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A Study on Financial Performance of Socially Responsible Investing Fund Corporations
  • - Yoon Byung Seop (Dept. of Venture Business Seoul University of Venture and Information)
  • - Cha Jae Young (Dept. of Venture Business Seoul University of Venture and Information)
[Abstract]
From early 2003 through late 2010 this study ed and analyzed 71 domestically
operating (in South Korea) socially responsible investing (SRI) fund corporations
that satisfied the ion criteria for analysis. By comparatively analyzing the before-incorporation
and after-incorporation financial performances of these SRI fund corporations,
this study proved that these corporate entities performed relatively better financially
while being socially responsible albeit incurring costs for doing so-as compared to
their business performances when they were neglecting social responsibility-and were
viewed as superior investment targets by both institutional and individual investors. The
analysis results are as follows. First, it was discovered that the incorporation of SRI funds
has significant positive(+) effects on each of the two profitability characteristics of operating
profit margin and return on equity and on each of the two growth characteristics of revenue
growth and operating profit growth. Second, it was discovered that the bigger the scale of SRI
funds, the bigger the positive(+) significant effects exerted on the profitability characteristics of
operating profit margin and return on equity and on the growth characteristics of revenue
growth and operating profit growth. Third, the business performance did not show any significant
influence on the profitability characteristics of operating profit margin and return on
equity; however, it did show meaningful positive(+) effects on the growth characteristics of
revenue growth and operating profit growth. Fourth, the number of employees was found to
exert positive(+) influence on the profitability indicator of operating profit margin and on the
growth characteristics of revenue growth and operating profit growth. However, it did not show
exerting any significant influence on the profitability characteristic of return on equity.
An Analysis of the Determinants of Korea SMEs' Export
  • - Dong Yoon Oh (Korea Small Business Institute)
[Abstract]
This study was aimed to investigate the determinants of Korea SMEs' exports using gravity model with panel data from 1992 to 2010. The results of this study suggest that Korea SMEs' exports have made a long-term export structure by GDP, populations, tariff rate, exchange rate volatility, OECD membership of the export country and, geographical and cultural distance with the export country. Specifically, GDP, tariff, and distance with the export country were major determinants of Korea SMEs' exports. Moreover, the influence of cultural distance between Korea and the export country on Korea SMEs' export volume to the country is larger than the influence of exchange rate volatility and populations of the export country.
For cultivating of foreign markets and expansion of exports of Korea SMEs that are sensitive to trade costs, policy supports that have focused on trade costs are required. Also, it is necessary that abundant information with cultural factors of the export target markets is provided to comprehend of other countries' culture in that each country has the own character culture and forehandedly cope with the heterogeneity of the cultures.
A Study on Effects of Corporate Venture Capital on Building Up the Internal Corporate Venture¡¯s Export Competency
  • - Yoon Byung Seop (Dept. of Venture Business Seoul University of Venture and Information)
  • - Jeon Byung Moon (Dept. of Venture Business Seoul University of Venture and Information)
[Abstract]
This study analyzed the effects that corporate venture capital has on building up the internal corporate venture¡¯s export competency. Based on the study by Lipuma(2007), we analyzed to see whether Korea too as the U.S. can see a strong global relationship being maintained between the corporate venture capital invested by large corporations and the internal corporate ventures that receive capital and management support from corporate venture capital, and whether the corporate venture capital would exert positive influence on the strengthening of the internal corporate venture¡¯s building up export competency. During the 8-year analysis period from January 1, 2003 through December 31, 2010, 72 internal corporate ventures comprised of 23 publicly-traded companies that received investment from the corporate venture capital with which large corporations are involved and 49 privately-held companies were used as the study subjects and 72 independent venture capital investment companies were used as the corresponding subjects for the corporate venture capital. The study results are as follows. First, the internal corporate ventures supported by corporate venture capital were discovered to have discriminatory larger export shares than the venture companies supported by independent venture capital. Second, since it was found that the export share of internal corporate venture supported by reputable corporate venture capital is discriminatory larger than the export share of internal corporate venture supported by non-reputable corporate venture capital, it could be determined that reputable corporate venture capital exerts positive influence on the strengthening of the export share of internal corporate venture supported by reputable corporate venture capital. Third, it was discovered that the export share increased in accordance with the increasing number of rounds of investments by corporate venture capital on internal corporate venture.
Study on the Effects of Entrepreneurial Opportunity upon Entrepreneurial Activity and Growth Intentions: Opportunity Discovery vs. Opportunity Creation
  • - Dae Yong Chung (Entrepreneurship & Small Business major)
  • - Xi Zhan (Soongsil University)
[Abstract]
By taking the Chinese entrepreneurs as the research object, this paper studies how they discover business opportunity before the conduct of entrepreneurial activity, and how this would affect the following entrepreneurial activity and growth intention. In previous studies, the field of opportunity is divided into two major theories as opportunity discovery and opportunity creation. This paper also discusses which one is more practical for Chinese entrepreneurs in real circumstances.
Opportunity discovery theory defines opportunity as an objective existence waiting to be discovered, while opportunity creation theory argues that opportunity is created by various activities of the entrepreneurs. In this paper, the entrepreneurial activities under these two theories are studied, and the corresponding influences on the future business are discussed as well. According to the study result, the proposed hypothesis point is verified. It can be proved that although both the opportunity discovery and opportunity creation have positive impact on entrepreneurial activities and growth intension, opportunity creation can have even stronger positive influence than opportunity discovery. Therefore, the Chinese entrepreneurs may have more achievements by starting their business through opportunity creation.
Korea's Small and Medium Enterprises with Growth Policy Problems and Improvement
  • - Cheol Seung Kang (Korea Tax Accounting Management Academy)
[Abstract]
Korea's small and medium enterprises with for growth mutual cooperation 21C for continued growth management strategy is one of the 29 September 2010 with the government versus small and medium business community that President Lee Myung-bak presided over was held 'to-small businesses with growth strategy meeting sustainable growth of our economy and to ensure competitiveness "versus small businesses with growth promoting measures" to establish. announced by the government's new policy is being promoted.
Lee Myung-bak government with the growth of large enterprises and small businesses, such as urging the meantime, in recognition of the friendly large seemed like it showed out, but to-the growth of small businesses with a lot of relief, if saved for its effectiveness is doubtful.
SMEs stands to protect the economic legal and institutional devices should try to prepare. I have deep pockets or the distribution of significant differences at large and small businesses can not compete, will from the beginning. Corporate supermarkets (SSM) is a controversial representative. Most large corporations already alleys commercial area has been undermined by distribution. Nevertheless the government to prevent this 'small and medium enterprises promotion law is lukewarm to such amendment. When the combination of collective bargaining disputes in the delivery unit is authorized to make the plan still under debate.
While that for SMEs the government actually to support it if you do not enact policies to-win-win for small businesses is an agent.
As well as large companies also change their behavior is Win or with large firms grow to become a social issue that every time something is seemed over time and went back to old self again.
In this study, for a new global environment, Korea's small and medium enterprises with growth policies Castle After analyzing the current status and problems of Korea's small businesses grow with the improvement of the policy is proposed.