• The Journal of the Korea Contents Association
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• v.14 no.3
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• pp.414-426
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• 2014

The purpose of this study is to examine the effects of business startup attributes on the overconfidence of business startup and entrepreneur's attitude in foodservice industry. To achieve this, a survey was carried out to 300 entrepreneurs in the foodservice industry through October 1 to October 30, 2012. The results were as follows. First, entrepreneur's characteristics, funds for business startup, locations and products had a statistically significant positive effect on the overconfidence of business startup(p<.05). Second, funds for business startup, locations and products had a statistically significant positive effect on entrepreneurs' attitude(p<.01). Third, the overconfidence of business startup had a statistically significant positive effect on entrepreneurs' attitude(p<.001). The findings stated above mean that knowledge or experience related to specialized management mind as entrepreneur's characteristic factors are just as important, and customers' use and choice of restaurants are also connected to stable management when the floating population of them are located to a suitable place in combination with product characteristics in enough financing and preparation based on this, showing entrepreneur's positive attitude through stable management along with confidence.

• Journal of Korea Trade
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• v.25 no.2
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• pp.196-219
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• 2021

Purpose - We attempted to empirically verify the effects of managerial attributes on cost stickiness in exporters. Exporters are often affected not only by external factors such as exchange rate but also by internal factors such as managerial attributes regarding their business activities. Because cost stickiness is the product of a manager's decision-making, it has been considered that managerial attributes have a great influence on the behavior. Therefore, our study was intended to find out whether cost stickiness shows differentiated aspects depending on managerial attributes in exporters. Design/methodology - We considered two managerial attributes: CEO power and managerial overconfidence. First, CEO power was measured as CEO pay slice. In addition, managerial overconfidence was measured based on three methodologies presented by previous studies. To measure cost stickiness, we used multiple methodologies presented by prior research. Findings - The results of our empirical analysis are as follows. First, in export firms, the greater CEO power is, the greater cost stickiness is. This result suggested that export managers with great influence little respond to temporary sales decrease promptly, little reduce related production costs flexibly in preparation for future sales recovery, but leave room to endure costs for idle resources. Second, the greater managerial overconfidence is, the greater cost stickiness is. This result indicated that export managers with great overconfidence on their decision-making often view the prospect for sales recovery positively; therefore, they little respond to temporary sales decrease immediately, little reduce related production costs flexibly for future sales recovery, but leave room to endure costs for idle resources. Third, export managers with great influence in their businesses and great overconfidence in their decision-making tend to show relatively great cost stickiness. The results proposed that the combination of the two factors functions to make cost stickiness greater. Originality/value - Our study is differentiated from extant studies in that we provided empirical evidence of the effects of managerial attributes on their business activities in exporters. Specifically, we verified the effects of managerial attributes on cost stickiness in Korean exporters. The results of our study are expected to contribute to providing useful information for exporters and start-ups.

• Journal of The Korean Association For Science Education
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• v.34 no.1
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• pp.1-9
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• 2014

This study aimed to explore the over-efficacy in problem solving and overconfidence of knowledge of students performing assessments in two different test formats: multiple-choice and supply-type. Two hundred and four female middle school students participated in this study. Multiple-choice and supply-type formats of tests on photosynthesis were used, and each item contained scales indicating one's self-efficacy on problem-solving and confidence of knowledge. The results showed that the correlation coefficients of performance between the two different assessment formats were less than 0.5 and the correlation coefficients between efficacy/confidence and actual performance were less than 0.45. Moreover, students tended to exhibit more over-efficacy and overconfidence in multiple-choice formats. The percentage of over-efficacy and overconfidence was higher in the group that completed the multiple-choice test first followed by the supply-type assessment than in the group that started with the supply-type followed by the multiple-choice assessment. From this study, it can be suggested that more use of supply-type assessment is required in science education. If test administrators require the combination of both multiple-choice and supply-type in an assessment, the supply-type assessment format should come first so that students can maintain the appropriate level of efficacy and confidence. In addition, science educators need to develop new learning programs to enhance students' self-monitoring skills of their problem-solving ability and knowledge.

