• Journal of Korea Trade
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• v.26 no.6
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• pp.118-135
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• 2022

Purpose - The purpose of this study is to investigate the relationships among Chinese state-owned enterprises (SOEs), previous M&A experience, and the probability of deal completion in cross-border mergers and acquisitions (CBMAs). Since Chinese SOEs tend to be recognized by host countries as agents of their home country government, this study argues that SOEs will face difficulties in completing CBMA deals. However, the study expects that these difficulties may vary depending on whether the firm has previous M&A experience because firms can gain the knowledge and capabilities necessary to implement subsequent M&As successfully from past M&A experience. Design/methodology - To investigate our argument, we conduct a logistic regression using a sample of 363 CBMA deals from 304 Chinese publicly listed firms during 2007 to 2017. We used SOEs as an independent variable, experience of domestic and foreign M&As as moderating variables, respectively, and CBMA deal completion as the dependent variable. Findings - The study shows a negative and significant relationship between Chinese SOEs and the completion likelihood of CBMA deals. We find that this negative relationship is strengthened when the firm had prior domestic M&A experience, whereas foreign M&A experience alleviated the negative relationship. Originality/value - The issue of government ownership has remained unclear since government intervention has both advantages and disadvantages in pursuing CBMAs. Our findings support literature that argues Chinese SOEs face legitimacy concerns in the host countries, thereby lowering their CBMA deal completion likelihood. Furthermore, the study enriches the literature by identifying different moderating effects of domestic and foreign M&A experience on the negative relationship between SOEs and CBMA deal completion.

• Journal of Digital Convergence
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• v.13 no.1
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• pp.125-134
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• 2015

Cross-border M&A brings positive benefits to corporations and social economic development which can not been given by any investment ways, having greatly reduced the investment risks and costs to enter the host country market, resulting in the rapid development of the Cross-border M&A in china. This study examines the factors affecting firm performance of Cross-border merger and acquisition on Chinese manufacturing industry. This study chooses a sample of 31 Cross-border M&A in the manufacturing industry in China and the relevant data were collected during the period 2001 to 2007. The data were analyzed using a multiple regression analysis to identify the factors that affect Firm performance. It is found that the Firm performance is significantly affected by the oversea investment experience, cultural distance between countries, cost in M&A transaction and the number of transaction shares.

• Information Systems Review
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• v.19 no.4
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• pp.171-182
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• 2017

Although economic growth has been retarded since the global economic crisis over recent decades, a large number of firms consider mergers and acquisitions (M and A) as a strategy to survive in a highly competitive market. In particular, an increasing number of firms pursue M and A with IT firms in recent years. In this study, we analyze the post-merger risks measured as ROA volatility for acquiring firms when they seek to acquire an IT firm. Our analysis suggests that a firm with prior experience in M and A acquires IT firms aggressively. Moreover, a substantial number of IT firms are relatively small and unlisted when they are acquired. We also show that an acquiring firm's post-merger risk (i.e., ROA volatility) increases after its acquisition of IT firms. However, an increase in post-merger risk is alleviated when relatedness exists between an acquiring firm and target.

• KDI Journal of Economic Policy
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• v.27 no.1
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• pp.39-79
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• 2005

This paper addresses the question of whether a monopolistic banking system can lead to a higher steady state level of capital stock. Information externality has enhanced as the advance of the financial system such as the establishment of the credit bureau system, networking, etc. Hence this paper aims to analyze the effects of both information externality and economic development on the determination of the optimal banking market structure. This paper shows that the presence of information externality together with asymmetric information would explain how a monopoly bank leads to a higher steady state level of capital stock. It also shows that not only under-developed countries but industrialized countries may also benefit from a concentrated banking system. This analysis provides an alternative explanation of the recent deregulation and resulting trends in mergers and acquisitions. This also provides a theoretical foundation to support governments' policy changes toward promoting merger and acquisition activities.

• The Journal of the Korea Contents Association
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• v.20 no.1
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• pp.25-30
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• 2020

Recently, as a way to revitalize the comprehensive logistics service industry, the government is trying to foster the concentration of the logistics industry. The introduction of institutional and legal measures for the maintenance of the logistics system will be expanded to the support limit for the professional logistics business, and the support for acquisitions and mergers will be strengthened. The expansion plan is also being promoted. In this paper, to analyze the efficiency of the integrated logistics service industry using DEA, we analyzed management efficiency using financial data for a total of 15 integrated logistics service industries. In the case of inefficient companies, the projected values for efficient company operation were presented, and the companies that could be benchmarked were identified through reference sets. In addition, I would like to consider the company's operation plan in consideration of scale profitability.

