• The Journal of Asian Finance, Economics and Business
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• 제8권11호
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• pp.79-86
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• 2021

In recent years, firm performance has been a topic that attracts many researchers. It is extremely important to identify the factors that change firm performance. In the current trend of competition and integration, foreign ownership, product market competition is found to reduce agency costs and impact firm performance. The purpose of this research is to investigate the relationship between foreign ownership, product market competition, and firm performance. Our research using a quantile regression model, through panel data of 290 companies listed on the Vietnam stock exchange (include Ho Chi Minh and Hanoi stock exchanges) from 2017 to 2019 that was collected by Thomson - Reuters DataStream has shown that foreign ownership and product market competition have a positive impact on Tobin's Q but are not statistically significant with ROA. Critically, our quantile regression results suppose foreign ownership, product market competition have a significantly larger positive impact in high-performing firms relative to low-performing firms. The results help propose solutions to planners and managers to change foreign ownership and product market competition to increase business performance. Besides, through quantile regression analysis, managers need to pay attention to the impact on foreign ownership, product market competition; there will be a difference between high-performing firms relative to low-performing firms.

• 유통과학연구
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• 제17권4호
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• pp.33-39
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• 2019

Purpose - This paper examines whether product market competition in distribution and service industries is related to audit quality. This paper investigates, specifically, the relationship in distribution and service industries by using Herfindahl-Hirschman Index and audit quality measured by audit fee and audit hour. Research design, data, and methodology - Using 1,011 firm-year observations of listed companies from 2002 to 2016 in distribution and service industries, this study examines whether product market competition in distribution and service industries is related to audit quality. Results - This study finds that market competition in distribution and service industries is negatively related to audit quality and this negative relation is pronounced for the firms with high outside director groups. Further analysis suggests that the relationship between market competition and audit hours is no longer significant. Conclusions - This study extended the existing scope of the audit quality study by systematically analyzing the impact of industrial-level characteristics (i.e. market competition) in the distribution service industries on audit quality. This study, in other words, suggests the regulatory body consider the industrial-level characteristics of each industry in order to enhance audit quality.

• 국제지역연구
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• 제21권2호
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• pp.143-169
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• 2017

본 논문에서는 1981년부터 2015년까지 거래소에 상장된 비-금융기업을 대상으로 자본구조의 관성이 어떻게 산업 간에 차이가 존재하며 이러한 차이가 상품시장 경쟁에 의해 설명될 수 있는지를 실증검증 한다. 본 논문의 실증분석 결과는 '보다 경쟁적 산업에 속하는 기업일수록 자본구조의사결정에 보다 더 관성적으로 하는 경향이 있다'는 것이다. 이러한 결과는 부채의 규율효과에 의해 설명되며, 상품시장경쟁에 대한 대체재로서 기여한다고 할 수 있다. 상품시장 경쟁이 낮을 때, 경영자는 자본구조의사결정과 관련하여 보다 능동적으로 의사결정을 하며 특히 잉여현금 흐름문제를 제약하기 위하여 부채를 사용한다는 것이다. 더욱이 거래비용이 얼마나 설명력이 있는지를 조사하며 자본구조관성에 대한 일반적인 설명이 되는지 파악한다. 본 논문의 결과는 기업의 자본구조에 관성현상이 존재하지만 미국 기업들만큼은 강하지 않았다. 둘째, 이러한 관성효과는 상품시장경쟁과의 관계를 통하여 강하게 나타나지만, OLS 추정모형에서 관성효과가 사라지는 현상이 나타났다. 이러한 결과는 거래비용이 자본구조의 관성을 설명하는 데 중요한 역할을 하지 않는다는 증거로 해석될 수 있다.

