• Management & Information Systems Review
• /
• v.36 no.4
• /
• pp.21-32
• /
• 2017

Motivated by the recent cases of negligent social responsibility as manifested by foreign luxury fashion brands in Korea, this study investigates whether agency costs depend on the sustainability of different types of corporate governance. Agency costs refer either to vertical costs arising from the relationship between stockholders and managers, or to horizontal costs associated with the potential conflicts between majority and minority stockholders. The firms with luxury fashion brand could spend large sums of money on maintenance of magnificent brand image, thereby increasing the agency cost. On the contrary, the firms may hold down wasteful spending to report a gaudily financial achievement. This results in mitigation of the agency cost. Agency costs are measured by the value of the principal component. First, three ratios are constructed: asset turnover, operating expense to sales, and earnings before interest, tax, and depreciation. Then, the scores of each of these ratios for individual firms in the sample are differenced from the ratios for the benchmark firm of S-OIL. S-OIL was designated as the best superior governance model firm for 2013 by CGS. We perform regression analysis of each agency cost index, luxury fashion brand dummy and a set of control variables. The regression results indicate that the agency costs of the firms with luxury fashion brand exceed those of control group in the fashion industry in the part of operating expenses, but the agency cost falls short of those of control group in the part of EBITD, thus the aggregate agency costs are not differential of those of the control group. In sensitivity test, the results are same that the agency cost of the firms are higher than those of the matching control group with PSM(propensity matching method). These results are corroborated by an additional analysis comparing the group of the companies with the best brands with the control group. The results raise doubts about the effectiveness of management of the firms with luxury fashion brand. This study has a limitation that the research has performed only for 2013 and this paper suggests that there is room for improvement in the current research methodology.

• Journal of the Korean Society of Marine Environment & Safety
• /
• v.14 no.2
• /
• pp.135-143
• /
• 2008

An emergy concept was used to evaluate the environment and economy of the estuarine areas of Yeongsan River, Seomjin River, and Han River in Korea. The emergy evaluations clearly showed ecological and socioeconomic characteristics of the estuarine areas that act as ecological and economic centers of surrounding areas. River, tide, and rain provided most of the renewable emergy inputs to the estuarine areas with their contribution to the total emergy input less than 8%. The estuarine areas mostly relied for their operation on the purchased emergy which accounted for $92{\sim}98%$ of the total emergy input to the systems. Emergy indices such as emergy use per unit area, population carrying capacity, environmental loading ratio, and emergy sustainability index revealed that the estuarine areas of Yeongsan River, Seomjin River, and Han River are not sustainable at the current level of economic activities in the areas. The ecological economic values of the environment of the areas were in the range of $7.29{\sim}22.06$ million Em\/ha/yr. They are more than twice that for the whole country, indicating the ecological and economic importance of the eatuarine areas. It is, therefore, urgent to establish and implement estuarine management policies to protect and restore the ecological and economic potentials of the estuarine areas of Yeongsan River, Seomjin River, and Han River. Management plans for the estuarine areas should include both demand-side measures such as reduction of population and economic concentration and consideration of ecological carrying capacity in planning stages for utilization and development of the areas, and supply-side ones such as restoration of degraded ecosystems and construction of new productive ecosystems.

• Journal of International Area Studies (JIAS)
• /
• v.14 no.2
• /
• pp.499-524
• /
• 2010

The purpose of this study is to based on review of theoretical and empirical studies to assess the independence of central banks - the former Socialist republics, including the Russian Federation and Czech, Poland. In addition, the work is expected to clarify whether a link exists between independence and the most important economic indicators such as inflation, economic activity, the budget deficit. And The subject of this study are the formal and actual independence of national banks, as well as limiting factors: political and economic. Background investigation of the problem of independence of central banks from the fact that, according to many economists, it is essential to the successful development of a market economy. The effectiveness of any country's economy due to currency volatility, low inflation, high reliability of the banking system, etc. As far as the independence of monetary regulation contributes to these goals - one of the most actively debated issues in the world of economic theory and practice for a long time. The issue of central bank independence is extremely important for Russia, Czech, Poland. In the near future to the central bank has important tasks, among which are the transition to inflation targeting in the rejection of significant intervention in the foreign exchange market, as well as improving the sustainability of the national banking system. Transparency and independence of the Bank of Russia, Czech Republic, Poland, in my view, should be an important factor in achieving these goals. The countries of Czech Republic, Poland have already made a number of steps to bring the status of their banks to the European standards. Many other developing countries are also in the process of reforming their central banks and the improving conditions of their functioning. However, despite the fact that as a model for reform used by the central banks of countries with developed market economies, central banks in developing countries are still yet deprived of the legal, economic and political independence. A different situation exists in transition space. Because of significant differences in the views of the authorities in transition republics at the necessary level of independence of central banks and the exchange rate and monetary policy reform of monetary management in these countries led to different results.