• Journal of Korea Technology Innovation Society
• /
• v.16 no.1
• /
• pp.303-322
• /
• 2013

A relevance of supporting business of technology financing for technologically innovative SMEs is strongly required for its continuous expansion and development. This study analyzes empirically whether the selection of recipient firms from technology financing have been performed in accordance with its objectives and purposes. Results show that the probability of receiving technology financing is more likely to increase with higher technology rankings and higher operating income ratio. On the other hand, the probability of obtaining financing might be decreased gradually, as the size of capital and age of the firm are increasing. Results also show that technology rankings and firm's major characteristics are found to affect significantly on the decision-making of technology financing. Several useful comments are suggested to improve the relevance of the technology financing since the correct classification rate, which explains the appropriateness of the model, is not at high level. In addition, technology rankings are not uncorrelated with the amount of financing in regression analysis. These research results will contribute to ensure the appropriateness and credibility of the technology financing decision-making.

• Journal of Distribution Science
• /
• v.13 no.9
• /
• pp.37-45
• /
• 2015

Purpose - This paper's aim is to investigate whether or not gross profitability explains the cross-sectional variation of the stock returns in the Korean stock market. Gross profitability is an alternative profitability measure proposed by Novy-Marx in 2013 to predict cross-sectional variation of stock returns in the US. He shows that the gross profitability adds explanatory power to the Fama-French 3 factor model. Interestingly, gross profitability is negatively correlated with the book-to-market ratio. By confirming the gross profitability premium in the Korean stock market, we may provide some implications regarding the well-known value premium. In addition, our empirical results may provide opportunities for the fund distribution industry to promote brand new styles of funds. Research design, data, and methodology - For our empirical analysis, we collect monthly market prices of all the companies listed on the Korea Composite Stock Price Index (KOSPI) of the Korea Exchanges (KRX). Our sample period covers July1994 to December2014. The data from the company financial statementsare provided by the financial information company WISEfn. First, using Fama-Macbeth cross-sectional regression, we investigate the relation between gross profitability and stock return performance. For robustness in analyzing the performance of the gross profitability strategy, we consider value weighted portfolio returns as well as equally weighted portfolio returns. Next, using Fama-French 3 factor models, we examine whether or not the gross profitability strategy generates excess returns when firmsize and the book-to-market ratio are controlled. Finally, we analyze the effect of firm size and the book-to-market ratio on the gross profitability strategy. Results - First, through the Fama-MacBeth cross-sectional regression, we show that gross profitability has almost the same explanatory power as the book-to-market ratio in explaining the cross-sectional variation of the Korean stock market. Second, we find evidence that gross profitability is a statistically significant variable for explaining cross-sectional stock returns when the size and the value effect are controlled. Third, we show that gross profitability, which is positively correlated with stock returns and firm size, is negatively correlated with the book-to-market ratio. From the perspective of portfolio management, our results imply that since the gross profitability strategy is a distinctive growth strategy, value strategies can be improved by hedging with the gross profitability strategy. Conclusions - Our empirical results confirm the existence of a gross profitability premium in the Korean stock market. From the perspective of the fund distribution industry, the gross profitability portfolio is worthy of attention. Since the value strategy portfolio returns are negatively correlated with the gross profitability strategy portfolio returns, by mixing both portfolios, investors could be better off without additional risk. However, the profitable firms are dissimilar from the value firms (high book-to-market ratio firms); therefore, an alternative factor model including gross profitability may help us understand the economic implications of the well-known anomalies such as value premium, momentum, and low volatility. We reserve these topics for future research.

• ETRI Journal
• /
• v.25 no.4
• /
• pp.258-265
• /
• 2003

In our study, we extracted the market, finance, and government factors determining R&D investment of individual firms in the IT industry in Korea. We collected the financial data of 515 individual firms belonging to IT and non-IT industries between 1980 and 1999 from the Korea Investors Service's database and investigated the empirical relationship between the factors using an ordinary regression model, a fixed effects model, and a random effects model. The main findings of our study are as follows: i) The Herfindahl Index variable representing the degree of market concentration is statistically insignificant in explaining R&D expenditures in the IT manufacturing industry. ii) Assets, which is used as a proxy variable for firm size, have a positive and statistically significant coefficient. These two results suggest that the Schumpeterian Hypothesis may be only partially applied to the IT manufacturing industry in Korea. iii) The dividend variable has a negative value and is statistically significant, indicating that a tendency of high dividends can restrict the internal cash flow for R&D investment. iv) The sales variable representing growth potential shows a positive coefficient. v) The subsidy as a proxy variable for governmental R&D promotion policies is positively correlated with R&D expenditure. This suggests that government policy has played a significant role in promoting R&D activities of IT firms in Korea since 1980. vi) Using a dummy variable, we verified that firms reduced their R&D investments to secure sufficient liquidity under the restructuring pressure during Korea's 1998 and 1999 economic crisis.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.11
• /
• pp.133-143
• /
• 2021

This study investigates the relationship between social capital and enterprise performance with knowledge sharing as the mediator. By employing the data of 677 respondents collected from delivering questionnaires to small and medium-size firms in Vietnam in 2020, this study suggests a two-step approach that combines exploration factor analysis (EFA), confirmatory factor analysis (CFA), and path analysis (SEM). The empirical findings significantly support our proposed model by demonstrating that knowledge sharing mediates the connection between all three elements of social capital and enterprise performance. At the same time, the results emphasize the importance of knowledge sharing as a major benefit of social capital and a substantial driving element of both operational and financial performance. The results show that all three social capital qualities (structural, relational, and cognitive) significantly impact both tacit and explicit knowledge sharing, while knowledge is one of the main routes connecting social capital to enterprise performance. Hence, our research model may be used in future studies to evaluate social capital, knowledge sharing, and firm performance as a new theoretical model. Our results offer a plausible explanation for how social capital improves knowledge sharing and enterprise performance.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.23 no.7
• /
• pp.1052-1063
• /
• 1999

