• The Journal of the Convergence on Culture Technology
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• v.9 no.3
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• pp.19-26
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• 2023

The impact of environmental, social and governance (ESG) performance on investors' decision-making is growing. Investors' focus on the financial performance of firms in the past is expanding to the non-financial performance of the interests of stakeholders surrounding firms. Against this backdrop, this study conducted a panel regression analysis on firms evaluated by Korea Corporate Governance Service to analyze the impact of ESG performance, a firm's non-financial performance, on firm risk. According to the analysis, ESG performance has a negative (-) effect on all three firm risks (systematic risk, unsystematic risk, and total risk), indicating that the stakeholder theory and risk management theory are supported. The implications of this study are: First, ESG reduces not only unsystematic risk but also broad and indiscriminate systematic risk; Second, investors can reduce the risk of their investment portfolio by executing ESG investments; Third, companies can achieve stable financial performance even in adverse circumstances by utilizing the insurance function of ESG management; Lastly, the government can enhance the stability of the financial market while improving the financial soundness of firms through reasonable ESG-related regulations.

• Journal of Information Technology Applications and Management
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• v.22 no.3
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• pp.65-81
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• 2015

This study reports a preliminary finding of the types and numbers of graphs being presented in the annual reports of about thirty top listed companies trading publicly in the stock markets of three countries-Thailand (SET), Malaysia (BM), and Singapore (SGX)-that were chosen based on their inclusion in the ASEAN Stars Index under the ASEAN Trading Link project. A total of 6,753 graphs from nineteen sectors were extracted and examined. Banking, real estate, and telecommunications are ranked the three most condense sectors, accounting for 50.2% of the total number of graphs observed. The three most used graphs are the Conservative Bar, Donut graph and Stack Bar. Less than one percent of Infographic type graphs were used. The five most depicted graphed variables are Asset, Revenue, Net profit, Liability, and Dividend. Using rudimentary framework to detect distorted or misleading statistical graphs, the study found 60.6% of the graphs distorted across the three markets, SET, BM, and SGX. BM ranked first in percentages of graphs being distortedly presented (73%). The other two markets, SET and SGX, have about the same proportions, 53.88% and 53.03%, respectively. Likewise, the proportions of Well-designed versus Inappropriate-designed graphs of the latter two markets are a little over one time (SET = 1 : 1.17; SGX = 1 : 1.13), whereas the proportion is almost triple for the BM market (BM = 1 : 2.70). In addition, the trend of distorted graphs found is slightly increasing as the longevity of the ASEAN Stars Index increases. One possible explanation for the relatively equal proportion of inappropriate graphs found is that SET is the smallest market and SGX, though the largest, is the most regulated market. BM, on the other hand, may want to present their financial data in the most attractive manner to prospective investors, thus, regulatory constraints and governance structure are still lenient.

• The Journal of Industrial Distribution & Business
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• v.10 no.1
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• pp.69-76
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• 2019

Purpose - The purpose of this paper is to empirically investigate the effectiveness of Offcial Development Assistance (ODA) in recipient countries' economy. ODA is designed to mitigate poverty and stimulate economic growth in the developing countries. We classify total ODA into bilateral ODA and multilateral ODA depending on the number of donor countries. If the ODA flows from one donor country to one recipient country, it is classified as bilateral ODA. If the multiple countries simultaneously become donor countries through the international organizations such as United Nations and World Bank, it is classified as multilateral ODA. This paper compares the effect of bilateral ODA and multilateral ODA in determining recipient countries' economic development, and tries to provide policy implications to Korean ODA. Research design, data, and methodology - Our primary explanatory variables are bilateral and multilateral ODA. Private credit in recipient countries is adopted as additional explanatory variables to capture the level of financial development in recipient countries. We measure the ODA effectiveness using economic growth and quality of life of the recipient countries as the dependent variable. We collect 142 recipient countries' data from OECD statistics, during the period from 1970-2014. Panel least squares estimation with country fixed effect is employed as the empirical model. Results - Our results support that ODA variable has a negatively significant impact on recipient countries' economic growth, while it is positively correlated with human development index. Recipient countries' private credit is positively correlated with economic growth and human development index. The interaction variable of ODA and financial development turns out to be significant in general. We find that the positive effect of ODA depends on recipient countries' financial market development and this effect is stronger in multilateral aid than bilateral one. Conclusions - From the analysis, we have confirmed that the recipient countries financial development is the necessity condition to achieve positive effect of ODA. Based on these results, we suggest that Korean government should increase the share of multilateral funding and pay attention to recipient countries' financial market development to maximize the effectiveness of ODA.