• Korean Business Review
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• v.13
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• pp.133-157
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• 2000

This paper investigate to construct a new strategic trading model which contains the broker and overconfident informed trader. Assuming more favorable situation for the broker, this paper construct a two period model. At period I overconfident informed trader and liquidity traders participate to trade. At this time the broker does not execute transaction of his own account. he only transfer customer's order by commission. At period 2, the broker identifies informed trade of previous period and he execute the trade of his own account with liquidity traders. The effects of overconfidence to the expected transaction volume and expected transaction profit, and price variability are summarized as follows: (i) As the degree of overconfidence increases, the expected transaction volume of informed trader increases. Under the restriction of moderate degree of overconfidence, it also increases the expected transaction volume of broker. In sum, overconfidence behavior of informed trader increases the expected transaction volume. (ii) As the degree of overconfidence increases, the both expected profit of informed trader and broker decrease. (iii) As the degree of overconfidence increases, unconditional variances of price for each periods increase. And as the degree of overconfidence increases, the informativeness of prices for each period increase. Finally, some limitations of this paper and direction for further research were suggested.

• The Korean Journal of Financial Management
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• v.22 no.2
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• pp.135-164
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• 2005

We analyze trade and balance records of 10,000 stock investment accounts of individual investors for the period of 1998 to 2003. Individual investors em an annual gross return of 12.3% while the KOSPI and the value weighted composite including KOSDAQ stocks yield 13.6% and 9.7% respectively during the same period. Net return performance is 8.3%, a drop of 5.3% mainly due to heavy trading. Individual investors' annual turnover amounts to over 270 percent. In an analysis of groups formed on the month's end position value, the performance of the top quintile is found comparable to the market while the rest yield significantly lower risk-adjusted returns than the market. We also find evidence rejecting the rational expectation model while supporting the overconfidence hypothesis which states overconfidence leads to a higher level of trading, resulting in poor performance. Individuals tilt their stock investment toward high-beta, small, and value stocks.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1231-1240
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• 2021

A shift in perspective from standard finance to behavioral finance has taken place in the past two decades that explains how cognition and emotions are associated with financial decision making. This study aims to investigate the influence of various psychological factors on investment decision-making. The psychological factors that are investigated are differentiated into two aspects, cognitive and emotional aspects. From the cognitive aspect, we examine the influence of anchoring, representativeness, loss aversion, overconfidence, and optimism biases on investor decisions. Meanwhile, from the emotional aspect, the influence of herding behavior on investment decisions is analyzed. A quantitative approach is used based on a survey method and a snowball sampling that result in 165 questionnaires from individual investors in Yogyakarta. Further, we use the One-Sample t-test in testing all hypotheses. The research findings show that all of the variables, anchoring bias, representativeness bias, loss aversion bias, overconfidence bias, optimism bias, and herding behavior have a significant effect on investment decisions. This result emphasizes the influence of behavioral factors on investor's decisions. It contributes to the existing literature in understanding the dynamics of investor's behaviors and enhance the ability of investors in making more informed decision by reducing all potential biases.

• Journal of East Asia Management
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• v.4 no.1
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• pp.23-51
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• 2023

We investigate whether the association between management overconfident tone and the level of audit effort measured by audit fees and hours differs depending on the level of earnings management. Prior studies suggest that firms led by overconfident managers are likely to initiate risky investments, report low quality financial statements, and have material weaknesses in internal control system. These characteristics, combined together, result in higher audit risk. At the same time, auditors assess audit risk based on the quality of financial reporting, measured by level of earnings management. As a result, the assess audit risk is likely to reflect the combined effect of management overconfidence and the level of earnings management. In this paper, we investigate whether auditors differentiate the effects of real earnings management (REM) and accrual-based earnings management (AEM) when they assess the audit risk related management overconfident. Using the CEO's letter published in 2018, we measure the CEO's tone representing the degree of overconfidence (i.e., activity). Based on this measure, we find that the positive association between managerial overconfident tone and audit effort is more pronounced as the level of REM is higher. However, we find that the baseline association does not vary depending on the level of AEM. These results suggest that auditors consider the managerial overconfident severer when such characteristic accompany the higher level of REM, which can be outcome of aggressive business decisions possibly leading to the higher audit risks. We further find that these results are stronger for Big 4 auditors and continuing auditors. This paper contributes to the literature and practice as follows. First, we provide contextual evidence on how auditors reflect managerial characteristics in the audit process by documenting that auditors actively increase their audit efforts only when overconfident managerial characteristics are highly likely to lead to audit risk. This result suggests that auditors conduct external auditing considering both the efficiency and effectiveness of the audit process. Second, we suggest that auditors use information obtained from a wide range of sources to identify audit risks. Our results provide evidence of how the auditing standards, which do not provide detailed guidelines for audit risk assessment, are being applied in practice. Finally, our results also enhance the understanding of how audit fees are determined. Combined with the studies related to audit pricing, we provide the important reference for discussion between the auditor and the auditee about the audit fee that has created acute tension after the enforcement of the new External Audit Act.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.6
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• pp.175-181
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• 2022

