• Journal of Distribution Science
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• v.12 no.5
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• pp.15-26
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• 2014

Purpose - This study addresses an acquisition's impact on a firm's strategic relationship based on findings of existing academic studies and theoretical assertions. Through examining existing research results and theoretical grounds for an acquisition's impact on various stakeholders, this study indirectly approaches the impact on stakeholders including alliance partners. Research design, data, and methodology - This research identified a variety of related theoretical foundations and empirical studies. Research objectives of prior studies mainly focused on merging firms and direct participants of acquisition activity. In addition, academic attention on the impact on rival firms has recently been growing. However, little research on alliance partners was found. Prior studies simultaneously employed event study methodology and cross-sectional analysis to make further theoretical contributions. Results and Conclusions - Based on the findings of prior studies, this research proposed a complementary research model for future academic inquiry into the impact of an acquisition on an alliance partner's return and for predicting an acquisition announcement's effect on alliance partners.

• Proceedings of the Korean Society for Noise and Vibration Engineering Conference
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• 2011.10a
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• pp.297-298
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• 2011

• Korean Journal of Health Education and Promotion
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• v.32 no.2
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• pp.1-13
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• 2015

Objectives: This study was conducted to investigate derived factors associated with a public service announcement on handwashing to evaluate the effect of this announcement. Methods: In early september, 1,000 persons over 19 years old was investigated by Computer Aided Telephone Interview, at last 993 persons for analysis. Outcomes were the exposure to the public service announcements on handwashing, the comprehension of this announcements, the intention of behavioral change and the practice of handwashing. Results: In particular, the proportion of exposure is more women and highly educated. The comprehension of the announcement was no statistically significant difference. The intention of behavior change showed higher in workers and understanding of the announcements. The practice of handwashing is higher in women and lower in student/unemployed. There was no difference in practice in accordance with the exposure, the comprehension and the intention of behavioral change. Conclusions: About the comprehension of the announcements and the intention of behavioral change, the effects of the public service announcements on handwashing can be very positive. But it does not affect the actual practice of hand washing. The handwashing promotion programs will have to devise a strategy and structure, operation method considering realistic and scalable platform.

• The Korean Journal of Financial Management
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• v.20 no.2
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• pp.1-39
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• 2003

Using a comprehensive sample of convertible security offerings by Korean firms from 1981 to 1999, we examine the effect of convertible bond issues on firm value. We find that the announcement of convertible bond issues has a positive effect on firm value. However, the announcement of private convertible bond issues by chaebol firms has a significant negative effect on their market values. This result is different from that in Japan, suggesting that the efficiency of the financing decision by Korean chaebol is different from that by Japanese keiretsu. In addition, we find that the announcement effect of private convertible bond issues by chaebol firms has a significant relation with the corporate governance variables such as ownership structure, bank relationship. These results indicate that convertible bond issues can be used as a mechanism for chaebol owner-manager to give rise agency problems at the expense of the wealth of minority shareholders.

• Journal of Distribution Science
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• v.16 no.10
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• pp.55-64
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• 2018

Purpose - The most important goal of corporate management is the maximization of firm value in the market. Executives of companies are making effort to increase corporate value and initiate various management strategies, which is to develop the products or service with value. Through these efforts, consumer satisfaction grows and loyalty increases, which leads to the positive change of customer satisfaction index. The purpose of this research is to find out the abnormal return after the KCSI(Korean Customer Satisfaction Index) is announced. Research design, data, and methodology - This research data is collected from 11 years' stock price in KOSPI market and KCSI. The authors analyze the abnormal return triggered by the announcement of KCSI through the event study. Results - First, newly enlisted companies in the KCSI show statistically significant short-term abnormal rate of return. Second, the value of the customer satisfaction index is not the level of customer satisfaction but the direction of the change in the CSI. Conclusion - Customer satisfaction has the important intangible asset in the marketing area. However, firms' investment for CS is not an easy decision, because of the difficulty to measure the effect on corporate market value. This research investigates the change of the market value after the announcement of KCSI. Based on the results, firms have to keep trying to increase KCSI relative to the previous year. And the small company has to struggle for being newly listed in the KCSI.

