An Exploration of Dynamic Relationships between Macroeconomic Variables and Stock Prices in Korea Revisited

LEE, Jung Wan,BRAHMASRENE, Tantatape Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.10

The paper revisits the author's previous paper to examine short-run and long-run dynamic relationships between macroeconomic variables and stock prices in Korea. The data is updated to the period for which monthly data are available from January 1986 to June 2018 (390 observations) retrieved from the Bank of Korea. The results of Johansen cointegration test indicate that at least one cointegrating equation exists, confirming there is a long-run equilibrium relationship between macroeconomic variables and stock prices in Korea. The results of vector error correction estimates confirm that: 1) the coefficient of the error correction term is significant with a negative sign, which is, a long-run dynamic relationship is observed between macroeconomic variables and stock prices; 2) for short-run dynamics, the nominal exchange rate of the Korean won per the US dollar is positively related to stock prices, while interest rates are negatively related to stock prices in the short-run; 3) the coefficient of global financial crises is insignificant, that is, the changes of stock prices are determined largely by their own dynamics in the model. The results suggest only that the global financial crises neither cause instability in the cointegrating vector, nor affect significant changes in the endogenous variables in the model.

Challenges to the Export-Led Growth Strategy in the Digital and Global Era: An Empirical Investigation of South Korea's Experience

LEE, Jung Wan Korea Distribution Science Association 2022 The Journal of Asian Finance, Economics and Busine Vol.9 No.6

This paper examines South Korea's past developmental experience and its current strategy and policy initiatives to overcome global and domestic challenges and sustain economic growth in the twenty-first century, the digital and global era, to explain how the country became a high-income economy. The findings of this research highlight the following three factors: First, the most significant factor in rapid industrialization was the adoption of an outward-looking strategy, with the help of a highly skilled workforce and the development of high-tech manufacturing and services sectors, which was supported by the government plans. Second, the high R&D intensity helped South Korea become a global leader in information and communication technologies, which has emerged from a top-down innovation system that promotes close collaboration between government, industry, and the academic community. Third, according to the recently released Global Entrepreneurship Index, South Korea tops the region in entrepreneurship environment. Among the list of criteria, South Korea dominates in the ease of starting a business and enforcing contracts. They all play a significant role in encouraging investment, production, communication, and, eventually, economic growth. Finally, this paper suggests forward-looking developments promoting transformation and diversification into high-tech manufacturing and digital and green technologies.

Macro and Non-macro Determinants of Korean Tourism Stock Performance: A Quantile Regression Approach

JEON, Ji-Hong Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.3

The study aims to investigate a close relation between macro and non-macro variables on stock performance of tourism companies in Korea. The sample used in this study includes monthly data from January 2001 to December 2018. The stock price index of the tourism companies as a dependent variable are obtained from Sejoong, HanaTour, and RedcapTour as three leading Korean tourism companies that have been listed on the Korea Stock Exchange. This study assesses the tourism stock performance using the quantile regression approach. This study also investigates whether global crisis events as the Iraq War and the global financial crisis as non-macro variables have a significant effect on the stock performance of tourism companies in Korea. The results show that the oil prices, exchange rate and industrial production have negative coefficients on stock prices of tourism companies, while the effects of tourist expenditure and consumer price index are positive and significant. We estimate the result of quantile regression that non-macro determinants have statistically a significant and negative effect on tourism stock performance because the global crisis could threaten traveler's safety and economy. Overall, empirical results suggest that the effects of macro and non-macro variables are statistically asymmetric and highly related to tourism stock performance.

The Effects of Widening Daily Stock Price Limits on the Relevance between Audit Quality and Stock Return

JI, Sang-Hyun,YOON, Ki-Chang Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.4

The study investigates the effect of the widened daily stock price limits on the usefulness of accounting information in Korea: 1) whether investors place a higher importance on audit quality, an indicator of the reliability of accounting information, and 2) whether there are differences in the relationships between audit quality and stock-price earning-rates two years before and after June 15, 2016. This study employs samples of two years (2013 to 2015) before the widening and two years after the widening (2016 to 2017). The samples are limited to the companies listed on the Korea Stock Exchange, accounting settled in December, collected from Fn-Guide and TS-2000 of the Korea Listed Companies Association. The results show that the positive association between audit quality and stock return was increased during the later period, compared to the preceding period. This tendency was more evident in companies with higher debt ratios and companies with lower levels of income smoothing, which is considered to have higher risks. The findings suggest that it is the first study evaluating the effect of widening daily stock price limits, made on June 15, 2015, on the usefulness of audit quality information by examining the relevance between audit quality and stock return.

