternative portfolio strategy, which composites the advantages of the passive management and active management. For our empirical anaylsis, we used global stock distribution market data over the period of 1991 and 2016. Then we constructed portfolios based on firm-size, firm-value, and momentum. Finally, a regression model was set, then hypotheses were tested, analyzing the performances. Results - First, among the 15 factor-based portfolios of global, Europe, Asia-Pacific(ex Japan), US and Japan, in eight portfolios, positive excess returns are observed at 5% significance level. Further, there is another portfolio with positive excess return at 10% significance level. Second, most of the portfolios with significant excess performance show positive relationship with the market portfolio. However, the firm-value based portfolio in Asia-Pacific region shows no relationship, and the firm-value based portfolio in US shows negative relationship. Third, we confirmed that the two firm-value factor portfolios in Asia-Pacific region and US, not having positive relationship with market portfolio, provide significant excess returns. Conclusions - In this paper, we provide empirical evidences supporting that the factor-based portfolios expand the diversity of funds and improve the efficiency of investment performance. However, there is no guarantee that the efficiency will continue in the future. In addition, various constraints and costs must be considered. Nevertheless, our novel findings in the advanced financial market such as US and Asia-Pacific are very interesting and offers important implications.

• Journal of Distribution Science
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• v.13 no.9
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• pp.71-79
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• 2015

Purpose - The purpose of this paper is to find out the effect of changes in the differentiated "servicescape" on the business performance in the hair salon industry using a case study. For this, we selected hair salon M located in Suwon. The shop is innovatively different from existing shops in terms of spatial layout and functionality. We conducted in-depth research, beginning with the launch of the shop concept through investment and ongoing stable sales. Research design, data, and methodology - The M hair salon is a start up shop providing a differentiated servicescape (physical environment where the service takes place) located in Suwon, Yeongtong-gu. We conducted research to investigate how spatial layout and functionality of the servicescape impact customers' perceived quality. The interview period and case analysis was May 2014 through March 2015, covering 11 months. To conduct the case analysis, we analyzed the spatial layout and functionality of existing shops and interviewed customers and experts about the difference between hair salon M and existing shops. Results - Our results found clues to the positive effect of spatial layout and functionality among servicescape factors on perceived service quality at the salon. The shop showed a fast payback of the principal investment, growth potential in contrast to competitors near the salon, and 45 percent returning customers. The problem with the spatial layout at existing shops was that customers were aware of the way other people were looking at them, since viewing angles overlapped, therefore there was a limitation to the relationship intensity with an exclusive hair designer. In contrast, the layout of the stands at the M salon kept the number of dressing stands limited to maximize the customer's emotional response. Additionally, because of the new layout of dressing stands hiding other customer voices and appearance in the salon, customers perceived their service space as independent. Therefore, they did not have to focus on their personal emotional response, which was one of the advantages of the new layout. Conclusions - This study conducted case study analysis by offering a new perspective focusing on spatial layout, previously not considered as an independent variable of quality evaluations and customer satisfaction in existing literature on hair salon management. Therefore, this study contributes to the field by offering an opportunity to discover the causal relationships between the overlooked physical environment and a customer's perceived quality. However, a process objectifying the results of the study through empirical analysis and hypotheses is needed to overcome the limitations of the case study approach and generalize the results. Moreover, it would be beneficial to conduct further empirical study of the relationship between the spatial layout provided in the case and a customer's emotional response and change in mood. In addition, an analysis is needed regarding how customers feel about the factors using the Kano Model. These suggestions would be considered in further study.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.1
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• pp.69-77
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• 2014

Innopolis start-ups belong to the category of the research-based spin-offs, but in the meantime, has characteristics that separate them from the research-based spin-offs in terms of the process of technology commercialization. This study aims to assess the impacts of the foundation and management of the Innopolis start-ups in terms of expansion of entrepreneurship through entrepreneurial intention of researchers and economic achievements. A data set from 22 Innopolis start-ups and 200 researchers in 14 PRIs through door-to-door interviews and surveys is studied. Main findings are as follows: First, the foundation of the Innopolis start-up has a positive and strong impact on expansion of entrepreneurship through entrepreneurial intention of researchers. Second, technology transfer performance of researchers turns out to be major factor that affects entrepreneurial intention. Third, expansion of entrepreneurship, along with economic achievements characterized by sales, job creation and R&D investment, is a positive effect of the foundation and management of the Innopolis start-ups. The results of this paper provide an opportunity to test whether Innopolis start-up's strength in technology commercialization can be applied to actual management of the Innopolis startup and to examine the general direction in which the foundation and management of the Innopolis start-ups is heading.

• The Journal of the Korean Institute of Forest Recreation
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• v.22 no.4
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• pp.11-22
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• 2018

This study analyzes the economic feasibility on the transition of production structure to increase income for a local forest village in Laos PDR. The study area was the Nongboua village in Sangthong district where the primary product is rice from rice paddy. Possible strategies were considered to increase the villagers' revenue, and Noni (Morinda citrifolia) was production in the short-term. We assumed that the project period was for 20 years for the analysis, and a total of 1,100 Noni tree was planted in 1 ha by $3m{\times}3m$ spacing. This study classified basic scenario one, scenario two, scenario three by the survival rate and purchase pirce of Noni. Generally Noni grows well. However, the seedlings' average survival rate (= production volume) was set up conservatively in this study to consider potential risks such as no production experience of Noni and tree disease. The scenario one assumed that the survival rate of Noni seedlings was 50% for 0-1 years, 60% for 0-2 years, and 70% for 3-20 years; the scenario two, 10% less, i.e., 40%, 50%, and 60%; and the scenario three, 10% less, i.e., 40%, 50%, 60% and purchase price 10% less, i.e., $0.29 to $0.26, respectively. Our analysis showed that all 3 scenarios resulted in economically-feasible IRR (internal rate of return) of 24.81%, 19.02%, and 16.30% of with a discounting rate of 10%. The B/C (benefit/cost) ratio for a unit area (1ha) was also analyzed for the three scenarios with a discounting rate of 10%, resutling in the B/C ratio of 1.71, 1.47, and 1.31. The study results showed that the Nongboua village would have a good opportunity to improve its low-income structure through planting and managing alternative crops such as Noni. Also the results can be used as useful decision-making information at a preliminary analysis level for planning other government and public investment projects for the Nonboua village.