• Asia-Pacific Journal of Business
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• v.12 no.3
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• pp.343-359
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• 2021

Purpose - The purpose of this paper is to investigate the relationship between earnings management and the disclosure effect of share repurchase. In addition, we analyze whether the relationship between earnings management and share repurchase is affected by executive stock options. Design/methodology/approach - We calculate the discretionary accrual amount for the year immediately preceding the share repurchase and the cumulative excess return around the announcement of the share repurchase, and examine the relationship between the two by regression analysis. Findings - We confirmed a negative relationship between discretionary accrual in the year immediately preceding the share repurchase and the market response to the share repurchase disclosure. In particular, it was found that the negative relationship between discretionary accrual and stock price return on share repurchase announcement was found to decrease in companies to which executive stock options were granted. Research implications or Originality - When uncertainties exist in the motives for share repurchase, we find that earnings management and executive stock options can be useful tools for reducing the adverse selection risk inherent in share repurchase announcements.

• Journal of Venture Innovation
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• v.1 no.1
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• pp.83-98
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• 2018

This paper makes a theoretical approach to the differences between transaction tax and capital gains tax when the financial instruments are traded and imposed taxes in K-OTC market, a newly emerging off-board market. Since it is difficult to reduce risk to the level which investors would like to pursue - depending on the taxation methods of portfolio-composed financial instruments - when it comes to forming a synthetic bond to hedge risk, this paper also seeks for effective taxation methods to make this applicable. First of all, to thoroughly review the taxation balance of synthetic bonds, this paper analyzed the effects of the transaction tax and capital gains tax imposed upon synthetic bonds according to the changes in final stock price and strike price in K-OTC market, and analyzed after-tax profit differences among them depending on whether income tax deduction took place or not. As a result of the research upon the tax gap in transaction tax and capital gains tax according to the changes of final stock prices, it was shown that imposing transaction tax is more likely to be effective for some level of risk hedging with replicating portfolio considering taxation policies and financial markets, since the effect of the transaction tax has a much lower tax gap than that of capital gains tax. In addition, in relation to whether income tax deduction was permitted or not, it was proved that the effect of the transaction tax and the capital gains tax vary depending on the variation in the strike price. Above all, it was shown that if the strike price is lower than the stock price, the transaction tax will be less affected by the existence of income tax deduction than the capital gains tax, while both will be equally affected by the existence of income tax deduction if the strike price is higher than the stock price. Further study would be to demonstrate the validation of this in the K-OTC market with actual financial instruments and, also, to seek for a more systematic hedging method by using a ratio analysis approach to the calculation of the option transaction tax

• The Korean Journal of Financial Management
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• v.27 no.2
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• pp.85-114
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• 2010

Using the financial institutions that have adopted performance-based stock option plan, this paper examines whether performance-based executive stock options improves effectively firm value. Over the period 2002~2005, we investigate short-term and long-term effects of the performance-based stock options on stock price. The empirical results are summarized as follows. First, the announcement of plain vanilla stock options generates no significant effects on firm value. Meanwhile, the announcement of performance-based stock options results in negative and significant abnormal returns, which is contrary to the expectation. In addition, we find that there are strong, significant and negative announcement effects when banks grant performance-based stock options. Secondly, there is no significant difference between the long-term performance of the sample granting stock options and that of the benchmarks, which is similar to the findings of the previous research. Also, we fail to get any evidence that performance-based stock option awards have improved the long-term firm value.

• Asia pacific journal of information systems
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• v.17 no.4
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• pp.97-112
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• 2007

Most traditional newspaper publishers provide online editions to counter the competition of online news providers. However, the relationship between the online and print editions of the same newspaper has not been clearly defined. Some see the online newspaper as a substitute, while others consider it a complement. A 2002 NAA online newspaper consumer survey indicated that one-third of its respondents said they were now using the print newspaper less. Others have argued that the online edition will not wipe out print consumption, and may even complement it. While the print edition offers particular advantages such as portability, less eye strain, and the tactile experience of a printed page, the online edition also offers specific advantages such as access to breaking news, continually updated information, access to old archives, etc. All these factors would tend to lower the degree of interchangeability between the products. However, recent empirical studies show that the online edition is a substitute for rather than a complement of the print edition. Still, to some print readers, the online edition provides additional value. In this paper, by capturing the two different aspects of online editions the substitute aspect and the additional value added aspect as well as other available online alternatives, we develop an analytical model to derive the optimal production and distribution strategies of both online and print editions. Confronting the "free versus fee" issue, we show that it is optimal to provide an online version of the print newspaper for free to non-print subscribers. However, the amount of free news content that the publishers need to put on the Web depends on the available alternatives on the online market. The "fee" and "free" options both have merits and demerits as well. If the publisher charges for the online version of the print newspaper, she can generate revenue from the fee charged to online readers. However, doing so will limit the size of the online audience and further reduce online advertising revenue. At the same time, by providing a high-quality online version and charging for it, the price of the print newspaper must stay low in order to lure high valued readers. On the contrary, if the publisher provides an online version of the print newspaper for free, she can obtain a larger audience for the online version. At the same time, by providing a low-quality online newspaper, the publisher can increase the print newspaper price to get more revenue from high valued offline readers, although no revenue is incoming from online version readers. Through systematic measuring of all the pros and cons, our analysis shows that the optimal option is not "fee" but "free."

