• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.795-802
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• 2020

This study seeks to determine the effect of the application of accounting information system (AIS), internal control system, and human resource (HR) competency on the quality of local government financial statements (FS). This study uses agency theory and compliance theory. Agency theory is used to explain that there is a link between the society as the principal and the government as the agent. Compliance theory is a theory, which states that every agency is obliged to comply with regulations because the law-drafting authority has the right to dictate behavior. The population in this study were employees of the financial division of local government organizations in one of the districts in Central Java, Indonesia. The total samples in this study was 106 respondents. The data used are primary data taken from distributing questionnaires to respondents. The method of analysis used to test the hypothesis was multiple linear regression analysis. The results of hypothesis testing indicate that HR competency has an effect on the quality of FS; however, the application of AIS and internal control system has no effect on the quality of FS. The implication of this research underlines the importance of HR competency to improve the quality of local government FS.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.451-458
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• 2021

The objective of this research is to analyze the effect of bad credit and liquidity on bank performance with the mediation of capital adequacy. Data were provided by banking institutions listed on the Indonesia Stock Exchange from the period of 2011-2019. The analysis technique was PLS-SEM supported by an application named WarpPLS 6.0. The results of the research show that the effect of bad credit and liquidity on bank performance is not significant. A high level of bad credit is associated with a low level of bank performance. Bank earnings decline along with low profitability. This relationship is not significant because banks can still cover some proportions of bad credit through capital availability. Capital adequacy as an intervening variable has mediated partially the effect of bad credit and liquidity on bank performance. Besides, capital adequacy has a strong effect on credit distribution. Agency theory says that the owner of the fund (the savers of saving account, current account, deposit account) is called principal while the bank as the trusted institution to manage the fund is called an agent. If customers fulfill their duty, then bad credit never happens.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.12 no.20
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• pp.123-138
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• 1989

The primary objective of the agency research in the game theory lives in the maintenance of Pareto is optimal condition for the optimal incentive contract. The basic concepts which are related to this objective are reviewed in connection with the general assumptions to model it, the moral hazard and adverse selection which arised from the information asymmetry, and finally the problem of risk distribution. The demand for auditing and the role of auditor have been addressed by ASOBAC. Issues which an auditor is explicitly introduced in a principal-agent framework have been addressed in this paper. These issues must be confronted to appropriately with the auditor, and to achieve an adequate understanding of optimal confronting arrangement with the auditor. The first step in introducing an auditor into this analysis is to examine the game-theoretic foundation of such a expended agency model. The Mathematical program formulated may not yield solution that are resonable. This arises because the program may call for the auditor and manager to play dominated Nash equilibra in some subgame. The nontrivial natures of the subgame implies that randomized strategies by the auditor and manager nay be of crucial importance. The possibilities for overcoming the randomized strategy problem were suggested; change the rule of the game and or impose covexity condition. The former seems unjustifiable in on auditing context, and the latter promising but difficult to achieve. The discussion ended with an extension of the revelation principle to the owner manager-auditor game, assuming strategies. An examination of the restriction and improvement direction of the basic concept of agency theory was addressed in the later part of this paper. Many important aspects of auditor incentives are inherently multiple-agent, multiple-period, multiple-objectine, phenomena and require further analyses and researches.

• (The)Korea Educational Review
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• v.24 no.2
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• pp.51-79
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• 2018

The purpose of this study is to critically reflect on whether the higher education(HE) restructuring & funding policy proposed by the Moon administration can properly tackle the structural problems confronting Korean HE system. The three major structural problems having entrenched during the rapid expansion of Korean HE system since 1945 can be identified as (1) a 'high cost - low efficiency system' based heavily on 4-year private universities, (2) lack of clear distinction of the roles and connection among different types of higher education institutions (HEIs), and (3) provider-oriented education system and culture seemingly still being widespread at Korean HEIs. This study analyzed the validity of Moon Administration's HE restructuring and funding policy from both a macro- and micro-perspective. From a macro-perspective, this study raised concerns regarding the projects to nurture a national university and a government-dependent private university which will require huge public money. In terms of both the feasibility to secure enough funds and the validity of the proposed policy measures in the existence of unclear roles between public and private HEIs in Korea, this study criticized these policies and proposed, as an alternative policy measure, a low-cost and flexibly operated HEIs such as a government-dependent polytechnic, and a measure to increase connection between different types of HEIs. From a micro perspective, this study suggested, based on 'the expanded principal-agent theory (Waterman & Meier, 1998)', that it would be considered to introduce a more flexible approach in designing the level of government intervention depending upon the maturity of quality assurance procedure at individual universities and the level of goal conflicts between government and individual university.

