• The Korean Journal of Financial Management
• /
• v.22 no.1
• /
• pp.37-69
• /
• 2005

This study intends to verify whether stock repurchase, as well as stock dispositions, affects shareholder's wealth and also whether repurchase/dispositions has varying impact de-pending on its purpose. According to empirical analysis, announcement of stock repurchase results in positive abnormal returns when the objective of stock repurchase is stock price stabilization or cancellation of shares. However, when the purpose of stock repurchase is granting incentives to executives/employees, we get the negative abnormal returns. Also, the termination of stock trust for reason of expiration or stock dispositions of which goal is to give incentives to executive/employees has a negative impact on stock price, whereas direct dispositions of stock to raise cash or to improve financial structrue are shown to significantly increase the wealth of shareholders. Cross-section analysis also confirms that stock repurchase and dispositions has different impact on excess returns depending on its purpose. The results of this study imply that the dispositions of stock should be regarded as an important financial strategic tool to be used by companies and what's more, such studies dealing with stock repurchase or dispositions should take firm's purpose into consideration in their approach.

• Korean Journal of Social Welfare
• /
• v.68 no.3
• /
• pp.29-50
• /
• 2016

This study examined the determinants of housing affordability using the 2014 fact-finding survey of housing. This study identified the effects of characters of districts as well as the effects of characters of family and housing, taking advantage of HGLM(Hierarchical General Linear Model). The results of this study showed that male householder, higher education level, the monthly housing, higher satisfaction of environment of housing are the factors that increased the odds of living at unaffordable housing, but higher income, public transfer recipient, living at sub-standard housing, the Jensei housing are the factors that decreased the odds of living at unaffordable housing. And the higher housing price, the higher rent of the districts increased significantly the odds of living at unaffordable housing, but the higher rate of public housing of the districts decreased the odds of living at unaffordable housing. This study provides the basis that the price of housing and rent should be controled and the policy of public housing should be expanded for housing welfare.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.42 no.2
• /
• pp.1-8
• /
• 2019

Network externalities are essentially dynamic in that the value consumers feel about a product is affected by the size of the existing customer base that uses that product. However, existing studies on network externalities analyzed the effects of network externalities in a static way, not dynamic. In this study, unlike previous studies, the impact of network externalities on price competition in a vertically differentiated market is dynamically analyzed. To this end, a two-period duopoly game model was used to reflect the dynamic aspects of network externalities. Based on the game model, the Nash equilibria for price, sales volume, and revenue were derived and numerically analyzed. The results can be summarized as follows. First, if high-end product has strong market power, the high-end product vendor takes almost all benefits of the network externality. Second, when high-end product has strong market power, the low-end product will take over most of the initial sales volume increase. Third, when market power of high-end product is not strong, it can be seen that the effects of network externalities on the high and low-end products are generally proportional to the difference in quality. Lastly, if there exists a strong network externality, it is shown that the presence of low-end product can be more profitable for high-end product vendor. In other words, high-end product vendor has incentive to disclose some technologies for the market entrance of low-end product, even if it has exclusive rights to the technologies. In that case, however, it is shown that the difference in quality should be maintained significantly.

• The Korean Journal of Franchise Management
• /
• v.10 no.3
• /
• pp.13-23
• /
• 2019

Purpose - The recent franchise industry is rapidly developing. Some franchisees have a low barriers to entry and competition among companies is intensifying. In this dynamic competitive environment, companies need to focus on customer preferences, quality, and technical interfaces to gain competitive advantage. As a result, companies are required to measure the performance of service values in order to provide differentiated services from competitors. In the franchise industry, customer experience marketing of service values will enable companies to create new businesses. Franchise firms should explore a variety of services to increase service value and reduce failures. Research design, data, methodology - The questionnaire of this study was based on the previous research. Surveys were conducted on panels of online surveys. Surveys were conducted on the panel who had visited the restaurant franchise within the past month. The survey was conducted for about 7 days from February 13, 2019 to February 19, 2019. Total 300 samples, 293 were used in the analysis except for seven unfair questionnaires. Results - The findings of this study are as follows: Emotional, monetary, and reputation values have positive effects on cognitive and affective attitudes. Quality value and behavioral value did not effect cognitive attitude and affective attitude significantly. In addition, affective attitude has positive effect on loyalty, but cognitive attitude did not significant effect on loyalty. Conclusions - First, food-service franchise company should develop a service that enables customers to use the store conveniently. We need to develop a comfortable environment for our customers and provide intangible services. Second, food-service franchise company should provide a reasonable price service. Food-service franchise company needs to sell a high quality menu at a reasonable price to generate profits. Third, food-service franchise companies need to strategically respond to their reputation. In other words, food-service franchise company needs to constantly monitor the reputation of its customers and respond appropriately to market conditions. Fourth, food-service franchise company needs to develop a service method capable of emotional interaction with customers. Food-service franchise firms need to develop ongoing service methods and educate their staff.

