• The Journal of Society for e-Business Studies
• /
• v.20 no.2
• /
• pp.1-14
• /
• 2015

In this paper, we investigate the relationship between Internet search trends and stock market. Under the assumption that investors may use Internet search engine to obtain information for companies of their interests before taking actual investment actions, the relationship between the changes on Internet search volume and the fluctuation of trading volume as well as stock price of a company is analyzed with actual market data. A search trend investment strategy that reflects the changes on Internet search volume is applied to large enterprises' group and to small and medium enterprises' (SMEs) group, and the correlation between profit rate and trading volume is analyzed for each company group. Our search trend investment strategy has outperformed average stock market returns in both KOSPI and KOSDAQ markets during the seven-year study period (2007~2013). It is also shown that search trend investment strategy is more effective to SMEs than to large enterprises. The relationship between changes on Internet search volume and stock trading volume is stronger at SMEs than at large enterprises.

• Journal of Intelligence and Information Systems
• /
• v.20 no.1
• /
• pp.103-119
• /
• 2014

In this paper, we investigate intellectual reaction differences among market participants to various corporate information announcements and the main information prompting investors to trade. Our research is based on IPO companies listed on the KOSDAQ exchange from January 2000 to September 2012 and concentrates on three information disclosures - bonus issue, seasoned equity offer, and new investment in facilities announcements. We find that intellectual market participants react positively to bonus issues and seasoned equity offers, but negatively to new investment announcements. Market trading volume increases before the positive events and all cgroups actively buy shares during these periods. For the negative events, only institution participants show active selling. Overall, institutions act as momentum traders, and individuals and foreigners as contrarian traders. We also discuss the implications of this study.

• International Journal of Contents
• /
• v.10 no.4
• /
• pp.75-82
• /
• 2014

The purpose of this paper was to identify suitable variables for financial distress prediction models and to compare the accuracy of MDA and LA for early warning signals for wind energy companies in Korea. The research methods, discriminant analysis and logit analysis have been widely used. The data set consisted of 15 wind energy SMEs in KOSDAQ with financial statements in 2012 from KIS-Value. We found that five financial ratio variables were statistically significant and the accuracy of MDA was 86%, while that of LA is 100%. The importance of this study is that it demonstrates empirically that financial distress prediction models are applicable to the wind energy industry in Korea as an early warning signs of impending bankruptcy.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.25
• /
• pp.123-163
• /
• 2005

The strategic alignment between internet marketing's strategic orientation and EC system's strategic orientation is an important concept in Electronic Commerce. This study measured internet marketing's strategic orientation, EC system's strategic orientation, strategic alignment, and strategic EC performance based on previous studies. Analysis of data gathered in mail survey of korea firms in KOSPI and KOSDAQ. The findings suggest that companies with high strategic alignment are better performing EC strategically, and internet marketing and EC system's strategic orientation are positive related to strategic alignment and performance of EC. This study supports that the level of the EC executive's participation in internet marketing planning influences strategic alignment of the EC plan with the internet marketing plan. Further, high levels of that alignment are associated with increased use of EC for strategic performance.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.17 no.8
• /
• pp.147-156
• /
• 2016

This study analyzed the impact of changes in the construction business on construction company insolvency according to their size using the vector error correction model. First, this study applied EDF (Expected Default Frequency), which was calculated by KMV (Kealhofer, McQuown and Vasicek) model, as a variable to indicate the insolvency of construction companies. This study set 30 construction companies listed to KOSPI/KOSDAQ for estimating the EDF by size and construction companies were divided into two groups according to their size. To examine the construction business cycles, the amount of construction orders according to the type-residential, non-residential, and civil work- was used as a variable. The serial data was retrieved from TS2000 established by the Korea Listed Companies Association (KLCA), Statistics Korea. The analysis period was between the second quarter of 2001 and fourth quarter of 2015. As a result of calculating the EDF of construction companies by size, as it is generally known, the large-sized construction companies showed lower levels of insolvency than relatively smaller-sized construction companies. On the other hand, impulse response analysis based on VECM confirmed that the level of insolvency of large-scaled companies is more sensitive to business fluctuations than relatively smaller-sized construction companies, particularly changes in the residential construction market. Hence it is a major factor affecting the changes in insolvency of large-sized construction companies.

