• The Journal of Industrial Distribution & Business
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• v.12 no.3
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• pp.43-49
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• 2021

Purpose: This study attempted to examine the risk of stock price plunge according to the firm's management strategy. Prospector firms value innovation and have high uncertainties due to rapid growth. There is a possibility of lowering the quality of financial reporting in order to meet market expectations while withstanding the uncertainty of the results. In addition, managers of prospector firms enter into compensation contracts based on stock prices, thus creating an incentive to withhold negative information disclosure to the market. Prospector firms' information opacity and delays in disclosure of negative information are likely to cause a sharp decline in share prices in the future. Research design, data and methodology: This study performed logistic analysis of KOSPI listed firms from 2014 to 2017. The independent variable is the strategic index, and is calculated by considering the six characteristics (R&D investment, efficiency, growth potential, marketing, organizational stability, capital intensity) of the firm. The higher the total score, the more it is a firm that takes a prospector strategy, and the lower the total score, the more it is a firm that pursues a defender strategy. In the case of the dependent variable, a value of 1 was assigned when there was a week that experienced a sharp decline in stock prices, and 0 when it was not. Results: It was found that the more firms adopting the prospector strategy, the higher the risk of a sharp decline in the stock price. This is interpreted as the reason that firms pursuing a prospector strategy do not disclose negative information by being conscious of market investors while carrying out venture projects. In other words, compensation contracts based on uncertainty in the outcome of prospector firms and stock prices increase the opacity of information and are likely to cause a sharp decline in share prices. Conclusions: This study's analysis of the impact of management strategy on the stock price plunge suggests that investors need to consider the strategy that firms take in allocating resources. Firms need to be cautious in examining the impact of a particular strategy on the capital markets and implementing that strategy.

• Journal of the Korean hospital association
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• v.37 no.3 s.313
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• pp.74-87
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• 2008

As healthcare environment being more complex and turbulent, strategic approach of hospitals became more important. This study was to investigate strategic orientation of Korean hospitals and their related characteristics. We surveyed managers of 360 hospitals randomly selected from all hospitals in Korea. For typology of strategic orientation, we used that developed by Miles and Snow, and results are as follows. Firstly, major types of organizational strategic orientation of Korean hospitals were analyzer(42.0%) and prospector(34.0%). Secondly, characteristics affecting to hospitals' strategic orientation significantly were hospital ownership and sex of managers. Medical corporation had a high tendency of prospector strategic orientation by 2.7 times compared to personal ownership. Female managers had a low tendency of prospector strategic orientation by 0.2, which was statistically significant. Though 60+ age group (compared to twenties and thirties) and middle managers (compared to CEO) had a tendency of being more prospector strategic orientation, but insignificant. The study result that majority of strategic orientation were prospector and analyzer reflects Korean hospital environment are complex and unstable. Hospital managers need to more focus on environment and boundary spanning function for maintenance and survival of their organizations.

• Journal of Astronomy and Space Sciences
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• v.34 no.3
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• pp.213-223
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• 2017

The deep space orbit determination software (DSODS) is a part of a flight dynamic subsystem (FDS) for the Korean Pathfinder Lunar Orbiter (KPLO), a lunar exploration mission expected to launch after 2018. The DSODS consists of several sub modules, of which the orbit determination (OD) module employs a weighted least squares algorithm for estimating the parameters related to the motion and the tracking system of the spacecraft, and subroutines for performance improvement and detailed analysis of the orbit solution. In this research, DSODS is demonstrated and validated at lunar orbit at an altitude of 100 km using actual Lunar Prospector tracking data. A set of a priori states are generated, and the robustness of DSODS to the a priori error is confirmed by the NASA planetary data system (PDS) orbit solutions. Furthermore, the accuracy of the orbit solutions is determined by solution comparison and overlap analysis as about tens of meters. Through these analyses, the ability of the DSODS to provide proper orbit solutions for the KPLO are proved.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.10 no.3
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• pp.614-621
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• 2006

We have implemented a multiclassifier learning approach in a GA-based inductive learning environment that learns classification rules that are similar to rules used in PROSPECTOR. In the multiclassifier learning approach, a classification system is constructed with several classifiers that are obtained by running a GA-based learning system several times to improve the overall performance of a classification system. To implement the multiclassifier learning approach, we need a decision-making scheme that can draw a decision using multiple classifiers. In this paper, we introduce two decision-making schemes: one is based on combining posterior odds given by classifiers to each class and the other one is a voting scheme based on ranking assigned to each class by classifiers. We also present empirical results that evaluate the effect of the multiclassifier learning approach on the GA-based inductive teaming environment.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.11 no.3
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• pp.619-626
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• 2007

Constructive induction is a technique to draw useful attributes from given primitive attributes to classify given examples more efficiently. Useful attributes are obtained from given primitive attributes by applying appropriate operators to them. The paper proposes a constructive induction approach for a GA-based inductive learning environment that learns classification rules that ate similar to rules used in PROSPECTOR from given examples. The paper explains our constructive induction approach in details, centering on operators to combine primitive attributes and methods to evaluate the usefulness of derived attributes, and presents the results of various experiments performed to evaluate the effect of our constructive induction approach on the GA-based learning environment.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.525-532
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• 2021

