• Asia-Pacific Journal of Business
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• v.14 no.3
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• pp.167-186
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• 2023

Purpose - The purpose of this study is to empirically investigate whether the auditor accreditation system for IPO firms improves the efficiency of the KOSDAQ IPO market. To verify the effectiveness of the auditor designation system, we time series compare four measures of IPO firms (earnings management, long-term stock performance, change in operating performance, and possibility of delisting). Design/methodology/approach - We test the hypothesis through event research method and regression analysis. Specifically, the dependent variables of the regression model are discretionary accruals in the year of IPO, 36-month holding period excess return after IPO, change in operating performance for 3 years after IPO, and dummy variable for delisting. And the explanatory variable is a dummy variable that separates the period before and after the implementation of the auditor designation system. Findings - We find that earnings management and delisting risks decreased more in the period after the implementation of the auditor accreditation system than in the previous period. In addition, we find that long-term stock performance and operating performance after IPO increase further after the implementation of the auditor accreditation system. Research implications or Originality - Overall, the results of this study suggest that the implementation of the auditor accreditation system for IPO firms contributes to improving market efficiency in the KOSDAQ market, where information asymmetry is high. Our study differs from previous studies in that it demonstrates the effectiveness of the auditor designation system using various measures.

• Journal of Korea Trade
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• v.27 no.1
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• pp.139-158
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• 2023

Purpose - The study of co-movements between stock markets is a crucial area of finance and has recently received much interest in a variety of studies, especially in international finance. Stock market co-movements are a major phenomenon in financial markets, but they are not necessarily independent of the real market. Several studies support the idea that bilateral trade linkages significantly impact stock market correlations. Motivated by this perspective, this study investigates whether real market integration due to trade agreements brings about financial market integration in terms of stock market co-movement. Design/methodology - Over the 10 free trade agreements (FTAs) signed by the United States, using a dynamic conditional correlations (DCC) multivariate GARCH (MGRACH) model, we empirically measure the degree of integration by finding DCCs between the US market and the partner country's market. We then track how these correlations evolve over time and compare the results before and after trade agreements. Findings - According to the empirical results, there are positive return spillover effects from the US market to eight counterpart equity markets, except Jordan, Morocco, and Singapore. Especially Mexico, Canada, and Chile have large return spillover effects at the 1% significance level. All partner countries of FTAs generally have positive correlations with the US over the entire period, but the size and variance are somewhat different by country. Meanwhile, not all countries that signed trade agreements with the United States showed the same pattern of stock market co-movement after the agreement. Korea, Mexico, Chile, Colombia, Peru, and Singapore show increasing DCC patterns after trade agreements with the US. However, Canada, Australia, Bahrain, Jordan, and Morocco do not show different patterns before and after trade agreements in DCCs. These countries generally have the characteristic of relatively lower or higher co-movements in stock markets with the US before the signing of the FTAs. Originality/value - To our knowledge, few studies have directly examined the linkages between trade agreements and stock markets. Our approach is novel as it considers the problem of conditional heteroscedasticity and visualizes the change of correlations with time variations. Moreover, analyzing several trade agreements based on the United States enables the results of cross-country pairs to be compared. Hence, this study provides information on the degree of stock market integration with countries with which the United States has trade agreements, while simultaneously allowing us to track whether there have been changes in stock market integration patterns before and after trade agreements.

• Journal of Korean Society of Forest Science
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• v.96 no.6
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• pp.644-651
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• 2007

This study compared and estimated the changes in carbon stocks and emissions of harvested wood products (HWP) by applying FAO statistics and domestic statistics for Korean HWP production, import, and export volume, which is almost always supposed to be included in the carbon emissions and removals inventory by country in negotiations since the 2nd commitment period (2013~2017) of the Kyoto Protocol, for assessing the changes in carbon stocks and emissions of HWP. As a result, when applying FAO statistics to the changes in carbon stocks of HWP as of 2005, stock-change approach (SCA) was estimated at 1.434 Tg C, atmospheric-flow approach (AFA) -1.330 Tg C, and production approach (PA) 0.597 Tg C. When applying Korean statistics, SCA was estimated at 1.246 Tg C, AFA -11.520 Tg C, and PA 0.444 Tg C. When applying FAO statistics to $CO_2$ emissions and removals from HWP, SCA showed a decrease of $-5,258Gg\;CO_2$ (removals), AFA showed an increase of $4,877Gg\;CO_2$ (emissions), and PA showed a decrease of $-2,189Gg\;CO_2$ (removals). When applying Korean statistics, SCA showed a decrease of $-4,569Gg\;CO_2$ (removals), AFA showed an increase of $5,573Gg\;CO_2$ (emissions), and PA showed a decrease of $-1,628Gg\;CO_2$, (removals). Therefore, the application of FAO statistics was shown to be more beneficial for the estimation of both the changes in carbon stocks and emissions of HWP by all methods other than that of Korean statistics.

• Environmental and Resource Economics Review
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• v.30 no.4
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• pp.581-605
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• 2021

The purpose of this study is to provide basic data for improving energy efficiency by estimating the regional energy efficiency in Korea using the stochastic frontier approach beyond the energy intensity that has been traditionally used as an indicator of energy efficiency. In this paper, energy efficiency and energy intensity efficiency were estimated as a stochastic distance function from 1998 to 2018 for 16 cities and provinces in Korea. In addition, the robustness of energy efficiency according to the capital stock estimation methods which had been mixed in previous studies was reviewed. As a result of the analysis, there is a significant change in regional rankings according to the three energy efficiency indicators, so they should be used complementary to each other. Second, while the energy efficiency improved little by little over time, the energy intensity efficiency decreased slightly though. Lastly, energy efficiency by region according to the capital stock estimation method was not robust. Care must be taken in estimating capital stock, which is important in economic analysis.