The purpose of this study was to investigate the current development of Quick Response (QR) system and to identify factors related to QR adoption. A random sample of 250 apparel manufactures were selected from the Korean apparel manufacturers' list Response rate was 41% (m=102) A mail questionnaire was used to investigate the purpose of the study. ANOVAs and Duncan's multiple range tests were used. The results are as follows: 1. The most frequently used technologies were small lot orders and CAD and the least used technology is the electronic order system, 2. Firm size product characteristics(product category fashion change) and CEO's age were significantly related to the usage level of QR technologies.

• Knowledge Management Research
• /
• v.15 no.2
• /
• pp.147-164
• /
• 2014

This paper investigated the efficiency of automobile firms by using several non-parametric approaches. First, using Data Envelopment Analysis (DEA), the paper has investigated the critical factors that determine the relative efficiency of management performance in automobile companies. Second, we examined how the firm size impact on the difference of this efficiency by using Kruskl-Wallis Test. Third, by using Mann-whitney test, we also investigated the difference of the efficiency accoss existence of technological innovation activity. Finally, the paper explored the relationship between technological innovation and management efficiency by using logistic regression model. The findings of this study provided practical information for inefficient automobile firms to find benchmarking firms and strategic position to improve their efficiency. The result also provided theoretical and methodological implications for those who explore factors affecting management efficiencies. Future research directions with the limitation of the study are discussed.

• Asia pacific journal of information systems
• /
• v.14 no.1
• /
• pp.23-41
• /
• 2004

This paper proposes an empirical evidence about contextual factors which determine perceived business performances of small firms resulted from IT investment. In this paper, small firms are defined as firms of which total employees are below fifty. These small firms account for 95% of total number of private companies in Korea. We used a perceived IT performance model based on Balanced Scorecard framework to evaluate IT performance of small firms. And data were collected by Web and e-mail survey method with multiple screening. Statistical results show that business performance of small firms are differentiated in terms of firm size, location, longevity, age of owner, education level of owner, while industry sector, profitability, sex of owner don't make significant differences.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.3
• /
• pp.53-62
• /
• 2020

The study aims to provide some plausible explanation for why Vietnamese listed companies only stop at the level of truthful presentation of information related to accounting data through the opinion of independent auditors. The information is only at the level of compliance with the requirements of Circular 155/2015/TT-BTC in form, but in essence is sketchy. What factors affect the level of voluntary disclosure of listed companies in Vietnam? In order to identify the factors affecting voluntary information disclosure on annual reports of listed companies, the study collected data on annual reports of 122 companies listed on the stock market in Ho Chi Minh City in the period 2015-2018 and uses regression analysis methods. The research presents 8 factors affecting the level of voluntary information disclosure including: Firm size, Listed time, Profitability, Solvency, Separation of board of directors and executive director, Board size, Organizational ownership and Foreign ownership. Next, the study conducted descriptive statistical analysis correlation coefficient analysis to examine the correlation and relevance of independent variables measured by the scale ratio, testing multiple linear regression model. The results of the study show that factors listed time, profitability and organizational ownership affecting voluntary information disclosure on annual reports of listed companies in Vietnam.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.11
• /
• pp.177-184
• /
• 2020

This paper analyzes factors affecting corporate investment decisions in economic groups listed on the Vietnam stock market. The panel data of the research sample includes 39 economic groups listed on the Vietnam stock market from 2009 to 2019. The Generalized Least Square (GLS) is employed to address econometric issues and to improve the accuracy of the regression coefficients. In this research, the investment rate is a dependent variable. Cash-flow (CF), Investment opportunities (ROA), Fixed capital intensity (FCI), Leverage (LEV), Sales growth (GR), Size (SZ), Business risk (RISK) are independent variables in the study. The model results show that cash flow and sales growth have the same impact on investment decisions of economic groups in Vietnam. In addition, investment opportunities have a negative impact on the capital investment decisions of economic groups. The remaining factors include fixed capital intensity, leverage, firm size, and business risks that have a weak and insignificant impact on capital investment decisions of economic groups in Vietnam. The findings of this article are useful for business administrators, and helping business managers make the right financial decisions. Besides, the research results are also meaningful to money management agencies. The authors recommend that the State Bank of Vietnam should maintain a sustainable monetary policy.

• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.4
• /
• pp.73-81
• /
• 2022

The focus of the research is to determine the amount of financial information disclosure and the factors that influence it for non-financial enterprises listed on Vietnam's stock exchange. To evaluate the level of financial information disclosure, the study uses a set of disclosure indexes from the world's leading credit rating agency, Standard and Poor's (S&P). It makes some revisions in compliance with regulations for information disclosure on the Vietnam stock market. The study collects data in the form of annual reports for the year 2017-2020 from 350 non-financial firms listed on Vietnam's stock exchange and then uses a multivariate regression model to assess the effects of factors on the amount of financial information disclosure. The findings show that the size of the firm, the size of the board of directors, and foreign ownership all have a positive impact on financial transparency; however, the number of years the company has a negative impact. According to the findings of this study, companies with more total assets, a larger board of directors, and a higher rate of foreign ownership publish more financial information. Still, long-term listed companies on the stock exchange tend to disclose less.