• Journal of Arbitration Studies
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• v.18 no.1
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• pp.71-96
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• 2008

Arbitration is fundamentally a matter of contract, whereby contractual parties may only be required to submit a dispute to arbitration pursuant to their formal agreement. However, there are several important exceptions to this rule that have developed under common law notions of implied consent. These doctrines may serve either to benefit or to harm a nonsignatory to an arbitral agreement because either (1) the nonsignatory may compel a signatory to the agreement to arbitrate a dispute or (2) the nonsignatory may be compelled to arbitrate a dispute despite never having signed an arbitration agreement. The Court has a long-standing domestic policy of favoring arbitration, and these doctrines reflect that policy. 1. incorporation by reference An arbitration clause may apply to a party who is a nonsignatory to one agreement containing an arbitration clause but who is a signatory to a second agreement that incorporates the terms of the first agreement. 2. assumption An arbitration clause may apply to a nonsignatory who has impliedly agreed to arbitrate. Under this theory, the nonsignatory's conduct is a determinative factor. For example, a nonsignatory who voluntarily begins arbitrating the merits of a dispute before an arbitral tribunal may be bound by the arbitrator's ruling on that dispute even though the nonsignatory was not initially required to arbitrate the dispute. 3. agency A nonsignatory to an arbitration agreement may be bound to arbitrate a dispute stemming from that agreement under the traditional laws of agency. A principal may also be bound to arbitrate a claim based on an agreement containing an arbitration clause signed by the agent. The agent, however, does not generally become individually bound by executing such an agreement on behalf of a disclosed principal unless there is clear evidence that the agent intended to be bound. 4. veil piercing/alter ego In the corporate context, a nonsignatory corporation to an arbitration agreement may be bound by that agreement if the agreement is signed by its parent, subsidiary, or affiliate. 5. estoppel The doctrine of equitable estoppel is usually applied by nonsignatory defendants who wish to compel signatory plaintiffs to arbitrate a dispute. This will generally be permitted when (1) the signatory must rely on the terms of the contract in support of its claims against the nonsignatory, or (2) the signatory alleges that it and the nonsignatory engaged in interdependent misconduct that is intertwined with the obligations imposed by the contract. Therefore, this article analyzed these doctrines centering around case-law in America.

• Journal of Environmental Policy
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• v.9 no.2
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• pp.57-81
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• 2010

Recently, labor unions' active participation in social issues is drawing people's attention as their concerns are expanding from the conventional wage raise and employment to others such as the environment and poverty eradication. This derives from the notion that a trade union with bargaining power is also an economic agent responsible and able to take a positive role in social issues. This paper explains through a micro economic analysis model that labor union movements can also contribute to social issues such as the global environment. Based on the international oligopoly trade theory, the study analyzes the principal-agent model whereby firms and labor unions pursue their strategic choices based on their interest and influence the implementation of regulatory policies on pollution emission. The analysis confirmed that labor unions' bargaining power and international cooperation are influential in alleviating global pollution emission and in improving social welfare. This conclusion could be presented as a basis for arguing for and requesting the participation and cooperation of labor unions to solve environmental problems discussed at WILL 2006.

• The Journal of the Korea Contents Association
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• v.21 no.9
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• pp.88-104
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• 2021

The visual expression of deconstructive graphic design influenced by postmodernism differs from the traditional ways of graphic expression that consist of precise images and text and is challenging and highly experimental. The characteristics of the formative nature of such deconstructive graphic design emphasized the importance of the reader as the principal agent of aesthetic experience in the appreciation of works. For this study, a new ideological framework was developed regarding the ambiguity arising due to visual experimentation in deconstructive graphic design, assuming the central theory to be the Reception Theory (Aesthetics of Reception) centering around the recipient who is the reader. The characteristics of Iser's Reception Theory are substituted as a theoretical category and an interpretation of the works of ambiguity in deconstructive graphic design is carried out. Although Aesthetics of Reception is a literary theory about the interaction between the artist and the reader, as a method for interpreting deconstructive graphic design influenced by postmodernism, it laid a theoretical foundation and enriched the interpretation of works. Moreover, the four characteristics of Iser's Reception Theory were used to create a framework that suggested a new direction for the approach based on the reader's interaction in the process of interpreting works of modern graphic design.