• Journal of Climate Change Research
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• v.8 no.4
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• pp.369-375
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• 2017

In this study, it was intended to compare the two methodologies for forest management project through extension of rotation age: Korean Forest Carbon Offset Standard (KFOS) and Verified Carbon Standard (VCS). The amount of carbon removals and offset credits based on the two methodologies and their trends were analyzed in this study. The major difference between two methodologies were found at the process of estimation of baseline carbon removals. For instance, average carbon stock during the project period was used for estimation of baseline carbon removals in KFOS, while average carbon stock change during the 100 years was used in VCS. Due to the different approach for estimation of baseline carbon removal, the estimated offset credits were also different according to the two methodologies. In this study, 15 project scenarios were considered for comparison of two methodologies : 5 major coniferous stands in Korea (Pinus densiflora in Gangwon region, Pinus densiflora in Central region, Pinus koraiensis, Larix leptolepis, Chamaecyparis obtusa) with 3 project periods (30, 35, 40 years). The results showed that estimated carbon offset credits based on the KFOS methodology were higher for all 15 scenarios compared to those based on the VCS methodology. The KFOS showed a steep decline in the annual offset credit as project period gets longer, thus it is not desirable for projects with longer period. VCS is more acceptable for longer projects with a small difference according to the project periods. The results also indicated that Pinus densiflora in Gangwon, Pinus koraiensis, and Larix leptolepis are more desirable species for forest management project through the extension of ration age.

• Journal of the Korean Operations Research and Management Science Society
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• v.38 no.4
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• pp.11-33
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• 2013

We analyzed the structures and properties of the global financial market networks using social network analysis approach. The Minimum Spanning Tree (MST) lengths and networks of the global financial markets based on the correlation coefficients have been analyzed. Firstly, similar to the previous studies on the global stock indices using MST length, the diversification effects in the global multi-asset portfolio can disappear during the crisis as the correlations among the asset class and within the asset class increase due to the system risks. Second, through the network visualization, we found the clustering of the asset class in the global financial markets network, which confirms the possible diversification effect in the global multi-asset portfolio. Meanwhile, we found the changes in the structure of the network during the crisis. For the last one, in terms of the degree centrality, the stock indices were the most influential to other assets in the global financial markets network, while in terms of the betweenness centrality, Gold, Silver and AUD. In the practical perspective, we propose the methods such as MST length and network visualization to monitor the change of the correlation risk for the risk management of the multi-asset portfolio.

• Environmental and Resource Economics Review
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• v.12 no.2
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• pp.299-325
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• 2003

This study uses Conrad's model(nominal fishing effort) of a fishery to analyze theoretically the effects of cost changes on fishing effort, harvest level, and stock size. Static and dynamic open access effects are also modeled present value maximizing scenarios through simulations, and compared an extended model, Cunningham's model(diminishing fishing effort). Results show that an increase in the unit cost of effort goes up the fish stock in static open access, but open access dynamics shows the exhaustion of fish stock as the unit cost of effort decreases. In conclusion, we can derive the optimal equilibrium of resource, given conditions and parameters, as well as utilize this comparative statics to efficient fishery management.

• Journal of Digital Convergence
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• v.19 no.5
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• pp.241-247
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• 2021

This study analyzed the changes in explanatory power of the modified Jones model(1995) for estimating the amount of accruals for Korean Stock Market listed companies from 1990 to 2019. We hypothesized that if the properties of financial variables used in the existing model change over time or change in discretionary ratios, the model's explanatory power will change. As the result of regression models, I found that the explanatory power of the modified Jones model(1995) gradually declined over time. The results may be derived from the increase in accruals itself and the changes in the distribution of variables contained in the model. The results of this research's chronological approach are expected to give important implications to both academic researchers and accounting information users.

• Asia-Pacific Journal of Business
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• v.12 no.3
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• pp.193-212
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• 2021

Purpose - This study investigates the effect of auditor change on client firm's accounting (financial statement) comparability. Design/methodology/approach - The comparability of accounting information is measured by the difference in accruals between the two firms. Additionally, the study uses earnings-stock return relationship as another proxy of accounting comparability. In particular, the paper examines whether there is a systematic difference between initial audit years and the other years with respect to the client firm's accounting comparability. Moreover, current study tests how changes in auditor size or industry expertise before and after the switch of auditors affect the accounting comparability. Findings - The results show that the level of accounting comparability is lower in the year of auditor change than in the other years. Furthermore, this lower level of comparability is derived by the observations that switch their auditors from non-Big4 to non-Big4 or from non-specialist to non-specialist. These results are consistent when accounting comparability is measured by different proxies. Research implications or Originality - The findings of this study provide important policy implications for the regulations related with auditor selection.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2004.05a
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• pp.441-445
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• 2004

In this paper, we deal with an inventory model of a multi-stage, serial supply chain system where a single product type and nonstationary customer demand pattern are considered. The retailer and suppliers place their orders according to an echelon-stock based replenishment control policy. We assume that the suppliers can access online information on the demand history and use this information when making their replenishment decisions. Using a reinforcement learning technique, the inventory control parameters are designed to adaptively change as the customer demand pattern is altered, in order to maintain a given target service level. Through a simulation based experiment, we verified that our approach is good for maintaining the target service level.