• The Journal of Asian Finance, Economics and Business
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• v.6 no.2
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• pp.45-54
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• 2019

This study examines whether auditors restrain the analysts' opportunistic behavior as reviewing the companies' interim reports. Analysts' forecasts show a walkdown pattern in which their optimism has decreased as the earnings announcement date has approached. At the beginning of the year, there is a lack of high-quality benchmark information that enables information users to judge the accuracy of analyst's earnings forecasts. Thus, early in the year, analysts are highly inspired to disseminate optimistic forecasts in order to gain manager's favor. In this study, we examine adequate benchmarks prevent analysts from disclosing optimistically biased forecasts. We conjecture that auditors' efforts might mitigate analysts' walkdown pattern. To test this hypothesis, we use data from Korea, where it is mandatory to disclose auditor's review hours. We find that the analyst forecast's walkdown decreases with the ratio as well as the number of audit hours. It implies that an auditor's effort in reviewing interim financial information has a monitoring function that reduces analysts' opportunistic optimism at the beginning of the year. We conjecture that the tendency will be more pronounced when BIG4 auditors review the interim reports. Consistent with the prediction, BIG4 auditors' interim review effort is more effective in suppressing the analysts' walkdown.

• The Journal of the Korea Contents Association
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• v.15 no.5
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• pp.168-178
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• 2015

Besides the imposition of taxes and mandatory actions, why in a special rules needed in the contract between state and civilians. The contract between the state and civilian are unlike with civilian's contract in the comparable effect, even if the effect of the agreement and the parties bear the structural nature of the self-other agreement between private economic actors and there are a variety of different specificity. In other words, the agents of the contract with the state government for control of opportunistic behavior are very specific rules exist. Through this, even if it is the relationship between state and non-mandatory private realms of the contract, even if the area forced me to the fact that the difference can be confirmed. Representative of the government of the country to understand the delegate decisions and judgments and other opportunistic behavior always seem to exist on the possibility of such devices for the pre-control needed.

• The Research Journal of the Costume Culture
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• v.21 no.2
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• pp.220-233
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• 2013

This study examined regarding the moderating effect of length of relationship in the relationship among the antecedent variables (i.e., specific investment, opportunistic behavior, communication, uncertainty, interdependence, power imbalance, shared value, and flexibility) of trust and commitment, trust and commitment and firm performance and relationship satisfaction. A total of 128 apparel manufacturers participated in this study. Flexibility exerted the most positive effect on trust in short-term relationship, followed by specific investment. And opportunistic behavior was found to exert negative effect on trust. Commitment was found to be most negatively affected by power imbalance, followed by interdependence. Trust was shown to be significantly affected by communication, shared value and flexibility in short-term relationship. In the case of long-term relationship, commitment was shown to be significantly affected by uncertainty, interdependence, power imbalance and flexibility. Firm performance was positively affected by both trust and commitment. As for the effect of trust and commitment on relationship satisfaction, relationship satisfaction was also affected by both trust and commitment. In case the length of relationship, firm performance was affected by both trust and commitment. As for the effect of trust and commitment on relationship satisfaction, relationship satisfaction was also affected by both trust and commitment. The result of this research provides valuable data for making a concrete suggestion regarding the strategy for improving trust and commitment for the sake of the desirable relationship between apparel manufacturers and contractors.

• Journal of the Korea Convergence Society
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• v.10 no.11
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• pp.345-352
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• 2019

This paper examines the opportunistic behavior of corporate insiders and analyzes the relationship between equity change and the possibility of delisting. The findings are summarized as follows. First, the larger the stake reduction of insider, the greater the negative excess return after announcement. In the delisting firm group, there is a significant decrease in equity and statistically significant results in the difference test between the comparative groups. The logistic regression analysis showed that the regression coefficient of equity change was negatively statistically significant, indicating a significant correlation between insider share change and the possibility of delisting. These findings are expected not only to provide useful information for investors, but also to be evidence of capital market information asymmetry.

• The Journal of Industrial Distribution & Business
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• v.13 no.1
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• pp.11-21
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• 2022

Purpose: This study predicted cost asymmetry as a determinant of investment efficiency, and empirically analyzed the relationship between cost stickiness and investment efficiency. Research design, data and methodology: Using a sample of 4,382 Korean firm-year observations over 2011-2017 period, I examined the relationship between cost stickiness and investment efficiency. Asymmetrical cost behavior is measured as model of Homburg and Nasev (2008) and model of Park, Koo, and Pae (2012). Investment efficiency is measured as Chen, Hope, Li, and Wang (2011)'s model. Results: Firms with cost stickiness are less efficient in their investment than firms with non-cost stickiness. In other words, cost stickiness is an empirical result that supports the previous research on cost decision-making from perspective of managers pursuing private benefits due to information asymmetry. Conclusions: By showing that the manager's decision-making on the cost behavior affects the investment efficiency corresponding to capital management, the implications for the mechanism for efficient capital management are provided. Through the empirical results, it was shown that the cost stickiness is a product of opportunistic cost decision-making due to information asymmetry, and it is to present evidence that expands the meaning of the causes of asymmetric cost behavior.