• The Korean Journal of Financial Management
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• v.20 no.2
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• pp.1-39
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• 2003

Using a comprehensive sample of convertible security offerings by Korean firms from 1981 to 1999, we examine the effect of convertible bond issues on firm value. We find that the announcement of convertible bond issues has a positive effect on firm value. However, the announcement of private convertible bond issues by chaebol firms has a significant negative effect on their market values. This result is different from that in Japan, suggesting that the efficiency of the financing decision by Korean chaebol is different from that by Japanese keiretsu. In addition, we find that the announcement effect of private convertible bond issues by chaebol firms has a significant relation with the corporate governance variables such as ownership structure, bank relationship. These results indicate that convertible bond issues can be used as a mechanism for chaebol owner-manager to give rise agency problems at the expense of the wealth of minority shareholders.

• Information Systems Review
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• v.10 no.2
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• pp.159-177
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• 2008

Since the IMF crisis, the competition among banks in Korea has fiercely intensified. To survive in the severe competition, several leading banks including Industrial Bank of Korea (IBK) have recently developed their own proprietary systems called 'the Next-Generation Systems(NGS).' This case study was to answer several important issues as follows; 1); the reason why a bank make huge investment in the IT infrastructure; 2) the development methodology of the NGS; 3) the new architecture of the NGS; 4) the governance structure of the NGS investment; and 5) the effects of the NGS on the development of new products. To achieve such goals, a systematic tandem interview method and many archival reports from IBK were utilized. The conclusions are summarized as follows: First, the NGS has contributed to the integration and simplification of business processes. Second, new products as demanded in the market can be developed much faster through the NGS. Third, the change management of IT infrastructure is critically important. Fourth, the systems architecture can be different according to the IT governance. Fifth, the alignment of the NGS and business processes is most important to obtain the organizational goals.

• Proceedings of the Korean Society of Crop Science Conference
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• 2017.06a
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• pp.3-3
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• 2017

The question of how to establish sustainable agricultural systems has become as prominent as questions related to water, energy and climate change. High input/high output agriculture has brought with it many adverse effects; the massive deterioration of soil and water in both quantity and quality, increased greenhouse gas emissions and an increased prevalence of unsafe foods. Additionally, urbanization and climate change has worsened the shortage of farmland and reduced the supply of agricultural water. Given these challenges, maintaining, conserving and efficiently using agri-environmental resources, through fostering of sustainable agriculture, have emerged as key tasks in solving these problems. What is needed therefore is research, based on systematic and comprehensive empirical analyses, that can propose plans and methods for establishing an appropriate sustainable agricultural system. The empirical analysis of sustainable agricultural system is approached separately from economic, environmental and social aspects. An analysis of environment effect reveals that the available phosphate level is 1.3~2.1 times greater than the optimal amount in rice paddies, upland fields and orchards. Further examination has revealed that the excess nutrient is polluting both ground water and surface water. Analytical results for economic feasibility show that factors of production have been invested heavily in the rice crop. Under these conditions, sustainable agriculture, including low-input agriculture, appears to be a possible alternative that will facilitate simultaneous improvements in both economic feasibility and environment effects. Analysis results for sociality reveal that social factors include the value of producer, association and interior networks. Social conditions are comprised of leadership, consumers' awareness, education and conflict solutions. In addition, analysis as to the degree investments contribute to improving agricultural value added has revealed that the direct payment program is the most effective instrument. Experts confirm that economic feasibility can be improved by scientific and well-reasoned nutrient management on the basis of soil testing. Farmers pointed to 'economic factors' as being the largest obstacle to switching to the practice of sustainable agriculture. They also indicate 'uncertainty with regards to sustainable agriculture technology' as an impediment to practicing sustainable agriculture. Even so, farmers who believe environmental and regional issues to be the most pressing problems have expanded their practice of sustainable agriculture. The keys to establishing sustainable agriculture system are classified into the following four aspects. Firstly, from an economic aspect, the research indicates that agricultural policy needs to be integrated with environmental policy and that the function of market making based on the value chain needs to be revitalized. Secondly, from an environmental aspect, there is a need for an optimal resource management system to be established in the agricultural sector. In addition, sustainable agriculture practice will need to be extended with attendant environmentally-friendly and sustainable intensive technology also requiring further development. Thirdly, from a social aspect, green agriculture management needs to be fostered, technology and education extended, and social conflict mediated. Lastly, from a governance aspect, it will be necessary to strengthen good governance, assign and share suitable roles and responsibilities, build a cooperation system and utilize community supported agriculture.

• Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology
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• v.7 no.5
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• pp.861-871
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• 2017

There is a Korean proverb that learns old things and learns new things from it. This study analyzes the change of the policy governance system in the field of information and communication since 2008 and outlines the future directions. The launch of the Korea Communications Commission (KCC), which combines the Ministry of Information and Communication and the Korea Broadcasting Commission in 2008, and the separation of the Korea Communications Commission and Ministry of Science, ICT and Future Planning in 2013, were systematic responses to the policy environment. Recent changes in the ICT environment, such as the advent of the fourth industrial revolution and the intelligence information society, call for an organizational timely response. In the future, it will be very important to set the scope of ICT policy, the establishment of a dedicated organization, the strengthening of the regulatory system, and the role of the government and the market.

• Journal of Intelligence and Information Systems
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• v.29 no.2
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• pp.85-100
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• 2023

Corporate ESG performance (environmental, social, and corporate governance) reflecting a company's strategic sustainability has emerged as one of the main factors in today's investment decisions. The traditional ESG performance rating process is largely performed in a qualitative and subjective manner based on the institution-specific criteria, entailing limitations in reliability, predictability, and timeliness when making investment decisions. This study attempted to predict the corporate ESG rating through automated machine learning based on quantitative and disclosed corporate financial information. Using 12 types (21,360 cases) of market-disclosed financial information and 1,780 ESG measures available through the Korea Institute of Corporate Governance and Sustainability during 2019 to 2021, we suggested a deep neural network prediction model. Our model yielded about 86% of accurate classification performance in predicting ESG rating, showing better performance than other comparative models. This study contributed the literature in a way that the model achieved relatively accurate ESG rating predictions through an automated process using quantitative and publicly available corporate financial information. In terms of practical implications, the general investors can benefit from the prediction accuracy and time efficiency of our proposed model with nominal cost. In addition, this study can be expanded by accumulating more Korean and international data and by developing a more robust and complex model in the future.

• Korean Security Journal
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• no.39
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• pp.355-386
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• 2014

Current business environment asks the fundamental changes about business security. The essences of these changes are that the security management of today's global business is important task of managers and the security practitioner is professional who needs very specialized education and training with business thinking. Rapid process of globalization of global village tore down the business limit that was restricted on the geological areas' limitation. Rapid business environments' change that is driving depends on development of science and technology with globalization needs new paradigm to keep business continuity. With the process of globalization, Korea, which importance is gradually increasing in the national economy, has trade dependent economic system, which keeps power of national economy through trade, so Korean economic tendency is accelerating. To keep competitiveness in global market, new strategy that is different with existing domestic business management is necessary. That is, capacity of coping with outside risk in domestic business management is established in some degree, but business activities in foreign countries faces at numerous unexpected risks that differ from country to country such as difference with the custom, changes of corporate governance etc. To cope with these new risks effectively, new paradigm for business risk is necessary. Especially, flexibility of thinking like new paradigm is necessary to cope with new security risk effectively. To cope with security risk that occurs in the new business environment effectively and competes against international company in global market, company management and members' changes of cognition about security and innovative changes in security policy is necessary. In the basement of these changes, there is expansion of business security tasks, improvement of report line, enhancement of professionalism and status of security officers, variation of hands-on workers and increasing of investment to the security etc.

• The Korean Journal of Financial Management
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• v.27 no.1
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• pp.31-62
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• 2010

This paper analyzes empirically how analysts' forecasts affected by ownership structure. This study examine a sample of 1,037~1,629 the analysts' forecasts of firms registered in Korean Stock Exchange in the period from 2000 to 2006. The empirical results are summarized as follows. First, from the analysis, companies which have higher major shareholder's holdings tend to increase earnings forecast errors and earnings forecast accuracy. Meanwhile, companies which have higher institution shareholder's holdings tend to decrease earnings forecast errors and earnings forecast accuracy. This result is in line with the view of previous works that companies with higher major shareholder's holdings look towards more of analysts' optimistic forecasts in order to maintain friendly relations with major shareholders. Because of analysts' private information use from major shareholders, earnings forecast accuracy is higher in high major shareholder's holdings firm than in high institution shareholder's holdings it. Second, this analysis is whether the minimal required selection condition of outside directors, audit committee adoption and audit quality affect the relation between ownership structure and analysts' forecasts. This result is that variables related corporate governance do not affect statically the relation between ownership structure and analysts' forecasts. The meanings of this paper is to suggest the positive relations between ownership structure and analysts' forecasts. After this, if analysts will notice forecasts of more many firms, capital market will be more efficient and this field works are plentiful. Also it will need monitoring systems not to distort market efficiency by analysts' dishonest forecasts.