E-commerce Adoption in Distribution: An Empirical Study on Household Businesses in Food and Beverage Industry

NGUYEN, Xuan Truong,NGUYEN, Thai Ha,DANG, Huynh Phuong,PHAM, Thi Lan Phuong,BUI, Thi Thanh,TRAN, Nhat Minh,HUYNH, Tri An,NGUYEN, Nam Phong Korea Distribution Science Association 2022 유통과학연구 Vol.20 No.2

Purpose: This study aims to identify factors affecting the adoption of e-commerce by household businesses in Vietnam's food and beverage industry. Research design, data and methodology: The integrated TAM and TOE frameworks and ten hypotheses were developed to test the relationship between relevant factors. A cross-sectional survey was conducted to collect valid data from 992 respondents who run F&B household businesses in Vietnam. Results: The empirical research results confirm all proposed hypotheses that e-commerce adoption is affected by the perceived usefulness, the perceived ease of use, vendor support partners, social expectancy, competitive pressure, subjective norm, and household resources. Meanwhile, technical readiness, environment readiness, and organization readiness are intermediate variables that influence the implementation of e-commerce in food and beverage distribution. Conclusions: The findings suggest effective orientations to foster the food and beverage e-trading practice for household businesses in developing countries. Accordingly, to encourage private household businesses to adopt e-commerce, it is necessary to focus on improving business resources, technology readiness, environment readiness, and organization readiness through raising awareness of usefulness, benefits, perceived ease of use, and increased support of vendor partners. Future research can focus on improving the efficiency of e-commerce applications in F&B distribution for both household businesses and larger-scale enterprises.

The Smart City Evolution in South Korea: Findings from Big Data Analytics

CHOI, Choongik,CHOI, Junho,KIM, Chulmin,LEE, Dongkwan Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.1

With the recent global urban issues such as climate change, urbanization, and energy problems, the smart city was proposed as one of the solutions in urban planning. This study introduces the smart city initiatives of South Korea by examining the recent history of smart city policies and their limitations. This case study reflects the experience of one of the countries which thrived to building smart cities as their national key industries to drive economic growth. It also analyzes the trends of the smart city using big data analysis techniques. Although there are obstacles such as economic recession, failing to differentiate from the U-city, low service level than expected smart functionality, We could recognize the current status of the smart city policies in South Korea such as 1) Korean smart city development projects are actively implemented, 2) public consensus suggests that applying advanced technology and the active role of government need, 3) a comprehensive and strategic approach with the integration and application of advanced technologies is required as well, 4) investment by both private and public sectors need to deliver social improvements. This study suggests future direction of smart city polity in South Korea in the conclusion.

Marketer Generated Content on Social Media: How to Support Corporate Online Distribution

ZHONG, Xin,YAN, Jinzhe Korea Distribution Science Association 2022 유통과학연구 Vol.20 No.3

Purpose: More and more marketers use social media platforms to create and spread information called Marketer Generated Content (MGC) to inform consumers of products. MGC often embeds product purchase links, thus directing consumers to online distribution channels for online purchases. This study examined the effect of social media MGC on consumers' willingness to buy online in the anchor of consumers' perspective to answer the question of "how social media generated content support corporate online distribution". Research design, data, and methodology: According to the means-end-chain theory, we introduce perceived value and continuous following intention as chain mediators to explain the mechanism of MGC influence on consumers' online purchase intention and consider product type to discuss boundary conditions. Two experiments were designed to test hypothesizes. Results and Conclusion: First, emotional MGC (vs. informational MGC) has lower (higher) perceived utility (hedonic) value. Second, perceived value has a significant mediate role in the effect of MGC on continuous following intention. Third, perceived value and continuous following intention significantly and sequentially mediated the effect of MGC on online purchase intention. Through the sequential mediations of perceived utility value and continuous following intention, Informational MGC of search products significantly increase online purchase intentions. Another parallel sequential mediation, including perceived hedonic, emotional MGC of experience products, partially enhanced online purchase intentions. Finally, this study gives implications for how corporates can use social media MGC to promote product sales online.

