• Journal of Distribution Science
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• v.17 no.3
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• pp.69-83
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• 2019

Purpose - This paper investigates the long term impact of RFID investment on firm value in Korea. We wand to find out why the long term performance of some firm's RFID investment is better than others. To understand the dynamics of the long term returns from RFID investment announcements, we divide our events into groups for each of the independent firm characteristic variable such as investment time period, kind of markets, industries, solvency and growth potential. We composed portfolios based on the RFID investment announcement date for each group and evaluate the monthly abnormal excess returns. Research design, data, and methodology - Based on these calendar-time portfolios, we measure the long term returns from 86 RFID investment announcements of 46 firms from 2003 to 2017. We construct the calendar-time portfolio for 3, 6, 9, 12 months of holding periods. Using the weighted least squares method, we regress the raw monthly returns of the portfolios on the Fama-French model and Carhart(1997) model. As a result, we can get the estimated risk adjusted mean monthly abnormal excess return α_P for each of the calendar-time portfolio. Results - We found that early adopters, large firms, non-manufacturing firms have very significant excess returns. We also found modestly significant excess returns for financially stable firms and slow growing firms. Put together, top managers of the firms which plan to invest RFID should understand the strategic role of RFID adoption and the generalized business process of distribution information technology investment in Korea. Moreover, the findings of this paper provide useful trading strategies to the managers of large funds who are considering on investing in RFID adopting firms. Conclusions - Put together, the results of this paper give us a new insight into how the RFID and IT technology in general and other characteristic factors' interactions affect the long term performance of firms. Using the unbiased estimates of long term returns of the calendar-time portfolios, this paper extends the understandings on short term impact of RFID adoption of existing studies. This paper also extends the current understandings of firm characteristics that affect the long term performance of RFID adopting firms.

• Korean Management Science Review
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• v.31 no.1
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• pp.1-15
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• 2014

As the scarcity of natural resources has become apparent, the recycling industry has emerged as a promising one for its growth potential. Yet, the recycling industry still remains undeveloped and inefficient for various reasons. In this study, we focus on firms' recycling processes to understand the current status of recycling firms' value creation activities. With respect to the adopted recycling processes, we empirically investigate the differences in firm characteristics and firm performance. We use the data from Keco (Korea Environment Cooperation) which annually conducts a survey of recycling firms in Korea. We exclusively consider the whole group of plastic recycling industry in order to control for a possible bias in firm performance, stemming from the heterogeneity in processing and recycling of materials other than plastics. We review the descriptive statistics from the sample firms and conduct a series of hierarchical regression analyses. The results show that most of the firms in this industry adopt physical transformation processes with a low-level technology. These firms with physical transformation processes are smaller in size and produce entry level items which do not secure higher margins. The results indicate that the recycling industry largely comprises low value added firms which lack economies of scale and resources for R&D. For the stable growth of the industry, recycling firms must create sustainable values through implementation of technology-driven processes and improvement in product quality. In addition, the government should help build a reliable reverse logistic network, lower the entry barriers, and provide necessary funding for the SMEs in the recycling industry.

• Journal of Technology Innovation
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• v.29 no.4
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• pp.59-93
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• 2021

This article discusses the innovation activities of firms that aim for system transformation from the perspective of 'Transformative Innovation Policies'. Here, for the sustainable transformation of our society, a firm that finds the 'purpose' of business activities in solving social problems and implements a new business model is defined as a 'transition-oriented firm'. The main characteristics of a transition-oriented firm are examined in terms of 1) transition vision and mission setting, 2) business model innovation for transition, 3) network formation for system transition, and 4) securing legitimacy of transition. And through case studies, the approach, significance, and limitations of the transition-oriented corporate innovation theory are discussed. The case study is from a Eisai Korea, which aims for an integrated prevention, treatment, and care system centered on residents and citizens.

• Journal of Technology Innovation
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• v.26 no.4
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• pp.98-121
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• 2018

This article analyzes the survival of Korean software firms from 1995 to 2015 by Cox regression model and product-limit method. The results show that survival rates are different for each sector: IT service, package software, game software and internet service. In addition, firm growth and investment in research and development positively affect software firm's survival, while slack resources negatively affect the software firm's survival. The implication of this study is that characteristics of the software industry and technologies should be taken into consideration in survival strategy of software firms and government policy. Previous research on survival analysis has been mainly conducted in the manufacturing industry or at the special circumstance such as the foreign exchange crisis of Korea in the late 1990s. The contribution of this study is that expanding the survival analysis to software firms in Korea which are becoming more important recently.

• The Journal of Industrial Distribution & Business
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• v.12 no.3
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• pp.43-49
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• 2021

Purpose: This study attempted to examine the risk of stock price plunge according to the firm's management strategy. Prospector firms value innovation and have high uncertainties due to rapid growth. There is a possibility of lowering the quality of financial reporting in order to meet market expectations while withstanding the uncertainty of the results. In addition, managers of prospector firms enter into compensation contracts based on stock prices, thus creating an incentive to withhold negative information disclosure to the market. Prospector firms' information opacity and delays in disclosure of negative information are likely to cause a sharp decline in share prices in the future. Research design, data and methodology: This study performed logistic analysis of KOSPI listed firms from 2014 to 2017. The independent variable is the strategic index, and is calculated by considering the six characteristics (R&D investment, efficiency, growth potential, marketing, organizational stability, capital intensity) of the firm. The higher the total score, the more it is a firm that takes a prospector strategy, and the lower the total score, the more it is a firm that pursues a defender strategy. In the case of the dependent variable, a value of 1 was assigned when there was a week that experienced a sharp decline in stock prices, and 0 when it was not. Results: It was found that the more firms adopting the prospector strategy, the higher the risk of a sharp decline in the stock price. This is interpreted as the reason that firms pursuing a prospector strategy do not disclose negative information by being conscious of market investors while carrying out venture projects. In other words, compensation contracts based on uncertainty in the outcome of prospector firms and stock prices increase the opacity of information and are likely to cause a sharp decline in share prices. Conclusions: This study's analysis of the impact of management strategy on the stock price plunge suggests that investors need to consider the strategy that firms take in allocating resources. Firms need to be cautious in examining the impact of a particular strategy on the capital markets and implementing that strategy.

