• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.7-14
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• 2021

This paper examines the impact of foreign ownership on stock price volatility in an emerging market, namely, Thailand. The data were obtained from SETSMART, the database of the Stock Exchange of Thailand (SET). After removing financial firms, banks, and insurance companies as well as filtering outliers, the final sample covers 1,755 firm-year observations from 371 nonfinancial firms listed on the SET over the five-year period from 2014 to 2018. The regression model consists of stock price volatility, measured by two methods, as the dependent variable, foreign ownership as the main independent variable, and firm characteristics including firm size, leverage, market-to book ratio, and stock turnover as the control variables. The pooled OLS, fixed effects, and random effects estimations are employed to examine the relationship between foreign ownership and stock price volatility. The results reveal that foreign ownership has a negative and significant impact on stock price volatility. The two-stage least squares (2SLS) are also performed to address potential endogeneity problem. The results still indicate a negative relationship between foreign ownership and stock price volatility. Taken together, the findings of this study suggest that foreign investors help reduce stock price volatility and thus stabilize share price in the Thai stock market.

• Journal of Distribution Science
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• v.21 no.9
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• pp.103-114
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• 2023

Purpose: This paper aims to assess psychological heuristics' effectiveness on cumulative returns after significant stock price changes. Specifically, it compares availability and anchoring heuristics' empirical validity due to conflicting stock return predictions. Research Design, Data, and Methodology: This paper analyzes stock price changes of Korean distribution industry stocks in the KOSPI market from January 2004 to July 2022, where daily fluctuations exceed 10%. It evaluates availability heuristics using daily KOSPI index changes and tests anchoring heuristics using 52-week high and low stock prices as reference points. Results: As a result of the empirical analysis, stock price reversals did not consistently appear alongside changes in the daily KOSPI index. By contrast, stock price drifts consistently appeared around the 52-week highest stock price and 52-week lowest stock price. The result of the multiple regression analysis which controlled for both company-specific and event-specific variables supported the anchoring heuristics. Conclusions: For stocks related to the Korean distribution industry in the KOSPI market, the anchoring heuristics theory provides a consistent explanation for stock returns after large-scale stock price fluctuations that initially appear to be random movements.

• The Journal of Fisheries Business Administration
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• v.53 no.2
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• pp.21-41
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• 2022

The effect of change in exchange rates on an economy is very important, especially, to a small open economy like South Korea. I explore whether Free Trade Agreements (FTAs) have positive influences on exchange rate-pass through import price of import market for fishery products in South Korea. Competition among FTA partners is enhanced after FTAs are effective. I expect that the extent to which are exchange rate pass-through (hereafter, ERPT) into import price of fishery products (in terms of Korea currency) would be reduced since the import market for fishery products in South Korea is an oligopolistic market. Specifically, I investigate two research questions with six South Korea's FTA partners-Norway, Thailand, Peru, U.S., China and Vietnam. First, whether the extent to which are exchange rate pass-through into import price of fishery products from six FTA partners would decrase in the post-FTA era; seconds, the size of reduction has a negative relation with the size of their market share in the import market for fishery products in South Korea if it decreases. The empirical results indicate that the degree of ERPT into import price from other FTA partners than Norway has been reduced after FTA, statistically and significantly; however, I do not find the evidence that the size of reduction is related to their market share. The findings in this study imply that FTAs have negative effects on producers' economic welfare in South Korea's fishery industry by reducing the extent to which are exchange rate pass-through as well as reducing tariff barriers.

• The Journal of Asian Finance, Economics and Business
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• v.5 no.2
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• pp.43-51
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• 2018

We study the impact of economic policy uncertainty (EPU) of Asian four countries such as Korea, Japan, Hong Kong, and China on housing market returns in Korea. Also, we document the relationship between the EPU index of those four countries and the housing market including macroeconomic indicators in Korea. The EPU index of those four countries has significantly a negative effect on the housing purchase price index, housing lease price index in Korea. The EPU index in Korea and Japan has significantly a negative effect on the CPI. The EPU index in only Japan has significantly a negative effect on the PPI. The EPU index in Hong Kong and Korea has significantly a negative effect but the EPU index in China significantly has a positive effect on the stock price index in construction industry. The EPU index in only Korea has significantly a negative effect the stock price index in banking industry. This study shows the EPU index of the Korea has the negative relationships on the housing market economy rather than other countries by VECM. And this study has an important evidence of the spillover of several macroeconomic indicators in Korea for the EPU index of the Asian four countries.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.142-146
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• 2006

