• Journal of Distribution Science
• /
• v.13 no.9
• /
• pp.47-57
• /
• 2015

Purpose - The aim of this paper is to investigate the explanatory power of the Pecking-order theory (the cost of financing increases with asymmetric information) among Korean retail firms from the perspective of debt capacity. According to the Pecking-order theory, a firm's first preference is to use internal funds for its capital needs, its next preference is the issuance of debt, and its last preference is the issuance of equity; this is due to the information asymmetry problem between existing shareholders and investors. However, prior empirical studies, such as Lemmon and Zender (2010), argue that the entire sample test for the Pecking-order theory could be misleading due to the different levels of debt issuance capability of each of the individual firms; in fact, they confirm that the explanatory power of the Pecking-order theory improves after taking into account the differences in debt capacity of the U.S. firms they examined. This paper implements a case study approach among Korean retail firms to examine the relationship between debt capacity and the explanatory power of the Pecking-order theory in Korea. Research design, data, and methodology - This study uses the sample of public retail firms on the Korea Composite Stock Price Index (KOSPI) from the time period of 1990 to 2013. We gather related financial and accounting statements from the financial information firm WISEfn. Credit rating information is provided by the Korea Investor Service. We employ the models of Lemmon and Zender (2010) and Son and Kim (2013) to measure a firm's debt capacity. Their logit models use the rating dummy variable as a dependent variable and incorporate other firm characteristics as independent variables to estimate debt capacity. To test the Pecking-order theory, we adopt variants of the financing deficit model of Shyam-Sunder and Myers (1999). In the test of the Pecking-order theory, we consider all of the changes in total debt obligations, current debt obligations, and long-term debt obligations. Results - Our main contribution to the literature is our confirmation of the predicted relationship between debt capacity and the explanatory power of the Pecking-order theory among Korean retail firms. The coefficients on financing deficits become greater as a firm's debt capacity improves. This is consistent with the results of Lemmon and Zender (2010). The coefficients on the square of the financing deficits are also negative for the firms in the largest debt capacity group, which is also consistent with the predictions in prior literature. Conclusions - This study takes a case study approach by examining Korean retail firms. We confirm that the Pecking-order theory explains the capital structure of retail firms more appropriately, after taking into account the debt capacity of each firm. This result suggests the importance of debt capacity consideration in the testing of the Pecking-order theory. Our result also implies that there has been a potential underestimation of the explanatory power of the Pecking-order theory in existing studies.

• KDI Journal of Economic Policy
• /
• v.36 no.4
• /
• pp.33-69
• /
• 2014

We investigate determinants of fund investment flows using Korean equity investment funds. Unlike previous studies which analyzed net-flows (inflow minus outflow), we analyze fund investment inflows and outflows separately that should properly reflect investors' fund selection and redemption decision. We find similar effects of past return, fund age on net-flows to existing studies based on US market data. The analysis of determinants of inflows shows that inflows are related to past return, fund age and sales fee as net-flows. In contrast, outflows are found to behave quite differently from inflows. Apparently, asymmetry exists between fund investment inflows and outflows at the Korean fund selection market. Specifically, high past returns increase fund investment inflows while increase, rather than decrease, fund outflows. Moreover, 'convexity' is detected both in inflows and outflows: higher past returns accelerate outflows as well as inflows. Effects of sales fee also differ between inflows and outflows. In the 'affiliated' fund sample, sales fee is negatively related to inflows while positively related to outflows. In the 'unaffiliated' fund sample, sales fee is positively related to inflows, but no significant relationship exists with outflows. Empirical findings of this paper imply that the rational investor's fund selection view cannot provide a consistent explanation of the Korean fund selection market. In particular, the positive and convex relationship between past returns and fund outflows is inconsistent with the rational investor view. The fact that investor's fund investment appears to display 'disposition effect', which has been reported by studies of individual investors' stock investment behaviour suggests that the behavioral finance view should be a part of explanation for the Korean fund selection market. In addition, the strikingly different patterns between the 'affiliated' funds and the 'unaffiliated' funds, imply that brokers' incentive structure is another prevailing factor for fund investment flows.