• Journal of Distribution Research
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• v.17 no.4
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• pp.55-80
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• 2012

I. Introduction Developing the relationships between companies is very important issue to ensure a competitive advantage in today's business environment (Bleeke & Ernst 1991; Mohr & Spekman 1994; Powell 1990). Partnerships between companies are based on having same goals, pursuing mutual understanding, and having a professional level of interdependence. By having such a partnerships and cooperative efforts between companies, they will achieve efficiency and effectiveness of their business (Mohr and Spekman, 1994). However, it is difficult to expect these ideal results only in the B2B corporate transaction. According to agency theory which is the well-accepted theory in various fields of business strategy, organization, and marketing, the two independent companies have fundamentally different corporate purposes. Also there is a higher chance of developing opportunism and conflict due to natures of human(organization), such as self-interest, bounded rationality, risk aversion, and environment factor as imbalance of information (Eisenhardt 1989). That is, especially partnerships between principal(or buyer) and agent(or supplier) of companies within supply chain, the business contract itself will not provide competitive advantage. But managing partnership between companies is the key to success. Therefore, managing partnership between manufacturer and supplier, and finding causes of conflict are essential to improve B2B performance. In conclusion, based on prior researches and Agency theory, this study will clarify how business hazards cause conflicts on supply chain and then identify how developed conflicts have been managed by two control mechanisms. II. Research model III. Method In order to validate our research model, this study gathered questionnaires from small and medium sized enterprises(SMEs). In Korea, SMEs mean the firms whose employee is under 300 and capital is under 8 billion won(about 7.2 million dollar). We asked the manufacturer's perception about the relationship with the biggest supplier, and our key informants are denied to a person responsible for buying(ex)CEO, executives, managers of purchasing department, and so on). In detail, we contact by telephone to our initial sample(about 1,200 firms) and introduce our research motivation and send our questionnaires by e-mail, mail, and direct survey. Finally we received 361 data and eliminate 32 inappropriate questionnaires. We use 329 manufactures' data on analysis. The purpose of this study is to identify the anticipant role of business hazard (environmental dynamism, asset specificity) and investigate the moderating effect of control mechanism(formal control, social control) on conflict-performance relationship. To find out moderating effect of control methods, we need to compare the regression weight between low versus. high group(about level of exercised control methods). Therefore we choose the structural equation modeling method that is proper to do multi-group analysis. The data analysis is performed by AMOS 17.0 software, and model fits are good statically (CMIN/DF=1.982, p<.000, CFI=.936, IFI=.937, RMSEA=.056). IV. Result V. Discussion Results show that the higher environmental dynamism and asset specificity(on particular supplier) buyer(manufacturer) has, the more B2B conflict exists. And this conflict affect relationship quality and financial outcomes negatively. In addition, social control and formal control could weaken the negative effect of conflict on relationship quality significantly. However, unlikely to assure conflict resolution effect of control mechanisms on relationship quality, financial outcomes are changed by neither social control nor formal control. We could explain this results with the characteristics of our sample, SMEs(Small and Medium sized Enterprises). Financial outcomes of these SMEs(manufacturer or principal) are affected by their customer(usually major company) more easily than their supplier(or agent). And, in recent few years, most of companies have suffered from financial problems because of global economic recession. It means that it is hard to evaluate the contribution of supplier(agent). Therefore we also support the suggestion of Gladstein(1984), Poppo & Zenger(2002) that relational performance variable can capture the focal outcomes of relationship(exchange) better than financial performance variable. This study has some implications that it tests the sources of conflict and investigates the effect of resolution methods of B2B conflict empirically. And, especially, it finds out the significant moderating effect of formal control which past B2B management studies have ignored in Korea.

• Agribusiness and Information Management
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• v.3 no.2
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• pp.43-62
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• 2011

The goal of this study is to determine, based on survey results, the underlying factors that affect the intention of the farmers who have not adopted the Hazard Analysis and Critical Control Points (HACCP) system for the rearing phase of pig production to adopt this system in the future. The research model for this study was con structed based on strategic contingency theory, the theory of the diffusion of innovation, and the technology acceptance model (TAM). Using structural equation modeling with partial least squares (PLS), this study analyzes the effects of the intensity of competition, the environmental uncertainty, the innovativeness and self-efficacy of the individual farmers, and the impact of the credibility of the Agricultural Technology Service Center (ATSC), which acts as the principal agent of technology dissemination and as a leader of change, on the perceived usefulness of technology and the farmers' intention to adopt the system. The results of the analysis are as follows. First, with regard to the underlying factors affecting the intention to adopt the new system, the intensity of competition within the industry and the institutional credibility of the ATSC were inferred to underlie the perceived usefulness. Second, institutional credibility has a positive impact on the perceived usefulness of the system, and the perceived usefulness, in turn, has a positive impact on the intention to adopt. The perceived ease of use also has a positive impact on the intention to adopt. Because the factor that has the biggest impact on the intention of a farm to adopt is the credibility of the ATSC, it is crucial for extension organizations, such as the ATSC, to make greater efforts to promote the expansion of the HACCP system. Because farmers feel that the implementation of the HACCP system is an instrumental strategy for coping with the high intensity of competition within the industry, they attempt to gain a competitive edge through the production of safe livestock products.