• Health Policy and Management
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• v.34 no.2
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• pp.120-128
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• 2024

From February to now 2024, there continues to be controversy over the expansion of admission number to medical school. Some of the controversy arises from a mix of present and future time points. In the present time point, the controversy over whether physicians are some shortages or not has various aspects. Some aspects are presented as evidence of the physician shortage and others as non-shortage. Also, the presenting evidence of shortage is being disputed, and so is the evidence of the contrary. This controversy over whether there is a shortage or not in the present time point makes it difficult to reach a consensus. In 10 years, the shortage of doctors will increase due to the rapid increase in the elderly population, so the admission number of medical schools will need to be increased. However, the increase must be such that there is minimal deterioration in the quality of medical education. More admission numbers should be allocated to medical schools with a high quality of medical education. This study suggests that large-scale medical schools increase the admission number by 20%-30%, and small-scale medical schools increase the admission number by 40%-50%, if so, the total increasing number is 760 to 1,066. If the 2,000-person increase is enforced, the quality of medical education must be carefully evaluated and the results should be reflected in adjusting the admission number of medical schools. In 20 years later, the admission number of medical schools will have to be reduced. This is because the physician supply is changing to a linear function and the physician demand (medical care demand) is changing to a quadratic function. Even if the current number is maintained, there will be an excess of doctors from 2048, so the medical school admission number must be reduced and its size will be reduced to about 2,000, a 30% reduction from the current number. Because the same reduction rate for all medical schools will result in many small-scale medical schools, the M&A (mergers and acquisitions) strategy should be considered with 40 medical schools and 12 Korean medical schools. In Korea, the main contributor to estimating physician demand is the change in population structure. Due to the rapid decrease in the total fertility rate, future population projections are uncertain. The recent rapid increase in healthcare utilization should be reexamined in the forecasting of physician demand. Since the various factors that affect the estimate of doctor supply and demand are unclear, the estimate of physician supply and demand must be continuously conducted every five years, and the Health Care Workforce Committee must be established and operated. The effects of increasing the admission number of medical schools should be evaluated and adjusted annually.

• Journal of Distribution Science
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• v.13 no.10
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• pp.65-72
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• 2015

Purpose - A rapidly changing business environment places great demands on small and medium-sized enterprises (SMEs). These SMEs need to find strategic alternatives for continued growth and, ultimately, survival. Thus, mergers and acquisitions (M&A) are deemed an acceptable solution. Research to date has dealt with M&A in major organizations and focused on post merger integration (PMI). Our study focuses on SMEs, as they are relatively new and unknown to the public. Therefore, this study highlights successful M&A and decision making for SMEs through a case study analysis. Research design, data, and methodology - For this study, we examined an M&A case between company S, which produces cell phone parts, and company P, which produces SSD cases. We reviewed theories and previous studies in M&A literature. We comprehensively examined the decision-making procedure at each M&A stage, describing the situation of the buying company and the selling company from the period of the M&A announcement through deal completion. In addition, we conducted interviews with both companies. The data regarding this case study were collected through interviews with managers of both companies who actively participated in the M&A process. When necessary, we asked them about additional relevant information during the interviews. Results - The result of the M&A between company S and company P was deemed acceptable with the exception of the long negotiation period. However, company S was not able to prepare for PMI after the acquisition due to a controversy over acquisition values. Moreover, the employees of the newly formed company, especially those who came from company P, complained about the M&A and attempted to leave. Thus, implications for successful M&As of SMEs are as follows: First, the procedural compliance of the M&A is needed. Second, support is needed from the CEO for the working group, rather than excessive intervention during due diligence. Third, the right, talented members of the organization should be part of the process of the M&A. Fourth, the use of various types of outside expert or business consultants is needed. Fifth, the strategic intervention by Human Resource managers is required. Last, sharing M&A information among employees is important as information dissemination will help employees be more receptive to such a change. However, this study has several limitations as a single case study; more varied SME M&A case studies are needed in order to generalize the results of the study. Conclusions - Most of the research dealing with M&As has focused on major companies and PMI and neglected SMEs. Thus, our study focuses on SMEs and the decision-making procedures for M&A. This study has significantly contributed to the literature in this area and has provided practical information around the implications of sound decision-making during M&As. Specifically, the results of the study contribute to the need for research on M&A among SMEs, which to date has often been neglected as a topic of choice.

