• Title/Summary/Keyword: corporate data

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Corporate Default Prediction Model Using Deep Learning Time Series Algorithm, RNN and LSTM (딥러닝 시계열 알고리즘 적용한 기업부도예측모형 유용성 검증)

  • Cha, Sungjae;Kang, Jungseok
    • Journal of Intelligence and Information Systems
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    • v.24 no.4
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    • pp.1-32
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    • 2018
  • In addition to stakeholders including managers, employees, creditors, and investors of bankrupt companies, corporate defaults have a ripple effect on the local and national economy. Before the Asian financial crisis, the Korean government only analyzed SMEs and tried to improve the forecasting power of a default prediction model, rather than developing various corporate default models. As a result, even large corporations called 'chaebol enterprises' become bankrupt. Even after that, the analysis of past corporate defaults has been focused on specific variables, and when the government restructured immediately after the global financial crisis, they only focused on certain main variables such as 'debt ratio'. A multifaceted study of corporate default prediction models is essential to ensure diverse interests, to avoid situations like the 'Lehman Brothers Case' of the global financial crisis, to avoid total collapse in a single moment. The key variables used in corporate defaults vary over time. This is confirmed by Beaver (1967, 1968) and Altman's (1968) analysis that Deakins'(1972) study shows that the major factors affecting corporate failure have changed. In Grice's (2001) study, the importance of predictive variables was also found through Zmijewski's (1984) and Ohlson's (1980) models. However, the studies that have been carried out in the past use static models. Most of them do not consider the changes that occur in the course of time. Therefore, in order to construct consistent prediction models, it is necessary to compensate the time-dependent bias by means of a time series analysis algorithm reflecting dynamic change. Based on the global financial crisis, which has had a significant impact on Korea, this study is conducted using 10 years of annual corporate data from 2000 to 2009. Data are divided into training data, validation data, and test data respectively, and are divided into 7, 2, and 1 years respectively. In order to construct a consistent bankruptcy model in the flow of time change, we first train a time series deep learning algorithm model using the data before the financial crisis (2000~2006). The parameter tuning of the existing model and the deep learning time series algorithm is conducted with validation data including the financial crisis period (2007~2008). As a result, we construct a model that shows similar pattern to the results of the learning data and shows excellent prediction power. After that, each bankruptcy prediction model is restructured by integrating the learning data and validation data again (2000 ~ 2008), applying the optimal parameters as in the previous validation. Finally, each corporate default prediction model is evaluated and compared using test data (2009) based on the trained models over nine years. Then, the usefulness of the corporate default prediction model based on the deep learning time series algorithm is proved. In addition, by adding the Lasso regression analysis to the existing methods (multiple discriminant analysis, logit model) which select the variables, it is proved that the deep learning time series algorithm model based on the three bundles of variables is useful for robust corporate default prediction. The definition of bankruptcy used is the same as that of Lee (2015). Independent variables include financial information such as financial ratios used in previous studies. Multivariate discriminant analysis, logit model, and Lasso regression model are used to select the optimal variable group. The influence of the Multivariate discriminant analysis model proposed by Altman (1968), the Logit model proposed by Ohlson (1980), the non-time series machine learning algorithms, and the deep learning time series algorithms are compared. In the case of corporate data, there are limitations of 'nonlinear variables', 'multi-collinearity' of variables, and 'lack of data'. While the logit model is nonlinear, the Lasso regression model solves the multi-collinearity problem, and the deep learning time series algorithm using the variable data generation method complements the lack of data. Big Data Technology, a leading technology in the future, is moving from simple human analysis, to automated AI analysis, and finally towards future intertwined AI applications. Although the study of the corporate default prediction model using the time series algorithm is still in its early stages, deep learning algorithm is much faster than regression analysis at corporate default prediction modeling. Also, it is more effective on prediction power. Through the Fourth Industrial Revolution, the current government and other overseas governments are working hard to integrate the system in everyday life of their nation and society. Yet the field of deep learning time series research for the financial industry is still insufficient. This is an initial study on deep learning time series algorithm analysis of corporate defaults. Therefore it is hoped that it will be used as a comparative analysis data for non-specialists who start a study combining financial data and deep learning time series algorithm.

