• Journal of Technology Innovation
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• v.22 no.2
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• pp.157-183
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• 2014

This paper examines how the concentration of ownership in firms influences the R&D investment decision and whether the type of a firm's management (i.e, the owner-manager or professional manger) differentiates the relationship between the ownership concentration and R&D investments by using data of Korean pharmaceutical companies between 2004 and 2008. The results show that the share of the largest shareholder and R&D investment have an inverted U-shaped relationship, and whether a CEO is an owner or a professional manager affects the curvature of the inverted U-shaped relationship. Specifically, when a firm's CEO is a professional manager and the share of his stock is small, increase in the CEO's share increases the R&D investment in the larger amount than when a firm's CEO is an owner. This is because the increase in ownership reduces agency cost; However, when the share of his stock is large, the increase in CEO's share decreases R&D investment in the larger amount than when a firm's CEO is an owner. This is because a professional manager gets concerned over excessive risk exposure more than an owner-manager does.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.101-109
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• 2023

This study examined the relationships among owner-manager characteristics, e-commerce adoption, and performance of small and medium enterprises (SMEs) in Malaysia. Although the growth of e-commerce was encouraging in many countries, studies of e-commerce adoption among SMEs in developing countries such as Malaysia are insufficient. Furthermore, studies that investigated individual characteristics and e-commerce adoption are still low in number. This study specifically employed the technology-organization-environmental (TOE) framework to develop its research model. The sample was selected by using a non-probability judgmental sampling technique because the desired population frame was unavailable. A total of 111 owner-managers of SMEs were surveyed using online self-administered questionnaires. Subsequently, the data was analyzed through partial least square-structural equation modeling (PLS-SEM). The results revealed significant relationships between owner-manager characteristics and e-commerce adoption, as well as between e-commerce adoption and the performance of SMEs. The findings suggested that owner-manager characteristics played an important role in determining e-commerce adoption among SMEs. Moreover, e-commerce adoption was crucial in affecting the performance of SMEs. This paper provided new insights into factors affecting e-commerce adoption and firm performance. It could further benefit the government and SMEs in strategizing e-commerce adoption and development, especially in the era of Industrial Revolution 4.0 (IR 4.0) and the post-COVID-19 pandemic.

• Korean Journal of Construction Engineering and Management
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• v.12 no.1
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• pp.97-106
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• 2011

Construction Management is the overall management of the project as construction manager and the owner are united together. Construction manager's role is to conduct the overall or partial construction administration in the 'design, bid, build' process, in the owner's interests with maintaining technical neutrality. Construction manager is becoming one of new professionals in the building process and the contract defines their roles and the range of services, so high level of ethnics are required. This study suggests the legal status of the construction manager and the ethnic standards and the ethnic's characteristics. In conclusion, firstly, the legal characteristics of the administration of construction management are the delegations contract, the responsibility of negligence and the duty of due diligence, abided by the contract that ties between the owner and the construction manger. Secondly, the administerial characteristics of the construction management are the role of mediator, the service of professional technology, accountability to the owner and publicness. Thirdly, due to these characteristics, as a professional, the standard of ethnic assessment for the construction project manager are intention, act and result, so with the relation to that, morality, deontology and consequentialism have been suggested in this study.

• International Journal of Advanced Culture Technology
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• v.11 no.1
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• pp.103-109
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• 2023

This study examines the association between ownership structure and labor investment efficiency. Specifically, this study investigates whether owner-manager firms, where managers own a large percentage of shares in the firm, involve in more efficient labor investment. Based on the management entrenchment hypothesis, managers are more likely to make labor investment decisions to maximize their private benefits rather than creating value for shareholders, resulting in lower efficiency in labor investment. On the other hand, according to the incentive alignment hypothesis, managers tend to make labor investment decisions that will improve future firm performance as their interests are aligned with those of shareholders. In this situation, owner-manager firms are expected to have higher efficiency in labor investment. Our empirical results show that owner-manager firms engage in more efficient labor investment, which contributes to long-term firm value. This study provides empirical evidence that firms' labor investment behavior can vary depending on the characteristics of the ownership structure.

• Journal of the Korea Institute of Building Construction
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• v.11 no.2
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• pp.200-207
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• 2011

Construction management services have been adopted for more than a decade and are continuously growing; however, the advantages of utilizing a construction management service are still not quite clear, regardless of many arguments can be made in their favor. The construction manager, as a coordinator, is supposed to smoothly facilitate the project teamwork in order to deliver a profitable and satisfactory project, not only for the owner's interests but also for the success of all project participants. This study has focused on the teamwork supports a construction manager can provide during project operations. This study developed a benchmarking tool to assess the construction manager's role in terms of its project teamwork supports, by utilizing the evaluation model and several case studies. In addition, this study also attempted to set the industry average and higher performance so that both the owner and the construction manager can self-assess, and more importantly, can improve project operation. The actual implementation of the benchmarking tool into on-going projects can allow the construction manager to understand the current operation and to make a better project process through teamwork.