This paper considers a SCM issue concerned with an integrated problem of inventory control and dynamic pricing strategies when demands are price and time dependent. The associated price markdowns are conducted for inventory control in a two-layer market consisting of retailer and outlet as in fashion apparel market. The objective function consists of revenue terms (sales revenue and salvage value) and purchasing cost term. Specifically, decisions on price markdowns and order quantity are made to maximize total profit in the supply chain so as to have zero inventory level at the end of the sales horizon. To solve the proposed problem, a gradient method is applied, which shows an optimal decision on both the initial inventory level and the discount pricing policy. Sensitivity analysis is conducted on the demand parameters and the final comments on the practical use of the proposed model are presented.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2014.05a
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• pp.50-51
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• 2014

Although price of construction equipment affects overall cost of a construction projects, the cycle of updating them presented in the Poom-Saem in Korea is more than six years. Recently there is a demand of using the 'Standard Market Price of Construction Equipment', published by the ministry of Security and Public Administration, for estimating equipment operating and ownership cost. It is urgent to introduce an advanced system for updating the prices which can timely reflect market changes.

• Asia-Pacific Journal of Business
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• v.10 no.4
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• pp.181-195
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• 2019

This study aims to investigate the influencing attributes on price fairness in the domain of fast food service context. As the research subject, this research selects McDonald's business because of its market share in the fast food market. Five attributes are examined to account for price fairness. The attributes are advertising attitude, employee service, waiting, convenience, and brand love. This study performed survey to collect the data. The survey participants are university students because they are essential market segment for fast food business. The number of observation is 299 for the data analysis. To analyze the data, this research used various statistical instruments (e.g., frequency analysis, mean and standard computation, exploratory factor analysis, reliability test, correlation matrix, and multiple regression analysis). Regarding the results, this research identified advertising attitude, employee service, and brand love are influential attributes to establish price fairness of university students. This research could inform the marketing director of food service business to understand university students target better.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.58 no.3
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• pp.455-461
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• 2009

This paper proposes Direct Load Control(DLC) operation scheme using a bidding system and the methodology to value proper quantity decided by the DLC program, which is a kind of resources for stabilization of electricity market price during peak times by managing consumer electricity demand. Since DLC program in Korea is based on the contract with the customers participating in this program, it is difficult to anticipate voluntary participation. That is, incentive for participants in DLC program is insufficient. To cope with this point, it is necessary to develop a new market mechanism and market compatible operation scheme for DLC programs. DLC market mechanism is deemed to be equipped with iterative bidding system, independent operation from energy market, and interactive with bidding information on energy market. With this market mechanism, it is important to find the optimal operation point of DLC allowing for the factors of stabilizing the electricity market price and compensating DLC implementation. This paper focuses on the mathematical approaches for the bid-based DLC operation scheme and examines several scenarios for the following technical justifications: 1) stabilization of electricity market price during peak times, 2) elasticity of demand.

• Journal of the Korea Institute of Building Construction
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• v.15 no.4
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• pp.397-404
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• 2015

Construction equipment cost is critical to estimate the total construction costs, particularly in large and complicated projects. Public construction projects are typically estimated using the Poom-Saem which includes hourly rates for workers and equipments. Despite its importance, the construction equipment cost may not properly reflect the current market value because it is being updated every six years at most. To keep the data for construction equipment cost estimation up to date, it is highly recommended to use the standard market price that is reported each year by the Ministry of Security and Public Administration (MOSPA). However, there is still a wide gap to directly adopt the standard market price for updating the construction equipment prices. Therefore, this paper suggests an effective way to develop an ordinary management systems for updating construction equipment prices in the Poom-saem based on the standard market price.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.5
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• pp.221-234
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• 2014

Recently, the Chinese beef consumption market has faced a sudden surge. With China's beef imports reaching $1.33 billion in 2013, the global market closely monitors China's rising consumption of beef. Because there have been no exports of Korean beef (Hanwoo) to China previously, the negative effects of opening of beef market between South Korea and China are speculated as the South Korean government advances FTA negotiations further with China. In order to prepare for the opening of beef market between the two nations and to understand Hanwoo's export competitiveness, our research team conducted a market research on beef price and quality in Beijing and Shanghai. Based on our research, we deduced the price of Hanwoo and analyzed the price competitiveness of Hanwoo in the emerging Chinese beef market. Based on the market research, the price competitiveness of Hanwoo's topside/inside, rib and loin are well-positioned compared to Chinese and imported high-end beef group in Beijing and Shanghai market. Specifically, the price competitiveness of Hanwoo's topside/inside and loin are dominant in Beijing while that of rib and loin are dominant in Shanghai.