• International Area Studies Review
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• v.13 no.1
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• pp.123-143
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• 2009

This paper investigates the determinants of total factor productivity(TFP) growth in Korean logistics industry such as market share, ownership structure, age of firm, firm size and debt ratio. Using financial data on individual firms in Korean logistics industry, we first estimate firm-level TFP growth rate and then, regress the estimated TFP growth rate on individual firms market power and structural characteristics. Our empirical results show that logistics firms market share is negatively correlated with their TFP growth rate. Also, we find that older or larger firms are more likely to have higher TFP growth rate.

• The Journal of Fisheries Business Administration
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• v.28 no.2
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• pp.1-18
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• 1997

The purpose of this study is to investigate empirically the characteristics of financial structure by using 76 fisheries corporations in Korea, and to suggest implications of the empirical results for government's financial policy for fisheries corporations. For the empirical test, we choose the following factors as the explanatory variables of cross-sectional regression analysis:firm-size(SIZE), collateral value of assets(TFATA), business risk(BRISK), growth(GROWTH), effective tax(ET), profitability(PROFIT). Two different debt ratios are used as dependent variables. One is defined as the ratio of total debt to total assets and the other is as that of long-term debt to total asset in terms of book value. The sample consists of 76 fisheries firms and sample period is 14 years from 1982 till 1995. From the results of cross-sectional regression analysis, the adjusted R$^2$values were high, 16∼79% and the overall F values indicated to be statistically significant. The results of cross sectional regression analysis show that the characteristics of financial structure fur fisheries corporations are as follows ; (1) Firm-size and collateral value of assets are the major factors of financial structure for fisheries corporations. That is, the larger firm-size the higher is debt ratio. This means that financial institutions conventionally lend more collateral loans with fixed assets like land, building rather than management capacities or credits. (2) To be consistent with a pecking-order theory, the higher is profitability the lower is debt ratio in fisheries corporations. (3) Corporations with high effective tax rate have lower financial leverage. Although the empirical results are inconsistent with traditional static trade-off theory, we think it would be attributed to government's various tax shelterings for fisheries which are likely to reduce tax shield effect of interests.

• Journal of Technology Innovation
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• v.24 no.2
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• pp.143-175
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• 2016

In this study, we have analyzed the impact of firm, innovation and industry characteristics on firm's appropriation strategy focusing of the relative preference of patents and trade secrets by using the Korea Corporate Innovation Survey 2005, 2010 and 2014 data. According to the analysis results, companies with characteristics such as venture, high-technology industry, receipt of public R&D subsidies, performing product innovation, high R&D expenditure, prefer patents to trade secrets relatively. However, firm size and R&D cooperation did not have a statistically significant effect on the relative preference. This shows that policy on appropriation system considering the industry characteristics may be more effective. Companies in the industries with a high market concentration showed that trade secrets are preferred, especially these characteristic was distinctly in small and venture companies. This means that the increase in strategic patent applications of the incumbent firms is able to restrict the patent activities in small and venture companies. Because the excessive increase in strategic patents is likely to constrain the innovation activities of small and venture firms ultimately, policy initiatives to limit the abuse of strategic patent applications is required.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.2 no.4
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• pp.1-17
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• 2007

There are many different types of risk capital competing for deals in the korean entrepreneurial capital market. In the past, even though korean private venture capitalists did not have their distinctive competitive advantages, due to government support and subsidies, they could be survived in the market. However, the government controlled area has changed to a market driven area which emphasizes market forces and competition rather than support and protection. In order to be competitive, Korean private venture capital firms need to recruit high calibre professionals and build required financial skills for wise entrepreneurial investments. The purpose of this article is to analyze the relationships among firm characteristics, human resources, and investment strategies of korean venture capital firms. We can find that the asset size of venture capital firms has a positive effect on the size of their human resources. However, we can not find any relationship between firm characteristics and investment strategies of venture capitals. Even though we find some evidences among some variables, we need to interpret the results very carefully. Further research would be needed to carried out to clarify the disputable interpretations and our understanding of this area.

• Journal of Korea Society of Industrial Information Systems
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• v.24 no.3
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• pp.1-21
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• 2019

The objective of this study is three-fold: to investigate the relationship between information technology (IT) investment and inventory turnover, using 98 U.S. firms spanning eleven years (from 1999 to 2009); to analyze the correlation of inventory turnover with firm and industry characteristics, where vertical integration and growth options are chosen to reflect the features of the firm's internal characteristics, and industry dynamism and industry concentration are selected to represent the industry's competitive environment; and to examine time trends in inventory turnover. The significant findings include the following: (i) both IT investment and growth options have a positive impact on inventory turnover; (ii), but vertical integration and industry concentration have a negative impact on inventory turnover; (iii) the impact of industry dynamism on inventory turnover positive; and (iv) the time trends in inventory turnover and 'adjusted inventory turnover' have been increased during the sample period from 1999 to 2009.