This study examines the association between a firm's business strategy and audit report lags. This study employs 5,072 firm-year observations from 2015 to 2019. Our sample comprises all of the firms listed on the Korea Composite Stock Price Index (KOSPI) market and Korea Securities Dealers Automated Quotation (KOSDAQ). We perform OLS regression analysis to test our hypothesis. The OLS regression analysis was conducted through the SAS and STATA programs. We find that business strategy is positively associated with audit report lags. Especially, we find that defender firms are negatively associated with audit report lags. The findings of this study suggest that prospector-like firms would increase their performance uncertainty as well as audit risk. Therefore, prospector-like firms interfere with the efficient audit procedures of auditors. On the other hand, our findings indicate that defender-like firms would decrease their performance uncertainty as well as an audit risk because they focus on simple product lines and cost-efficiency. For this reason, auditors will be able to carry out the audit procedures much more easily. Our results present that a prospector-like business strategy degrades audit effectiveness as it exacerbates a company's financial risk, willingness to accept uncertainty, and the complexity of organizational structure.

• Journal of the Korea Convergence Society
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• v.13 no.5
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• pp.219-228
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• 2022

In order to improve audit quality, it is essential to understand the occurrence of disagreement between auditors and managers, and this study aims to analyze the impact of Business Strategies on audit risk and accounting audit delay. To this end, we conducted an empirical analysis using sample 2,910 firm-year data from 2018 to 2020 of KOSPI-listed and KOSDAQ-listed companies. The results of the empirical analysis of this study are as follows. First, compared to the companies of defender type, prospectors can expand audit procedures for new products, R&D costs, and intangible assets, and increase audit delays due to disagreement between managers and auditors. Second, compared to KOSPI-listed companies, the prospectors in KOSDAQ are more likely to have lower financial reporting quality, which further increases audit delays. The results of this study analyzed whether a company's Business Strategy affects the possibility of disagreement between an auditor and a company, and verified whether there is a difference in the audit report lag by stock market. The results of this study show that auditors' strong duty of care is needed for the companies of prospector type with high audit risk, and it is meaningful to present reinforced audit systems and specific guidelines for the companies of prospector type through the definition of prospector type. It also enables the expansion of research to identify the relationship between non-financial factors and audit risks that make up the companies of prospector type.

• Journal of Digital Convergence
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• v.18 no.5
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• pp.145-155
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• 2020

The purpose of this study investigates the relationship between business strategy and cost behavior according to the corporate life cycle. To do so, I first examine the relationship between cost behavior and business strategy. And then, I analyze the effect of the business strategy on cost behavior conditional upon corporate life cycle based on listed Korean firms from 2000 to 2019. Specifically, the business strategy index is calculated by using the six continuous financial factors and the Prospector and Defender was defined on the score. Also, the corporate life cycle is distinguished based on the cash flow pattern. I find the evidence that the Prospector firms are likely to strengthen the asymmetry of cost behavior (cost stickiness), and examined that such a relationship was most strongly represented in the Introduction. This study is meaningful in that this is a more comprehensive analysis by examining business strategy and cost strategy according to the corporate life cycle and expand the application of financial information by using financial indicators to distinguish business strategies.

• Journal of the Korea Convergence Society
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• v.13 no.4
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• pp.321-329
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• 2022

This study analyzes how companies of prospector type with inherent risks from new products and R&D costs affect audit hours, and further analyzes how they affect rank-specific audit hours. Samples were empirically analyzed using samples from 2018 to 2019 for KOSPI-listed and KOSDAQ-listed companies. As a result of the analysis, first, it was found that auditors were aware of the inherent risks of companies of prospector type and were striving to improve audit quality. Second, it was found that the corresponding degree of risk differs depending on the position and role in the audit team, so higher efforts were made in core positions with high risk levels. The results of this study are meaningful in verifying how the type of Business Strategies affects the audit efforts and resource input of auditors who are external parties, not internal factors such as financial reporting quality or tax avoidance. It also has important implications that a company's Business Strategies can be an significant factor to consider in preparing policies and systems for improving audit quality.

• International Journal of Costume and Fashion
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• v.5 no.1
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• pp.75-89
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• 2005

The purpose of this study is to empirically ascertain how the fitness between marketing strategy each firm chooses and environment facing each firm affects the performance of firms measured by the growth rate of market share and the growth rate of profit/sales ratio. In doing so, firms are divided into three groups. With regard to the marketing strategy, firms are classified into three groups based on marketing strategy type; prospector, analyzer, and defender. The main result of this study are as follows: First, responding firms are classified into prospector, analyzer, and defender following Miles & Snow's marketing strategy types. This classification is made using a self typing method and further confirmed by a factor analysis using a number of variables relating marketing objectives and marketing mix. Second, the results show that there are significant differences across marketing strategies in the performance measures of the growth rate of market share and profit/sales ratio. It seems, however, that there is no straight forward relationship between the marketing strategy and the performance measures. This strongly implies that the type of marketing strategy to be adopted by each firm should depend on the environment facing each firm. Third, the result indicates that the growth rate of market share tends to depend only on the marketing strategy type regardless of sufficiency and variation of environment, but profit/sales ratio tends to depend on the fitness between marketing strategy type and environment. It implies that a firm should adopt different marketing strategies for different environment characteristics, in order to enhance the efficiency of resources used reflected in the profit/sales ratio.