• The Journal of Pediatrics of Korean Medicine
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• v.28 no.4
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• pp.71-84
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• 2014

Objectives The aim of this study is to investigate preferred herbal medicine packaging. Methods The study used questionnaires for the caregivers, who have administered their children herbal and western medicine. 106 of them were visited the Department of Pediatrics, the Oriental Medicine Hospital of ${\bigcirc}{\bigcirc}$ University, during the period between in 2014. We used PASW Stastics 18.0 to analyze different dosing methods, and preferred packaging and drug formulations. Results 1. 77.4% answered that they use cups to administer medications, 9.4% transferred it to other plastic bottles, 8.5% used straw to drink from the pouch, 4.7% drank as it is inside the pouch. Method of taking it was not very significant depending on the age. 2. Compare to pills and capsules, 48 responders answered that pills and capsules are easier to take, 11 answered herbal medication is easier to take. 32 answered that there were no significant difference. 3. 45.3% reported vinyl pouch was preferable, 44.3% answered spout pouch was preferred, 5.7% answered bottles are convenient, and another 5.7% responders thought cup was fine. Others include syrup bottles had 1 person. These varying preferences were not depending on the age variations. 4. 56.3% answered that price was the main reason why they prefer one over the other. Others 29.2% stated convenience, 12.5% reported safety, and 10.4% people answered ease of administration as their main reason for their preferences. Conclusions Based on this study, numbers of parents felt inconvenient administering herbal medicine as a vinyl pouch, and felt necessary to improve this. However, price and other reasons made vinyl pouch still more preferable option. Vinyl pouch that we are using today didn't show any safety issues. Therefore, it is recommended to still use vinyl pouch, but with caps on top to improve administration and distinguishing issues.

• Management & Information Systems Review
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• v.34 no.2
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• pp.97-111
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• 2015

A preliminary study on the existing attraction effect and compromise effect was started on the experiment studies about product or service and conducted on the empirical studies on things, research trips, staff recruitment process in the research and the actual US presidential election. However most studies have been limited in the theories of the frequency range and no research about combining compromise effect and attraction effect with the types of promotion. The purpose of this study verifies that how attraction effect and compromise effect in the choice option of the choice process for brand varies according to the types of promotion. This study compares the difference of choice of brand between the influence of the attraction effect and compromise effect. The independent variables among the manipulated variables are as follows : (1) Brand choice (attraction effect and compromise effect), (2) Promotion Type (price promotion/non-price promotion). This study was manipulated in between-subjects design and within-subjects design. The results of this study will be able to see the implications for the positioning strategy of offering several new products such as practical dimensions of promotion strategy because the entry of new brands rather increases market share of similar existing brands.

• Journal of Digital Convergence
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• v.12 no.5
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• pp.89-99
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• 2014

Correlation of KOSPI from stock market and Apartment Prices in Seoul HPPCI from real estate market has been found from this research. Furthermore, from the comparison of those indicators' flows, certain precedence was found as well. The purpose of this research is to analyze correlation and precedence among KOSPI, Apartment price in Seoul, HPPCI and CLI. As for predicting KOSPI of stock market and real estate market, it is necessary to find out preceding indices and analyzing their progresses first. For 27 years from the January 1987 to December 2013, KOSPI has been grown by 687%, while CLI showed 443%, Apartment of Seoul showed 391%, HPPCI showed 263% of growth rate in order. As the result of correlation analysis among Apartment of Seoul, CLI, KOSPI and HPPCI, KOSPI and HPPCI showed high correlation coefficient of 0.877, and Apartment of Seoul and CLI showed that of 0.956 which is even higher. Result from the analysis, CLI shows high correlation with stock and real estate market, it is a good option to watch how CLI flows to predict stock and real estate market.

