• 신재생에너지
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• 제18권2호
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• pp.60-72
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• 2022

The environmental, social, and governance (ESG) score is gaining recognition as important nonfinancial investment criteria. With climate change emerging as a global issue, energy companies must pay attention to the ESG impact on corporate performance. In this study, the ESG impact on the performance of energy companies was analyzed based on 23 companies selected from the S&P 500. The panel corrected standard error methodology was used. The Refinitiv ESG score was the independent variable, and financial performance metrics, such as Tobin's Q, return on assets, and return on equity, were the dependent variables. It was found that the ESG score is positively associated with long-term corporate value but not with short-term profitability in the electricity utility industry. Among the subcategories of ESG, the environmental and social scores also showed positive correlations with long-term corporate value. A direct incentive policy is recommended that can offset expenses for ESG activities to reduce carbon emission in the energy sector.

• 재무관리연구
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• 제24권2호
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• pp.1-40
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• 2007

본 연구의 목적은 기업재무론 분야의 실증연구에서 많이 사용되는 성장기회 대용변수를 새롭게 개발하고, 이를 투자-성장기회-현금흐름 민감도분석에 활용하는데 있다. 기존 연구에서 성장기회의 대용변수로 흔히 Tobin's Q, MBR, 매출액증가율 등이 사용된다. 본 연구에서는 기업의 내재가치 평가모형에 입각한 성장기회 가치를 추정하고, 성장기회 가치비중(VGO)을 성장기회의 대용변수로 채택하여 기존 연구의 전통적인 대용변수들과 종합적으로 비교하였다. IMF 외환위기 이후 기업의 투자부진이 우려되고 있는 2000년 이후 2005년 기간 중 기업투자와 성장기회 간의 관계를 분석한 결과를 정리하면 다음과 같다. 첫째, 전통적인 성장기회 대용변수들과 새로 제안하는 성장기회 대용변수 VGO를 모두 동시에 채택한 투자-성장기회-현금흐름 회귀분석 모형에서 검증해 본 결과, VGO만이 통계적으로 유의한 양(+)의 투자민감도를 갖는 것으로 나타났다. 새 성장기회 대용변수 VGO를 채택하면, 여타 전통적인 대용변수의 설명력이 없어지는 것으로 나타났다. 따라서 국내외 선행연구에서 기업의 성장기회를 대변하는 변수로 일반적으로 선정되어왔던 전통적인 대용변수인 Tobin's Q, MBR, 매출액증가율은 성장기회에 관한 적절한 대용변수가 되지 못하는 것으로 해석된다. 둘째, 투자-성장기회 민감도분석에 있어서 투자결정요인으로서 성장기회는 시설투자증가율에 양(+)의 효과를 갖고 있으며, 이와 같은 성장기회를 가장 잘 대변해 주는 대용변수는 미래투자의 수익성(성장기회 수익률 추정치)에 기초하여 추정한 VGO 변수인 것으로 해석된다. 셋째, Tobin's Q의 3가지 구성요인 중 VGO(미래수익성을 대변)만이 유일하게 통계적으로 유의한 양(+)의 민감도를 보였다. VAIP(기존투자의 수익성을 대변) 및 VMS(기업가치의 과대평가오류) 변수들의 추정계수 값은 통계적으로 유의하지 않았다. 이는 기업은 기 투자하고 있는 사업의 가치가 크다고 해서 투자증가를 하지 않으며, 기업가치가 시장에서 과대평가되어 현재 투자에 대한 가치평가가 시장에서 높게 형성된다고 해서 투자를 증가하지 않는다는 것을 의미한다. 따라서 기업의 투자증가는 미래투자의 수익률과 그에 기반을 둔 미래투자의 성장가치에 근거하여 투자를 증가시키는 것으로 판단된다.

