• Journal of Navigation and Port Research
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• v.38 no.2
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• pp.177-184
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• 2014

Recently, brand equity is paid much attention in various industries. However, container liner shipping companies are still unfamiliar with this concept, and also the brand equity model has not been tested yet in shipping context. This study, therefore, aims to measure the relative importance of brand equity factors of container liner shipping companies by employing AHP (Analytic Hierarchy Process). This study concludes that perceived quality, in particular cost-related service quality, is the most influential factor of brand equity, while weak support is found for brand association. In addition to this, group comparisons were conducted between shipping companies, freight forwarders and academics. The results will be useful as they firstly define brand equity and its role in shipping context, highlighting the significance of brand management to container liner shipping firms. This evaluation is not an end in itself, but will eventually be utilised as a tool to build competitive advantage which cannot be easily imitated by competitors.

• Journal of Navigation and Port Research
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• v.39 no.3
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• pp.261-266
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• 2015

Many of previous studies suggested that working capital management is an important component of firm's financial decision and efficient working capital management affects firms' profitability and it's value. Recently, Korean shipping firms have been suffering from financial distress by recession of shipping economy. In this point of view, this study tries to investigate the relationship between working capital management and shipping firm's profitability, using panel data on 46 Korean shipping firms for the period of 2004-2013. As result of panel regression, it proved that average payment period, inventory turnover, cash conversion cycle and operating cycle are significantly associated with firms profitabilities such as profit margin ratio and operating profit ratio, and the manager of shipping firm can increase firms profitability by more efficient working capital management. There are strong positive relationships between average payment period and operating cycle and firm's profitability. These results suggest that managers can create firm's value by increasing average payment period and operating cycle. Otherwise inventory turnover and cash conversion cycle have negative relationships with firm's profitability. It means that managers can increase firm's profitability by reducing these variables.

• Journal of Navigation and Port Research
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• v.41 no.4
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• pp.235-242
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• 2017

Earnings management is defined as an intentional act during the financial reporting process or a manager's choice of accounting policies to avoid earnings decreases or obtain some private gains. Shipping firms have a highly debt-intensive capital structure and a significant motivation in earnings management to avoid failure of a Debt Covenant. From this point of views, this paper tries to determine the relationship between the capital structure and discretionary accruals estimated using the re-modified Jones model (1995). The sample used to test the research models is made up of 87 Korean shipping firms during the period from 2007 to 2015. A histogram analysis, t-test and FGLS confirm the possibility of using earnings management, and it proved that Korean shipping firms manage their earnings to avoid financial loss. An analysis of the relationship between the capital structure and earning managements, shows it is difficult to support the Debt Covenant, shown as a negative relationship between the debt ratio and debt maturity as shipping firms' capital structure and discretionary accruals as earning management variable. An additional analysis presents a negative relationship between previous debt maturity and discretionary accruals, and the possibility of earning management in a highly increased debt ration group.

• Journal of Navigation and Port Research
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• v.43 no.6
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• pp.450-461
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• 2019

According to the results of the management evaluation of the nation's public firms over the past seven years, the rating of the port corporation is generally insufficient. According to the results of the seven-year study 2011-2017, the average debt ratio of the port corporation was 34.5%, two to three times lower than that of the general public company, the operating profit ratio of sales was three times higher, and the value added per person was 1.6-1.9 times better. However, the aggregate score and grade were generally low, with 4.1% of the total number of employees of the general public corporation, 10% of the average total assets, and 1% of the average sales volume. The distributed analysis results and panel return analysis results show that the size significantly impacts the overall score and grade. Additionally, major business standards such as port volume, not controlled by the port corporation, appear to have a decisive influence on the low grade of the port corporation. Thus, it appears that improvement and supplementation of key business indicators of port construction are urgently needed in the management evaluation system, which can be properly controlled.

• Journal of Navigation and Port Research
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• v.40 no.6
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• pp.451-458
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• 2016

Since Modigliani and Miller developed their theory of capital structure in 1958, it has become one of the most debated issues in corporate management. This is because the capital structure decision necessarily affects financial risk and the firm's value. Throughout the research, one of the most concerning problems is determining what factors influence the firm's capital structure. Since Korean shipping firms have been suffering from a long term economic recession, an optimal capital structure has become increasingly critical to survive in the shipping industry. This paper studies panel data on 46 Korean shipping companies since 2000 to find the factors that affect capital structure. The results suggest that a negative relationship arises between firm size, tangible assets, profitability and non-debt tax shields against leverage. Otherwise, it proved that growth opportunity has a positive relationship with the firm's leverage. In the research model during a booming shipping economy, growth opportunity and non-debt tax shield are not associated with firm's capital structure.