• The Korean Journal of Financial Management
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• v.24 no.1
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• pp.149-182
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• 2007

This study examines the determinants of the long-run stock price performance of the firms that granted stock options between 1997 and 2002. We divide the sample into the firms run by the owner and those run by the professional manager. If the primary reason for granting stock options is reduction of the agency costs between the manager and shareholders, the effect of stock options is likely to be more pronounced in the firms run by the professional manager. We find that the long-run abnormal returns of the firms run by the professional manager are negatively associated with the shareholdings by the manager and the book-to-market value and are positively associated with the earnings growth and the size of the outstanding stock options. In contrast, the long-run abnormal returns of the firms run by the owner are negatively associated with the cash flows rate and the sales growth rate and are positively associated with the firm size. This is consistent with the argument that the agency costs arising from the conflicts between the manager and shareholders are an important determinant of the post-stock option granting long-run stock price performance only in the firms run by the professional manager. The results also suggest that stock options in the firms run by the owner are likely to be used for the purposes such as additional compensation, a signaling device, a means that reduce the agency costs within firms.

• Journal of the Korea Convergence Society
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• v.10 no.5
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• pp.213-219
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• 2019

This study is designed to analyze the effect of entrepreneurship orientation of owner managers on product innovation performance through user innovation participation by using Korea Innovation Survey 2014 (KIS 2014) conducted by STEPI (Science and Technology Policy Institute). The findings show that entrepreneurial orientation of owner managers measured by a proxy variable of ownership ratio has positive relationship with innovation performance of firms. They also present that user innovation activity has a partial mediating effect on the relationship between the entrepreneurial orientation of owner managers and innovation performance of firms. This study suggests that the higher the entrepreneurial orientation of the owner manager, the higher the innovation performance. The innovation performance can be intensified when the open innovation strategy is implemented through the user participation.

• KDI Journal of Economic Policy
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• v.39 no.3
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• pp.63-98
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• 2017

This paper investigates the sales process of treasury stocks, while most previous research studies treasury stock repurchases. The sales of treasury stocks are an important measure to protect management rights only in Korea, as Korea's laws and systems allow treasury stock sales according to the board's resolution and not by the decisions made at the general shareholders' meetings. The board's resolution, which considers the owner-manager's interest on management rights, can cause damages to small shareholders. Considering (i) the economic characteristics of treasury stocks, (ii) other countries' institutions and experiences, (iii) a theoretical assessment of the possibility of small shareholder losses, and (iv) lessons from Korea's actual instances, Korea's present system should be corrected at least in the mid and long term. Even in the short-term, rules pertaining to sales enacted by the board's resolution inducing small shareholder losses should be overhauled. The autonomous discipline by various stakeholders could be an ideal measure by which to monitor ownermanager's decisions. In addition, temporary intervention measures, such as government examinations, could be implemented to protect small shareholders.

• Journal of Korean Society of Forest Science
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• v.105 no.4
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• pp.486-495
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• 2016

This study was conducted to contribute to propose the improvement by looking into the use of private forest support system and then analyzing the status of support system and problems among forest owners. The study result showed that the recognition of private forest support system was 57.8% in sincere forest managers and 47.6% in forest successors, but only 17.6% in forest owner. The application experience was 79.2% in sincere forest managers, and 58.6% in forest successors, but 28.6% in forest owner which was significantly low as was shown in the recognition. Response on 'not knowing the support system' as the reason they were not able to ask for support was 36.1%, 43.0%, 78.6% in sincere forest managers, forest successors, and forest owner respectively in that order, which were the same results with the recognition. In the contrast, the effects of support for private forest management were higher in forest owner than sincere forest managers and forest successors, and overall level of satisfaction was also 28.5% in sincere forest managers and 36.8% in forest successors and 41.5% in forest owner. It turned out that forest owner who had somewhat low numbers of application had rather high satisfaction on overall management. Therefore, in order to attract active forest management from forest owner who take up most of forest owners in South Korea, the recognition on private forest support system is needed to improve and the local government and the Forestry Association should come up with active plans for public relations and support.

• The Journal of the Convergence on Culture Technology
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• v.9 no.2
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• pp.319-325
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• 2023

This study investigates the impact of over-investment on the market value of cash holdings. In addition, this paper examines whether the effect of over-investment on the value of cash holdings differs depending on firms' ownership structure. The results show that increase in over-investment reduces the market value of cash holdings. This suggests that investors perceive that over-investment deteriorates future business performance and generates excessive burdens on future cash flows. As a result, they provide negative evaluation on the market value of cash holdings. In addition, the negative impact of over-investment on the market value of cash holdings is more significant for owner manager firms where managers hold a high level of equity. Such empirical results imply that owner manager firms are more likely to use their cash holdings for private interest, therefore, over-investment reduces the cash value to a greater extent. This study provides empirical evidence that the effect of over-investment on the market value of cash holdings varies depending on the characteristics of firms' ownership structure.