• Management & Information Systems Review
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• v.35 no.1
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• pp.173-188
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• 2016

The introduction and operation of compensation committee can affect managers' incentive-compensation system. In this context, The purpose of this paper examines whether managers' pay-performance sensitivity is affected by the quality of the compensation committee(compensation committee size, the proportion of outside directors on the compensation committee, the proportion of directors with 2 or more non additional board seats on the compensation committee) To test this hypothesis, we use a sample of 260 firm-year observations between 2001-2013. The results are as follows. Firstly, we find that no significant relevance between the compensation committee size and pay-performance sensitivity. But the proportion of outside directors on the compensation committee and the proportion of directors with 2 or more non additional board seats on the compensation committee is positively associated with both pay-earnings based performance sensitivity and pay-stock based performance sensitivity. Secondly, we find that the integration quality of the compensation committee is positively associated with both pay-earnings based performance sensitivity and pay-stock based performance sensitivity. Overall, our analysis suggests that compensation committee are important mechanism in the design of efficient incentive-compensation system.

• KIPS Transactions on Computer and Communication Systems
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• v.12 no.9
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• pp.263-272
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• 2023

Industrial Internet of Things (IIoT) is an important factor in increasing production efficiency in industrial sectors, along with data collection, exchange and analysis through large-scale connectivity. However, as traffic increases explosively due to the recent spread of IIoT, an allocation method that can efficiently process traffic is required. In this thesis, I propose a two-stage task offloading decision method to increase successful task throughput in an IIoT environment. In addition, I consider a hybrid offloading system that can offload compute-intensive tasks to a mobile edge computing server via a cellular link or to a nearby IIoT device via a Device to Device (D2D) link. The first stage is to design an incentive mechanism to prevent devices participating in task offloading from acting selfishly and giving difficulties in improving task throughput. Among the mechanism design, McAfee's mechanism is used to control the selfish behavior of the devices that process the task and to increase the overall system throughput. After that, in stage 2, I propose a multi-armed bandit (MAB)-based task offloading decision method in a non-stationary environment by considering the irregular movement of the IIoT device. Experimental results show that the proposed method can obtain better performance in terms of overall system throughput, communication failure rate and regret compared to other existing methods.

• KDI Journal of Economic Policy
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• v.31 no.1
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• pp.239-276
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• 2009

The paper investigates the possible relationship between earnings prediction by security analysts and special ownership ties that link security companies those analysts belong to and firms under analysis. "Security analysts" are known best for their role as information producers in stock markets where imperfect information is prevalent and transaction costs are high. In such a market, changes in the fundamental value of a company are not spontaneously reflected in the stock price, and the security analysts actively produce and distribute the relevant information crucial for the price mechanism to operate efficiently. Therefore, securing the fairness and accuracy of information they provide is very important for efficiencyof resource allocation as well as protection of investors who are excluded from the special relationship. Evidence of systematic distortion of information by the special tie naturally calls for regulatory intervention, if found. However, one cannot presuppose the existence of distorted information based on the common ownership between the appraiser and the appraisee. Reputation effect is especially cherished by security firms and among analysts as indispensable intangible asset in the industry, and the incentive to maintain good reputation by providing accurate earnings prediction may overweigh the incentive to offer favorable rating or stock recommendation for the firms that are affiliated by common ownership. This study shares the theme of existing literature concerning the effect of conflict of interests on the accuracy of analyst's predictions. This study, however, focuses on the potential conflict of interest situation that may originate from the Korea-specific ownership structure of large conglomerates. Utilizing an extensive database of analysts' reports provided by WiseFn(R) in Korea, we perform empirical analysis of potential relationship between earnings prediction and common ownership. We first analyzed the prediction bias index which tells how optimistic or friendly the analyst's prediction is compared to the realized earnings. It is shown that there exists no statistically significant relationship between the prediction bias and common ownership. This is a rather surprising result since it is observed that the frequency of positive prediction bias is higher with such ownership tie. Next, we analyzed the prediction accuracy index which shows how accurate the analyst's prediction is compared to the realized earnings regardless of its sign. It is also concluded that there is no significant association between the accuracy ofearnings prediction and special relationship. We interpret the results implying that market discipline based on reputation effect is working in Korean stock market in the sense that security companies do not seem to be influenced by an incentive to offer distorted information on affiliated firms. While many of the existing studies confirm the relationship between the ability of the analystand the accuracy of the analyst's prediction, these factors cannot be controlled in the above analysis due to the lack of relevant data. As an indirect way to examine the possibility that such relationship might have distorted the result, we perform an additional but identical analysis based on a sub-sample consisting only of reports by best analysts. The result also confirms the earlier conclusion that the common ownership structure does not affect the accuracy and bias of earnings prediction by the analyst.

