• Korean Journal of Construction Engineering and Management
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• v.17 no.5
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• pp.13-21
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• 2016

Insolvency of construction companies that play the role of main contractors can lead to clients' losses due to non-fulfillment of construction contracts, and it can have negative effects on the financial soundness of construction companies and suppliers. The construction industry has the cash flow financial characteristic of receiving a project and getting payment based on the progress of the construction. As such, insolvency during project progress can lead to financial losses, which is why the prediction of construction companies is so important. The prediction of insolvency of Korean construction companies are often made through the KMV model from the KMV (Kealhofer McQuown and Vasicek) Company developed in the U.S. during the early 90s, but this model is insufficient in predicting construction companies because it was developed based on credit risk assessment of general companies and banks. In addition, the predictive performance of KMV value's insolvency probability is continuously being questioned due to lack of number of analyzed companies and data. Therefore, in order to resolve such issues, the Bayesian Probabilistic Approach is to be combined with the existing insolvency predictive probability model. This is because if the Prior Probability of Bayesian statistics can be appropriately predicted, reliable Posterior Probability can be predicted through ensured conditionality on the evidence despite the lack of data. Thus, this study is to measure the Expected Default Frequency (EDF) by utilizing the Bayesian Probabilistic Approach with the existing insolvency predictive probability model and predict the accuracy by comparing the result with the EDF of the existing model.

• Management & Information Systems Review
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• v.34 no.5
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• pp.213-231
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• 2015

In this paper, I examine whether the listed companies in Korea tend to manage operating cash flows upward via classification shifting after the adoption of K-IFRS. As proxies for cash flow management, I derive a measure of abnormal operating cash flows borrowing from Lee(2012). Alternative proxies include a series of categorical variables designed to identify the types of classification shifting of interest and dividend payments among others, in the statement of cash flows. Higher level of estimated abnormal operating cash flows, and the classification of interest/dividend payments in non-operating activity sections are considered to indicate the managerial intention to maximize reported operating cash flows. I consider several potential incentives to manage operating cash flows, which include financial distress, the credit rating proximity to investment/non-investment cutoff threshold, avoidance of negative or decreasing operating cash flows relative to previous period and so forth. In a series of empirical analyses, I do not find evidence in support of the opportunistic classification shifting explanation, inconsistent with several previous literature in Korea. In contrast, I observe negative associations between the CFO management proxies and selected incentives, which suggest that the classification is likely to represent above average cash flow performance rather than opportunistic motives exercised to maximize reported operating cash flows. I reckon that this observation is, in part, driven by the K-IFRS requirement to maintain temporal consistency in classifying interest and dividend receipts/payments in cash flow statement.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.8 no.4
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• pp.81-93
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• 2013

The study attempted to explain the differences among the willingness of companies to accept the self-regulation. The study exemplified the $CO_2$ emissions record labelling program, as a self-regulation program which is considered as a concrete action for corporate social responsibility and substantiality management movement. The study investigated how companies respond to the request from a government to accept the program, which may be potentially contributed to both higher social and financial performance. It is hypothesized that first the company may decide whether the acceptance decision is strategic or non-strategic issues. when considered as non-strategic, the decision will be made on the basis of short term expected returns and costs comparison. It is hypothesized that when considered as strategic, the decision will be strongly influenced by the type of corporate perceptions toward environmental regulations, which has been accumulated by past experiences. Also, the study investigated the good management theory and the slack resources theory which differently predict the direction between social performances and financial performances. The results identified the significant relationships among most variables and supported the slack resources theory. Further, the ethical perception positively influenced the willingness to accept the self-regulation.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.7
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• pp.481-491
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• 2016

This study analyzed the customer's revisit concepts and storytelling by restaurant customers to identify the elements that can attract the attention of customers. The restaurant concept or advertising, restaurant decor will also have to change to emphasize the comparative advantage of the features in the menu of a restaurant or other restaurants / service that tells a story. Membership cards or money, or the same convenience and use of the restaurant non-monetary 'transition cost' can compensate for the negative emotions and low satisfaction level of restaurant customers and help them choose to revisit the restaurant. Therefore, if such a transition takes full account of the effects of the cost to the customer, it can be used as an effective means. In class restaurants, such as the food and customer service, the increased levels of the restaurant atmosphere and empirical elements, such as store concept and physical environment, can improve the positive consumer sentiment, strengthen the customer satisfaction and have a positive effect on the customers' revisit intention. It is also important to improve the level of visual texture using light. In addition, positive consumer sentiment can be induced using the store concept, the physical environment, and experiential elements. In other words, membership cards, mileage points, and various financial and non-financial inducements as a marketing tool will have a positive impact on the customer's revisit intention.