• Journal of Navigation and Port Research
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• v.39 no.6
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• pp.545-552
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• 2015

This study One of the key elements of corporate competitiveness in the modern world of unlimited competition is human resource management. The reason that the world's leading companies are devoting a lot of investment and effort for good human resource development and management is that human resource can impact firm survival. In particular, there is little research on the internal and external environmental stimuli and job stress in the employee of small business which are often led to turnover, while they have suffered from chronic shortage of manpower. The purpose of this study is to determine the turnover factors in the small logistics companies and contribute to stable maintenance of workforce, facilitating human resource management and minimizing turnover. This study empirically analyzed the factors of the turnover in the organization of logistics companies from Busan Port, South Korea, which became one of the national infrastructure and the fifth world largest harbor. The conclusion proposed the development and direction of the human resource management which could promote the job environment improving the turnover factors and creating sustainable work condition through conducting preventive measures. The results indicated that the highest turnover rates was found in the category of field work, and the highest turnover group was from the 'less than one year', which implies that high turnover rates after and during job training might be greater cost to the companies than early turnover. The most common reasons for the high employee turnover were 'excessive workload' and 'dissatisfaction with wages'. Followed reasons including 'troubles with managers' and 'failure in organizational adaptation' can be understood in line with worse working conditions of the small logistic companies. It turned out that the preventive programs of the logistic enterprises had little effect through 'incentives system' and 'improving wage system' which are mainly conducted. The human resource managers appreciated the importance of 'wage raise' and 'benefits improvement'. This study is aimed at contributing to efficient human resource management through understanding of the turnover causes and human resource managers applying preventive measures. In particular, this can benefit small port logistics companies securing competitiveness and promoting persistent growth and development.

• Proceedings of the Korea Port Economic Association Conference
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• 2006.08a
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• pp.277-290
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• 2006

A shipping operation broadly breaks down into: the acquisition of the ship, securing income from the ships, operating the ships, and running the business. For all ships these functions have to be performed. But most important thing is whether it is a better option for some or all these activities to be undertaken by a third party manager rather than resource them in-house or not. However, the size of ship management market has been increasing continuously over the last decades to achieve cost-savings. The ship management is considered as creating high added value and contributing to national economic growth. This paper will analyzes development trends of ship management and market, and carry out comparative studies with Korean ship management companies and an empirical studies on selection criteria of ship management firms. In doing so, some implications and alternatives will be suggested in order for Korean ship management companies to create high added value and gain international competitive edge.

• Journal of Distribution Science
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• v.11 no.6
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• pp.31-40
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• 2013

Purpose - The Northeast Asian Logistic Hub strategy was established to create a national competitive advantage in northeast Asia. Countries in this region are competing fiercely to become the central base distribution port as the volume of container shipping continues to increase due to the northeast Asian (especially Chinese) economic growth. The primary method by which shippers are improving their customer service and distribution is enhancing profits by minimizing call ports on the key route through strategic affiliations and the use of large vessels. Each nation is planning large-scale investments in the construction of sea ports that can accommodate large vessels. This paper proposes ways by which the logistical strategies of domestic corporations can keep pace with changes in government policy concerning the Northeast Asian Business Hub policy. It examines the logistics system in the Northeast Asian region, analyzes the government's Northeast Asian Business Hub policy, and suggests logistical strategies for domestic corporations through an analysis based on a questionnaire designed to grasp domestic firms' needs and goals. Research design, data and methodology - The purpose of this study is to determine how shipping companies establish partnerships with third-party logistics providers and draws out the implications of the results. The survey methods used were personal interviews and questionnaires distributed to a sample population through e-mail, fax, mail, and telephone. A total of 600 questionnaires were distributed, of which 165 were returned. Among these, ten were excluded due to insufficient content; ultimately, 155 were used for the sample. The statistical data collection process was analyzed through data coating and a statistical package program. Results - This study argues that greater flexibility in policies, administration, and systems will be needed to significantly improve established business practices. In this dissertation, we primarily identify that in order to become a center of northeast Asian logistics, Korea must adopt a new paradigm and abandon the existing systems that are based on the economic and social systems that have stemmed from bureaucracy, inflexibility, chauvinism, and equalitarianism. Flexible policies, administration, and systems will be necessary to improve business practices. Domestic corporations must establish a strategic logistics hub and related network while simultaneously pursuing value-added logistics businesses by increasing their manpower and building a logistics information system. This will strengthen their competitive edge and lead to system improvements. Conclusions - Domestic corporations must adopt a new paradigm and use more reasonable business laws, systems, and policies that are based on market-driven flexibility and transparency. Moreover, social norms and regulations should be established to help ensure political and social security. Korea must also develop a culture of tolerance for foreign companies. Finally, the paradigm defining the policy governing the development of the capital city and its satellite cities in this context must be changed.

• Journal of Korea Port Economic Association
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• v.24 no.2
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• pp.43-69
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• 2008

The labor contract Law has been prepared as an important solution for social stability. After long disputes around the orientations of the law, On June 29, 2007, the new Chinese labor contract law is passed. This law reflects the changing labor relations because of economic reforms like restructuring of the state-owned enterprises and so on. This law contains more market-oriented clauses that are supplemented by corporatist scheme supported by trade unions than the first draft. This law emphasize labor's rights and interests to remove prior labor contract problem. So Chines government see this law as standard law to restructure social relationship and also require firms to corporate social responsibility. Therefore, implementation of the new Chinese labor contract law bring about increasing labor cost, infringement of autonomy for human resource management, rigidity of industrial relations. Under these situation, Korean shipping and port logistics companies need to introduce management system of minimized employment, prepare human resource management in response to long-term employment, maintain favor relationship with trade union, and set up counteiplan about risk of a labor dispute.