• Proceedings of the Korean Statistical Society Conference
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• 2003.05a
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• pp.43-48
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• 2003

We consider a consumption and investment problem where an investor's investment opportunity gets enlarged when she becomes rich enough, i.e., when her wealth touches a critical level. We derive optimal consumption and investment rules assuming that the investor has a time-separable von Neumann-Morgenstern utility function. An interesting feature of optimal rules is that the investor consumes less and takes more risk in risky assets if the investor expects that she will have a better investment opportunity when her wealth reaches a critical level.

• Journal of the Korean Operations Research and Management Science Society
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• v.15 no.2
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• pp.45-61
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• 1990

This study examines shareholder wealth effects in tender offers and attempts to explain abnormal return variations of bidding and target firms at announcement of takeovers using the free cash flow hypothesis of Jensen. On average, bidders with large free cash flows pay higher premia (apparently more than fair market value) to targets than do other bidders with no free cash flows. Thereby, these bidders experience negative wealth effects on announcement of tender offers. Cross-sectional regression analysis suggests that for the subsample of takeover bids where bidders have large free cash flows, the increase in the debt ratio resulting from takeover has a significant positive wealth effect for bidding firm shareholders, while it has no effect in other subsamples. The evidence is consistent with the free cash flow hypothesis.

• Land and Housing Review
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• v.13 no.1
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• pp.55-65
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• 2022

This paper investigates the distinct characteristics of freehold and leasehold households living in the seven largest cities and the other areas. We employ the two-stage logit regression analysis to identify the marginal effects of wealth and income after controlling for the other one. We document the following results. First, households with more net wealth are more likely to reside in their own houses, regardless of living areas. Second, the pure income effect after controlling for wealth and other variables lowers the tendency of freeholders to live in the seven largest cities while increasing the tendency to live in the other areas. Furthermore, the income effects reduce the tendency to live in the former regions. Our results suggest that the pure income effects enhance preferences for a better living environment (e.g., larger spaces, better school districts, etc.), whereas the wealth effect increases the likelihood of freeholds.

• The Korean Journal of Financial Management
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• v.25 no.2
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• pp.191-213
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• 2008

This study tests and reconfirms the wealth transfer of mergers and acquisitions(M&As) by examining the changes in and the relationship between shareholder and bondholder wealth after the announcements of M&As for the publicly listed firms in Korea Stock Exchange and KOSDAQ market during $1999{\sim}2006$. The change in shareholder wealth is measured by the Cumulative Abnormal Return(CAR) at the M&A announcements, and the change in bondholder wealth is calculated using the Yield Spread Change(YSC) and the change in acquiring firms' credit ratings. The empirical tests show that the CAR of 344 sample acquiring firms at the announcement is 3.59%, which confirms results of the prior research on M&As in Korean market. The average YSC for 35 sample acquiring firms between $2001{\sim}2006$ proves to be negative when we use the yield spread of firms with comparable credit ratings as a benchmark, which means that the acquiring firms' bondholders gain with the announcements of M&As. We find the same result using another benchmark-the yield spread of government bonds. The improvement in the acquiring firms' credit ratings one year after the M&As also indicates that the M&As, on average, increase bondholder wealth. Our test results are consistent with those of the existing studies on the effect of bondholder wealth after the M&As in the United States, which shows that the bondholder wealth increases after the M&As. We do not find the evidence that there is a wealth transfer from the acquiring firms' bondholders to the shareholders after the M&A announcements. Rather, this study confirms that the wealth of the acquiring firms' bondholders increases in the M&As in Korea.

• Cross-Cultural Studies
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• v.50
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• pp.131-172
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• 2018

It is noted that nowadays, the bride wealth custom takes an extremely distorted form in African society. Such a phenomenon is a result that the male-dominant culture, Western religions, and capitalist economic system have been negatively combined into dynamic factors seen as bride wealth. This means that the concept of bride wealth has been incessantly reconstructed in the middle of clash and conflict of tradition and modernity. There is also little doubt that the practice is inextricably tangled with the common and current ways of livelihood, early marriage, polygyny, kinship/family structure, poverty, and migration labor. Bride wealth has become an increasingly commercialized element under a capitalist economic system. Accordingly, its traditional symbolism is seen to be subsequently weakening, whereas a tendency towards the reification of women is strengthening more in modern society that embraces modern customs bent on the protection of women's human rights. Its commercialization has produced a result, which instigates the noted violations of women's basic human rights, gender inequality, and promotion of domestic violence. The ways that people perceive bride wealth vary according to their own sex, generation, stratification, and ethnic background. Those people who negatively recognize bride wealth will increase with the deepening of its commercialization due to the influence of capitalism. Its color and effect will deepen and depend on how its agents correspond to socioeconomic changes. They will constantly reinterpret and reconstruct it within their own environments, but the basic human rights efforts are constantly under review by concerned individuals seeking to promote equality for women as a global effort.

