• International Journal of Quality Innovation
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• v.7 no.3
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• pp.1-14
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• 2006

Economic value added (EVA) is introduced on two levels: as index for evaluation of corporation and as index for evaluation of business unit. In the latter case, application of one and the same cost of capital to all business units of a business corporation may be possible, but it is a fundamental policy for EVA to apply different cost of capital to business units with different risks. Estimate of cost of capital of business units is a problem to be resolved. The author, focusing on the question of the estimate of cost of capital of business units, has conducted a demonstrative study on risk structure of cost of capital estimates by using financial indices of Japanese manufacturers (37 automotive industries, 141 electrical and electronic machinery industries, 63 food processing industries, 98 chemical industries, 125 general machinery industries) for a period of 5 years from 1995 to 1999. The author presumes that $\beta$ is explained by a regression formula ${\beta}=B_0+{\Sigma}B_iY_i+{\alpha}$ ($Y_i$: financial indices) and selects 40 explanatory variables from financial statements as risk components. Using their financial indices, the author concludes through a series of statistical analyses that there is a good likelihood of estimating cost of capital for Japanese industries and is convinced that it will lead to more reliable and practical results by assigning averages and variances to 40 primary financial indices for a period of 3 to 5 years selected in this demonstrative study.

• Journal of the Korean Operations Research and Management Science Society
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• v.40 no.1
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• pp.57-73
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• 2015

While many previous studies investigated the effect of operations performance on financial performance, most studies considered only a few performance indicators and ignored the characteristics of industries. Therefore, this study intends to analyze the effect of operations performance on financial performance, by selecting a rather comprehensive operations performance indicators from firms' financial data. In doing so, we used operating efficiency and supply chain performance indicators for operations performance and a firm's profitability and future value indicators for financial performance. For the analysis, we collected 544 firms' operations and financial performance data belonging to eight key industries from the 'Forbes Global 2000'. We first analysed the differences in operations and financial performance among high, medium and low supply chain performance groups based on the quantitative criteria of Gartner's 'Supply Chain Top 25' ranking procedure. Then we analysed the effect of operations performance indicators on financial performance for both entire industry and individual industries, using multiple regression. Based on the results, we provided practical insights into key operations performance indicators to focus on and manage in order to improve financial performance.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.27 no.2
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• pp.26-36
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• 2019

Although the investment size of R&D in Aviation and Aerospace Industries is increasing, R&D performance has not been quite good considering resources invested in it. This study is to find which R&D critical factors affect R&D Performance in aviation and aerospace industries. According to the result of research, a technology provider factor, an organization factor, a system factor and a market environment factor influence positively on financial performance, and a policy factor influences negatively on financial performance. Otherwise, a technology provider factor and an organization factor influence positively on non financial performance, and technology factor influences negatively on non financial performance. Thus, personnel involved in R&D of Aviation and Aerospace Industries should develop policy and system taking positive and negative factors to improve R&D performance. It could lead to take the better performance from R&D in Aviation and Aerospace Industires.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.33 no.3
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• pp.79-86
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• 2010

Causing by economic stagnation and financial management difficulty of the domestic small and medium business company, the actual condition which enlarges the plan of politic funds increased from the government. The government authority as the SBC (small and medium business promotion corporation) evaluates the domestic small and medium business company, and directly executes a governmental politic funds. Financial analysis is a important factor of enterprise evaluation among various valuation bases. However because of applying to the whole domestic manufacturing industry on financial evaluation, Current financial evaluation index effectively cannot reflect the feature of a regional industry. A whole manufacturing industry index considers a standard for the comparison evaluation of domestic manufacturing industry and compares with the other industries and the world-wide nation industry change, But, there is a difference from indexes of corresponding industry in specific regions. This paper proposes a model of evaluation index for the efficient execution of politic funds. We considers three manufacturing industries for proposed model which are shipbuilding, machine tool and airline industries in Gyeongsangnam-do region.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.209-221
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• 2023

A significant body of prior research on performance management systems (PMSs) either explains the components and the design of the systems or investigates the link between particular system/s and organizational functions, capabilities, or performance. In contrast, this study investigates the comprehensive use of PMSs and relates them to corporate financial and non-financial performance. Further, this study examines whether the association between PMSs and performance varies between industries or is moderated by the size of the company. Data was collected using a questionnaire that was sent to companies from different industries operating in Riyadh province, where the most important businesses in Saudi Arabia are located. A total of 152 usable responses were received. The results of this study revealed that companies use a variety of PMSs at a balanced level. The extent of each category of PMS use is associated with the extent of other PMS categories' use. However, the larger the company, the more PMSs it uses. Importantly, the results showed a positive and significant association between PMSs' extent of use and both financial and non-financial performance. This association was minimally moderated by the company size and industry for specific categories of PMSs and performance.