• Korean Business Review
• /
• v.21 no.2
• /
• pp.1-16
• /
• 2008

This paper investigate the volume-volatility and volume-return relationship in the Korean Treasury Bond futures market using daily price and volume data categorized by three trader type i.e. individual investor, institutional investor and foreign investor over the period of October 1999 through December 2005. Major results are summarized as follows: (i) The effect of volume on return was not different across the trader type. (ii) The effect of volume on volatility was not unidirectional across the type of investor. While unexpected sell of individual investor has positive effects on volatility, negative effects in the case of institutional investor. (iii) We cannot find the evidence of asymmetric response of volatility to shock in trading volume or net position. This result differs from that of Korean Stock Price Index 200 futures market which showed strong positive asymmetry. Finally, some limitations of this paper and direction for further research were suggested.

• Journal of Global Scholars of Marketing Science
• /
• v.9
• /
• pp.47-75
• /
• 2002

The purpose of this study is to identify the effects of reference price, price rationale and price-quality inference of consumer on the evaluation of apparel quality. The experimental materials developed for this study were a set of stimulus and response sheet. The stimuli were six print ads, which was manipulated by reference price and price rationale for a jacket of national brand. This study used a 2(reference price: offer and non offer)$\times$3(price rationale: non offer, stock disposal, sales promotion) $\times$2(price-quality inference of consumer: high and low level) between-subjects experiment. Subjects were 371 female university students. The data were analyzed by factor analysis, ANOVA and t-test. The results were as follows. First, three apparel attributes were identified: sewing/fabrics and label by factor analysis. Second, the significant interaction effects of reference price, price rationale and price-quality inference of consumer were found on evaluating quality of sewing/fabrics and label of apparel. So, reference price effect differed to depending on type of price rationale and levels of price-quality inference. Third, the significant main effect of price-quality inference of consumer existed on evaluating construction quality of apparel.

• Journal of Environmental Science International
• /
• v.14 no.9
• /
• pp.817-825
• /
• 2005

The purpose of this study was to research about salt marsh flora and vegetation in the Dongjin-river estuary area where has a project for Sea Man Geum Reclaimed Land so that we can foster foundation on restoration of an ecological habitat, development of applicable plant and establishment of a conservation policy after deceloping the reclaimed land for salt marsh vegetation which has great value ecologically. In conclusion, we was distributed that there are 7 families 21 genera, 25 species, 2 varieties of vascular plant at the Dongjin-river estuary area which have 27 taxa in total and are $0.64\%$ among 4,191 of korean vascular plant. There are also 2 family, 2 genus, 2 species of a naturalized plant which are $1.1\%$ of indicator of a naturalized plant salt marsh vegetation of the downstream are very much affected by the time of inundation, tidal water so that a low degree of salt marsh has frequent flooding by sea water and has a pure group of Suaeda japonica. A Phragmites communis, Carex scabrifolia are distributed mainly around a waterway of salt marsh and Zoysia sinica, Atriplex subcordata, Phragmites communis are living in stock as forming into patch around medium salt marsh. Suaeda asparagoides, Phacelurus latifolius are living around a little high ground and a Phragmites communis is a behind vegetation of Phacelurus latifolius and a part of the Phragmites communis are living along with waterway in a salt marsh as a community. By the 2-M method twelve plant communities were recognized ; Suaeda japonica. Carex scabrifolia, Zoysia sinica, Artemisia scoparia, Phacelurus latifolius, Phragmites communis, Suaeda maritima, Suaeda japonica-Atriplex gmelini, Phragmites communis-Suaeda japonica, Suaeda japonica-Salicornia herbacea, Salicornia herbacea-Suaeda aspar-agoides and Scirpus planiculmis community. The actual vegetation map was constructed on the grounds of the communities classified and other data.