• Asia Marketing Journal
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• 제21권3호
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• pp.47-64
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• 2019

We analyze and study competition in differentiated product market using public data source. Understanding competitive market structure is critical for firms to assess how their products compete against other firms in a given market. In this paper, we estimate consumer demand, extend clout and vulnerability framework, and study competition among multi-product manufacturers in differentiated product market. For our empirical analysis, we adopt choice-based aggregate demand model and estimate consumer demand while accounting for unobserved product characteristics. Once we estimate consumer demand, we compute full price elasticity matrix and investigate intra- and inter- manufacturer substitutions among consumers. This research offers a framework for marketers to analyze and understand market structures, leading them to informed decisions.

• 유통과학연구
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• 제18권2호
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• pp.99-108
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• 2020

Purpose: This paper investigated the relationship between market competition and firm valuation error. Furthermore, Additional analyses were made according to the quality of financial reports and the listed market. Through the process we confirm to the impact of competition on the capital market. The purpose of this study is to analyze the impact of competition on valuation errors. The preceding studies did not provide a consistent results of the effects of competing functions on the capital market. One view is that the competition could mitigate the information asymmetry, and the other is that monopolistic lessens the manager's involvement in financial reporting. This study is intended to expand the prior study by analyzing the impact of competition on the capital market and on the valuation of investors. Research design, data, and methodology: The analysis was conducted on 12,031 samples over 11 years from 2008 to 2018 using data from market in Korea. Here the valuation error was measured by the research methodology of Rhodes-Kropf, Robinson and Viswanathan (2005), and competition measured by Herfindahl-Hirschman Index multiplied by (-1), and Concentration Ratio by (-1). Results: We confirm that the positive relationship between competition and the valuation error. In addition, we also found that the positive relation between competition and valuation error was in cases of low discretionary accruals and the KOSDAQ market. This means that the net function of competition does not mitigate valuation errors. Conclusions. This study has the following contributions when compared to prior research. First, the relevance between the level of competition and the valuation of the entity was confirmed. The study by Haw, Hu and Lee (2015) suggested that monopolistic industry of analysts' forecast is more accurate due to lower the variability in earnings. This study magnified it to confirm that monopolistic lessen information uncertainty in valuation. Second, the study on valuation errors was expanded. While the study on the effect of valuation errors on the capital market is generally relatively active, it is different that competition degree has analyzed the effect on valuation errors amid the lack of research on the effect on valuation errors.

• Journal of Korea Trade
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• 제23권2호
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• pp.1-13
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• 2019

Purpose - This paper empirically investigates the competition effect of exports between Korea and China in their common-export markets considering market sophistication. Modern market sophistication includes an importing country's aggregate demand for products of high quality, design, novelty, eco-friendliness, and even IPR protection. Using an empirical analysis to identify the demand for product quality across countries, this paper estimates the effects of market sophistication on the competition between Korean exports and Chinese products. Design/Methodology - Our empirical model considers the relationship between an importing country's consumer sophistication and the export competition between Korea and China. This study employs the existing theoretical framework to identify the aggregate demand for product quality across countries. Using a quite direct measurement (the consumer sophistication index, our analysis investigates the differential effects of Korea's export market sophistication, particularly in markets where Korean exports are in competition with similar Chinese products. Findings - Our main findings can be summarized as follows: the negative effects of the export competition between Korea and China on Korea's exports are stronger in third markets where consumers are less sophisticated while the effects are not as pronounced in markets where consumers are more sophisticated. This result, however, best applies to differentiated goods which significantly vary in product quality. Originality/value - Existing studies focus on the supply side of production and make the assumption that the market preference for export quality is identical across countries. This paper attempts to evaluate the export competition between Korea and China from the demand-side perspective. This area of trade studies is underexplored both empirically and in theory, although the issue has long been important to Korean and world trade.