• Journal of the Korea Fashion and Costume Design Association
• /
• v.25 no.2
• /
• pp.83-95
• /
• 2023

The purpose of this study was to identify the effect of skin care salons' decision factors on customer satisfaction and revisit intention during the COVID-19 pandemic. The subjects of this study were 220 women in their 20s to 50s who reside in Seoul and the Gyeonggi-do area and are users of skin care salons. The data was statistically analyzed using SPSS V.25.0 and detailed research results are as follows. For the analysis of this study, frequency analysis, factor analysis, reliability verification, independent sample T-Test, one-way analysis of variance, post hoc test, Duncan test, and regression analysis were conducted. First, as a result of examining whether skin care salon decision factors during the pandemic have a positive (+) effect on customer satisfaction, hygienic environment satisfaction and service environment satisfaction, which are sub-factors of customer satisfaction, had a significant effect on professionalism, kind service, and distance, which are sub-factors of decision factors, and are independent variables. Second, as a result of examining whether skin care salon decision factors during the pandemic have a positive (+) effect on revisit intention, decision factors, which are independent variables, including professionalism, kind service, price, and distance showed significant effects on human revisit intention, As for physical revisiting intention, only kind service, distance, and professionalism showed significant effects, while price did not have a significant effect. Third, as a result of examining whether customer satisfaction during the pandemic has a positive (+) effect on revisiting intention, the service environment satisfaction and hygienic environment satisfaction, which were sub-factors of independent variables, showed significant results for human and physical revisit intentions. In this study, service environment and hygienic environment satisfaction were important variables for skin care salon decision factors. Professionalism and kind service were important for human revisit intention. Therefore, overall service environment, hygiene, and safety should be prioritized to increase revisit intention and efforts must be made to retain and improve customer satisfaction

• Information Systems Review
• /
• v.25 no.2
• /
• pp.103-123
• /
• 2023

One of the valid perspectives in the e-commerce platform literature is the seller signaling strategy in the information asymmetry situation. In this study, a research model was constructed based on signaling theory and shopping goal theory to systematically explore the effects of a seller's signaling strategy on consumer decision-making. Specifically, the study examined whether the signaling effects (i.e., reputation, electronic word-of-mouth, price) provided by the seller differed based on consumers' shopping goals. For the empirical analysis, the Gaussian Copula method was employed, utilizing 26,246 data collected from Amazon, a leading e-commerce platform. The analysis revealed that the signals provided by the seller positively impacted sales, and this effect was moderated by consumers' shopping goals. Drawing on shopping goal theory, this study contributes to signaling theory and e-commerce literature by discovering differences in the effectiveness of a seller's signaling strategy based on the keywords input by consumers.

• Asia-Pacific Journal of Business
• /
• v.15 no.1
• /
• pp.209-223
• /
• 2024

Purpose - This article analyzes the impact of macroeconomic variables of the United States, China, and Korea on KOSPI and VKOSPI, in that United States and China have a great influence on Korea, having an export-driven economy. Design/methodology/approach - The influence of US, China, and Korea interest rates, industrial production index, consumer price index, US employment index, Chinese real estate index, and Korea's foreign exchange reserves on KOSPI and VKOSPI is analyzed on monthly basis from Jan 2012 to Aug 2023, using multifactor model. Findings - The KOSPI showed a positive relationship with the U.S. industrial production index and Korea's foreign exchange reserves, and a negative relationship with the U.S. employment index and Chinese real estate index. The VKOSPI showed a positive relationship with the Chinese consumer price index, and a negative relationship with the U.S. interest rates, and Korean foreign exchange reserves. Next, dividing the analysis into two periods with the Covid crisis and the analysis by country, the impact of US macroeconomic variables on KOSPI was greater than Chinese ones and the impact of Chinese macroeconomic variables on VKOSPI was greater than US ones. The result of the forward predictive failure test confirmed that it was appropriate to divide the period into two periods with economic event, the Covid Crisis. After the Covid crisis, the impact of macroeconomic variables on KOSPI and VKOSPI increased. This reflects the financial market co-movements due to governments' policy coordination and central bank liquidity supply to overcome the crisis in the pandemic situation. Research implications or Originality - This study is meaningful in that it analyzed the effects of macroeconomic variables on KOSPI and VKOSPI simultaneously. In addition, the leverage effect can also be confirmed through the relationship between macroeconomic variables and KOSPI and VKOSPI. This article examined the fundamental changes in the Korean and global financial markets following the shock of Corona by applying this research model before and after Covid crisis.