• 유통과학연구
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• 제16권5호
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• pp.31-43
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• 2018

Purpose - We examine how a Korean retail firm's social responsibility is related to its financial performances. The traditional view of corporation expects a negative relationship, while the stakeholder theory expects a positive one. Research design, data, and methodology - We adopt the ESG score, published by Korean Corporate Governance Service to measure the level of socially responsible activity for the Korean retail firms. The ordinary least square method is adopted to investigate this relationship. The publicly traded retail firms are examined from 2011 to 2016. Results - We find that the total ESG score is negatively related to ROE but shows no statistically significant relationship with ROA and Tobin's Q value. However, a firm's environmental score is negatively related with both of ROE and ROA. Its social score is no conclusive relationship with the performance measures. The governance score is negatively related to the value of Tobin's Q. Conclusions - This paper generally supports the traditional view of corporate theory, especially in terms of ROE. This evidence is not well aligned with the existing study for Korean corporations generally documenting positive relationships. We find almost no empirical evidence supporting the stakeholder theory of corporation in the Korean retail industry.

• 유통과학연구
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• 제18권5호
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• pp.5-13
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• 2020

Purpose: The aim of this article is to test the link between growth of loan distribution and Bank Valuation in Vietnam's banking sector. At the same time, the study also compared the differences in the effect of growth of loan to valuation bank in banks of different sizes, ownership rates and bank values. Research design, data and methodology: With panel data estimation techniques along with robust standard error for a sample of the banks listed on Vietnam stock exchange from 2012 to 2019. Results: Growth of loan has a positive impact on Bank Valuation (by Tobin's Q). A closer investigation provides evidence for the differential valuation effect of loan growth depending on different features of banks. Specifically, loan growth is found positively and significantly associated with Bank Valuation in small and non-state-owned banks only. Besides, bank size, deposit, and return on equity are found negatively associated with Tobin's Q, while loan loss provisions exhibit a positive relation with this measure of Bank Valuation. Conclusions: These findings provide contributions to the literature on the existence of the effect of loan growth on Bank Valuation. At the same time, the study also provides practical implications for policy makers in banks and investors.

• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.249-261
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• 2021

To tranquilize the devastating impact of unnecessary risk-taking behavior of banks towards the economy for maximizing their profits that usually arises due to widely known 'moral-hazard' problem originating from market competition and intensified by bank's limited liability, the banking system is strongly monitored across all countries of the world. The goal of controlling would become more feasible if there exist some self-discipline and motivations which could safeguard the banks' charter value through the mechanism of market discipline. Therefore, our study is aimed to scrutinize the relation between market discipline and charter value of local commercial banks that are registered on the Pakistan Stock Exchange by analyzing a balanced panel data from the year 2007 to 2019. Deposit growth, interbank deposits, and subordinate debt are taken as proxies to measure market discipline whereas Tobin's Q theory is applied for calculating the charter value. Generalized Least Square Regression with Fixed Effect Model is used for evaluation. The outcomes reveal that in the existence of control variables, all proxies of market discipline have a significant positive impact on bank charter value. Our research has important policy implications for monitoring and supervising financial intermediaries for their stability and soundness by offsetting the complications of moral-hazard in the financial systems.

• The Journal of Asian Finance, Economics and Business
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• 제8권7호
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• pp.517-523
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• 2021

Audit quality encompasses the key elements that create an environment that maximizes the likelihood that quality audits are performed consistently. This study aimed to identify the impact of auditing quality on the market value of the manufacturing companies listed on the Amman Stock Exchange (ASE). The analytical method was adopted in this research to extract and collect the necessary data. This study hypothesizes that audit quality leads to an increase in the market value by the offering of high-quality services. The study used the panel data approach to analyze cross-sectional data for 41 industrial companies that included time series data for the period (2019-2019). To test its hypotheses, the study used the fixed-effect model. The study found that the audit quality factors (audit office size, client retention period, auditor's fees, and linking with international audit offices) did not have a significant impact on market value. It found also the positive impact of the audit office size on the market value of the listed companies on the ASE for the period from 2009 to 2019. The study recommended the management of the company realize the importance of contracting with audit offices of large size and good reputation because these offices are more capable of increasing their efficiency, qualifying their employees, and thus be fully prepared for the audit process efficiently and effectively.