• Journal of Digital Convergence
• /
• v.10 no.10
• /
• pp.19-29
• /
• 2012

We made a regression analysis on the early IPO of venture capital investments in Korean IPO market. First, we found that it was likely to shorten the period to IPO in companies which were fast growing with a good operating cash flow, but these companies had a higher possibility of the earning management. Second, companies with more assets and larger size of the board of directors did not take companies public any earlier. Third, a better corporate governance also had no impact on the time period to IPO in the newly public firms. The findings above clearly show that venture-backed companies in Korea pursue the tendency of an early IPO. This phenomenon was much clearer when the companies were invested in by multiple venture capital firms than by a single investor. In general, venture capital firms invest in companies which are fast growing and which have a good operating cash flow. On the other side, venture capitals make investee companies go public earlier by manipulating operating earnings, so that they themselves may exit early. In conclusion, this research has shown that venture capitals in Korea do not play a positive role in the corporate transparency. This is the paradox of venture capital investment and this also shows the current status of Korean venture capital firms.

• Journal of Digital Convergence
• /
• v.14 no.8
• /
• pp.163-175
• /
• 2016

The purpose of this study is to provide an efficient internal control system formation incentives for company and to confirm empirically usefulness of the internal accounting control system for financial institutions by analyzing whether the internal control vulnerabilities of companies related significantly to the classification and assessment of soundness of financial institutions. Empirical analysis covered KOSPI, KOSDAQ listed companies and unlisted companies with more than 100 billion won of assets which have trading performance with "K" financial institution from 2008 until 2013. Whereas non-internal control vulnerability reporting companies by the internal control of financial reporting received average credit rating of BBB on average, reporting companies received CCC rating. And statistically significantly, non-reporting companies are classified as "normal" and reporting companies are classified as "precautionary loan" when it comes to asset quality classification rating. Therefore, reported information of internal control vulnerability reduced the credibility of the financial data, which causes low credit ratings for companies and suggests financial institutions save additional allowance for asset insolvency prevention and require high interest rates. It is a major contribution of this study that vulnerability reporting of internal control in accordance with the internal control of financial reporting can be used as information significant for the evaluation of financial institutions on corporate soundness.

• The Journal of the Korea Contents Association
• /
• v.9 no.3
• /
• pp.305-311
• /
• 2009

The bankruptcy in Korea affects to all stakeholder of firms. Companies listed in KOSDAQ have high technology but the possibilities for success of business are low. The purpose of this study is to develop and to applicate falling prediction model of KOSDAQ firms using logistic regression analysis. The results of this study are as follows. First, the accuracy of classification of the models by years was between 76.5% and 77.5%, and that of the mean model was between 70.6% and 83.4%. Among the models, the mean model of -three years, -two years, and -one year was highest in the accuracy of classification (83.4%). Second, when the mean model of -three year, -two years, and -one years, the highest model in accuracy of classification, was selected to be verified on validation samples, the accuracy of prediction increased from -three years to -one year (71.7% for -three years, 75.0% for -two years, 90.0% for -one year). In indicating the superiority of developed model.

• The Journal of the Korea Contents Association
• /
• v.11 no.6
• /
• pp.302-310
• /
• 2011

Recently, many construction firms fall on hard times because construction business continues to stagnate. In this paper, we analyze the efficiency of the listed construction firms using a combined AHP and DEA model. In order to determine the input and output factors of DEA, the AHP model is applied to evaluate the importance of input and output factors. The benchmarking companies and efficiency value for the construction firms with inefficiency are also provided to improve the their efficiency. We analyzed the 57 listed companies consisted of 36 listed on KOSPI and 21 listed on KOSDAQ at the end of 2009. The analysis results show that eleven companies whose values of CCR are 1, and fourteen enterprises whose values of BCC efficiency are 1. In additions, the eleven firms have the scalability efficiency. Finally, we test the correlation between efficiency and the stock price and the correlation coefficient of efficiency group is 0.7 in the CCR model.

• Journal of the Korea Convergence Society
• /
• v.13 no.4
• /
• pp.321-329
• /
• 2022

This study analyzes how companies of prospector type with inherent risks from new products and R&D costs affect audit hours, and further analyzes how they affect rank-specific audit hours. Samples were empirically analyzed using samples from 2018 to 2019 for KOSPI-listed and KOSDAQ-listed companies. As a result of the analysis, first, it was found that auditors were aware of the inherent risks of companies of prospector type and were striving to improve audit quality. Second, it was found that the corresponding degree of risk differs depending on the position and role in the audit team, so higher efforts were made in core positions with high risk levels. The results of this study are meaningful in verifying how the type of Business Strategies affects the audit efforts and resource input of auditors who are external parties, not internal factors such as financial reporting quality or tax avoidance. It also has important implications that a company's Business Strategies can be an significant factor to consider in preparing policies and systems for improving audit quality.