• The Journal of the Convergence on Culture Technology
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• v.8 no.2
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• pp.37-46
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• 2022

Recently, our society and environment has changed rapidly due to the pandemic caused by the COVID-19 virus. In this rapidly changing environment, companies fulfill their social responsibilities and require non-financial elements of transparent management activities. ESG has become one of the non-financial factors, and interest of ESG management is increasing worldwide. In this paper, we examine the importance of ESG concept and ESG management performance and the correlation with companies, and examine the necessity of ESG management for companies in the future. The literature reviews are conducted on CU which is currently best practicing ESG management through various secondary data. Also, we used interview articles so that reflect the rich voice of the distribution industry. In addition, after examining ESG characteristics through examples of global companies, we looked at BGF Retail's CU convenience store ESG activities, which is a leader in ESG management, in distribution industry. CU was divided into all sectors of E, S, and G, and all sectors were actively engaged in activities and flexibly coping with changing environments and social needs. In particular, it was confirmed that CU's environmental management, which focuses the most, achieved successful results due to the increase in actual consumption of customers. ESG management activities at CU convenience stores are currently ongoing and future tasks. As a leading company in ESG management in the current industry, it is meaningful to understand the process of growing into a company that shares concerns, efforts, and practical activities and fulfills social responsibility. Through this study, the changes and growth of CU and domestic companies to ESG and sustainable management are expected in the futures.

• Korea Journal of Hospital Management
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• v.19 no.3
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• pp.11-28
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• 2014

This study, targeting Korean tertiary hospitals and general hospitals, aims to analyze how value chain model in health and medical institution suggested by Duncan and else influences on hospital management. A survey was conducted to verify the actual proof analysis of this study model. 880 questionnaires were distributed to entire 88 hospitals and 739 copies were returned from 76 hospitals. This study mainly consists of three steps to analyze the effect value chain activity has on management performance of general hospitals. For the first step, we analyzed the effects service delivery activity has on management performance. For the second step, we analyzed the effects service support activity has on management performance and for the third, we analyzed the effects interaction between service delivery activity and service support activity has on management performance. The main results of this study are as follows. First, in terms of the management performance of scale, the factors which influenced on daily charge of outpatient were service activity before treatment, at the moment of treatment and value chain activity, while more important factors in daily charge of inpatient were organizational culture, organizational structure and value chain activity. In terms of management performance of quality, the factors which influenced on the first medical examination rate of outpatient were service activity before, at the moment of and after treatment, while activity at the moment of treatment, organizational structure, and value chain activity which is interaction were more important factors in average length of stay. In terms of non-financial performance, the management performance factors which influenced on job satisfaction were service activity at the moment of, after the treatment and value chain activity, while organizational culture, strategy resources and value chain activity which is interaction were more important factors in job commitment. Secondly, all the service support activity, service delivery activity and value chain activity had statistically significant effect on management performance. Among the three factors, service support activity had relatively high effect than others.

• Management & Information Systems Review
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• v.36 no.1
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• pp.233-249
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• 2017

This study investigates the relation of managerial ability and firm performance in case of Chaebol in Korea. We employ non-financing firms at Korean markets for the period 2000-2015. Most important decision is made by the head of Chaebol which increases firm value eventually and he has such a strong dominant power that managers belongs to Chaebol have to follow mother firm's decision directions. So it is expected that managers belongs to Chaebol have to focus on long term performance rather than short term profits, which means they concentrate their managerial ability much on the firm value. Otherwise, managers in which non-Chaebol focus their ability on periodic accounting earnings. Thus, this study examines an empirical analysis on the relation of managerial ability and firm performance and the effect of Chaebol on the relation of managerial ability and firm performance. Empirical results are as follows: First, there exists a statistically significant positive relation between managerial ability and firm performance either short- or long-term. Second, we extend this relationship into Chaebol condition and find that managerial ability of Chaebol positively influences on the firm value which is long-term performance, rather than return on assets which is short-term performance. These results imply that managers belongs to Chaebol much concentrate their ability on long-term value which is differenciated from the case of non-Chaebol samples. Chaebol is an important issue in Korea because it dominates most of Korean local economy so its' impact from small changes on our economy is big enough. Our study examining the relationships between managerial ability of Chaebol and firm performance is meaningful and it is a good signal that they concentrate their ability much on the long-term value rather than short-term profits. We expect that the results of this study will provide the academic and practical references. This study will contribute to the future research in accounting through an analysis of managerial ability which is a new measure, Chaebol, and firm value.