• The Journal of Asian Finance, Economics and Business
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• 제9권4호
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• pp.213-228
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• 2022

This paper investigates the association between key corporate governance characteristics and the performance of general insurance businesses listed on the Saudi stock exchange (TADAWUL). The methodology for the study is based on a pooled data collection for 11 Saudi general insurance companies from 2011 to 20. The linear regression model and the logarithm regression model are suggested to assess the relationship between performance and corporate governance characteristics. The dependent variable is firm performance measured using ROA, ROE, and Tobin's Q. The independent variables are corporate governance variables consisting of a complete set of board and audit committee characteristics. Insurer-specific control variables are introduced. The empirical results reveal that the characteristics of corporate governance influence the performance of insurance companies. In particular, the board size, board's tenure, the proportion of independent directors in the board, audit committee size, audit committee meeting frequency, and proportion of health insurance premiums have a positive impact. However, audit committee independence, size of the company, and proportion of reinsurance premiums have a negative impact on the performance of the Saudi general insurance companies. Finally, the empirical results indicated also that there is an unclear relationship between the performance and board meeting frequency, compensations of the Board, and the average age of the Board.

• The Journal of Asian Finance, Economics and Business
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• 제8권12호
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• pp.323-336
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• 2021

The present study aims to examine the impact of real earnings management on the future value of the firm and its persistence. The study also tests suspect firm effects on the relationship between real earnings management and the future value of the firm. The sample of the present study consists of all listed non-financial firms from the year 2011 to 2018. Real earnings management has been measured in three alternative ways viz., abnormal operating cash flows, abnormal discretionary spending, and abnormal production cost. Tobin's Q is used as a measure of firm value. The interaction term of real earnings management and Tobin's Q is used to test firm value persistence. The results of the analysis disclose that out of three measures of real earnings management, abnormal reduction in discretionary spending only has a significant negative impact on the persistence of firm value. Moreover, the suspect firm analysis reveals that when the underlying motive of real earnings management is to meet zero earnings, both abnormal increases in operating cash flows and abnormal reduction in discretionary spending have a significant negative impact on firm value persistence.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.749-759
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• 2021

We investigate the relationship between ownership control disparity and future firm value in high-technology industries, and whether the effect of ownership control disparity on future firm value is differentiated when high-tech industry firms belong to chaebol groups. Using 11,848 firm-year observations of Korean firms listed on the stock market from 2006 to 2019, we employ univariate analysis and Heckman 2 stage analysis to test our hypotheses. We define high-technology industries as ICT industries based on the Korean Standard Industrial Classification. We measure future firm value using average Tobin's q for the next three years and ownership control disparity using the shareholding ratio of affiliated companies. Our univariate test results show that mean of Tobin's q is higher in ICT firms than non-ICT firms and firms largely owned by affiliates. In multivariate test, we find that the ICT firms with higher ownership control disparity are positively associated with future firm value. However, this association is lessened when firms belong to a chaebol group. Based on our findings, we suggest ownership control disparity has an additional positive effect on future firm in high-technology industries. The negative impact of chaebol groups on the association suggests the possibility of diversification discount in business group.

• 아태비즈니스연구
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• 제9권4호
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• pp.119-135
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• 2018

Currently, Korean firms are making a lot of effort to invest in research and development (R&D) by spending a lot of development costs in order to cope with the 4th industrial revolution. On the other hand, the capital market of Korea, which is the main source of funding, has caused a lot of cost of capital for firms by its reorganization mainly with safe assets in the experience of foreign exchange crisis at the end of 1997, the sub-prime mortgage crisis in 2007 and the bankruptcy of Lehman Brothers in September 2008. Thus, this study empirically analyzed the effect of development expenses on credit rating and firm value. The credit rating was measured by commercial paper(CP) credit rating which is sensitive for investors in terms of risk because it is issued only by the credit of the firms. Firm value was defined as Tobin's Q, which has been widely used in prior studies. The results of the analysis are summarized as follows; Firstly, development expenses did not affect credit rating. Development expenses are recognized as intangible assets for uncertainty of economic benefits and long-term investment. Thus, it seems that there is no effect of development expenses on CP credit rating as CP credit rating is evaluated by short-term credit rating.