• Journal of Distribution Science
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• v.13 no.9
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• pp.95-101
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• 2015

Purpose - This study provides evidence of the impact of the mandatory adoption of Korean equivalents to International Financial Reporting Standards (K-IFRS) on accounting quality. K-IFRS uses fair value as a basis of measurement and is characterized by principle-based standards. These characteristics can lead to a decrease in conservatism. Therefore, this study aims to examine whether or not there is a change in the level of conservatism before and after the enforcement of K-IFRS (2007~2014). By comparing 2007 through 2008 and 2013 through 2014 (excluding 2009 to 2012), we test "the temporary adjustment phenomenon" and document an overall decline in the degree of conservatism after the adoption of K-IFRS. Research design, data, and methodology - Our sample is comprised of data of all listed Korea Composite Stock Price Index (KOSPI) manufacturing distribution companies in Korea from 2007 to 2014, which yields the pooled sample of 4,412 (panel A) and 1,915 (panel B) firm-year observations for hypotheses 1 and 2. In line with recent literature, we adopt the Givoly and Hayn (2000) model, which recomputes the non-operating accruals, excluding two components that are most likely to capture the effect of restructuring activities: special items and gains or losses from discontinued operations. In addition, we also use these variables: SIZE, LEV, INV_CYCLE, ROA, OWN, and FOR. Results - Our sample period spans 2007 to 2014. This offers evidence on the effect of the mandatory adoption of IFRS on conservatism. Our findings can be summarized as follows. First, in panel A, for mandatory K-IFRS adoption (2011), we do not find any significant evidence of conservatism. We can guess that the "temporary adjustment phenomenon" is the reason that we do not find significant evidence of conservatism. Second, we investigate panel B from 2009 to 2012. We document an overall decline in the degree of conservatism after the adoption of K-IFRS. We can assume that these results are due to "the temporary adjustment phenomenon." Conclusions - This study finds that conservatism significantly decreased after IFRS adoption. In particular, this study makes the initial effort to elucidate "the temporary adjustment phenomenon" to analyze the effect of K-IFRS on conservative accounting. We argue that K-IFRS are conceptually conservative but that inappropriate application of the conservatism principles is likely to prevent financial reporting from reaching the level of conservatism targeted by the IASB. Overall, this paper contributes to the literature on IFRS and can be useful to capital market supervisors who are monitoring the trends of the firms implementing K-IFRS. Additionally, our results inform stakeholders of the potentially negative effect of the greater flexibility permitted by IFRS and/or lack of appropriate enforcement on key dimensions of accounting quality. This has important implications for Korean regulators and standard setters as they review the cost and benefits of IFRS. Our study also sheds light on the importance of the institutional environment in achieving the targeted objectives for improving financial reporting quality.

• Fire Science and Engineering
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• v.29 no.3
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• pp.1-5
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• 2015

The productivity and demand of porous material has been increasing by development of industry and increasing income. In particular, the fire caused by using wood flour risks wood processing industry and stock farm. The heat transfer of wood flour is carried into the depth direction by effect of oxidizer around flame, flame sometimes is progressed as smoldering. In the case of progressing as combustion fire, identifying the location of fire is difficult, and it leads to failing fire aid fire fighting. Therefore potential cause is acted as raising additional damage. This paper conducts experiments of downward deep seated fire of natural convection conditions. The samples is New Zealand wood flour that is demanded much in the domestic and oversea market. In this experiment, temperature of deep seated side is measure by changing wood flour density in holder The densities used in experiment are 3%, 5%, 10%, 15%. As a result, the tendency of temperature inside decreases as wood flour density increases. But, in the case of density which is above $0.2140g/cm^3$, the phenomenon, decreasing temperature, is not shown. The result of measurement show that average flame spread speed of wood flour is 0.249 mm/min.

