• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.6
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• pp.110-118
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• 2017

This study investigated empirically one of the controversial subjects in modern finance, in that there is an optimal level of capital structure for KOSPI-listed firms in the Korean capital market. Given the major theories on the capital structure, such as Myers' pecking order, trade-off, and agency cost ones, this study applied an analysis of covariance models in parametric and non-parametric statistical methods. In particular, two covariates to control for the possible effects of trade-off and agency cost, were employed separately in each corresponding model, while the other proxy for pecking order rationale was adopted in previous research [1] to conduct inter- and intra-industry analyses. Based on the outcomes obtained from the study, it was demonstrated empirically that there are optimal capital structures for firms in the sample industries at the inter-industry level, whereas statistical differences indicating non-existence of an optimal point, were revealed within the industry. Accordingly, these findings suggest a new vision to potential investors that firms in the domestic market may have financial opportunities to increase their value by gradually adjusting the leverage ratios in terms of the intra-industry perspective.

• Journal of the Korea Convergence Society
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• v.12 no.6
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• pp.9-16
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• 2021

In the past, there have been various studies on predicting the stock market by machine learning techniques using stock price data and financial big data. As stock index ETFs that can be traded through HTS and MTS are created, research on predicting stock indices has recently attracted attention. In this paper, machine learning models for KOSPI's up and down predictions are implemented separately. These models are optimized through a grid search of their control parameters. In addition, a hybrid machine learning model that combines individual models is proposed to improve the precision and increase the ETF trading return. The performance of the predictiion models is evaluated by the accuracy and the precision that determines the ETF trading return. The accuracy and precision of the hybrid up prediction model are 72.1 % and 63.8 %, and those of the down prediction model are 79.8% and 64.3%. The precision of the hybrid down prediction model is improved by at least 14.3 % and at most 20.5 %. The hybrid up and down prediction models show an ETF trading return of 10.49%, and 25.91%, respectively. Trading inverse×2 and leverage ETF can increase the return by 1.5 to 2 times. Further research on a down prediction machine learning model is expected to increase the rate of return.

• Korean Association of Arts Management
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• no.53
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• pp.153-177
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• 2020

Arts organizations commonly face a range of operational challenges, from a lack of skilled workers to limited financial resources and thus are dependent on subsidies from the government. Yet, to fully realize their mission arts organizations must both develop strategies to effectively utilize government support and seek a way forward that does not depend on public subsidies. Business diversification, a strategy from corporate management, entails the expansion of products and services, and entry into new industries, enabling companies to disperse risks and increase profits. We propose that business diversification can be effectively applied to arts organization to address the myriad operational difficulties they face. To understand how an arts organization might deploy business diversification we conducted a case study of an organization that is actively pursuing the strategy: Sanwoollim Theater. We interviewed staff members of Sanwoollim including the executive director, as well as selected audiences, to understand how the business diversification model was being applied at Sanwoollim. Our findings indicate that, in a complex arts and cultural space, business diversification is a fresh and flexible new strategy that can enable private cultural arts organizations to thrive sustainably. It is also evident that government support in the initial stages of the process encourages diversification and that successful private arts organizations will leverage government subsidies into a sustainable business plan.

• Strategy21
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• s.32
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• pp.123-159
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• 2013

The purpose of this research paper is to re-valuate the factors that affected the Royal Navy's rearmament and preparation for war by conducting analysis on the discussion held in the Britain on the strategic priorities and Navy's coping measures adopted during the interwar period. After the end of the WWI, each of the military arms of the Britain faced significant difficulty in securing budget and increasing their military power all throughout the interwar period, and the Navy was not an exception. The WWII that got started on September 1939 was the turning point in which this difficulty led to full-fledged crisis. Immensely many criticisms followed after the war and problems were identified when it comes to the Royal Navy's performance during the war. This type of effort to identify problem led to the attempt to analyze whether Royal Navy's preparation for war and rearmament policy during interwar period were adequate, and to identify the root causes of failure. Existing studies sought to find the root cause of failed rearmament from external factors such as the deterioration of the Britain itself or pressure from the Treasury Department to cut the budget for national defense, or sought to detect problems from the development of wrong strategies by the Navy. However, Royal Navy's failed preparation for the war during interwar period is not the result of one or two separate factors. Instead, it resulted due to the diverse factors and situations that the Britain was facing at the time, and due to intricate and complex interaction of these factors. Meanwhile, this research paper focused on the context characterized by 'strategic selection and setting up of priorities' among the various factors to conduct analysis on the Navy's rearmament by linking it with the discussion held at the time on setting up strategic priorities, and sought to demonstrate that the Navy Department's inadequate counter-measures developed during this process waned Royal Navy's position. After the end of WWI, each of the military arms continued to compete for the limited resources and budget all throughout the interwar period, and this type of competition amidst the situation in which the economic situation of Britain was still unstable, made prioritization when it comes to the allocation of resources and setting up of the priorities when it comes to the military power build-up, inevitable. Amidst this situation, the RAF was able to secure resources first and foremost, encouraged by the conviction of some politicians who were affected by the 'theory of aerial threat' and who believed that curtailing potential attack with the Air Force would be means to secure national security at comparatively lower cost. In response, Navy successfully defended the need for the existence of Navy despite the advancement of the aerial power, by emphasizing that the Britain's livelihood depends on trade and on the maintenance of maritime traffic. Despite this counter-measuring logic, however, Navy's role was still limited to the defense of overseas territory and to the fleet run-off instead of sea traffic route production when it comes to the specific power build-up plan, and did not understand the situation in which financial and economic factors gained greater importance when it comes to the setting up of strategic priorities. As a result, Navy's plan to build its powers was met with continual resistance of the Treasury Department, and lost the opportunity to re-gain the status of 'senior service' that it had enjoyed in the past during the competition for strategic prioritization. Given that the strategic and economic situation that Korea faces today is not very different from that of the Britain during the interwar period, our Navy too should leverage the lessons learned from the Royal Navy to make the effort to secure viable position when it comes to the setting of priorities in case of national defense strategy by presenting the basis on why maritime coping should be prioritized among the numerous other threats, and by developing the measures for securing the powers needed effectively amidst the limited resources.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.8 no.4
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• pp.95-109
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• 2013

