• The Journal of Industrial Distribution & Business
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• v.9 no.6
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• pp.49-55
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• 2018

Purpose - This paper examines the effect of related party transactions on crash firm-specific stock price crash risk. Ownership of a typical Korean conglomerate is concentrated in a single family. In those entities, management and board positions are often filled by family members. Therefore, a dominant shareholder can benefit from related party transactions. In Korea, firms have to report related party transactions in financial statement footnotes. However, those are not disclosed in detail. The more related party transactions are the greater information risk. Thus, companies with related party transactions are likely to experience stock price crashes. Research design, data, and methodology - 2,598 firm-year observations are used for the main analysis. Those samples are from TS2000 database from 2009 to 2013, and the database covers KOSPI-listed firms in Korea. The proxy for related party transactions (RTP) is calculated by dividing total transactions to the related-party by total sales. A dummy variable is used as a dependent variable (CRASH) in the regression model. Logistic regression is used to explain the relationship between related party transactions and crash risk. Then, the sample was separated into two groups; tunneling firms and propping firms. The relation between related party transactions and crash risk variances with features of the transaction were investigated. Results - Using a sample of KOSPI-listed firms in TS2000 database for the period of 2009-2013, I find that stock price crash risk increases as the trade volume of related-party transactions increases. Specifically, I find that the coefficient of RPT is significantly positive, supporting the prediction. In addition, this relationship is strong and robust in tunneling firms. Conclusions - The results report that firms with related party transactions are more likely to experience stock price crashes. The results mean that related party transactions increase the possibility of future stock price crashes by enlarging information asymmetry between controlling shareholders and minority shareholders. In case of tunneling, it could be seen that related party transactions are positively associated with stock crash risk. The result implies that the characteristic of the transaction influences crash risk. This study is related to a literature that investigates the effect of related party transactions on the stock market.

• Asia-Pacific Journal of Business
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• v.11 no.2
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• pp.133-143
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• 2020

Purpose - This study seeks to summarize the tax changes in stock trading and analyze K-OTC stock trading data in 2017 and 2018 to infer the effects of the application of capital gains taxes by individual investors. Design/methodology/approach - This study analyzes the case of the expansion of the 2018 capital gains tax exemption in the K-OTC market, which exempts capital gains tax on the proceeds from the sale of individual investors of certain stocks under the temporary special law. Findings - In the K-OTC market, the amount of transactions has expanded since the capital gains tax exemption in 2018, but the volume of transactions and transaction turnover have decreased. In particular, the result of lower transaction turnover after the expansion is contrary to expectations. To control the macroscopic effects of the stock market, further analyses the transactions of capital gains tax-exempt stocks and non-exempt stocks. The turnover rate of exemption stocks is higher than that of the non-exempt stocks. In the case of transaction turnover, the two results are not consistent. However, the latter result is more meaningful because the comparison of exempt and non-exempt reduces distortion by macro effects. Research implications or Originality - To mitigate the impact of capital gains taxes on stock market, government authorities need to consider the gradual expansion of the scope of taxation, the application of separate taxation in the introduction of capital gains, the reduction tax rate on transfer income of listed shares, and the reduction tax rate on long-term holdings.

• Journal of the Korea Society of Computer and Information
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• v.27 no.3
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• pp.173-182
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• 2022

In this paper, we propose a machine learning model that can prevent fraudulent transactions in advance and interpret them using the XAI approach. For the experiment, we collected a real data set of 12,258 mobile phone sales posts from Joonggonara, a major domestic online C2C resale trading platform. Characteristics of the text corresponding to the post body were extracted using Doc2vec, dimensionality was reduced through PCA, and various derived variables were created based on previous research. To mitigate the data imbalance problem in the preprocessing stage, a complex sampling method that combines oversampling and undersampling was applied. Then, various machine learning models were built to detect fraudulent postings. As a result of the analysis, LightGBM showed the best performance compared to other machine learning models. And as a result of SHAP, if the price is unreasonably low compared to the market price and if there is no indication of the transaction area, there was a high probability that it was a fraudulent post. Also, high price, no safe transaction, the more the courier transaction, and the higher the ratio of 0 in the price also led to fraud.

• The Journal of the Korea Contents Association
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• v.17 no.2
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• pp.543-554
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• 2017

We tried to get useful information from social network analysis on the transaction network for the companies in Busan, Ulsan, Kyong-nam region using more than 80 thousand company transaction data obtained from Korean enterprise data (KED). We found that there are 282 clusters having more than 3 companies when we made clusters composed of the companies having the transactions with each other as the first transaction partners in the region. Most of clusters have a major big company with most of sales in the clusters and have the member companies without the transaction with other cluster's member companies so that they have closed and hierarchical transaction pattern. Analysing the transaction network using the network index, we know that there are small medium size companies playing the central role in the regional transaction network and a few clusters have many transactions with other clusters. Also we found that there are very rare sale transactions to the companies outside the region and many purchasing transactions from the companies outside the region. Policy makers need to try to diversify the transaction patterns and to use the exceptional companies and clusters as the levers.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.37
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• pp.187-216
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• 2008

