Hyoung‐Goo Kang

Abstract Research Summary We introduce an innovative method of identifying the risk‐management benefit of corporate social responsibility (CSR). Option‐implied volatility captures the financial markets' expectations of a firm's future risk, so if CSR is related to risk‐management benefits, it should be related to lower implied volatility. We find that CSR is associated with low implied volatility and that CSR's insurance benefit is larger for firms that have high leverage, growth opportunities,

This study investigated the application of a blockchain for promoting the sustainable development of non-profit organizations (NPOs). Transparency and good governance are important for operating NPOs in addition to building trust with relevant stakeholders. NPOs consume a large amount of resources (including funds) to monitor their operations and present their transparency and soundness of governance to interested stakeholders. Blockchain technology can fulfill an NPO’s requirements at a lower c

This study introduces the transformation process of a company's non-market strategy from corporate social responsibility to creating shared value (CSV). The proposed framework depicts supplier relationship management (SRM) activity, through the case of a Korean bakery franchise, using non-market strategies as a tool for SRM. The analysis explains the backgrounds of the transformation and the ramifications of the changes on SRM actions, such as mutual firm foundations, long-term contracts, and te

Korea is recognized as one of the most advanced countries in terms of informatization. The development of informatization has impacted all sectors of Korean society, including agriculture, and agricultural informatization has played an important role in bridging of the digital gap between rural and urban areas. The issue of agricultural/rural informatization development has conventionally been examined under the rubric of the digital divide, which generally encompasses two seemingly distinct cat

Using the data obtained from a theme park, this study assesses the effect of rain on the behavior of theme-park visitors. The study proposes a new method for identifying the effects of weather by modeling theme-park consumer behavior based on a two-stage decision-making process. In the first stage, potential visitors make a decision to visit in advance based on weather forecasts; in the second stage, the visitors determine which pass to purchase based on the actual on-site weather conditions. Th

Abstract Research concerning diversification and specialization of venture capital funds typically does not consider how a VC's effort might influence performance of different portfolios. We develop a model that analyzes VC effort when there is the potential for cross‐sectional and/or serial knowledge spillover among projects. The model generates two implications concerning VC effort and performance. First, VC post‐investment effort is a nonmonotonic function of performance shocks, especially fo

<b>Background</b>: The consumption of fruits, vegetables, and dietary supplements correlate. Most previous studies have aimed to identify the determinants of supplement uses or the distinct features of supplement users; this literature lacks a discussion on dietary supplement consumption as a predictor of fruit and vegetable consumption. <b>Objective</b>: This study examines how dietary supplement consumption correlates with fruit and vegetable consumption by combining scanner data and surveys o

Can textual analysis improve statistical prediction of risky geopolitical events? North Korea is the greatest source of geopolitical risk for South Korea due to the former’s unpredictable and secretive military actions against the latter. We find that the tone of English language news articles published by non-South Korean news media, especially U.K. news media, has significant predictive power about North Korean military aggressions. The inclusion of language tone improves the predictive power

We investigate the idea that firms’ choices of M&A evaluation methods are influenced by two socio-political factors that arise in the behavioral theory of the firm—uncertainty and controversy. In doing so, we investigate boundary conditions between arguments that expect firms to use financial analysis such as net present value as the primary tool and arguments that emphasize different forms of socio-political processes, often supplemented by subsequent financial analysis. We undertake explorator

This study analyzes the explanatory power of the latent factor conditional asset pricing model for the Korean stock market using an autoencoder. The autoencoder is a type of neural network in machine learning that can extract latent factors. Specifically, we apply the conditional autoencoder (CA) model that estimates factor exposure as a flexible nonlinear function of covariates. Our main findings are as follows. The CA model showed excellent explanatory power not only in the entire sample but a

This study develops an investment strategy that considers both the life cycle and the business cycle by investing in the market index of emerging and global markets (called the Business and Life Cycle Fund (BLCF)). Considering the change in investors' risk capacity depending on their age, we propose a model similar to the Target Date Fund (TDF), that incorporates the life cycle. We also incorporate the business cycle into the model for excess returns, which leads the model to invest more in emer