• Journal of Korea Trade
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• 제27권1호
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• pp.1-18
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• 2023

Purpose - Using a sample of Korean multinational corporations, we examine whether the relationship between tax risk and the implied cost of capital discriminates between the environmental, social, and corporate governance (ESG) of highly rated firms. Design/methodology - Firms with high tax risks have an increased uncertainty of future cash flows. Therefore, as the volatility of future cash flow increases, information asymmetry and the required return increases. Highly rated ESG firms can reduce information asymmetry, thereby weakening the positive relationship between tax risk and cost of capital. We employ the standard deviation of the cash effective tax rate as proxy of tax risk. We utilize the ESG rating data of the Korea Corporate Governance Service (KCGS). We use a PEG model, MPEG model, and GM model to measure the implied cost of capital. Findings - We find a positive association between the implied cost of capital and tax risk. The positive relationship between tax risk and the implied cost of capital weakens in highly rated ESG firms. Highly rated ESG firms prefer a stable tax position to invest after-tax cash flows into sustainable management. Therefore, the negative effects of tax risk on cost of capital can be reduced. Originality/value - This study provides empirical evidence that ESG activities can mitigate the negative impact of tax risk on the cost of capital for Korean multinational corporations. In a business environment where ESG activities are more important, the empirical results that ESG activities can reduce the corporate risk of Korean FDI companies are expected to provide implications for the ESG activities of multinational corporations.

• 한국안전학회지
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• 제27권5호
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• pp.203-210
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• 2012

Traffic accident risk of young drivers(less than 25) is reported to have 8 times as high as that of middle aged drivers(between 30 and 49). Despite the rise of traffic accident risk, few have been attempted to take a look into driving characteristics of young drivers. The purpose of this paper is to analyze age-specific risks of young driver by means of database of insurance and vehicle inspection, thereby collecting data such as age, vehicle mileage, injuries and so on. We conducted Data-Mining(CART) and Portfolio analysis according to age groups(every 10 years). The conclusions which can be drawn from this empirical study are as follows: (1) Despite the fact that young drivers have low vehicle mileage, the rate of fatality is relatively high. (2) Being concerned of vehicle mileage, 24,000km of driving experience is thought to be critical in differing in fatality rate. Having annual average mileage fewer than 24,169 km, accident frequency is relatively lower than that exceeding 24,169 km(1,571 cases). Backed upon these, some recommendations about driver's license system for young driver to improve are given.

• 아태비즈니스연구
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• 제11권4호
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• pp.37-48
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• 2020

Purpose - This study empirically investigates whether the risk property included in fat-tails of return distributions is systematic or unsystematic based on the devised statistical methods. Design/methodology/approach - This study devised empirical designs based on two traditional methods: principal component analysis (PCA) and the testing method of portfolio diversification effect. The fatness of the tails in return distributions is quantitatively measured by statistical probability. Findings - According to the results, the risk property in the fat-tails of return distributions has the economic meanings of eigenvalues having a value greater than 1 through PCA, and also systematic risk that cannot be removed through portfolio diversification. In other words, the fat-tails of return distributions have the properties of the common factors, which may explain the changes of stock returns. Meanwhile, the fatness of the tails in the portfolio return distributions shows the asymmetric relationship of common factors on the tails of return distributions. The negative tail in the portfolio return distribution has a much closer relation with the property of common factors, compared to the positive tail. Research implications or Originality - This empirical evidence may complement the existing studies related to tail risk which is utilized in pricing models as a common factor.

• The Journal of Asian Finance, Economics and Business
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• 제7권12호
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• pp.627-633
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• 2020

The study attempts to analyze the impact of firm's risk on capital structure in the context of seasonal and non-seasonal businesses. We use two independent variables namely credit risk and systematic risk and one dependent variable to explore this connection. Sugar sector is taken as seasonal while the textile sector as non-seasonal businesses. The panel data of twenty-five firms from each sector are taken ranging for the period of 2012 to 2019 which has been retrieved from their annual reports for empirical analysis of the study. The results reveal the negative impact of credit risk on capital structure in both types of businesses. Increasing (decreasing) one point of credit risk causes a decrease (increase) leverage ratio by 0.27 points for seasonal while increasing (decreasing) one point of credit risk causes to decrease (increase) leverage by 0.15 points for non-seasonal businesses. Furthermore, the study shows positive impact of systematic risk on leverage ratio in non-seasonal business and no impact in seasonal business. Any increase (decrease) in the systematic risk causes an incline (decline) leverage ratio by 2.68 units for non-seasonal businesses. The study provides a guideline to managers for risk management in businesses. The research focusses on theoretical as well as managerial and policy implications on risk management in businesses.

• Journal of Korea Trade
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• 제23권5호
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• pp.87-101
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• 2019

Purpose - This paper examines the effectiveness of the foreign exchange risk insurance system in the promotion of SME exports in Korea. The purpose of this study is to analyze the short-term and long-term responses of SME exports to foreign exchange risk insurance support policies. Based on these empirical studies, we would like to present some operational improvements to the operation of the foreign exchange risk insurance system. Design/methodology - In order to analyze the effect of exchange risk insurance on the exports of SMEs, a VAR model consisting of foreign exchange risk insurance underwriting values, export relative price, and domestic demand pressure, including export volume, was established. The study began with tests of the stationarity of time series data. The unit root tests showed that all concerned variables were non-stationary. Accordingly, the results of the cointegration test showed that the tested variables are not cointegrated. Finally, an impulse response function and variance decomposition analysis were conducted to analyze the impulse of foreign exchange risk insurance on exports of SMEs. Findings - As a result of estimating the VAR (1) model, foreign exchange risk insurance was found to be significant at a 1% significance level for SME' export promotion. In the impulse response analysis, SMEs' export response to the impulse of foreign exchange risk insurance showed that exports gradually increased until the third quarter, and then slowed down. However, the impulse did not disappear, and appeared continuously. Originality/value - This study analyzed the effect of foreign exchange insurance on exports of SMEs by applying the VAR model. In particular, this study is the first to analyze the short-term and long-term effects of foreign exchange risk insurance on exports of SMEs. The empirical evidence in the current study have a policy implication for the policy authority to support and promote the foreign exchange risk insurance in the effect of exchange rate volatility on Korea' export SMEs.

