Sticky behavior of R&D Costs and Its Relevance to Firm Value: Evidence from Listed Companies in Korea

Moon Hyun Kym(Moon Hyun Kym) People&Global Business Association 2023 Global Business and Finance Review Vol.28 No.4

Purpose: The purpose of this study is to investigate the impact of sticky behavior in R&D costs on firm value. The study aims to gain insights into whether the stickiness of R&D costs is a rational choice based on managerial foresight or if it stems from managerial self-interest. Design/methodology/approach: For the regression analysis, a modified version of Ohlson's accounting-based valuation model (1995) was used to assess the impact of R&D costs on firm value. and the stickiness of R&D costs was measured using the model proposed by Homburg & Nasev (2009). International Financial Reporting Standards were adopted in Korea in 2011, and empirical analysis was subsequently conducted using data from listed companies. Findings: The empirical results were as follows. Firstly, R&D costs reported as expenses showed a negative (-) correlation with firm value, while the stickiness of R&D costs was found to have a positive (+) impact on the value relevance of earnings. Secondly, R&D costs reported as assets did not have a significant impact on firm value, and the stickiness of R&D costs did not have a significant impact on the value relevance of net assets. Research limitations/implications: Overall, the findings of this study support the accounting treatment of R&D costs as expenses. Moreover, the study reveals that the sticky behavior of R&D costs helps alleviate the negative value relevance of R&D expenses. Originality/value: This study distinguished between capitalized R&D costs and expensed R&D costs, and examined their value relevance by investigating the impact of sticky behavior on earnings and net assets.

Students’ Perceptions of EMI in Higher Education in Korea

Inyoung Kym,Moon Hyun Kym 아시아영어교육학회 2014 The Journal of Asia TEFL Vol.11 No.2

How Can South Asia and Sub-Saharan Africa Gain From the Next WTO Round?

( Kym Anderson ),( Shun Li Yao ) 세종대학교 경제통합연구소 (구 세종대학교 국제경제연구소) 2003 Journal of Economic Integration Vol.18 No.3

If South Asia and Sub-Saharan Africa are to become constructively engaged in the next attempt by World Trade Organization (WTO) members to liberalize trade multilaterally, they need to be convinced that there will be sufficient gains from trade reform to warrant the inevitable costs of negotiation and adjustment. This paper provides new estimates of the likely economic effects on their economies of further liberalizing world trade post-Uruguay Round. The results show that the developing countries of South Asia and Sub-Saharan Africa have much to gain from taking part in the next round. However, those gains will be far greater the more those countries are willing to embrace reform at home so as to enable their firms to take greatest advantage of the opportunities provided by the opening up of markets abroad.

Economic Effects of Agricultural Biotechnology Research in the Presence of Price-Distorting Policies

( Kym Anderson ),( Chantal Nielsen ) 세종대학교 경제통합연구소 (구 세종대학교 국제경제연구소) 2004 Journal of Economic Integration Vol.19 No.2

The economic welfare implications of some countries using new genetically modified varieties in crop production will depend on which countries choose to adopt them and on whether others (notably Western Europe) ban their importation. They also depend on existing (non-GMO-specific) agricultural policies in affected markets. This paper uses a well-received empirical economywide model of the global economy (GTAP) to quantify the effects of selected countries enjoying an assumed degree of productivity growth from adopting GMO maize and soybean. It does so first by leaving existing distortionary policies in place and then assuming agricultural policies in Western Europe are completely liberalised. In both cases we investigate the effects of Western Europe refraining from using GMO technology in its own farm production but without versus with a ban on imports of GM products. The results suggest that (a) such an import ban would have a large adverse effect on economic welfare, particularly in Western Europe itself, and (b) while estimated global economic welfare benefits from the new biotechnology are not greatly reduced by Europe`s traditional price-distorting policies, the reductions in technology gains are concentrated in non-European countries.

Sodium, Potassium and Chloride Utilizations Affected by White Corn Bread, Yellow Corn Bread, and Whole Wheat Bread Diets in Humans

Kym, Mihye The Korean Nutrition Society 1999 Nutritional Sciences Vol.2 No.2

Sodium restricted diets are known to lower blood pressure in salt sensitive, hypertensive patients. Thare is increasing evidence that potassium plays an important role as a protective factor in the regulation of blood pressure. The objective of the current study was to measure parameters of sodium, potassium, and chloride utilization as affected by feeding of substantial quantities of bread made from whole ground white torn meal, whole ground yellow corn meal, and whole ground wheat flour. The breads provided 40 percent of a caloric content of the constant, measured laboratory diet. The 28-day study was divided into an introductory period of 7-days and three experimental periods of 7-days each. Order of assignment to specific treatments for 12 healthy subjects were according to a complete randomized block design. Yellow corn bread diets resulted in the highest potassium retention (243 mg/day) and the lowest urinary sodium and potassium ratio (1.53 $\pm$ 0.26) numerically in comparison to the other test breads. The excretions of sodium and chloride were higher during controlled feeding periods than during the self-selected diet period(p < 0.05). This indicates a response to the higher intake of these electrolytes from the experimental diets than from self-selected diets. There was no significant difference in the effect of white corn bread, yellow corn bread, or whole wheat bread diet on electrolyte status in humans. However, the yellow corn bread diet resulted in a somewhat more favorable urina교 sodium to potassium ratio than that from white corn bread or whole wheat bread diet.