Risk regarding the possibility of loss can be especially problematic. If a loss is certain to occur, it may be planned for in advance and treated as a definite, known expense. It is when there is uncertainty about the occurrence of a loss that risk becomes an important problem. The word risk is often used in connection with insurance. No one generally accepted definition of risk exists, however. Of the many definitions, two distinctive ones are commonly used. One defines risk as the variation in possible outcomes of an event based on chance. That is, the greater the number of different outcomes that may occur, the greater the risk. Another way of expressing this concept is to state: The greater the variation around an average expected loss, the greater the risk. The second definition of risk is the uncertainty concerning a possible loss. The definition of risk as a useful one because it focuses attention on the degree of risk in given situations. The degree of risk is a measure of the accuracy with which the outcome of an event based on chance can be predicted. For now, it will serve our purpose to note the more accurate the prediction of the outcome of an event based on chance, the lower the degree of risk. After sources of risks are identified and measured, a decision can be made as to how the risk should be handled. A pure risk that is not identified does not disappear, the business merely loses the opportunity to consciously decide on the best technique for dealing with that risk. The process used to systematically manage risk exposures is known as risk management. Some persons use the term risk management only in connection with businesses, and often the term refers only to the management of pure risks. In this sense, the traditional risk management goal has been to minimize the cost of pure risk to the company. But as firms broaden the ways that they view and manage many different types of risk, the need for new terminology has become apparent. The terms integrated risk management and enterprise risk management reflect the intent to manage all forms of risk, regardless of type. International trade transaction is called between countries has features of globalism, cultural gap, long distance and long terms for the transaction. It is riskier than domestic transaction has its specific risks, such as foreign exchange risk and political risk, and requires various active risk management skills. Risks in relation to the international trade transaction are the contract risk, transit risk and payment risk, etc. The risk management in relation to the international trade transaction is to identify and measure these risks. The purpose of this study is to analyse the practical problems and its solution plan by analyzing various cases related to the risk management of bill of lading in the international trade transaction.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.517-524
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• 2020

The study examines factors affecting apartment prices in the real estate market of Ho Chi Minh City, Vietnam. The study uses primary data based on surveys of customers who have traded successfully, and collects transaction data from real estate trading companies that are the top investors in Ho Chi Minh City real estate market. The collected data include 384 observations in a total of 24 districts, detailing that each district surveyed on a minimum of four projects, each project carried out a survey on a minimum of four apartments. The survey collected 339 valid questionnaires for analysis and model testing. This study employs multivariate regression with the data of 339 observations. The research results reveal that five significant factors affect positively the price of apartments in Ho Chi Minh City - apartment area, toilet and bedroom, apartment floor, reference price, and apartment interior. Besides, there are three significant factors affecting negatively the price of apartments - next price trend, distance to city center, and potential building. From the results, the research proposes solutions in the pricing of apartments in the real estate market in Ho Chi Minh City - better information system, a real estate transaction index, and stricter management of small brokerage activities.

• 한국경영정보학회:학술대회논문집
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• 2007.06a
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• pp.699-704
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• 2007

In this study, we examine why there exist different legal systems in electronic commerce or online financial trading. When a fraud online transaction occurs and the online customer disputes the transaction, the online customer takes responsibility for the proof of her/his argument in many European countries while in the U.S., the burden of proof lays on the firm. This paper analyzes how these two different legal systems exist and how these can be applied to electronic commerce law. In particular, this paper intends to find the optimal level of e-commerce firms' investment on security and analyzes how security investments can be related to firm's profits and consumer's welfare depending on IT infrastructure and social trust environment. More on, this paper can be contributed to provide guidelines for regulatory framework on ecommerce online transactions and discuss social welfare implications.

• The Journal of the Korea Contents Association
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• v.9 no.7
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• pp.325-332
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• 2009

The Korean real estate transaction makes a contract after the buying and selling person concerned agreed a business condition. As for vendee, business consists of the method that I issue documents before provision and money left over provision and the registration at the same time, and register a contract deposit in vendor. However, it latent for the real estate transaction various accidents such as fraud from a contract day to time to finish a real estate registration transfer, embezzlement, double contract by the breach of trust. Nevertheless vendee comes to match vendor by an asymmetry of the information one-sidedly to the front completing a registration transfer. I may prevent stellionate by the breach of trust of vendor if I use an ESCROW system in such a responsibility blank state.

• The Journal of Information Systems
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• v.10 no.1
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• pp.51-72
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• 2001

E-commerce has not only brought about a great change in the way we exchange goods and services but also revolutionized the way we handle business transactions. In addition, it has a significant influence upon the present business structure, and most of firms in service industry as well as manufacturing are considering adopting E-commerce in a serious manner. Most vessels purchase merchandises through a number of shipping agents. As the amount of harbor materials increase, the number of vessels and their navigation frequency also increase. As a result, the amount of procurement for ships has increased. Traditional means such as telephone and fax to handle ever-increasing harbor transaction, however, has proved to be very time-consuming and cost ineffective. Therefore, people are starting to look for more effective ways. In this paper, an internet-based scheme of B2B transaction is proposed to handle procurement problem between shipping agency and shipping company, and between vessel and suppliers as a more effective approach to streamline such problems. We extract problems of shipping agency through task-analysis and present a scheme that performs decision making and procurement as a system agent with brokering structure. Purchaser and supplier are offered material information rapidly and task loads are minimized by the scheme. Also, the system can support decision making of purchasing goods, and information is shared among purchaser, supplier and system through the system interface.

• The Journal of Society for e-Business Studies
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• v.9 no.3
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• pp.39-56
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• 2004

This study introduces consumer protection policies at domestic and overseas, regarding the current situation that is raised about, and analyzes how to promote e-commerce with consumer protection oriented. This article explores e-commerce protection policies aiming at enforcing consumer protection and introduces some strategies - enhancing consumer trust, improving electronic transaction disputation, personal information security and privacy and using authorized certificate. This paper aims at suggesting the method of promoting e-commerce through ensuring the consumer trust and decreasing the transaction cost.