Byung-Seong Min

FDI AND TRADE

The analysis found that FDI has facilitated the shift in the pattern of production and exports from the primary to the exportable manufacturing sectors, with biases towards major FDI investing countries and major FDI receiving industries in Malaysia since the late 1980s when inward FDI began to surge. Electricals and electronics that took the lions share for the FDI inflows have emerged as the major export sector over the analysis period of time (1988-95). The countrys bilateral trade (exports) with Japan, which was the most important FDI source country over the period, seemed to have experienced a significant change. These are consistent with FDIs positive effects on export promotion in the host country. However, the impacts of the Asian crisis on FDI flows and subsequently on the development of the trade pattern in the host country have yet to be analysed.

Outsider Board Activity, Ownership Structure and Firm Value: Evidence from Korea

Using a sample of publicly listed firm in Korea from 2002 to 2006, this article examines the impact of board monitoring on firm value and productivity. We use outsiders attendance of board meetings as a proxy for board monitoring. Consistent with the commitment hypothesis, we find that outsiders attendance rate increases firm value, suggesting that attending board meeting itself is a strong signal that reflects outsiders intention to monitor insiders. While ownership of controlling shareholders negatively affects firm value, this relationship is not moderated by increased monitoring by outsiders. Our findings provide further evidence that the outside director system is less effective in chaebol-affiliated firms. Results also indicate that the effect of outsiders board monitoring activity on investors valuation of the firm is greater than on productivity improvement of the firm. Our conclusions are robust for possible endogeneity in the relationship between firm value and board attendance by outside directors.

Globalization and Carbon Constrained Global Economy: A Fad or a Trend?

The authors analyze how globalization affects carbon emission reductions in the context of sustainable development using panel data for 255 countries during 1980 to 2011. First, estimation results illustrate that globalization is a positive factor to reduce carbon emissions. Second, the authors find that the intermediate effect of technology to reduce carbon emission is more evident for an economy with a higher level of globalization than autarkic economies. Findings also suggest that globalization of an economy itself and in conjunction with the use of technology play an important role to facilitate carbon emission reductions.

The effect of outside board members on energy efficiency in Korea

Drawing largely upon the stakeholder theory and the resource dependence literature, this article examines the relationship between corporate governance structure and sustainability measured by energy efficiency. The model uses data from South Korean (Korean hereafter) firms that have relied heavily on energy-intensive industry for economic growth and have experienced major changes in their corporate governance structure since the 1997 Asian financial crisis. Estimation results show that a corporate governance structure that includes the appointment of heterogeneous outside directors, given other conditions, leads to an increase in energy efficiency and thus sustainability.

Corporate governance and dividend strategy: lessons from Australia

Purpose The purpose of this paper is to empirically investigate the effects of corporate governance on the dividend payout (DP) in Australia where DP remains high and corporate governance system has recently been strengthened. Design/methodology/approach A self-constructed governance indexes over 2001-2013 is used for the random effect panel Tobit model to investigate the effect of corporate governance on cash dividend. Two different versions of the indexes and the traditionally emphasized governance elements such as board structure are also used for the robustness checks. Findings Estimation results report that a positive effect of governance, combined with size of firm and profitability, on DPs. In contrast, financial distress and the global financial crisis, respectively, have negative effect on dividend policy. Further examinations imply that the positive effect of governance is attenuated by growth opportunities while intensified by firm free cash flow and the franked dividend policy. Originality/value The sample period and the governance indexes in this paper, respectively, are the longest and the most comprehensive among existing studies on Australian case. This paper also combined the traditional governance-dividend theme with corporate tax, particularly the unique franked dividend tax system.