• 정보처리학회논문지:컴퓨터 및 통신 시스템
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• 제3권8호
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• pp.271-276
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• 2014

본 연구는 취약점 분석 평가 수행 시 N/A 점검항목이 보안 수준 결과에 미치는 영향 정도를 분석하였다. 이를 위하여, 본 논문에서는 취약점 분석 평가 범위 및 점검항목과 정량적 산출 방식을 이용하였으며, 항목의 중요성에 따른 등급과 가중치를 부여하였다. 또한, 주위 환경과 IT 기술 발달로 기관은 항상 위험에 노출되어 있으므로 위험 허용 수준을 적용하여 실증적 분석을 수행하였다. 분석한 결과, N/A 점검항목이 보안 수준에 영향을 미치는 요인으로 증명되었다. 즉, 취약점 분석 평가 수행 시 기관 특성상 연계성이 없는 점검항목은 제외시켜야 하는 것을 알 수 있었다. 본 연구에서는 실증검증을 토대로 기관 특성과 연계성을 갖지 않는 항목을 제외한 후 보안 수준 평가를 수행해야 함을 시사 하였으며, 기관 특성을 고려한 취약점 분석 평가 점검항목 정립 모델 연구가 필요함을 제시하였다.

• 한국정보시스템학회지:정보시스템연구
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• 제25권3호
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• pp.197-215
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• 2016

Purpose This study aims to investigate the factors that influence decision making in relation to providing personal information on the internet with respect to the integration of the privacy calculus theory and protection motivation theory based on the dual-calculus model proposed by Li(2012). Design/methodology/approach The privacy calculus theory and protection motivation theory have been applied to explain privacy behavior to a certain degree but few studies have been conducted to explain privacy behavior based on the integration of these two theories. Although Li(2012) proposed the dual-calculus model, he only proposed its framework and did not carry out an empirical study. Therefore, this study proposes a research model that integrates these two theories and examines the relationship between the two theories through an empirical study. Findings According to the results of empirical analysis, it was found that all relations have statistically significant explanatory power except the relation between coping appraisal and privacy risk in the risk calculus process. Thus, the results verify that external threat played a decisive role in increasing the risk level of a consumer's privacy. It can be discussed the ways to enhance the privacy behavior of consumer on the internet through these findings.

• Earthquakes and Structures
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• 제17권1호
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• pp.91-99
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• 2019

Fragility analysis is an effective tool that is frequently used for seismic risk assessment of bridges. There are three different approaches to derive a fragility curve: experimental, empirical and analytical. Both experimental and empirical methods to derive fragility curve are based on past earthquake reports and expert opinions which are not suitable for all bridges. Therefore, analytical fragility analysis becomes important. Nonlinear time history analysis is commonly used which is the most reliable method for determining probabilistic demand models. In this study, to determine the probabilistic demand models of bridges, time history analyses were performed considering both material and geometrical nonlinearities. Serviceability limit states for three different service velocities were considered as a performance goal. Also, support displacements, component yielding and collapse limits were taken into account. Both serviceability and component fragility were derived by using maximum likely hood methods. Finally, the seismic performance and critical members of the bridge were probabilistically determined and clearly presented.

• Asia pacific journal of information systems
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• 제16권3호
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• pp.143-158
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• 2006

Identifying risk factors in software risk management is imperative for project managers. The purpose of this paper is to provide software project risk factors validated by statistical analysis, and thus to help project managers alleviating the possibility of software project failure. Factor analysis with data collected from 264 Korean project managers and consultants identified 12 categories and 46 risk factors. T-test results showed that project managers and participants had statistically different perception on 3 risk factors among those 46 risk factors. We concluded by discussing implications of our findings and future research directions.

• The Journal of Asian Finance, Economics and Business
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• 제9권8호
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• pp.89-97
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• 2022

The e-commerce market faces significant credit risks due to the complexity of the industry and information asymmetries. Therefore, credit risk has started to stymie the growth of e-commerce. However, there is no reliable system for evaluating the creditworthiness of e-commerce companies. Therefore, this paper constructs a credit risk evaluation index system that comprehensively considers the online and offline behavior of online retail enterprises, including 15 indicators that reflect online credit risk and 15 indicators that reflect offline credit risk. This paper establishes an integration method based on a fuzzy integral support vector machine, which takes the factor analysis results of the credit risk evaluation index system of online retail enterprises as the input and the credit risk evaluation results of online retail enterprises as the output. The classification results of each sub-classifier and the importance of each sub-classifier decision to the final decision have been taken into account in this method. Select the sample data of 1500 online retail loan customers from a bank to test the model. The empirical results demonstrate that the proposed method outperforms a single SVM and traditional SVMs aggregation technique via majority voting in terms of classification accuracy, which provides a basis for banks to establish a reliable evaluation system.