• The Korean Journal of Financial Management
• /
• v.11 no.2
• /
• pp.195-221
• /
• 1994

This study investigates the wealth effect of foreign acquisition of U.S. based firms. Contrary to previous studies, this analysis demonstrates that after appropriate control of domestic-acquired targets, the wealth gains to the shareholders of targets in foreign takeovers are similar to those in domestic takeovers. This paper investigates the validity of the competitive acquisition market in cross-border takeovers and concludes that : 1) in cases of inward foreign direct investment into the U.S., foreign firms do not realize significant net benefits from acquisitions; and 2) the foreign acquirer is as well informed as its U.S, counterparts about the target's market. The results of this study are consistent with the view that each country has different motivations for investing in the U.S. market. Consider, for example, Japan. The evidence suggests that Japanese companies pay a considerable price for U.S. targets which have performed poorly before the takeover. While there is no specific rationale to explain why Japanese firms buy the most volatile and worst performing firms, international barriers may provide a possible reason for these anomalies. Overall, the evidence of this paper supports the view that foreign takeovers occur in a competitive acquisition market.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 1999.04a
• /
• pp.343-343
• /
• 1999

• Journal of Korea Trade
• /
• v.25 no.3
• /
• pp.21-47
• /
• 2021

Purpose - Offshoring has emerged as one of the major trends in international trade and has become one of the strategies for achieving competitiveness in the global market. In spite of this, the expected gains of offshoring can be offset by hidden costs and risks, such as those associated with the COVID-19 pandemic, the trade war between the USA and China, and the ongoing trade dispute between Korea and Japan. To obviate such business failure and prevent critical business blunders, offshoring strategies that efficiently consider both risk elements and potential wealth creation are urgently need. The first purpose of this study is to contribute to the development of more advanced offshoring strategies to help host countries select the best locations to manage supply chain risks and create unique value. The second purpose is to specifically analyze the current status of Korea and provide Korean companies with implications to be considered when deciding whether to offshore or re-shore. Design/methodology - A Network DEA model was applied to measure the comparative location efficiency of national competencies for offshoring strategy from perspectives of wealth creation opportunities (profitability and marketability) and supply chain risk management. The location efficiencies are compared among a total 70 countries selected from the Global Competitiveness Index (GCI) and globally attractive locations outlined by Kearney (2017). For the secondary analysis of efficiency, a t-test examining the nature of competitive advantage and the level of sophistication in production processes was implemented in three divisions. We then analyzed differences in offshoring performance in terms of the identified national traits. Moreover, Tobit regression analysis is conducted to investigate the correlation between value-added business activities and each divisional efficiency, seeking to determine how each degree of value-added business activity influences the increase in offshoring productivity. Findings - Regarding overall location efficiency for offshoring performance, only the USA and Italy were identified as being efficient as host countries for offshoring, under circumstances of advanced development, such as productivity and risk management. Korea ranks 13th among 70 countries. The determinants of national competitiveness depend on national traits (the nature of competitive advantage and business sophistication). Countries with labor/resource advantages and labor-intensive industries are more competitive in terms of marketability than others. In contrast, countries with strong technology-intensive industries benefit offshoring companies, particularly in the technology sector, with the added advantage of supply chain risk management. As the perception of a value chain is broader in a country, it can achieve both production sophistication and competitive advantages such as marketability and SCRM. Originality/value - Existing studies focus on offshoring effectiveness from a company perspective. This paper contributes to comparing country efficiency in producing core competencies related to an offshoring strategy and also segments countries into three performance-based considerations associated with the global offshoring market. It also details Korea's position as an offshoring location according to national efficiency and competency.

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

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.4
• /
• pp.299-307
• /
• 2020

Inter vivos in the context of wealth and estate planning can be generally defined as a transfer that takes place between the livings. Parents are motivated to transfer for altruisme and exchange. In this context, this study aims to explore another potential motives of inter vivos, which is 'affection'. Data is collected through semi-structured interviews with inter vivos experts who have published articles in this area. The interview is encoded and thematic analysis is carried out to classify themes and subthemes that exist in the inter vivos transfers. This study discovers four main themes, which indicate that inter vivos transfers based on affection can be enlightened by the relationship between parents and children, responsibility for children, types of inter vivos, and effects to other heirs. Relationship between parents and children can be explained as parents transfer their wealth to the closest children, children who care for them and to family members only. Parents also are responsible to protect their children after they die and assist them who are in need. Types of inter vivos are considered as boundless inter vivos and without any material return. Inter vivos based on affection also aims not to abuse other heirs.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.8
• /
• pp.297-308
• /
• 2020