• Asia Marketing Journal
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• v.15 no.4
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• pp.1-32
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• 2014

The purpose of this paper is to investigate upon a diversification strategy through market creation of CJ Group, which has contributed in positioning of the firm as one of the leading conglomerates in South Korea. With such objective, the background of CJ Group, followed by its business diversification strategies were explored, with reference to several case studies. The history of CJ Group began with establishment of CheilJedang Industrial Corporation in 1953, as the first domestic sugar producer and exporter of South Korea. The corporation gradually expanded its business ever since at both national and global level, to include the fields of food production, pharmaceutical, biotechnology, and life chemicals. Later, CheilJedang (CJ) Group was established as an affiliate of CheilJedang Industrial Corporation. With such independence, extension of business has been witnessed across the industries of media, entertainment, finance, information technology and distribution. Thus, the current CJ Group pursues to define itself as a progressive global living culture company with four major business categories from food and food service, biotechnology, entertainment and media, and logistics. Despite its success in today's market, CJ Group underwent hardships in its business diversification in 1990s due to indiscreet management, along with the Asian financial crisis. Here, many firms overcame the financial difficulties by taking advantage of the exchange rate for overseas expansion. Though, CJ Group tried to differentiate itself by focusing on the domestic market by creating something out of nothing. Hence, CJ Group takes a unique position among many cases of business diversification and their categorization. In an effort to identify and classify the types of growth experienced by the top 30 companies in South Korea, the firms were categorized into four groups according to their diversification strategies adapted after the Asian financial crisis. Based on the mode and time of entry, corporations were identified either as the 'Explorer', 'Invader', 'Venture Capitalist', or 'Assimilator'. Here, the majority of the firms showed the qualities of Invader, entering mature markets through large-scaled mergers and acquisitions. However, CJ Group was the only firm that was categorized as an Explorer, for its focus on the newly emerging service sector in culture-contents industry. This diversification strategy through market creation is worth examining, due to its contribution in generating simultaneous growth between the market and the company itself. Diverse brands of CJ Group have been referred to as case studies in this regard, from 'Hatban', 'Cine de Chef', 'VIPS' to 'CJ GLS'. These four businesses, each to represent processed food, film, restaurant service, and logistics industries respectively, show CJ Group's effectiveness in creating a whole new category of goods and services that are innovative. In fact, such businesses not only contributed in advancement of consumers' wellbeing, but toward generating additional value and employment. It is true that the diversification strategy of CJ Group requires long-term capital investment with high risk, compared to the other strategies mentioned in the paper. However, this model does create high employment and additional values that are positive to both the society and the firm itself. Therefore, the paper comes to a conclusion that the diversification strategy through market creation conveys the most positive impact relative to the others.

• The Journal of the Korea Contents Association
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• v.19 no.5
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• pp.644-657
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• 2019

This study examines the types of strategic alliances formed between terrestrial broadcasters and content start-ups, their resource inter-dependence and the dynamic evolution of their relationship through a case study of KBS Labs, a strategic alliance between KBS and content start-ups. Mergers, acquisitions and strategic alliances sought by large media companies or strategic alliances made only between disparate providers in broadcasting and telecommunications industries are now actively pursued by traditional media and start-ups. The alliances between traditional media and start-ups are beneficial to both parties: traditional media can quickly implement start-ups' innovative ideas and business models and start-ups can tap into not only vast amounts of content being created by or in the archives of traditional media but also their capital, office space and reputation. Therefore, the case study of KBS Labs will help draw out important implications for motivating strategic alliances between traditional media and start-ups. To this end, the resource-based view and the evolutionary theory of the firm are adopted to explore the characteristics and development process of the KBS Labs business.

• Journal of Cadastre & Land InformatiX
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• v.50 no.2
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• pp.101-115
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• 2020

In this paper, big data analysis method was used to find out global trends in autonomous driving and to derive activate spatial information services. The applied big data was used in conjunction with news articles and patent document in order to analysis trend in news article and patents document data in spatial information. In this paper, big data was created and key words were extracted by using LDA (Latent Dirichlet Allocation) based on the topic model in major news on autonomous driving. In addition, Analysis of spatial information and connectivity, global technology trend analysis, and trend analysis and prediction in the spatial information field were conducted by using WordNet applied based on key words of patent information. This paper was proposed a big data analysis method for predicting a trend and future through the analysis of the connection between the autonomous driving field and spatial information. In future, as a global trend of spatial information in autonomous driving, platform alliances, business partnerships, mergers and acquisitions, joint venture establishment, standardization and technology development were derived through big data analysis.