• The Korean Journal of Financial Management
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• v.8 no.2
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• pp.209-255
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• 1991

This paper develops a simple model to explain the reasons why foreign acquirers pay significantly higher premiums for U.S. target firms than do U.S. buyers. We also provide empirical work on the valuation effect of foreign takeovers and the determinants of the wealth gains of U.S. target shareholders involved in foreign takeovers. The results indicate that target wealth gains are significantly higher in foreign takeovers than in domestic takeovers, after controlling for the wealth effects of payment method, acquisition type, tax status, size and time period of bids. This confirms the valuation effect of foreign takeovers. Furthermore, the results of cross-sectional regression analysis show that the variation in U.S. target wealth gains is explained by extra tax benefits stemming from double tax deductions for acquisition-related interest expenses incurred by foreign acquirers. These findings imply that differential taxation across tax jurisdictions is the main source of the valuation effect of foreign takeovers. In addition, we find that there exists a valuation effect of the nationality of the foreign acquirers. Japanese companies pay significantly higher premiums than do non-Japanese acquirers. The finding also indicates that competition among bidders increases the abnormal returns to U.S. target shareholders in foreign takeovers.

• Journal of Digital Convergence
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• v.20 no.5
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• pp.411-422
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• 2022

The purpose of this study was to identify factors that affect the characteristics and intentions of the elderly to use digital wealth management services. The subjects of this study were 312 elderly people over 50 years old. Based on the Value-based Adoption Model(VAM), the research model added price value, social influence, and perceived risk as research variables. As a result of empirical analysis, it was found that usefulness, enjoyment, price value, and social influence all had a significant positive (+) effect on perceived value. It was found that technicality had a significant negative (-) effect. On the other hand, no significant effect relationship was tested on perceived risk. The perceived value had a significant positive (+) effect on the intention to use. This study was meaningful in the academic research that it applied a research model that reflected the characteristics of the elderly who were not treated as mainstream in the technology acceptance model for digital wealth management services. In addition, it provided practical implications for providers' marketing strategies and government/public institution policy establishment to increase the use of digital wealth management services for the elderly.

• The Korean Journal of Financial Management
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• v.26 no.3
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• pp.1-29
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• 2009

Since convertible debt has both characteristics of stocks and bonds, its issuance can be related to both interests of stockholders and bondholders. Nevertheless, the existing studies focused mainly on the wealth effect on stockholders. In this paper we revisit the hypotheses on the issue of convertible debt especially from the viewpoint of a firm's growth, by making an additional investigation into bondholders' wealth effects. We find that stockholders' wealth increases with bondholders' wealth in the firm whose book-to-market ratio is low and thus is considered a growth firm. This finding seems consistent with the hypothesis in which the issue of convertible debt mitigates the agency cost of debt in the high-growth firm.

• Journal of Korea Trade
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• v.25 no.1
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• pp.65-88
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• 2021

Purpose - This paper aims to examine the determinants of SWFs' investment in Asian countries and to identify consistent investment patterns of SWFs in specific target firms from Asia, particularly China and South Korea. Design/methodology - This study extends the Tobin's Q model to examine the relationship between SWF investments in target firms and their returns with other firm-level control variables. We collect consistent data on SWF investments and the matched firm-level data on target firms, which of observation is 1,512 firms (333 in South Korea and 1,179 in China) targeted by 20 SWF sources during 1997-2017. The panel random effect model is used to estimate the extended Tobin's Q model. The robustness of the estimations is tested by the simultaneous equation models and the panel GEE model. Findings - The evidence shows that sovereign wealth funds are more inclined to invest in the financial sector with a monopoly position and in large firms with higher growth opportunity and superior cash asset ratios in China. In contrast to their investments in China, sovereign wealth funds in South Korea prefer to invest in strategic sectors, such as energy and information technology, and in large firms with high performance and low leverage. Sovereign wealth funds' investments tend to significantly improve the target firm's performance measured by sales growth and returns in both Korea and China. Originality/value - The existing literature focuses on examining the determination of SWFs investment in the developed countries, such as Europe and the United States. Our paper contributes to the literature in three ways; first, we analyzes case studies of SWF investments in Asian markets, which are less developed and riskier. Second, we examine whether the determination of SWF investment in Asian target firms depends on the different time periods, on types of sources of SWFs, and on acquiring countries. Third, our research uses vast sample data on target firms in longer time periods (1997-2017) than other previous studies on the SWFs for Asian markets.

• Korean Journal of Social Welfare
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• v.61 no.1
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• pp.323-357
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• 2009

This study illuminates the mechanism of life course on labor status of old age complementing the limits of labor status hypothesis of old age and model of statues attainment and combining them. The main results from this analysis are summarized in four points. Firstly, older men mostly engaged in agriculture, forestry and fishing industry or low-class occupations. A very small portion held high level or professional occupations. Regular full-time employees or employers were only 4.4% while, about 70% of older employees were temporal employees or self-employed. This shows that the elderly affluence hypothesis which alleges that most older men maintain high level occupations, applies to only a few. The second finding is that wealth differentials are sizable: about 20% of older workers own less than 50 million won, while 9.3% possess more than 600 million won. Therefore, it is not safe to claim that most people have accumulated enough wealth for old age according to the elderly affluence hypothesis. This gap being mainly reflected by education level, suggests that the model of status attainment is appropriate as wealth accumulation hypothesis. Thirdly, educational level determined not only lifetime careers, but also labor status of old age. Fourthly, using path analysis, the last finding is that education had effect on labor status of old age through lifetime career and wealth. That is, old men who have low education level had unstable lifetime career and own less wealth. They work in low income job, low social occupations and unstable occupation type in old age. This shows that life inequality continues until old age. Therefore, the inequality of education opportunity, spread of part-time work and small scale self employees should be discouraged. Furthermore, related policy should be provided in order to prevent being caught in unstable work.