• Asian-Australasian Journal of Animal Sciences
• /
• v.22 no.6
• /
• pp.765-773
• /
• 2009

Sterol regulatory element binding factor 1 (SREBF1) and fatty acid synthase (FASN) genes play an important role in the biosynthesis of fatty acids and cholesterol, and in lipid metabolism. This study used polymorphisms in the intron 5 of bovine SREBF1 and in the thioesterase (TE) domain of FASN genes to evaluate their associations with beef fatty acid composition. A previously identified 84-bp indel (L: insertion/long type and S: deletion/short type) of the SREBF1 gene in Korean cattle had significant associations with the concentration of stearic (C18:0), linoleic (C18:2) and polyunsaturated fatty acids (PUFA). The stearic acid concentration was 6.30% lower in the SS than the LL genotype (p<0.05), but the linoleic and PUFA contents were 11.06% and 12.20% higher in SS compared to LL (p<0.05). Based on the sequence analysis, five single nucleotide polymorphisms (SNPs) g.17924G>A, g.18043C>T, g.18440G>A, g.18529G>A and g.18663C>T in the TE domain of the FASN gene were identified among the different cattle breeds studied. Among these, only g.17924 G>A and g.18663C>T SNPs were segregating in the Hanwoo population. The g.17924G>A SNP is a non-synonymous mutation (thr2264ala) and was significantly associated with the contents of palmitic (C16:0) and oleic acid (C18:1). The oleic acid concentration was 3.18% and 2.79% higher in Hanwoo with the GG genotype than the AA and AG genotypes, respectively (p<0.05), whereas the GG genotype had 3.8% and 4.01% lower palmitic acid than in those cattle with genotype AA and AG, respectively (p<0.05). Tissue expression data showed that SREBFI and FASN genes were expressed in a variety of tissues though they were expressed preferentially in different muscle tissues. In conclusion, the 84-bp indel of SREBF1 and g.17924G>A SNP of the FASN gene can be used as DNA markers to select Hanwoo breeding stock for fatty acid composition.

• Korean Journal of Fisheries and Aquatic Sciences
• /
• v.44 no.4
• /
• pp.359-365
• /
• 2011

This study was conducted to investigate the production, elver stocking, rearing facilities and rearing method of eel culture to determine aquaculture management conditions for optimal rearing of eel Anguilla japonica. The production of eel culture was evaluated by the proportion of eels from the main inland fin fish species production in Korea. Elver stocking was assessed by the elver stocking densities of pond and recirculation culture. Rearing facilities were investigated according to the rearing tank size proportion of the pond and recirculation culture. We selected sample farms by region and by size. We visited sample farms and recorded the number of elvers stock for pond area, size of tanks, feed and feed quantity, and the size and number of harvest eels. The production capacity of Jeollanam-do and Jeollabuk-do were 71.9% and 21.3% respectively. This production quantity represented 93.2% of the total Korean eel production quantity. In Jeollanam-do, there are 236 eel farms, 202 pond farms, and 34 recirculation aquaculture facilities. The elvers' first density data by each aquaculture method revealed that elvers' first density varied more in recirculation system farms, as compared to pond aquaculture. In intensive pond farms, the elvers' first density decreased as the size of farm increased. There was a correlation between the size of tank(x) and the facility of a water wheel for dissolved oxygen in pond culture systems(y=0.022x-0.494; $R^2$=0.860). Another strong correlation was found between the weight of eel(x) and eel density(y) in pond culture systems(y=283.5x-0.27; $R^2$=0.992). Finally, there was a strong correlation between the length of eel(x) and the weight of eel(y) in intensive pond culture(y=0.0005x-3.2783; $R^2$=0.9775). The final survival rate did not differ significantly among pond sizes and culture types.

• Korean Journal of Fisheries and Aquatic Sciences
• /
• v.25 no.1
• /
• pp.37-44
• /
• 1992

Annual biomasses of small yellow croaker, Pseudosciaena polyactis, were estimated by biomass-based cohort analysis (Zhang, 1987) , using data on annual catch in weight at age for 1970-88 in Korean waters. Annual biomass of croaker was highest in 1974 with about 100,000 mt, declining to a level of 20,000-30,000 mt after 1981. Adult biomass also showed a peak in 1974 with about 50,000 mt. Afterwards, however, it continuously dropped. According to the estimates of biomass at age obtained from this analysis, the age composition of small yellow croaker in the 1980's differed greatly from that in the 1970's. The proportions of older croakers (>5 years) were very low in the 1980's and even the biomasses of young croakers (1-4 years) were at a very low level in the 1980's. Year classes of 1968, 1972 and 1978 appeared to be relatively dominant. The mean value of instantaneous fishing mortality (F) in the 1980's was twice that of the 1970's. Recruitment of croaker exhibited an unusally linear relationship with adult stock biomass.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.12 no.1
• /
• pp.133-144
• /
• 2017