• Journal of Korea Trade
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• 제23권2호
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• pp.46-58
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• 2019

Purpose - This paper analyzes how Research and Development (R&D) cartelization and Research Joint Ventures (RJV) affect firms that engage in Cournot competition in their product market using a model in which the Home and Foreign firm produce differentiated products and export their total output to a third country's market. Design/Methodology - In a two-stage game, research expenditures incurred in the first stage improve product quality and are subject to various degrees of spillovers. We consider four different scenarios. Findings - In a symmetric equilibrium we observe the following: (i) an RJV that cooperates in R&D decision yields the highest R&D expenditure. However, the scenario which yields the lowest expenditure depends on the extent of differentiation between the goods and the degree of spillovers; (ii) RJV cartelization yields the highest product quality, output, and consumer surplus in the third country; however, the lowest is produced by R&D competition if spillovers are strong and by R&D cartelization if spillovers are weak; and (iii) each firm's profit is at its minimum in R&D competition and its maximum in RJV cartelization. Furthermore, if spillovers are strong, the profit of each firm in R&D cartelization is greater than that in RJV competition, and vice versa. Originality/value - By analyzing product innovation in international markets, we can find similarities and differences between process R&D and product R&D in international markets.

• 산업경영시스템학회지
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• 제24권66호
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• pp.37-45
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• 2001

Because the structure of the economy is being changed from product-oriented and company-centered economy to service-oriented and customer-centered economy, and the market competition is varying with the competition of non-price factors, the importance for customer service of logistics system is being increased. Thus, the level of customer service should be represented as an element of the logistics decision and the facility location decision. The level of customer service provided by logistics system has an effect on customers\` purchase decisions, hence on the market demand. That is, the market demand is elastic for customer service as it is influenced by product price. Considering the effect of customer service on demand, this study develops the market area which each facility will serve. That area is circular, and distance norm is considered Euclidean and Rectilinear (or Manhattan) distance norm. The market demand for product at a particular area is affected by the level of customer service that facility provides, and the relationship between the market demand and the level of customer service is represented with a mathematical function.

• KDI Journal of Economic Policy
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• 제27권2호
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• pp.205-237
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• 2005

본 논문은 기업의 주주가 경영자에게 경영을 대리하게 하여 본인-대리인관계(principal-agent relationship)가 발생하는 상황에서 상품시장경쟁이 기업의 내부효율성에 영향을 미치는 메커니즘을 분석한다. 본 논문에서는 두 종류의 기업을 고려한다. 하나는 기존기업(incumbents)이고, 다른 하나는 신규 진입기업(entrants)이다. 각 기존기업의 주주는 경영자에게 경영을 위임하고 경영자의 노력을 관찰하지 못하여 도덕적 해이가 발생한다. 기존기업의 경영자는 두 종류의 일을 수행하는데, 하나는 비용절감을 위한 노력(생산적인 노력)이고, 다른 하나는 진입장벽을 구축하기 위한 노력(비생산적인 노력)이다. 기존기업의 수로 측정되는 경쟁도의 증가는 두 가지 효과를 유발한다. 하나는 '산출효과'로서 경영자의 생산적인 노력을 감소시키고, 다른 하나는 '노력대체효과'로서 비생산적인 노력을 감소시키고 동시에 생산적인 노력을 유도한다. 본 논문은 어떠한 조건에서 시장경쟁이 생산적인 노력에 대한 유인을 제공하는 비용을 감소시켜 기업의 내부효율성을 증진하는가를 살펴본다.

• 자원ㆍ환경경제연구
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• 제23권4호
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• pp.553-581
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• 2014

This paper analyzes competition among service stations in the Korean gasoline market. We consider spatial differentiation as a source of product differentiation as well as the characteristics of the stations and vertical contracts between refiners and retailers as factors causing changes in equilibrium prices in the Korean gasoline retail market. The effect of the government's price disclosure policy on the retail market competition is also analyzed. Moran's I test indicates that the prices of neighboring gas stations are spatially correlated in the market. It is also found that gasoline prices for vertically integrated stations are much lower than those for independent stations. In addition, unbranded stations charge lower prices than branded stations but also induce branded stations to price more competitively. Meanwhile, the government's price disclosure policy did intensify price competition in the retail gasoline market. It is inferred that the price disclosure policy contributed to retailers gaining more bargain power in price negotiation with refiners, causing an eventual increase in retail prices.