Buying Korean Products through Overseas Direct Purchase as a Distribution Means in China

LEE, Jong-Ho,KIM, Hwa-Kyung Korea Distribution Science Association 2021 유통과학연구 Vol.19 No.2

Purpose: This study focuses on the buying Korean products by Chinese consumers through overseas direct purchase as a distribution means (tool) because they are interested in Korean products because of their excellence. Major variables are national brand, curiosity, price, product quality. Research design, data, and methodology: To make effective analysis, several tools and programs for analysis are used with SPSS Statistics ver. 23.0 and AMOS 23.0. Results: National brand, price, product quality have affirmative impacts on satisfaction and repurchase through overseas direct purchase. But curiosity does not have. Among them the most important variable is product quality. This is the same as Chinese consumers think product quality is the most valuable one when buying Korean products through overseas direct purchase. Next one is price. The last one is a national brand. Conclusions: Among the variables of overseas direct purchase, product quality has the biggest impact on satisfaction and repurchase positively. This means that many Chinese consumers are interested in product quality manufactured in Korea. Also Korean product quality is better than that of China until now. Korean companies should, strongly and continuously, have to improve the quality of Korean products because China focuses on product quality in the distribution process in the national base.

Analysis of Educational Services Distribution: The Case of Kazakhstan

KIREYEVA, Anel A.,SABDENALIYEV, Bakhtiyar,DOSZHAN, Raigul,KREDINA, Anna A.,YERMEKBAYEVA, Dinara Korea Distribution Science Association 2022 유통과학연구 Vol.20 No.11

Purpose: This research aims to analyze the educational potential and students' satisfaction with the quality of education services distribution in Kazakhstani universities. The conceptual review shows that very few studies on regional development have been able to determine the level of satisfaction with the quality of educational services depending on the university's location. Research design, data, and methodology: The research methodology is divided into two approaches descriptive analysis and qualitative data analysis. The current educational situation and the distribution of educational services in the largest Kazakh universities were studied based on the proposed approaches' use. Statistical data are taken for indicators of educational potential for 2010-2020 from the Bureau of National Statistics. The primary data were collected based on a survey for 2021-2022 in five regions of Kazakhstan. Results: The results showed that there is a gender gap between men and women and regional disparities between the regions of Kazakhstan in the coverage of higher education. The results of the sociological survey revealed that the quality of educational services depends on the territorial location of the university. Conclusions: Based on the results of the assessment of educational potential and educational services, policy recommendations and further research in this area were proposed.

The Spatial Distribution of Elderly Welfare Service in South Korea

PARK, Yoonhwan,LIM, Hyunchul Korea Distribution Science Association 2022 유통과학연구 Vol.20 No.3

Purpose: This study aims to not only measure the elderly welfare supply index but investigate spatial patterns and determinants of local elderly welfare services in South Korea. Research design, data, and methodology: The index for local elderly welfare services is measured by employing standardized scores for critical variables related to elderly welfare. The present study utilized the GIS technique and Moran's I index to examine spatial patterns of elderly welfare services. The determinants of local elderly welfare service are analyzed by a series of regression models using R. Results: Spatial imbalance and asymmetric distribution were serious in the supply of elderly welfare service. It was also confirmed that the factors affecting the level of welfare services for the elderly vary depending on the type of service. In particular, the higher the proportion of the elderly population and the social welfare budget, the lower the level of welfare services for the elderly. Conclusions: Given the circumstance of spatial mismatch between supply and demand for elderly welfare services, it is necessary to consider and provide policy tactics about how the economic benefits and welfare budgets generated in the region can contribute to strengthening the welfare service system for the elderly.