• Korean Journal of Soil Science and Fertilizer
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• v.24 no.3
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• pp.206-209
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• 1991

This paper was intented to find out the effect of graft of Paeonia moutan scion into Paeonia albiflora stock on the yield and the pharmaceutical components of the root-Paeoniflorin, Albiflorin, Oxypaeoniflorin and Paeonol. The roots of Paeonia albiflora(PA), Paeonia moutan(PM) and Paeonia albiflora grafted in Paeonia moutan (M/A), were collected after being cultivated for three years in Yoenki, Chungnam, Korea. The following results were obtained ; 1. The growth characteristics of the underground part of M/A were similar to those of PA. 2. The yield of M/A was 3-5 times as that of PA in appearance. 3. The amount of Paeoniflorin in M/A was 0.2-0.5% higher than that in PA. The content of paeonol in M/A was not increased by grafting of paeonia moutan with high concentration of paeonol.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.1 no.2
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• pp.157-192
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• 2006

Since the late 1990s, the Korean Venture Capital Industry has been remarkably grown in the aspect of quality and quantity. Korean government expects that the Venture company and Venture Capital Industry would contribute to the recovery of depressed Korean economy and restructuring of the high cost and low efficiency economic structure. Korean government reinforces supporting policies for the Venture Capital and Venture Business. Venture Capital is defined as the form of high risk and high profit investment capital growing the small & medium enterprises to competitive ones through capital and management support and collecting the capital. According to the Gompers and Lerners the venture capital cycle consists of raising investment capital, screening the investment opportunity and invest the money. And later, sold the retained stock to the other investor or to the company. This stage called EXIT Consequently, the function of the venture capital, which supply the fund and the business consultation to venture business, have been emphasized and how to effectively run this capital have been recognized as the way to develop the venture business. In this regard, the problem in Korean Venture Capital Market is as follows. First, most of the sources of fund depends on the government support and this conflict with the nature of risk capital because the government capital emphasis the stability than profitability. And secondly, the efficiency of the venture capital system in Korea do not reach that of the advanced countries due to many kinds of restriction and the rack of support. Consequently, the Activation Schemes for Korean Venture Capital Firms are as follows. First, the sources of venture capital need to diversify from angels to institutional investors such as banks, pensions, fund of fund. And Lastly, the internal management and operational system of venture capital companies should be strengthened by quality to that of global Venture Capital Firms.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.1
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• pp.133-144
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• 2017

This study investigates firm-specific financial variables that determine investment or speculative grades from the viewpoint of firms, which are one of the major stakeholders related to the credit rating. We employ an ordered probit model for our analysis with the sample data from 1999 to 2015 for listed firms in the Korean stock markets. For investment grades, operating margin, sales, market-to-book, dividend payment, capital expenditure ratio, and tangible asset ratio have a significantly positive impact on credit ratings. In the subsample for speculative grades, the coefficients of the dividend payment, retained earnings ratio, and capital expenditure ratio are significantly positive while short-term debt ratio and R&D expenditures have a significantly negative impact on credit ratings. For the analysis before and after 2009, when the Credit Information Use and Protection Act was strengthened after the global financial crisis, the coefficients of the capital expenditure ratio, cash ratio, and tangible asset ratio are significantly positive in the subsample for investment grades before 2009, but not significant after 2010. The coefficient of the long-term debt ratio is more significantly negative than that of the short-term debt ratio before 2009, for speculative grades, but short-term debt ratio has a more negative effect on ratings than long-term debt ratio after 2010. Surprisingly, the coefficient of the R&D expenditures is significantly negative in both investment and speculative grades since 2010. Our findings are inconsistent with the conjecture that the increase in R&D expenditures enhances the possibility of creating cash-flow by raising the investment growth opportunity, and thus affects positively the credit rating.

• The Journal of the Korea Contents Association
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• v.18 no.4
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• pp.444-453
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• 2018

The study addresses the analysis on the financial determinants of corporate research and development (R&D) expenditure in finance. Overall level of R&D spending was estimated as one of the top-tier on a global basis and a majority of the expenditure was invested by large domestic firms in private sector. Consequently, financial factors that influence R&D intensity were empirically tested in the first hypothesis by using conditional quantile regression model for firms listed in KOSPI stock market in the post-era of the global financial turmoil. Firms in the groups of high- and low-R&D intensity were statistically compared to detect financial differences in the second hypothesis which was accompanied by the test of multi-logit model that included firms without R&D outlay. Concerning the results of the hypothesis tests, R&D spending of the prior fiscal year, firm size, business risk and advertising expense overall showed statistically significant impacts to determine the level. As an extended study of [1] that had examined financial factors of R&D intensity at the macro-level, the results of the present study are anticipated to contribute to maximizing shareholders' wealth in advance or emerging capital markets, when applied to find an optimal level of R&D expenditure.