Allergen-Denaturing Activity of Propolis-Derived Compounds against Dermatophagoides farinae (Acari: Pyroglyphidae)

Kym Na Ra Hwang,Jun-Ran Kim,Perumalsamy Haribalan,Soon-Ok Woo,Kwang-Gil Lee,Young-Joon Ahn 한국응용곤충학회 2011 한국응용곤충학회 학술대회논문집 Vol.2011 No.05

The American house dust mite, Dermatophagoides farinae Hughes, is the most important factor of allergic diseases, such as atopic dermatitis, rhinitis, and asthma. The protein-denaturing activity of nerolidol (1), chrysin (2), and spathulenol (3) identified in the Brazilian propolis against D. farinae was evaluated using SDS-PAGE and dot-blot immunoassay. Results were compared with those of the currently available dust mite protein-denaturing agent tannic acid. SDS-PAGE showed that application of test compounds and tannic acid (100 μg each) caused complete disappearance of D. farinae protein bands. In a dot-blot immunoassay, test compounds and tannic acid (100 μg each) strongly inhibited the IgE-binding reactivity to D. farinae protein of a highly mite-sensitive asthmatic patient. The Brazilian propolis constituents described merit further study as potential dust mite-allergen denaturants for protection from humans from various diseases caused by house dust mites.

The Agricultural Agenda for the Next WTO Round

Kym Anderson 세계경제연구원 1998 세계경제연구원 간행물 Vol.16 No.-

Fertilizer Policy in Korea

( Kym Anderson ) 한국농촌경제연구원 1983 Journal of Rural Development Vol.6 No.1

Farmers in Korea are often thought to be assisted by current fertilizer policy, since the government sells fertilizer to them at roughly 20 per cent below cost. However, this farm price is about 20 to 30 per cent above the international price. That is, fertilizer manufacturers are enjoying a nominal rate of protection of more than 50 per cent. The fertilizer "subsidy" is really a mechanism by which taxpayers help farmers bear the direct cost of that protection. It involves large government outlays though, which the government would like to phase out. One option is to remove the "subsidy" which would force farmers to carry the full direct cost of that protection. Another option is to lower the rate of protection to fertilizer manufacturers. This paper provides estimates of the price changes required to eliminate government outlays under these alternative circumstances. It also quantifies the effects of such changes on fertilizer production and use and discusses the appropriateness of each option in terms of efficiency of resource allocation, food security and farm incomes.

Genetically Modified Rice Adoption: Implications for Welfare and Poverty Alleviation

( Kym Anderson ),( Lee Ann Jackson ),( Chantal Pohl Nielsen ) 세종대학교 경제통합연구소 (구 세종대학교 국제경제연구소) 2005 Journal of Economic Integration Vol.20 No.4

The first generation of genetically modified (GM) crop varieties sought to increase farmer profitability through cost reductions or higher yields. The next generation of GM food research is focusing also on breeding for attributes of interest to consumers, beginning with ‘golden rice’, which has been genetically engineered to contain a higher level of vitamin A and thereby boost the health of poor people in developing countries. This paper analyses empirically the potential economic effects of adopting both types of innovation in Asia, including its impact on rice producers and other poor households. It does so using the global economy-wide computable general equilibrium model known as GTAP. The results suggest the very considerable farm productivity gains (even if extended beyond GM rice to include those from adopting other GM grains and oilseeds) could be exceeded by the welfare gains resulting from the potential health-enhancing attributes of golden rice, which would boost the productivity of unskilled workers among Asia`s poor.

Changing Comparative Advantage in Agriculture: Theory and Pacific Basin Experience

( Kym Anderson ) 한국농촌경제연구원 1980 Journal of Rural Development Vol.3 No.2

While agriculture`s contribution to national output and employment tends to decline with economic growth, its contribution to exports may not. Rather, a country`s comparative advantage in agriculture is shown to depend positively on its endowment of agricultural land relative to its mineral resources and non-farm capital and negatively on its income per hectare of agricultural land, compared with other countries. Over time, its agricultural comparative advantage will decline faster, the slower its rate of agricultural relative to nonagricultural technological change and the faster its rate of industrial growth, compared with these rates in other countries. The implications of this empricially-supported theory for Australia and other Pacific rim countries are then discussed along with some policy implications, particularly for the densely-populated, rapidly-industrializing economies of South Korea and Taiwan.