This study exemines the roles of corporate social activity (CSR) and executive compensation structure on the pricing of seasoned equity offerings (SEOs) with special focus on the role of CSR in reducing the level of information asymmetry between managers and future shareholders of issuing firms through SEOs. This study also investigates the interaction between executive compensation structure and CSR on the discounting of SEOs. We use a sample of 2,102 seasoned equity offerings of U.S. firms with CSR scores from 1995 to 2015 in our OLS fixed effect regression analysis. The results show that issuing firms with high CSR are more likely to expericence a lower degree of the SEO discount. The results also document a positive association between CSR and a high proportion of equity-based compensation of issuing firms' executives. The findings of this paper confirm that CSR attenuates the impact of information asymmetry and the pre-SEO price uncertainty on the pricing of the offers and hence the SEO discount. Furthermore, CSR reinforces the impact of executive firm-related wealth on the discounting of seasoned equity offerings. It appears that firm-related wealth motivates managers to actively engage in reducing information asymmetry activities before SEOs, thereby decreasing the SEO discount.

• Journal of Families and Better Life
• /
• v.14 no.4
• /
• pp.233-248
• /
• 1996

The purpose of this study were 1) to identify housing consumption over family life cyle and 2) to analyze the propensity of residential mobility and its contributing factors over family life cycle. For these purposes the 1993 KHPS data was used. The sample in this study consisted of 2,796 couple households. Satistics employed for the analysis were frequencies means and logistic regression analysis. As the number of children and the children's age increased the housing consumption increased. There were many factors such as husband's education satisfaction of health and family relations monthly income wealth debt owning a car home ownership duration of residence and the satisfaction with housing contributing to housing consumption and propensity to move. Those with home ownership higher wealth higher satisfaction with health higher expenditure, longer duration of residence and higher satisfaction with housing tend to move more frequently. However those with low educational attai ment less satisfaction with family relation less income and having no debts were likely to move.

• Korean Journal of Human Ecology
• /
• v.4 no.1
• /
• pp.39-50
• /
• 1995

To determine contribution rate to matrimonial wealth accumulation of urban housewives, a survey was made toward them by using questionaires from September 1994 to October 1994. Three hundred-eighteen housewives were randomly selected from Pusan area. The results obtained were as follows. Average contributing rate to household income was 65.7 percent for husbands and 34.3 percent for wives. The contribution rates evaluated by themselves of wives were 38.1 percent for the house property; 36.5 percent for the savings; 9.6 percent for the real estate; 5.2 percent for the land; 9.3 percent for the stocks & bonds; and 9.2 percent for others. It is suggested that 50 percent and over 50 percent of matrimonial properties have to be recognized to the wives who changed their occupations to house work and employed wives, respectively.

• Communications for Statistical Applications and Methods
• /
• v.14 no.1
• /
• pp.33-55
• /
• 2007

The economic world is full of patterns, many of which exert a profound influence over society and business. One of the most contentious is the distribution of wealth. Way back in 1897, an Italian engineer-turned-economist named Vilfredo Pareto discovered a pattern in the distribution of wealth that appears to be every bit as universal as the laws of thermodynamics or chemistry. The present paper proposes some Bayes estimators of shape parameter of Pareto income distribution in censored sampling. Asymmetric LINEX loss function has been considered to study the effects of overestimation and underestimation. For the prior distribution of the parameter involved a number of priors including one and two-parameter exponential, truncated Erlang and doubly truncated gamma have been contemplated to express the belief of the experimenter s/he has regarding the parameter. The estimators thus obtained have been compared theoretically and empirically with the corresponding estimators under squared error loss function, some of which were reported by Bhattacharya et al. (1999).

• The Korean Journal of Financial Studies
• /
• v.3 no.1
• /
• pp.267-299
• /
• 1996

The takeover boom of the 1980s was accompanied by a series of innovations in debt contracts, including the poison put that allows bonds to be redeemed in the event of a corporate control change. The poison put was included in a large majority of convertible debt offerings, shortly after the first issues with such provisions. We attempt to understand the factors that contributed to the widespread adoption of this innovation in convertible bonds and the consequences for shareholder wealth. Our, findings suggest that by reducing the potential for bondholder-shareholder conflicts and by conveying positive information about future takeover prospect'5, poison puts result in significant benefits to issuing firm shareholders, particularly if the firm is under takeover speculation. There are, however, no benefits when a firm has adopted anti-takeover measures prior to the offering. There is weaker evidence that existing bondholders do worse when poison puts are present.