• Perspectives in Nursing Science
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• v.7 no.1
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• pp.23-35
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• 2010

Purpose: The purpose of this paper is to analyze the demand and supply of advanced practice nurses and suggest alternative benefit strategies in the Korean national health insurance. Methods: A revised demand & supply model was used to estimate the excess supply of APNs, and policy making process and key actors in the Korean health insurance were considered to develop a political approach to the APN issue. Results: The social demand for APNs is currently estimated to be less than 50% of its supply and the APN education program fell into difficulties in recruits. No reimbursement mechanism for APN's services in the national health insurance has given no economic incentive to hospital managers who have monopsony power in nursing labor market, which has caused the demand shortage of APNs in hospital industry. Payment for APN's services recognized as one of the most significant strategies to booster the social demand for APN's services should be carefully designed and implemented in the national health insurance. In line with this, key actors in health insurance policy decision-making include government, national assembly, labor unions, NGOs, civic groups, medical associations, and academia. Conclusion: The basic researches for APN's activities and cost-effectiveness analysis in clinical settings are required to support the strategies aforementioned. Constructing a policy network among key actors is able to make the payment strategy feasible, which will increase the socal demand for APNs.

• Journal of Digital Convergence
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• v.10 no.1
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• pp.49-57
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• 2012

The Internet succeeded because of the end-to-end principle which allowed anyone to add functionality to the network. However, as the internet is increasingly becoming the platform for smart IT applications such as VoIP, IPTV, Cloud Computing and Smart Phone, networks are now under increasing strain of traffic congestion and the absence of quality of service insurances. To date, the debate over internet rules has focused on network neutrality rather than network efficiency. This article emphasizes the well-functioning role of market mechanism for the efficient use and further development of the network. To maximize the value of the network, this article proposes a differential treatment to packets based on customer types, and a two-part tariff pricing rule to secure funding to expand and upgrade networks.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.2
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• pp.470-478
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• 2020

In this paper, a theoretical model that separates one single conversion factor into two conversion factors for both outpatients and inpatients is introduced. By using hypothetical numbers, two conversion factors and an adjustment factor were calculated. The major implications are as follows. Firstly, by introducing two conversion factors, a minimum incentive mechanism for admitting outpatients to a clinic and high risk inpatients to a hospital was installed. Secondly, the introduction of two conversion factors decreased the drive to admit outpatients to a hospital by reducing the economic benefits for the hospital. Thirdly, it is possible to make explicit contracts for several factors rather than a single conversion factor, so that it can be used as an appropriate management tool for rapidly increasing medical expenses. Finally, this research can be used to set up policy tools to establish a proper healthcare delivery system in Korea by inducing behavioral changes in healthcare institutions.

