In this paper, we analyze empirically the effects of financing surpluses and deficits on tests of the pecking order theory of firms listed on Korea Exchange. The main results of this study can be summarized as follows.
The original Shyam-Sunder and Myers (1999) test model is not a better descriptor of pecking order theory in the Korea capital market. Contrary to the pecking order theory, large firms follow more the pecking order theory than the smaller firms. From the pecking order perspective, this size anomaly is counter-intuitive as small firms have the highest potential for asymmetric information, which is the actual driver in the pecking order theory in the Myers and Majluf (1984). This size anomaly is also found by Fama and French (2002) who consider it a "deep wound" on the pecking order theory.
The estimated pecking order coefficient is lowest for small firms (0.159) as compared to middle firms (0.166) and large firms (0.313). The estimated pecking order coefficient is higher for surpluses firms (0.832) as compared to deficits firms (0.180). The estimated pecking order coefficient is lower for small deficits firms (0.201), more lower for middle deficits firms (0.129), and lowest firms have large financing deficits (0.008). The estimated pecking order coefficient is lower for financially constrained firm as compared to financially unconstrained firm, when financial constraints are measured by proxy variable such as credit scores.
In conclusion, these findings shed light on the size anomaly that small firms, although having the highest potential for asymmetric information, do not behave according to the pecking order theory. This paper provide a solution to this size anomaly by demonstrating that the frequencies of large deficits and financial constraints are higher in smaller firms. Because small firms have more large deficits and are more exposed to financial constraints, they are found to issue relatively more equity than large firms do.

The research investigates the effects of organizational capabilities and strategic network on business performance, with particular focus on the moderating effects of environmental dynamism. Building on previous literature on firm capabilities and network, research hypotheses are developed and tested using data collected from 197 small and medium-sized firms. Results show that two internal capabilities-R&D capability, production capability and learning capability-and one external capability-network size -are found to be significantly positive to business performance. It also finds that the environmental dynamism moderates the relationship between the two internal capabilities and the outcome. The findings imply that facing turbulent and dynamic business environment small and medium-sized firms need to pay greater attention to the enhancement of internal capabilities, though both of capability types help raise the performance. Implications, limitations and future research directions are presented.

In order to investigate the factors that affect the financing of small- and medium-sized venture companies in response to changes in the financial environment, this study was divided into two stages. The core suggestions identified by this study suggests are as follows :
First, in the first stage of our analysis of variance, factors, such as government policies, housing prices, loan limits, interest rates, bank liquidity and BIS ratio, were found to affect the financing of small-and medium-sized venture companies. Also, our perception gap analysis of different groups of stakeholders, employees and utives of small-and medium-sized venture companies, bank employees in charge of loans, financial housing consultants, and CEO business consultants showed a stronger group perception than employees in charge of credit guarantees. This is believed to have a positive effect on the funding of small-and medium-sized venture companies. The conservative approach of employees in charge of credit guarantees is the cause of their have a low perception.
Our empirical analysis of the second stage factors, in this case primary factors, showed that the housing financial environment accounted for 59.2% and the liquidity and BIS ratio of financial institutions accounted for 40.8%. Whilst there was a difference between the perceptions of the two groups, small-and medium-sized venture companies should establish financing plans by responding well to changes in bank liquidity, BIS ratio, government policies, and loan limits.
Such an analysis will contribute to the development of the relevant industries by providing a framework of academic theory and suggesting activation ways for the funding of small-and medium-sized venture companies.

Implementing innovation is one of the most critical factors that decide performance of ventures. However, innovation has diverse types, such as new product, improved product, product service, process, marketing, and organization types of innovation. This study examines their different impacts on venture survivals. Based on proposition that the risk associated with different types of innovation vary, this empirical research delves into survival data of 1,966 small and medium enterprises of 2005 Korean Innovation Survey. Exit of a firm can be also divided into several categories, and merger and aquisition type should be separately treated from dissolution type. Detailed categorization on both explanatory variables and dependent variable enabled the revelation of previously undiscovered aspects. New production innovation could jeopardize the life of small and medium enterprises but the survival of venture firms may be affected largely by marketing innovation rather than technological innovation. In addition, the analysis on the exit type of merge and acquisition reveals that process innovation accelerates merger and acquisition of small firms. This study adopts the advanced method, Cox hazard analysis with stepwise time varying covariates, to find out the diverse effects of innovations.

Unemployment and lower level of entrepreneurship after graduation is dominant challenges of our society. Transition of managerial economy to entrepreneurial economy is essential for creating new jobs and wealth of young generation. Government support for entrepreneurship is increasing but lacks policy framework and entrepreneur-centered perspective. We design a entrepreneurship support framework with actionable programs with inductive and entrepreneur-centered approach. Basically, we figure out the recent state of entrepreneurship and governmental services and provide a comprehensive policy framework. There are five areas of entrepreneurship support system (HEROS) : Habitat, Entrepreneur, Resource, Opportunity, and Supporting process. We collect a considerable dataset from students at a respectable university in Korea and young entrepreneurs to design entrepreneurship support system. The support programs are categorized by HEROS framework and entrepreneurial cycle : preparation, implementation, and settlement. There are some action plans that can be applied to whole cycle. HEROS system can be useful framework to comprehend the contribution of various action plans and encouage new support programs to be developed at each area and stage. We expect to contribute to entrepreneurs and policy makers for more systemic entrepreneurship support.