The effect of mandatory auditor assignment and non-audit service on audit fees: Evidence from Korea

In Korea, regulators could assign auditors to firms. We investigate the relationship among audit fees, mandatory auditor assignment, and the joint provision of non-audit and auditor services in Korea. We find that assigned auditors charge significantly higher audit fees than freely selected auditors. We also find that the joint provision of non-audit and audit services does intensify the relation between auditor assignment and audit fees. Combined with the results of other studies that have shown that firms audited by assigned auditors report smaller amounts of discretionary accruals than firms audited by freely selected auditors, our results suggest the possibility that mandatory auditor assignment may improve auditor independence.     

Does corporate diversification reduce value in high technology firms?

We find that firm value is reduced via industrial diversification and this reduction in value depends upon a firm’s technology intensity. We consider that asymmetric information problems are more severe in technology intensive industries and find that high tech industry firms present distinctly larger value reduction when compared to low tech industry firms. The negative valuation effect is greater for firms that have a relatively larger amount of intangible assets and greater R&D capital. We determine that our findings are robust to different estimation methods and alternative excess value measures.     

An Analysis of Trade Patterns and the Effects of the Real Exchange Rate Movements in East Asia

This article investigates the patterns of vertical specialization in trade among China, Japan and Korea, and the effects of real exchange rate fluctuations under a multistage production process. By extending the models of Yi (2003, 2010), we derive two distinct features of vertical specialization and test them using Time-Varying Parameter (TVP) VAR. We find that a positive shock to China’s final good consumption increases the intermediate goods trade between Korea and China, with expanding magnitude over time. In addition, the positive effect of a real exchange rate depreciation on intermediate goods trade is strengthened through the competitiveness-enhancing channel, with this effect being more pronouncing in Korea-China trade than in Korea-Japan trade.     

Structural Changes in China’s Import Market: A Comparison with Korea’s Exports to China

The article examines the structural changes of China’s import market for domestic demand and the corresponding structural changes of Korea’s exports to China for Chinese domestic demand. Using 8-digit HS code data covering the period 2006–2014 and analyzing the processing steps as well as by industry, this study reveals that while the share of ordinary trade in total China’s imports has increased rapidly, the share of processing trade has decreased continuously since the mid-2000s. The article also shows that Korea’s exports to China is still processing trade-oriented. The slowdown of Korea’s exports to China is because of the concentration on processing trade, intermediate goods, electronics and chemistry.     

Do analysts who understand accounting conservatism exhibit better forecasting performance?

This study investigates the performance of analysts when they match the asymmetric timeliness of their earnings forecast revisions (i.e., asymmetric forecast timeliness) with the asymmetric timeliness of firms’ reported earnings (i.e., asymmetric earnings timeliness). We find that better timeliness‐matching analysts produce more accurate earnings forecasts and elicit stronger market reactions to their forecast revisions. Further, better timeliness‐matching analysts issue less biased earnings forecasts, more profitable stock recommendations and have more favorable career outcomes. Overall, our results indicate that analysts’ ability to incorporate conditional conservatism into their earnings forecasts is an important reflection of analyst expertise and professional success.     

Dually sustainable urban mobility option: Shared-taxi operations with electric vehicles

Electric vehicles (EVs) are energy efficient and often presented as a zero-emission transport mode to achieve long-term decarbonization visions in the transport sector. The implementation of a sustainable transportation environment through EV utilization, however, requires the addressing of certain cost and environmental concerns such as limited driving range and battery-charging issues before its full potential can be realized. Nevertheless, a specific type of use of EVs, namely in taxi services, may elicit positive public opinion, as it promises a commitment toward sustainability in urban life. In light of this, this study proposes an integrated approach that combines EV operation with a conceptual design for shared-ride taxi services. As some productivity loss may be naturally expected due to the time spent in charging, it is important to look at whether such performance loss from the passenger and system standpoints can be offset with ingenuity in operational design. In this study, an EV taxi charge-replenishing scheme that can be coupled with a real-time taxi-dispatch algorithm is designed. The proposed EV charging schemes for taxi services are studied via simulations and the effects of the limited driving range and battery-charging details are examined from a system performance viewpoint. The simulation study also reveals illustrative results on the impact of the EV taxi fleet's operation on the charging system. Next, a real-time shared-taxi operation scheme that allows ride sharing with other passengers is proposed to maximize the operational efficiency. The simulation results suggest that the shared-taxi concept can be a viable option to improve on the limitations caused by EV operation. In addition, the importance of projected charging demands and queue delays at different charging locations are also addressed. Some limitations and a future research agenda are also discussed.     

Adaptive conjoint analysis for the vitalisation of angel investments by entrepreneurs

In order to promote angel investments, attracting those who have entrepreneurial experience is necessary because their capital, unique managing experience, and business insight are highly beneficial to the performance of the investment. This can be accomplished by providing a preferred investment environment for potential angels who have entrepreneurial backgrounds. In this paper, we use an adaptive conjoint analysis to identify preferred investment environments represented as a combination of support policies for business angels who have entrepreneurial experience in Korea. Of particular interest is a preference for angel insurance. This insurance is newly proposed based on prospect theory, which explains that people tend to be more sensitive to a loss than to a gain. The value of the angel insurance is compared to those of tax policies and matching funds for business angels. The empirical results are expected to contribute to promoting angel investments by attracting entrepreneurs to become business angels.     

Let Their Voices Be Seen: Exploring Mental Mapping as a Feminist Visual Methodology for the Study of Migrant Women

This article explores how mental mapping can be used as a critical methodology for feminist migration studies. In a case study of female marriage migrants who settle in rural areas in South Korea from other Asian countries, I attempt to develop mental mapping to supplement verbal interviews. Mental maps of hometowns and current neighborhoods drawn by my interviewees represent their geographical imaginations and complex identity negotiations that mirror the change in their social locations. In order to understand multilayered meanings embedded in the images and the way in which power relations existent between the researcher and the researched affect the map production, I suggest a critical reading of the maps. The article shows how a reflexive and intertextual reading makes a difference to the interpretation of the maps. It argues that the maps are not mere reflections of the women's cognition, but rather socially constructed texts through which their desires, emotions, feelings and internal contradictions are expressed and negotiated. My research suggests that mental mapping, if ethically performed and critically evaluated, has potential as a means to convey the unheard voices of the marginalized to diverse audiences.