• (The)Study of the Eastern Classic
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• no.56
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• pp.147-170
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• 2014

To divide by the concept of Cheon (天) before and after the period of Song Dynasty: before Song Dynasty; according to the ancient Book of Odes (Sigyeong-詩經), "Cheon (天) gives birth to a large number of people", and, Confucius(孔子) say "Cheon(天) gave me Virtue(德)." Mencius(孟子) say "The person done with all his heart knows Seong(性, personality), so if he knows such Seong(性, personality), then he knows Cheon(天)." In Doctrine of the Mean(中庸), it says "Cheon(天) ordered it to be called - Seong(性, personality)." So, Cheon(天) had a religious meaning, such as Sangje(上帝) - Supreme Ruler. During the Song period, Cheon(天), the source of its existence, had construed as Mugeuk i Taegeuk Non(無極而太極論 - Theory of Supreme Ultimate while being Indeterminate) and Theory of li and ki (iginon-理氣論). Juja (朱子, a honorary name of Juhui, 朱熹) had said a reasonable Cheon(天), that is, Heavenly Principle (天理 - Cheolli) by interpreting Cheon(天) as Taegeuk(太極 - Supreme Polarity) and li(理) of Muwi(無爲 - uncontrived action). That's why Juja had lost the religiosity because of his reasonable frame. The purpose of this dissertation is to identify of the quality of being religious of li(理) on the basis of attribute of Cheon(天) argued by Toegye and Juja. In the text of Seomyeong(西銘 - Western Inscription), we can see their interpretation of the content that Toegye as "西銘考證講義"(Lecture on Historical Research of Western Inscription), and Juja as "西銘解"(Commentary on the Western Inscription). Seomyeong(西銘 - Western Inscription) was expounded as a logic of 'iil bunsu' (理一分殊 - coherence is one and distinguished into many). '理一分殊' means to live in as meaningful as possible according to the human nature that has been bestowed upon thyself. Juja and Toegye both said that in the aspect of 'iil'(理一 - coherence is one), Reverence(事天) ought to be done, but to look into the aspect of 'bunsu'(分殊-distinguished into many), Juja argued that people should follow the order of Heavenly Principle(天理 - Cheolli), and Toegye argued that people should have to perform the filial piety(孝). There are differences in methods of Toegye and Juja on account of distinction between attributes of Cheon(天). Such a distinction affects the attribute of li(理). Juja said divisively that Soiyeon(所以然-why its principle is so) is li(理), and Sodangyeon(所當然-what should be so) is Sa(事-divine project). Toegye argued that Sodangyeon(所當然-what should be so) is indeed li(理). It is the position of Toegye that to know Seong(性-the personality) of Sodangyeon(所當然-what should be so) is the first, rather than to know Cheon(天) of Soiyeon(所以然-why its principle is so) that is out of reach in a faraway place. Seong(性-the personality) is li(理) that bestowed by Cheon(天). In view of discussion about the essence and existence, for Toegye, the existence is the first, rather than the essence. The issues of existence is now enabled to talk about amid the discussion of metaphysics, namely li(理). Different from Juja, a theory noticed in Toegye is the theory of 'Lijado'(理自到). 'Lijado'(理自到) denotes 'Li(理) leads on their own.' It tells that separate from thing-in-itself, there is an energy that moves and oversees the thing. This is an issue of response between "I" as the principal agent and other people. If "I" as the principal agent is sincere to others, the others will come to me insomuch as they will be revealed through me. Here, a problem between the host and guest arises. Toegye perceived this problem that do not see me and others as same, and also do not see me and others as two. This is the logic of 'ilii iiil'(一而二 二而一 - looks like one but two, looks like two but one) of '理一分殊' (coherence is one and distinguished into many). The first thing to do between these two processes is to recognize the existence of 'iil'(理一). Toegye strongly displays a religious attitude identifying Cheon(天)=Li (理)=Sangje(上帝- Supreme Ruler) in the same light.