This study investigates firm-specific financial variables that determine investment or speculative grades from the viewpoint of firms, which are one of the major stakeholders related to the credit rating. We employ an ordered probit model for our analysis with the sample data from 1999 to 2015 for listed firms in the Korean stock markets. For investment grades, operating margin, sales, market-to-book, dividend payment, capital expenditure ratio, and tangible asset ratio have a significantly positive impact on credit ratings. In the subsample for speculative grades, the coefficients of the dividend payment, retained earnings ratio, and capital expenditure ratio are significantly positive while short-term debt ratio and R&D expenditures have a significantly negative impact on credit ratings. For the analysis before and after 2009, when the Credit Information Use and Protection Act was strengthened after the global financial crisis, the coefficients of the capital expenditure ratio, cash ratio, and tangible asset ratio are significantly positive in the subsample for investment grades before 2009, but not significant after 2010. The coefficient of the long-term debt ratio is more significantly negative than that of the short-term debt ratio before 2009, for speculative grades, but short-term debt ratio has a more negative effect on ratings than long-term debt ratio after 2010. Surprisingly, the coefficient of the R&D expenditures is significantly negative in both investment and speculative grades since 2010. Our findings are inconsistent with the conjecture that the increase in R&D expenditures enhances the possibility of creating cash-flow by raising the investment growth opportunity, and thus affects positively the credit rating.

• Journal of Korean society of Dental Hygiene
• /
• v.3 no.1
• /
• pp.59-72
• /
• 2003

The purpose of this study was to examine what the role of denial hygienist was. The subjects were 751 dental hygienists from dental clinics, dental hospitals, general hospitals, public dental clinics and their branches throughout the nation. After a survey was conducted, the collected data were analyzed with SPSS WIN 10.0, and variance analysis and post-analysis were implemented. And Forgarty's 8th integrated model, out of 10 ones, was selected to delve into the practical role of dental hygienist in detail. The findings of this study were as follows: 1. The three age groups had a significantly different opinion on the significance of individual subjects. The dental hygienists of thirty six and over found the basic and preventive public dental care courses most important, and the 31~35 age group placed most stock in education and research. Overall, the post-analysis results showed that prevention and clinical courses were considered most vital, followed by education and fundamental courses. 2. There was a significant gap between four groups from the different work places in their view of the weight of the individual subjects. According to the post-analysis, the dental hygienists from the general hospitals, public dental clinics and their branches gave more weight to fundamental, education and research areas. Those who were with the dental clinics, dental hospitals and general hospitals put higher value on clinical course than the dental hygienists from the public dental clinics and their branches. 3. Two groups with a different career also had a different outlook on the importance of the individual subjects. The post-analysis results illustrated that the dental hygienists who had worked for three years or more put higher stress on the fundamental course than those with a less career, and the dental hygienists with a five-year or higher career attached more importance to the education and research field than those with a smaller career. 4. There was a significant difference between the three age groups in their clinical role. The post-analysis results indicated thai the younger dental hygienists were more of assistants than of professionals, as they chiefly took X-ray photograph, handled treatment materials or performed treatment-related works. Overall, handling treatment materials was most common. 5. The three groups from the different work places significantly varied in their clinical role. According to the post-analysis, those from the dental clinics and dental hospitals took more x-ray photographs, handled more treatment materials and performed more relevant works, compared to those from the general hospitals, public dental clinics and their branches. 6. The two groups with a different career differed significantly in their clinical role. The post-analysis results suggested that the dental hygienists with a less career played an assistant role more, which handled treatment materials or carried out other relevant works. 7. The fundamental courses (I) and (II), preventive class (I) and (II) and its practice course were regarded as integrated subjects that they should take 10 offer preventive treatment, which was one of the dental hygienist missions. What's needed to act as dental-care educators was the basic courses (I) and (II), dental hygiene education and its practice. Finally, integrated clinical courses (I) and (II) and clinical practice were viewed as necessary for their role performance as dental treatment collaborators.