The Influences of Participatory Management and Corporate Governance on the Reduction of Financial Information Asymmetry: Evidence from Thailand

  • LATA, Pannarai
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.853-866
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    • 2020
  • The purposes of this research were: 1) to investigate the effect of participatory management on financial information asymmetry, 2) to investigate the effect of corporate governance on financial information asymmetry, 3) to examine the influences of benefits incentives on financial information asymmetry, and 4) to test the mediating effects of benefits incentive that influences the relationship between participatory management, corporate governance, and financial information asymmetry. The research sample consisted of 388 Thai-listed firms. Data were collected through a survey questionnaire. Descriptive analysis, Multiple Regression Analysis, and Structural Equation Modeling were used for the data analysis. The results revealed: 1) participatory management and participation in evaluation had a negative influence on financial information asymmetry. 2) Corporate governance and the rights of shareholders had a negative influence on financial information asymmetry. 3) Benefits incentive was negatively associated with financial information asymmetry. 4) The model's influences of participatory management, corporate governance on the reduction of financial information asymmetry through benefits incentive as mediator fit the empirical data (Chi-square = 104.459, df = 84, p = 0.065, GFI = 0.967, RMSEA = 0.025). The variables in the model explained 78.00% and 4.70 % of the variance of benefits incentive and financial information asymmetry, respectively.

Corporate Investment Behavior and Level of Participation in the Global Value Chain: A Dynamic Panel Data Approach

  • KUANTAN, Dhaha Praviandi;SIREGAR, Hermanto;RATNAWATI, Anny;JUHRO, Solikin M.
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.12
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    • pp.117-127
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    • 2021
  • This study was conducted to comprehensively identify factors that potentially influence corporate investment behavior, including micro, macro, and sectoral variables. Furthermore, investment behavior was studied across nations based on their participation in the global value chain (GVC), which was evaluated based on commodities, limited manufacturing, advanced manufacturing, and innovative activities. The study uses the dynamic panel data analysis and Generalized Method of Moment (GMM) estimation for a sample of 800 corporations, with data spanning over 2000-2019. The study result shows that in all types of countries, the coefficient lag indicator of capital expenditure statistically has a significant effect on capital expenditure. Sales growth, exchange rate, and GDP have a significant positive effect on corporate investment growth, while DER has a negative effect. In commodity countries, corporate investment is influenced by sales growth, exchange rate, and FCI. The variables that influence corporate investment in manufacturing countries are the FCI, exchange rate, sales growth, GDP, and DER. In innovative countries, variables that significantly affect capital expenditure are DER, GDP, and Tobin Q. In each type of country, the interaction terms between exchange rate and commodity price are positive and statistically significant.

The Impact of Corporate Capabilities on Management Performance : Focusing on the Korean Distribution Industry during the COVID-19 Pandemic

  • Kil-Yong SEONG;Byoung-Goo KIM;Chun-Su LEE
    • Journal of Distribution Science
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    • v.22 no.3
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    • pp.105-112
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    • 2024
  • Purpose: This study analyzed the relationship between corporate capacity and management performance in the Korean distribution industry during the COVID-19 pandemic. Research design, data and methodology: The data for this study used the 2021 KOTRA GCL Test Data, and multiple regression analysis was performed using SPSS 26. As corporate competency, human capital and related capital of intellectual capital theory were utilized, and the global network level of social network theory was also utilized. As an additional analysis, corporate characteristics factors were used. Results: First, the level of global mindset of human capital acted as a positive factor in management performance, and the level of professional manpower did not achieve significant results. Second, related capital acted as a positive factor in corporate performance. Third, from the perspective of social network theory, the global network level of companies acted as a positive factor in management performance. Finally, the relationship between corporate characteristics and management performance was marginally significant. Conclusions: In order to improve the business performance of a company in a market shock such as the COVID-19 pandemic, it is required to strengthen the level of network construction with customers and increase the level of intellectual capital that a company has.

The Impact of Corporate Image on Employees' Alturistic Behavior in Franchise Industry: Mediating Role of Organizational Trust and Affective Commitment (프랜차이즈 기업이미지가 종업원의 이타적 행동에 미치는 영향: 조직신뢰와 정서적 몰입의 매개역할)