• KDI Journal of Economic Policy
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• v.41 no.1
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• pp.1-14
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• 2019

This paper studies whether export diversification mitigated the negative effect of the global financial crisis on exports using the Korean case. Specifically, we use annual data on the exports of 24 Korean manufacturing industries from 2000 to 2016 and examine whether the negative effect of the crisis on exports was less prevalent in industries that were more diversified in terms of country and product. We also examine whether export competitiveness, as measured by the revealed comparative advantage index by industry, had a mitigating effect on trade during the crisis. In order to study these issues, we use panel regression with a fixed-effect model for 24 Korean manufacturing industries. From our empirical analysis, we find that country diversification weakened the negative impact of the global financial crisis on Korea's exports, whereas neither product diversification nor export competitiveness did so.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.11
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• pp.151-156
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• 2019

This study aims to develop a distress prediction model and to evaluate distress prediction power for the food services industry by using 2017 food service industry financial ratios. Samples were collected from 46 food service industries, and we extracted 14 financial ratios from them. The results show that, first, there are eight ratios (financial ratio, current ratio, operating income to sales, net income to assets, ratio of cash flows, income to stockholders' equity, rate of operating income, and total asset turnover) that can discriminate failures in food service industries and the top-level food service industries. Second, by using these eight financial ratios, the logit function classifies the top-level food service industries, and failures in the food service industry can be estimated by using logit analysis. The verification results as to accuracy in the estimated logit analysis indicate that the model's distress-prediction power is 89.1%.

• Journal of Information Technology Applications and Management
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• v.20 no.4
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• pp.127-149
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• 2013

Competitiveness of service industry in Korea is relatively lower than OECD countries'. Korean government, therefore, has been trying to improve the competitiveness of service industry by accelerating information technology (IT) adoption. Even though most of factors of IT can be contributed to improve the financial performance, it may be affected differently among various industry types and life cycles of companies. Therefore, it is one of very important research issues to analyze the influential effect of IT considering industry types and organizational life cycles in service industries. The purpose of this study is to find out critical success factors of IT which influence financial performance considering different types and life cycles of service industries. We developed the model and identified key success factors of IT adoption as IT system quality, Information quality, IT maintenance, CEO support, IT education of organization, and IT competence of user. Additional analysis of moderating effect by organizational life-cycle and types of service industry are conducted. For data sampling 856 companies are participated and total 2,000 questionnaires are collected. Structural equation modeling method is conducted for statistical analysis. The results show that the model is valid and most of success factors of it are very useful for improving financial performance of service industries except organizational IT education. Moderating effect of industry types and organizational life cycles is valid but partially accepted. The results might be able to provide useful directions and guide lines of IT acceleration in service industries.

• Journal of the Economic Geographical Society of Korea
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• v.3 no.1
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• pp.5-20
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• 2000

Recently as globalization of financial capital is progressed, possibility of crisis and unreliability of world economy is more growing. Korean economy required radical restructuring because of the financial crisis and the economic changes occurred in that process. This study is to explain the economic changes of Gwanagju city is produced by the financial crisis of Korean economy The most important industries are service and transportation equipment in Gwangju city. These industries began to decrease after financial crisis but machinery equipment, electrical machinery & electronics and rubber goods & plastic industry is growing relatively. Because of the decrease of service, the economy of inner city which service industry relatively agglomerated in is reducing. And agglomeration space for the optical photonics industry was built up by the upbringing policy of government on high-technology industry to overcome the economic crisis and micro industrial space such as venture building and establishment nursery center was built up. But high-technology industries have many geographical limits to embed in Gwanagju city, so there needs to construct regional innovation system for knowledge based economies

• Journal of Distribution Science
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• v.18 no.9
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• pp.5-11
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• 2020

Purpose: We sought to investigate the operation status of internal accounting control systems in the distribution and service industries and verify whether investing in internal accounting personnel significantly influences the quality of the companies' financial reporting. Research design, data and methodology: We identified descriptive statistics and performed a univariate analysis. Furthermore, a regression analysis verified the impact of investing in internal accounting personnel on the absolute value of discretionary accruals, a proxy for financial reporting quality. Results: Distribution and service companies allocated a significantly higher number of accountants to their internal accounting control systems than companies in other industries. We also confirmed that the absolute value of discretionary accruals significantly decreased as the average working experience of internal accounting personnel in distribution and service companies, in months, increased. Conclusions: In this study, we confirmed that distribution and service companies are devoting efforts to establishing internal accounting control systems and found that financial reporting quality is more effectively controlled as companies allocate more experienced personnel in their internal accounting control system.