• KDI Journal of Economic Policy
• /
• v.14 no.1
• /
• pp.147-165
• /
• 1992

This paper analyzes the macroeconomic effects of elections on the Korean economy and their future ramifications. It measures the shocks to the Korean economy caused by elections by taking the average of sample forecast errors from four major elections held in the 1980s. The seven variables' Bayesian Vector Autoregression Model which includes the Monetary Base, Industrial Production, Consumption, Consumer Price, Exports, and Investment is based on the quarterly time series data starting from 1970 and is updated every quarter before forecasts are made for the next quarter. Because of this updating of coefficients, which reflects in part the rapid structural changes of the Korean economy, this study can capture the shock effect of elections, which is not possible when using election dummies with a fixed coefficient model. In past elections, especially the elections held in the 1980s, $M_2$ did not show any particular movement, but the currency and base money increased during the quarter of the election was held and the increment was partly recalled in the next quarter. The liquidity of interest rates as measured by corporate bond yields fell during the quarter the election and then rose in the following quarter, which is somewhat contrary to the general concern that interest rates will increase during election periods. Manufacturing employment fell in the quarter of the election because workers turned into campaigners. This decline in employment combined with voting holiday produce a sizeable decline in industrial production during the quarter in which elections are held, but production catches up in the next quarter and sometimes more than offsets the disruption caused during the election quarter. The major shocks to price occur in the previous quarter, reflecting the expectational effect and the relaxation of government price control before the election when we simulate the impulse responses of the VAR model, imposing the same shocks that was measured in the past elections for each election to be held in 1992 and assuming that the elections in 1992 will affect the economy in the same manner as in the 1980s elections, 1992 is expected to see a sizeable increase in monetary base due to election and prices increase pressure will be amplified substantially. On the other hand, the consumption increase due to election is expected to be relatively small and the production will not decrease. Despite increased liquidity, a large portion of liquidity in circulation being used as election funds will distort the flow of funds and aggravate the fund shortage causing investments in plant and equipment and construction activities to stagnate. These effects will be greatly amplified if elections for the head of local government are going to be held this year. If mayoral and gubernatorial elections are held after National Assembly elections, their effect on prices and investment will be approximately double what they normally will have been have only congressional and presidential elections been held. Even when mayoral and gubernatorial elections are held at the same time as congressional elections, the elections of local government heads are shown to add substantial effects to the economy for the year. The above results are based on the assumption that this year's elections will shock the economy in the same manner as in past elections. However, elections in consecutive quarters do not give the economy a chance to pause and recuperate from past elections. This year's elections may have greater effects on prices and production than shown in the model's simulations because campaigners' return to industry may be delayed. Therefore, we may not see a rapid recall of money after elections. In view of the surge in the monetary base and price escalation in the periods before and after elections, economic management in 1992 should place its first priority on controlling the monetary aggregate, in particular, stabilizing the growth of the monetary base.

• Journal of Environmental Science International
• /
• v.21 no.12
• /
• pp.1477-1485
• /
• 2012

This study examined urbanization effects and the causes of urbanization, urban population growth, increase of the city scale, land cover change, and human cultures and economic activities, using the daily minimum temperatures of the past 50 years (1961-2010) with the subject of Busan and analyzed correlations between urbanization effects and the causes of urbanization. Thereby, this paper drew a conclusion as below: 1) Due to the urbanization effects, the average annual daily minimum temperature increased as about $1.2^{\circ}C$; however, except for the factor of urbanization, the increase was shown as about $0.2^{\circ}C$. The occupancy of urbanization effects in the total temperature increase was quite high as about 83%. 2) Just like other cities experiencing urbanization, Busan, too, sees population growth and the expansion of city area as well as increased urbanization effects. First of all, correlation between population growth and urbanization effect was high as 0.96 before 1985 while it was lowered as 0.19 after 1985. Also, correlation between the increase of city area and urbanization effect was high as 0.64 and 0.79 before and after 1985. 3) Regarding the correlation between long-term land use change and urbanization effect, urbanization effect was affected greatly by the increase of city area (0.97) and reduction of green area (0.92). 4) Concerning human activities possible to affect the climatic factors of a city, this paper found the following factors: road length, car increase, power use, and the consumer price index, etc. And regarding the correlation between the three factors and urbanization effect, the correlation was higher in the consumer price index (0.97), the number of registered cars (0.89), power use (0.75), and road length (0.58) in order.

• KDI Journal of Economic Policy
• /
• v.32 no.4
• /
• pp.35-73
• /
• 2010

This paper examines consumption dynamics in relation to asset prices in Korea. Empirical analysis based on the error correction model shows that personal consumption is affected by changes in asset prices but the consumption converges to the long-run level of consumption corresponding to the total income flow in two years. This adjustment in consumption implies that the consumption error, reflected in the error correction term, should have predictability for the future consumption growth during the adjustment period. It is found that the error correction term has a long-run predictability for consumption over up to about 3 years; thus, confirming the error correction model. It is also found that housing prices have larger effects on consumption compared with stock prices in Korea. In addition, the effects of income and asset prices on consumption show bigger effects during contractionary period than expansionary period in business cycles. This paper also analyzes effects of asset wealth that reflects changes in both price and quantity. It is found that asset wealth has a long-run effect on consumption in addition to total income as determinants of consumption. Since wealth effects usually indicate the long-run effect of changes in asset wealth on consumption that is not explained by labor income, which is the proxy for human source of wealth, it is estimated with labor income used as a control variable. According to the estimation, the marginal propencity to consume out of asset wealth is approximately 2%. It means that 1,000won increase in asset wealth may lead to 20 won increase in consumption.