  • Hur, Soon-Beom;An, Dae-Sun;Cho, Hye-Duk
    • The Korean Journal of Franchise Management
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    • v.8 no.4
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    • pp.33-43
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    • 2017
  • Purpose - Previous studies about corporate image generally explore how corporate image affects a company's effectiveness from the consumer view. However this study attempts to explore the impacts of corporate image (reliability, friendly, corporate social responsibility, and innovation) on employees' altruistic behaviors in the franchise industry context. This study also examine whether organizational trust and affective commitment play a mediating role in the relationship between corporate image and employees' altruistic behaviors. The authors developed several hypotheses to achieve these purposes. Research design, data, and methodology - The data were collected from employees in food-service franchise companies located in Seoul, Korea. Among a total of 363 questionnaires distributed, 294(response rate of 81%) questionnaires were returned. After excluding 18 invalid respondent questionnaires, 276 valid questionnaires(response rate of 76%) were coded and analyzed using frequency, confirmatory factor analysis, correlations analysis, and structural equation modeling with SPSS 21 and SmartPLS 3.0. Result - The findings of the study are as follows: First, friendly, CSR, and innovation had positive effects on organizational trust, but reliability did not have a significant effect on organizational trust. Second, reliability and friendly of corporate image had positive effects on affective commitment, but CSR and innovation did have a significant effect on affective commitment. Third, organizational trust and affective commitment had positive effects on employees' altruistic behaviors. Conclusions - The aim of this study is to investigate the franchise corporate image as a significant influencing factor of employees' altruistic behaviors. The data were collected from only employees from franchising companies. The findings might vary from position to position. Future studies need to collect and compare data from managers. Future studies need to consider other variables that affect employees' altruistic behaviors. For example, leadership and market orientation might influence employees' attitude and behaviors. Also, future research should include other variables and it may have limitations in sample representative because of sampling franchise corporate in Seoul. Future studies will include franchise corporate all over the country. Future studies can also consider other variables (e.g., job performance and turnover intentions) to measure employee performance at the level of individuals and identify the impact of employee performance on business performance at the level of corporate.

Persuasion Effects of Corporate Sports Marketing Strategy on the Corporate Image : Focused on the Moderating Effect of Origin Perception and Corporate Reputation (기업의 스포츠마케팅 전략에 따른 기업이미지 설득효과 : 원산지 인식과 기업평판의 조절효과를 중심으로)

  • Chang, Kyung-Ro;Kim, Min-Cheol
    • 한국체육학회지인문사회과학편
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    • v.54 no.4
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    • pp.347-361
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    • 2015
  • The purpose of this study was to examine whether corporate sports marketing strategy using professional teams changes corporate image. In particular, this study was intended to analyze the effects of origin and corporate reputation on the change of corporate image in the process of persuading corporate image. Finally 211 effect data were secured by pre-test and post-test. The change of corporate image and the moderating effect of origin perception and corporate reputation were analyzed. The results were as follows. First, corporate trust image and social contribution image showed statistically significant increase. Second, corporate image had a difference before and after the test according to origin perception and after the test, corporate trust image and social contribution image were increased. Third, corporate image had a difference before and after the test according to corporate reputation. After the test, corporate trust image and social contribution image were increased and trust image confirmed the mediating effect according to corporate reputation. Based on the findings, this study suggests that corporate sports marketing strategy using professional teams has an effect on the persuasion of corporate image. Moreover, it demonstrates that the strategy is an important marketing tool to change consumers' corporate image.

Research on the Impact of Corporate Culture and Innovation Ability on Corporate Core Competitiveness from the Perspective of CSR: Based on the Investigation of Tianjin Agricultural Science and Technology Enterprises

  • Liu, Chun-peng;Li, Chun-Jie;Kim, Hyung-Ho
    • International journal of advanced smart convergence
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    • v.11 no.1
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    • pp.117-126
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    • 2022
  • Corporate social responsibility (CSR) is the basic strategy for enterprises to obtain competitive advantages, and reflects the most basic value orientation and development concept of enterprises. The purpose of this study is to explore the relationship between corporate culture, innovation ability and core competitiveness of enterprises from the perspective of corporate social responsibility, and to establish a model and analyze the survey data of 32 agricultural science and technology enterprises in Tianjin by using SPSS23.0. As a result of the study, we found that corporate social responsibility (Ethical responsibility, Philanthropic responsibility) has a significant positive impact on corporate culture and innovation ability, corporate culture has a significant positive impact on innovation ability and corporate core competitiveness, and innovation ability has a significant positive impact on corporate core competitiveness. Therefore, it is suggested that agricultural science and technology enterprises should fulfill their social responsibilities, form a unique corporate culture, serve agriculture with science and technology, and constantly improve the ability of agricultural science and technology innovation, so as to enhance the core competitiveness of enterprises.