• Asia pacific journal of information systems
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• v.12 no.1
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• pp.87-101
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• 2002

In the past few years, many Korean companies have implemented various ERP systems. Despite the enormous efforts and costs, however, there have been doubts about the effectiveness of ERP implementation. The purpose of this study is to identify whether the announcement of ERP implementation affects the market value of the firm. To achieve the research objective, event-study methodology was used assessing the cumulative abnormal returns(CARs) for 33 firms' announcements of ERP investments. Findings of the study are summarized as follows: First, the announcements of ERP implementation have no effect on the firm value though the sign is negative. Second, there is marginally significant difference in the market value of the firm between the first mover of ERP implementation and its followers. In order to figure out any possible reasons of such unexpected results, several investors and fund managers of major investment firms were interviewed. They reached the two agreements that ERP hardly increases the firm value. One was mainly due to the misfit between the foreign business processes built in the ERP systems and Korean firms' traditional business processes. The other was the possibility of financial deterioration caused by substantial costs for ERP implementation.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.3
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• pp.337-346
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• 2022

This study explores the impact of the COVID-19 pandemic on the stock prices of state-owned enterprises listed on the Indonesia Stock exchange. The impact of the pandemic is analyzed based on different pandemic phases and the corresponding government pandemic interventions to curb the disease. This study analyzes 6 pandemic event dates, covering the time period from January 2020 to February 2021. A total of 20 state-owned enterprises are included as the sample of this study. Test of difference is employed to compare the stock prices of the state-owned enterprises before and after each pandemic event date. In general, this study confirms the adverse impact of the COVID-19 pandemic on the stock prices, especially the event in 2020, although some variations do exist. The results of the study reveal a significant decrease in the stock prices of the state-owned enterprises after the announcement of the first confirmed COVID-19 cases, the announcement of COVID-19 as a global pandemic, the imposing of Large Scale Social Restriction (PSBB I and PSBB II). In contrast, the stock prices increase after the imposing of a new normal policy and the imposing of Public Activity Restriction (PPKM). This study also documents that the effect of the pandemic may vary based on the pandemic phase.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.6
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• pp.1-9
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• 2016

In this study, we investigate the announcement effects of M&As with a start-up as a target firm on shareholder wealth of an acquiring firm. We use M&A events in KOSPI or KOSDAQ market between 2002 and 2014 after the financial crisis. Among the total 1436 mergers and acquisitions that took place domestically during this period, 1383 cases were selected as cases to be studied, excluding 53 cases where acquiring firms were unlisted firms. The results of the analysis are as follows: First, as a result of a comparison between the acquiring firms' CARs of the whole sample group(n=1383) occurred during the (-2, +1), (-5, +2), (-10, +5) periods of M&A announcement date(t=0) and the sub-sample group(n=468) where the target firms are start-ups which were established within five years, the acquiring firms of the whole sample group do not show significat CARs, while the acquiring firms of the sub-sample group show the significantly positive CARs. This suggests that M&A with start-ups have a positive effect on firm value of acquiring firms. Second, when merging unlisted start-ups, the acquiring firms show positive CARs, showing that there exists a listing effect in the merger of start-up. Third, merging the start-ups belonging to the high-tech industry shows the higher CARs than the case of merging the start-ups belonging to the non-high-tech industry. This study has great significance as the first in Korea to investigate the effect of M&A announcement with a start-up.

• Asia-Pacific Journal of Business
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• v.14 no.1
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• pp.73-91
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• 2023

Purpose - The purpose of this study is to re-examine the disclosure effect of stock splits and long-term performance after stock splits using stock split data over the past 10 years, and infer the motivation (signal or opportunism) of stock splits. In addition, we focus on exploring the determinants of the short- and long-term market response to stock splits. Design/methodology/approach - We measure the short-term market response to a stock split and the long-term stock performance after the stock split announcement using the event study method. We analyze whether there is a difference in the long-term and short-term market response to a stock split according to various company characteristics through univariate analysis and regression analysis. Findings - In the case of the entire sample, a statistically significant positive excess return is observed on the stock split announcement date, and the excess return during the 24-month holding period after the stock split do not show a difference from zero. In particular, the difference between short-term and long-term returns on stock splits is larger in companies with a large stock split ratio, small companies, large growth potential, and companies with a combination of financial events after a stock split. Research implications or Originality - The results of this study suggest that at least the signal hypothesis for a stock split does not hold in the Korean stock market. On the other hand, it suggests that there is a possibility that a stock split can be abused by the manager's opportunistic motive, and that this opportunism can be discriminated depending on the size of the stock split, corporate characteristics, and financing plan.

• The Journal of Society for e-Business Studies
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• v.21 no.2
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• pp.81-96
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• 2016

This paper analyzes the impact of information breach on shareholder value by measuring the stock price reaction associated with the announcements of data breach. The breach firms in the sample lost, on average, 1.3% of their market value, amounting to 98.9 million won of loss within two-day of the event period after the announcement. We examine the abnormal returns in various categories (i.e., source, type, size, etc.) of information breach. Although the market does not react significantly to the announcements of outside breach, we find statistically significant market reactions to inside breach. We estimate abnormal returns over the following 60 days. The mean 60-day cumulative abnormal return and BHAR (buy-and-hold abnormal returns) are both significantly far from zero. We conclude that there is a coherent market reaction following the announcement. The difference between the market reactions to IT firms and Non-IT firms is statistically significant. But breach amount, firm size, and the year the breach occurred do not show to be significant variables.