• Korean Journal of Culture and Social Issue
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• v.23 no.2
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• pp.239-270
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• 2017

This study investigated the nature and dimensionality of the motives why employees showed the silence even though they could speak up their opinions. It aimed to develop the scales measuring employee silence. Thus, three studies were designed and particularly, two studies featured two different studies, totaling five studies. Study 1 conducted open-ended survey asking and 104 workers from a variety of work field answered. With the results of open-ended questions, a were developed, consisting of 60-items to measure employee silence motivation. Study 2 examined the scale developed and 481 workers from diverse work fields participated in. The exploratory factor and 'intra-ESEM' analyses were confirmed the construct of silence motivation, composing 5 factors(acquiescent, defensive, disengaged, opportunistic, relational silence) the 20-items was developed to measure the construct(Study 2-1). Furthermore, 'inter-ESEM' analysis was examined the discriminant validity of scale developed by the current study with general silence behavior and voice behavior. It found that the employee silence was distinguished from general silence behavior and voice behavior(Study 2-2). Study 3 was designed for validation of silence motivation scale which developed from Study 1 and Study 2. Based on these results, the implications and limitations of this study as well as the direction for future study were discussed.

• Journal of Korea Society of Digital Industry and Information Management
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• v.14 no.2
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• pp.91-105
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• 2018

The purpose of this study is to examine an immoral effectiveness decrease by information access monitoring between ethical dilemma and unethical information-sharing behavior. Firms are raising the demand of confidential information management and are highlighting the ethical awareness of organizational members. The individuals in organization are concerned information sharing for future-oriented social networking. To prevent their immoral behavior, Firms should consider investing the information access monitoring. This system is aiming at log verification of movement, storage and deletion on information and will reduce an ethical conflict and unethical behavior on employees. I used the structural equation methodology for this empirical study. The research model constructs the voluntary and involuntary dilemma of information sharing on the two independent-variables, the unethical information behavior and the improper networking reinforcement on the two dependent-variables and the information access monitoring the one mediating-variables. This model tests the power effect of direct path, indirect path and total path. According to the study, the two ethical dilemma of information sharing provided a high influence to the unethical sharing action and to the inappropriate social networking strengthens. However, the mediating role of information access monitoring shows the effect weakens of independent and dependent variables. Thus, the mediating variables appeared to be important for the controlling role of an unethical behavior and improper social networking. Ultimately, The firms will need to invest the information access monitoring for a compulsory ethics behavior of organizational members. In addition, this can hinder networking enhancements for future opportunistic behaviors.

• Journal of Distribution Science
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• v.16 no.11
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• pp.65-72
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• 2018

Purpose - The purpose of this research is to investigate the effect of ex ante governance mechanisms that can be exercised by franchisers on franchise contract compliance and various relationship outcomes. There are many previous studies on control mechanisms in inter-firm relationship, however, most studies focus on ex post governance mechanisms and identify the effects of behavior control and outcome control on performances. Based on transaction cost theory and agency theory, this study defines the ex ante governance mechanisms of franchisers as contractual completeness and extra contractual incentives. The author have examined the two ex ante control mechanisms on contract compliance, recontract intention, multi-shop running intention and opportunistic behaviors of franchisee. Research design, data, and methodology - In this study, 137 questionnaires of food and beverage franchise stores were collected through a specialized research company. The reliability and validity of the variables were analyzed using SPSS 18.0 and AMOS 18.0 programs and hypotheses were verified through the structural equation modeling. Results - As a result of hypothesis testing, contractual completeness and extra contractual incentives have a positive effect on the contract compliance of the franchisee. It is shown that franchisee's contract compliance has a positive effect on recontract intention and multi-shop running intention and has a negative effect on opportunistic behaviors. Conclusions - This study examines the ex ante governance mechanisms such as contractual completeness and extra contractual incentives, which is relatively rare compared to ex post governance mechanism in B2B relationship. According to the results of this research, these two tools can be used as ex ante control mechanisms for franchise headquarters to use their franchisees. In addition, franchisee's contract compliance affects various relationship outcomes between franchisor and franchisees.

• Journal of Digital Convergence
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• v.15 no.1
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• pp.77-84
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• 2017

This study investigates the association between financial reporting strategy and the directors' and officers' liability insurance. Since D&O insurance protects officers and directors against the risks of shareholder litigation, it is possible that, because of moral hazard, managers will be more willing to participate in opportunistic financial reporting such as earnings manipulation when they are covered by a generous D&O insurance policy. This paper examines the association between D&O insurance and financial reporting, specifically whether the purchase of D&O insurance affects earnings manipulation. On the other side, the firms engage earnings management are willing to purchase D&O insurance, this study tests whether earnings manipulation affects D&O purchases using listed firms in Korean stock market from 2006 to 2008. This paper finds that firms with higher discretionary accruals are less likely to purchase D&O insurance implies that managers who are participating in earnings manipulation are not willing to purchase D&O insurance. The relation between discretionary accruals and D&O is significantly negative which indicate D&O insurance purchase does not trigger earnings manipulation rather it alleviates opportunistic reporting behavior.

• The Journal of Fisheries Business Administration
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• v.37 no.3 s.72
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• pp.25-44
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• 2006

This paper tries to suggest reform proposals for the management policy of reported handicraft fisheries based on the intertidal - mudflat productivity. The paper started from the empirical analysis of the current situation of the handicraft fisheries around Seosan and Dangjin counties. The area of intertidal - mudflat around Seosan and Dangjin counties is approximately 855ha. The its ratio to the total areas in our country is 0.3%. By the way, the reported number of handicraft fisheries is 5,245, the ratio of which to the total number in our country is nearly 10.2%. The reason why there exists unbalance between the area of intertidal - mudflat and the reported number of handicraft fisheries is the political behavior of provincial governments. Therefore the paper tries to establish policy remedies focused on the confrontation against the opportunistic behaviors of provincial governments, such as the reform proposals for the Korea's fisheries act.