• Korean Journal of Fisheries and Aquatic Sciences
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• v.26 no.1
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• pp.41-48
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• 1993

Using the eight-year-working diaries($1984{\sim}1991$) of the fishing co-operative in Tonggui-ri, Cheju-do, as well as the records of consignment sale in the fish trust market as the corporate body in Aewol-up, the results have been analyzed as follows. 1. The monthly catch of Turbo cornutus was high from September through December, representing $58.2\%$ of the annual total catches. The maximum sustained yield(MSY) of this stock was estimated to be 2.5 tons. 2. The maximum sustained yields of Haliotis spp. and Sulculus sp. were estimated to be 800kg and 750kg, respectively. 3. The maximum sustained yields of Stichopus sp. and Octopus sp. were 500kg and 2, 500kg, respectively. 4. The total yield of Hizikia fusiforme has been decreasing a little and that of Gelidium sp. has been increasing. The total yield of Gelidium sp. in 1984 was about 5 times greater than that in 1990. 5. The daily catchability by divers have been high at thirties, and the individual mean working day of divers was 101 per year. 6. The consignment sale rates were $100\%$ each for Turbo cornutus, Hiziki fusiforme and Gelidium sp., $25.5\%$ and $61.1\%$ for Haliotis sp. and Stichopus sp. respectively, and $0\%$ each for Sulculus sp. and Octopus sp.

• Korean Journal of Soil Science and Fertilizer
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• v.29 no.1
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• pp.44-52
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• 1996

Humic substances of 17 organic fertilizers available on the market were the objects of study. The list of ingredients for formulation of them comprised fish meal. bone meal, oil-cakes, brewer's grains, peat, sawdust, wood bark, zeolite, soil conditioner, live-stock droppings, amino acid fermentation byproduct, chaff, limestone and others. Humic and fulvic acids were isolated from those substances and given chemical and spectroscopic analyses. Nutritional values of the organic fertilizers showed big diversity. Humification of organic matter was incomplete for some of the fertilizers as indicated by a high C/N ratio. Extractable humic acid percentage was higher, in general, than that of fulvic acid. Also the relative content of humin increased with advanced humification. Total acidity was closely related to phenolic hydroxyl groups. Relationships between carboxyl and hydroxyl groups. and carboxyl and alcoholic hydroxyl groups were very significant. Ultraviolet and visible light absorption spectra of humic and fulvic acids were substantially similar. The types of humic acids were B. P, and Rp. Two humic acids of the 17 samples belonged to B type. 3 to P type and all the rest to Rp type.

• Journal of Technology Innovation
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• v.25 no.4
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• pp.239-261
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• 2017

This paper analyzes how corporate product innovation affects firms' revenue and financial stability, and thereby draws the implications for the corporate strategy for sustainable growth. Corporate product innovation is defined as the development of new products within the firm, including bought-in products. Corporate revenue is measured by per capita sales and its growth rate, while financial stability is measured by debt-to-equity ratio and liquidity ratio. In the empirical analysis, the two-stage estimation method was used to control for the endogeneity of new product development. The data are drawn from the first (2005) to the sixth (2015) wave of the Human Capital Corporate Panel (HCCP) Survey, which are matched to the data from the Korea Investors Service (KIS). The results of the first-stage estimation indicate that product innovation of the firm is promoted by the firm's knowledge capital stock, human resources investment, and market-leading strategy. The second-stage estimation results indicate a positive relationship between the firm's level of activity in product innovation and short-term revenue (per capita sales and its growth), and financial stability (lower debt-to-equity ratio and higher liquidity ratio). These findings confirm that the firm's investment in technology innovation and subsequent product innovation are important strategies to enhance both short-term corporate revenue and long-term financial stability.

• Management & Information Systems Review
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• v.33 no.5
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• pp.71-84
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• 2014

We examine evidence on the relationship between firms that targeted by the Financial Supervisory Service for allegedly manipulating annual earnings and accounting quality measured by the discretionary accruals, an issue with important public policy implications. The main purpose of this paper is to empirically investigate the extent to which Korean WDS(Window Dressing Settlement) firms identified by the financial supervisory service in their audit review exhibit higher level of accounting quality in order to avoid any potential negative effects and to regain public confidence after audit review. In this study, we analyzed 51 WDS firms and 102 control firms which traded in the Korean Stock Exchange market during the period from 2000 to the 2010. The number of observations subject to various tests are 251 and 502 firm-years for WDS and control samples respectively across the 5 year sample period. The results of the study show that the accounting quality after auditor review be significantly improved. This result suggests that the FSS's audit review system would control the accounting quality and then improve the transparency of the accounting information. Thus it may be suggested that the current audit review system is efficient ways to lead listed firms to provide transparent financial statements.