The practices and processes of HRM (Human Resource Management) for university faculty in Korea depend heavily on assessment of research and teaching rather than the UIC (University-Industry Cooperation) performance. In this regard, HRM of Korean universities is said to be far distant from UIC. Although policy initiatives by the Korean government, notably the MoE (Ministry of Education) have implemented in most universities, the desirable level of UIC could not be achieved yet. Moreover, the very notion of 'university' in Korea is much more to do with 'pure' education and research institution than with 'applied' and 'vocational' purpose. Considering upon HRM practices and organizational culture, for enhancing UIC in Korea, the government's policy should be linked to alter deep-rooted university culture. So the aims of the research are to describe the current state of HRM in Korean and foreign universities; to find out the critical factors of UIC in Korean universities; to analyze the gaps between university research and industrial commercialization based on a conceptual framework, the 'valley of the death'; and to recommend HRM policies fostering UIC for the MoE. For achieving these objectives, we deploy multiple methodologies, namely, in-depth interview, literature survey, and statistical data analysis with regard to UIC. Analyzing the data we have collected, the present research sheds light on all aspects of HRM processes and UICs. And the main policy implication is restricted to the Korean universities, even if we have collected and analyzed foreign universities, notably universities in the USA. The research findings are mainly two folds. Firstly, the HRM practices among Korean universities are very similar due to the legally institutionalized framework and the government's regulations. Secondly, the difficulties of UIC can be explained by notion of the 'valley of death' ways in which both parties of university and industry are looking for different purposes and directions. In order to overcome the gap in the valley of death, the HRM policy is better to be considered as leverage. Finally, the policy recommendations are as follows. Firstly, various kinds of UIC programs are able to enhance the performances of not only UIC, but also education and research outcome. Secondly, fostering organizational climate and culture for UIC, employing various UIC programs, and hiring industry-experienced faculty are all very important for enhancing the high performance of university. We recommend the HRM policies fostering UIC by means of indirect way rather than funding directly for university. The HRM policy of indirect support is more likely to have long-term effectiveness while the government's direct intervention to UIC will have likely short-term effectiveness as the previous policy initiatives have shown. The MEST's policy means of indirect support might vary from financial incentives to the universities practicing HRM for UIC voluntarily, to information disclosure for UIC. The benefits of the present research can be found in suggesting HRM policy for UIC, highlighting the significance of industry-experienced faculty for UIC, and providing statistical analysis and evidences of UIC in Korean universities.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.11
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• pp.66-79
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• 2016

A discussion has recently emerged over the increase of approvals of K-REITs, which is concluded on the basis of how to raise funds for business activity, fulfill the expected rate of return and maximize the management of managing investment funds. In addition, corporations need to acknowledge the necessity of the capital structure reflected in the current economic environment and decision-making processes. This research analyzed the characteristics by investment types and influence factors about the debt ratio of K-REITs. The data were collected from general management about business state, investment, and finance from 2002 to 2015 in K-REITs (except for the GFC period of 2007~2009). The results of the research demonstrated the high ratios of the largest shareholder characteristics, which are corporation, pension funds, mutual funds, banks, securities, insurance, and, recently, the increasing ratio of the largest shareholder and major stockholder. The investment of K-REITs is increasing the role of institutional investors that take a leading development of K-REITs. The behaviors of simultaneous investment of institutional investors were analyzed to show that they received higher interest rates than other financial institutions and ran in parallel with attraction and compensation. The results of the multiple regressions analysis, utilizing variables about debt ratio were as follows. The debt ratio showed a negative (-) relation that profitability is increasing, which matches the pecking order theory and trade off theory. On the other hand, investment opportunities (growth potential) showed a negative (-) relation and assets scale that indicated a positive (+) relation. The research results are reflected as follows. K-REITs focused on private equity REITs more than public offering REITs, and in the case of financing the capital of others, loan capital is operated under the guarantee of tangible assets (most of real estate) more than financing of the stock market. Further, after the GFC, the capital of others was actively utilized in K-REITs business, and the debt ratio showed that the determinant factors by the ratio and characteristics of the largest shareholder and investment products.