Malmendier and Tate (2005) and Aktas et al. (2019) suggested that overconfident managers will invest if they have sufficient internal funds. Still, they will save internal funds instead of reducing investment if they have insufficient internal funds because they perceive more substantial financial constraints than other managers. This study examines whether overconfident managers will not invest when the financial crisis makes it difficult to raise external funds. In particular, during the financial crisis in Japan, banks simultaneously provided active monitoring and financing to firms with strong relationships with banks. Therefore, this study can also examine the relationship between overconfident managers and bank behavior by focusing on Japanese firms. This study examines whether overconfident managers increase their investment in firms with strong relationships with banks during the financial crisis. The results of this study showed that overconfident managers, especially their firms with strong relationships with banks, reduce investments more than other managers during the financial crisis. This study suggests that Japanese banks reduced financial constraints and exerted strong corporate governance on Japanese firms during the financial crisis.

• Proceedings of the Korea Information Processing Society Conference
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• 2023.11a
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• pp.695-697
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• 2023

최근 몇 년 간 딥러닝 기반 모델의 규모와 복잡성이 증가하면서 강력하고, 높은 정확도가 확보되지만 많은 양의 계산 자원과 메모리가 필요하기 때문에 모바일 장치나 임베디드 시스템과 같은 리소스가 제한된 환경에서의 배포에 제약사항이 생긴다. 복잡한 딥러닝 모델의 배포 및 운영 시 요구되는 고성능 컴퓨터 자원의 문제점을 해결하고자 사전 학습된 대규모 모델로부터 가벼운 모델을 학습시키는 지식증류 기법이 제안되었다. 하지만 현대 딥러닝 기반 모델은 높은 정확도 대비 훈련 데이터에 과적합 되는 과잉 확신(overconfidence) 문제에 대한 대책이 필요하다. 본 논문은 효율적인 경량화를 위한 미리 학습된 모델의 과잉 확신을 방지하고자 초점 손실(focal loss)을 이용한 모델 보정 기법을 언급하며, 다양한 손실 함수 변형에 따라서 지식증류의 성능이 어떻게 변화하는지에 대해 탐구하고자 한다.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.5
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• pp.53-68
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• 2014

This study is aimed at analyzing the factors that affect the behaviors of employee's investment, such as a decision making process in a variety of views and proving the extent of how those factors influence on their investment. The basic assumption is that the preceding factors that can be determined by the personal investment propensity, a psychological factor asserted by Behavior Financial Theory and financial-economic and social environment. This study uses Hershey's Investment Behavior Model(2007) as the main analysis tool to explain the investment behavior of individuals and deals with personal investment inclination in the psychological perspective of overconfidence, self-control and the risk tolerance propensity and add the financial and economic factors in terms of financial literacy and economic distress. Also the new preceding social environmental factors like social interaction and the effect of reference group are added to make this research to be more precise. This study analyze the adjustment effect of professional invest-consulting service that affect the fluctuation influence between the individual variables(those factors) and subordination variable(the level of investment satisfaction). The study reveals that overconfidence and self-control in direct ways have a positive effect on the level of investment satisfaction in terms of investment behavior and economic distress has a negative effect on the level of investment satisfaction. The adjustment effect provided by financial experts in investment consulting service is affirmed as the critical factor that increase the influence between self-control and the level of investment satisfaction. To conclude, the research reveals that the psychological factors are the main criteria when the workers as employees have to make investment decisions. To make investors be reasonable, a systematic financial education system provided by experts is needed from the early adolescent stages and financial companies should develop the relevant services of consulting service department as a key financial sector and financial investment products and consulting program and marketing tool pertinent to investors ages, vocational traits and their inclinations.