• Journal of KIISE
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• v.44 no.8
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• pp.854-859
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• 2017

Caching popular videos in the storage of base stations is an efficient method to reduce the transmission latency. This paper proposes an incentive proactive cache mechanism in the wireless network to motivate the content providers (CPs) to participate in the caching procedure. The system consists of one/many Infrastructure Provider (InP) and many CPs. The InP aims to define the price it charges the CPs to maximize its revenue while the CPs compete to determine the number of files they cache at the InP's base stations (BSs). We conceive this system within the framework of Stackelberg game where InP is considered as the leader and CPs are the followers. By using backward induction, we show closed form of the amount of cache space that each CP renting on each base station and then solve the optimization problem to calculate the price that InP leases each CP. This is different from the existing works in that we consider the non-uniform pricing scheme. The numerical results show that InP's profit in the proposed scheme is higher than in the uniform pricing.

• KDI Journal of Economic Policy
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• v.27 no.2
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• pp.205-237
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• 2005

This paper analyzes a mechanism through which product market competition affects allocation of the managerial efforts. There are two types of firms, incumbents and entrants. Each incumbent firm delegates its control to a manager and cannot observe the manager's total effort. The managers of incumbent firms allocate their effort to two different activities: cost reduction (productive effort) and rent protection (unproductive effort). An increase in competition, measured by the number of incumbent firms, has two effects: an "output effect" which decreases the managerial incentive for productive effort, and an "effort substitution effect" that makes managers exert more productive effort and less unproductive effort. This paper identifies the conditions under which product market competition lowers the cost of providing incentives for productive effort and hence, to the conclusion that increased competition leads to increased efficiency.

• Journal of Distribution Science
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• v.14 no.12
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• pp.129-139
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• 2016

Purpose - This paper examines the explanatory power of the agency theory in the determination of cash holdings for Korean retail firms. If the agency theory holds, a firm with strong corporate governance structure tends to have low cash holdings. A strong governance structure makes the CEO of this firm to behave in the interests of shareholders and thus the CEO has low incentive to stockpile cash holdings, which can be easily diverted for the CEO's own managerial purposes. We investigate this relationship between corporate governance structure and cash holdings, by using corporate governance scores as a proxy variable that captures the effectiveness of corporate governance mechanism. Research design, data, and methodology - We adopt the sample of publicly listed retail firms in KOSPI market from 2005 to 2013. Financial and accounting statements are gathered from the WISEfn database. We also use the corporate governance scores published by Korean Corporate Governance Service. The relationship between the corporate governance scores and cash holdings is cross-sectionally estimated based on the ordinary least square method. This estimation method is widely accepted in the existing literature. The sample of large conglomerates, Chebol, and the remainder firms are separately examined as well, to account for the distinctive internal financing environment in these large conglomerates. Results - We mainly contribute to the extant literature by providing empirical evidence against the agency theory of cash policy. Unlike the prediction of agency theory, we confirm statistically insignificant or even positive correlations between the set of corporate governance scores and cash-asset ratios. Almost all the major corporate governance attributes including total score, shareholder rights, board structure, and the quality of information disclosure do not show negative correlations with cash holdings, which poses a strong challenge to the validity of the agency theory in the determination of retail firms' cash holdings. Conclusions - This study presents interesting empirical results with respect to the cash policy in Korean retail firms. Consistent to prior studies, I verify that the agency theory only limitedly explains the level of cash holdings. Future studies may obtain more robust results by examining a longer sample period.

• The Journal of the Korea Contents Association
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• v.15 no.12
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• pp.35-49
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• 2015

Recently, with the development of wireless communication technologies and mobile equipments, various studies on mobile P2P networks have been conducted. In this paper, we propose an advertisement dissemination method considering peer's mobilities and preferences in mobile P2P networks. The proposed scheme generates a peer's preference through the analysis of users' activities to disseminate advertisements with user preferences. To reduce duplicated advertising messages and improve reception ratio, the priority of advertisement re-dissemination is determined according to peer's preferences, mobilities, and advertisement reception ratio. We improve the participation rate of the advertisement dissemination of mobile peers using the incentive mechanism in mobile P2P networks. To show the superiority of the proposed scheme, we compare it with the existing scheme in terms of the number of messages and accuracy.