Social Engagement Network and Corporate Social Entrepreneurship in Sido Muncul Company, Indonesia

  • SIRINE, Hani;ANDADARI, Roos Kities;SUHARTI, Lieli
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.885-892
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    • 2020
  • The purpose of this study was to determine the social engagement network in Sido Muncul's CSR, the partnership program with farmers, and how the implementation of corporate social entrepreneurship in the program is carried out. The research design uses qualitative methods with a grounded theory approach that tests the validity and reliability of the data using triangulation of data sources and methods, namely, data obtained through documentation and the results of surveys and interviews to more than one observation unit. Data was obtained from surveys and interviews with Sido Muncul's Public Relations and CSR Division, as well as partner farmers. The results of this study indicate that the social engagement network in Sido Muncul's partnership program is related to the role of farmer groups, farmer cooperatives, government, NGOs, universities, and private companies as facilitators and control functions, thus creating mutually beneficial relationships with one another. The process of implementing corporate social entrepreneurship in Sido Muncul's CSR for the partnership program with farmers consists of nine stages: problem identification, coordination with related parties, allocation of resources and commitments, collaboration with NGOs, local entrepreneurs and government, social innovation and the creation of new businesses, documentation of activities, reporting, monitoring and evaluation, as well as publications.

The Effects of Brand Knowledge on Evaluations of Brand-name and Corporate-name Extension on the Levels of Brand and Corporate Awareness in Fashion Market (패션상표와 기업명 인지수준에 따라 모상표지식이 상표 및 기업명 확장제품 평가에 미치는 영향)

  • 정찬진;박재옥
    • Journal of the Korean Society of Clothing and Textiles
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    • v.22 no.8
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    • pp.1122-1131
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    • 1998
  • The purpose of this study was to examine the effects of brand-related and corporate-realted knowledge on brand-name extension and corporate-name extension, respectively in fashion market. Here, it is designed into three types of brand and corporate awareness; 1) Higher brand awareness and corporate awareness, 2) higher brand awareness and lower corporate awareness, and 3) lower brand awareness and higher corporate awareness. For this study, questionnaires were administered to 700 single women in twenties. The questionnaires were designed to measure evaluations of brand-name extension and corporate-name extension and brand-related and corporate-related knowledge in terms of familiarity, use experience, self-assessed knowledge, evaluation of attributes and attitude. Employing a sample of 621 women, data were analyzed by Multi-Regression analysis. Major findings of this study are summarized as follows; 1) In level of higher brand and corporate awareness, the evaluations of brand-name extension were influenced by corporate-related knowledge such as brand use experience, evaluation of brand attributes and brand attitude. Also, the evaluations of corporate-name extension were influenced by both brand-related knowledge such as brand attitude and corporate-related knowledge such as use experience of product awareness and lower corporate awareness, brand-related knowledge such as evaluation of brand attributes and brand attitude was identified as the important factor in the evaluations of brand-name extension. 3) In level of lower brand awareness and higher corporate awareness, corporate-related knowledge such as attitude toward corporate was identified as the important factor in the evaluations of corporate-name extension.

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The Role of Corporate Governance in the Corporate Social and Environmental Responsibility Disclosure

  • DIAMASTUTI, Erlina;MUAFI, Muafi;FITRI, Alfiana;FAIZATY, Nur Elisa
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.1
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    • pp.187-198
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    • 2021
  • The objective of this study is to examine the direct and indirect influences of government's role, organizational commitment, and media exposure on the corporate social and environmental responsibility disclosure (CSERD) of 42 Indonesian state-owned enterprises (SOEs) with good corporate governance as the mediator. This study uses a quantitative approach with path analysis to test the hypothesis. The sample in this study was directors of 42 state-owned enterprises in Indonesia. The data was collected using a questionnaire with items assessed on a five-point Likert scale. This study finds that 1) the government's role, organizational commitment, and media exposure have direct influences on good corporate governance and corporate social responsibility disclosure; 2) the government's role and organizational commitment have significant influences on corporate social and environmental responsibility disclosure with the mediation of good corporate governance, indicating that government's role and the organizational commitment are factors affecting Indonesian state-owned enterprises; and 3) the media exposure through good corporate governance mediation does not have a significant effect on corporate social and environmental responsibility disclosure. This means that media exposure is only one of the tools for CSERD, while SOEs have no obligation to disclose CSER through website or printed media.