• Korean Management Science Review
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• v.34 no.1
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• pp.71-84
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• 2017

The purpose of this study is to extract the characteristic cost through the time series analysis of each cost from 2003 to 2014, and to grasp the performance and relevance of the enterprise. Therefore, in this section, we analyzed the time-series analysis of selling, administrative, and non-operating expenses as described above. First, depreciation cost, advertising cost, transportation cost, research cost, current research cost, and ordinary development cost were extracted as the variables of interest to be verified in the empirical analysis. However, in the analysis of non-operating expenses, we could not extract the specific cost, but we could grasp the time-series flow of cost data before and after two epochs such as financial crisis and introduction of IFRS obligation. The results of this study show that sales management costs have a positive (+) effect on firm value. Empirical analysis confirms that management is trying to increase or decrease the cost This can be confirmed by the empirical results of this paper. At present, general enterprise accounting is done through ERP system. However, since the ERP system does not have an analysis system for each sales and management cost, the current system has difficulty in knowing the budget item for each cost each time the expenditure resolution for each cost item is made, It is a reality that the expenditure plan must be managed separately and it is inconvenient to keep it. However, if this practical difficulty is solved by the cost analysis system such as sales management cost, the present accounting information system will be further developed. Furthermore, the management will increase the profit item It is thought that coordination actions can also be prevented in advance.

• The Korean Journal of Archival Studies
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• no.79
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• pp.33-82
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• 2024

Interest in ESG management, which spread through the UN PRI in 2006, has recently spread throughout our society. Consumers use a company's activeness in the ESG field as the standard of consumption behavior, and the international community is reorganizing and strengthening various regulatory measures. In the investment market, non-financial performance (ESG information) is used as an important investment indicator along with financial performance (credit rating). Due to these changes in the corporate evaluation paradigm and market pressure, if a company neglects ESG response activities, it is more likely to be excluded from market selection, and accordingly, the importance of ESG management is also increasing. Companies are making various efforts to secure legitimacy in response to these market pressures, but in the process, it is difficult to systematically manage and utilize records/data that are the basis for ESG management. For a basic understanding of ESG management, this paper summarizes the emerging process of ESG and the current ESG-related regulations applied to companies. Through this, it can be seen that ESG management is not carried out with the good will of the company, but is accepted as a management strategy for the survival of the company according to the change in the corporate evaluation paradigm. Through interviews with the company's ESG-related personnel, the company's ESG response process was divided into passive communication and active communication, and the problems identified during the interview were summarized for each communication type. In addition, in the process of passively and actively communicating ESG management information with internal and external stakeholders, the possibility that ESG archives can function as a tool to overcome problems for each communication type was raised, and five types of ESG archives that can play this role were presented.

• Journal of Preventive Medicine and Public Health
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• v.31 no.3 s.62
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• pp.490-502
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• 1998

This study purports to find the predictor of hospital bankruptcy in Korea and to examine the predictive power of the discriminant function model of hospital bankruptcy. Data on 17 financial and 4 non-financial indicators of 31 bankrupt and 31 profitable hospitals of 1, 2, and 3 years before bankruptcy were obtained from the hospital performance databank of Korea Institute of Health Services Management. Significant variables were identified through mean comparison of each indicator between bankrupt and profitable hospitals, and the discriminant function model of hospital bankruptcy was developed. The major findings are as follows 1. As for profitability indicators, net worth to total assets, operating profit to total capital, operating profit ratio to gross revenues, normal profit to total assets, normal profit to gross revenues, net profit to total assets were significantly different in mean comparison test in 1, 2, and 3 years before hospital bankruptcy. With regard to liquidity indicators, current ratio and quick ratio were significant in 1 year before bankruptcy. For activity indicators, patients receivable turnover was significant in 2 and 3 years before bankruptcy and added value per adjusted inpatient days was significant in 3 years before bankruptcy. 2. The discriminant function in 1, 2, and 3 years before bankruptcy were; $Z=-0.0166{\times}quick$ ratio-$0.1356{\times}normal$ profit to total assets-$1.545{\times}total$ assets turnrounds in 1 year before bankruptcy, $Z=-0.0119{\times}quick$ ratio-$0.1433{\times}operating$ profit to total assets-$0.0227{\times}value$ added to total assets in 2 years before bankruptcy, and $Z=-0.3533{\times}net$ profit to total assets-$0.1336{\times}patients$ receivables turn-rounds-$0.04301{\times}added$ value per adjusted $patient+0.00119{\times}average$ daily inpatient census in 3 years before bankruptcy. 3. The discriminant function's discriminant power in 1, 2, and 3 years before bankruptcy was 77.42, 79.03, 82.25% respectively.