• Korean Journal of Construction Engineering and Management
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• v.20 no.3
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• pp.22-30
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• 2019

The purpose of this study is to derive basic data of the Guaranteed Maximum Price(GMP) process and to present specimens that can be used at the time of execution of CM at Risk project in South Korea. CM at Risk project is issued in South Korea, but the actual data is lack. On the other hand, CM at Risk project is universalized and the market of the CM at Risk is steadily growing. Because of that, in this study, The United States cases was selected as a sample. GMP consists of CM's fee, CM contingency, project direct cost, project indirect cost, allowance. GMP negotiations are performed before the end of design completion, and after 3 rounds of estimation comparison, preliminary GMP is confirmed. GMP can be multiple contract and it is useful for Procurement of long lead materials and early construction. If the actual cost is lower than expected GMP, sharing of the saving is an option since the conflict of interests between the client and the contractor can occur.

• Journal of Intelligence and Information Systems
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• v.16 no.2
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• pp.19-32
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• 2010

Volatility plays a central role in both academic and practical applications, especially in pricing financial derivative products and trading volatility strategies. This study presents a novel mechanism based on generalized autoregressive conditional heteroskedasticity (GARCH) models that is able to enhance the performance of intelligent volatility trading systems by predicting Korean stock market volatility more accurately. In particular, we embedded the concept of the volatility asymmetry documented widely in the literature into our model. The newly developed Korean stock market volatility index of KOSPI 200, VKOSPI, is used as a volatility proxy. It is the price of a linear portfolio of the KOSPI 200 index options and measures the effect of the expectations of dealers and option traders on stock market volatility for 30 calendar days. The KOSPI 200 index options market started in 1997 and has become the most actively traded market in the world. Its trading volume is more than 10 million contracts a day and records the highest of all the stock index option markets. Therefore, analyzing the VKOSPI has great importance in understanding volatility inherent in option prices and can afford some trading ideas for futures and option dealers. Use of the VKOSPI as volatility proxy avoids statistical estimation problems associated with other measures of volatility since the VKOSPI is model-free expected volatility of market participants calculated directly from the transacted option prices. This study estimates the symmetric and asymmetric GARCH models for the KOSPI 200 index from January 2003 to December 2006 by the maximum likelihood procedure. Asymmetric GARCH models include GJR-GARCH model of Glosten, Jagannathan and Runke, exponential GARCH model of Nelson and power autoregressive conditional heteroskedasticity (ARCH) of Ding, Granger and Engle. Symmetric GARCH model indicates basic GARCH (1, 1). Tomorrow's forecasted value and change direction of stock market volatility are obtained by recursive GARCH specifications from January 2007 to December 2009 and are compared with the VKOSPI. Empirical results indicate that negative unanticipated returns increase volatility more than positive return shocks of equal magnitude decrease volatility, indicating the existence of volatility asymmetry in the Korean stock market. The point value and change direction of tomorrow VKOSPI are estimated and forecasted by GARCH models. Volatility trading system is developed using the forecasted change direction of the VKOSPI, that is, if tomorrow VKOSPI is expected to rise, a long straddle or strangle position is established. A short straddle or strangle position is taken if VKOSPI is expected to fall tomorrow. Total profit is calculated as the cumulative sum of the VKOSPI percentage change. If forecasted direction is correct, the absolute value of the VKOSPI percentage changes is added to trading profit. It is subtracted from the trading profit if forecasted direction is not correct. For the in-sample period, the power ARCH model best fits in a statistical metric, Mean Squared Prediction Error (MSPE), and the exponential GARCH model shows the highest Mean Correct Prediction (MCP). The power ARCH model best fits also for the out-of-sample period and provides the highest probability for the VKOSPI change direction tomorrow. Generally, the power ARCH model shows the best fit for the VKOSPI. All the GARCH models provide trading profits for volatility trading system and the exponential GARCH model shows the best performance, annual profit of 197.56%, during the in-sample period. The GARCH models present trading profits during the out-of-sample period except for the exponential GARCH model. During the out-of-sample period, the power ARCH model shows the largest annual trading profit of 38%. The volatility clustering and asymmetry found in this research are the reflection of volatility non-linearity. This further suggests that combining the asymmetric GARCH models and artificial neural networks can significantly enhance the performance of the suggested volatility trading system, since artificial neural networks have been shown to effectively model nonlinear relationships.

• The Journal of Society for e-Business Studies
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• v.13 no.4
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• pp.49-69
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• 2008

Recently, ubiquitous computing technology becomes available to develop advanced electronic commerce：u-commerce. Hence, it is the very time to perform feasibility analysis in applying ubiquitous computing technology, especially estimating economical value of the on-going technology. Hence, the purpose of this paper is to propose a financial value estimating methodology in performing feasibility test on ubiquitous computing technology. To do so, Black and Scholes model is basically adopted. To show the feasibility if the idea proposed in this paper, actual case study through focused group interview with those who are actually performing on-going ubiquitous computing projects. As the result, we validated the possibility of applying Black-Sholes model to assessing feasibility analysis for ubiquitous technology development with the price of call option, volatility, and the comparison with other similar technologies.