Jeongseok Song

Social control through deterrence on the compliance with information security policy

Information system security (ISS) has become an extremely significant issue in organizations to protect information as an organizational asset. The purpose of this study is to investigate what factors affect individuals’ perception of sanction threats. This study uses social control theory to understand the effects of deterrence on public corporation employees’ ISS compliance and elucidate employees’ motivations of ISS violation and different perceptions of sanction threats. The effects and their significance in the model were tested. The results of this study help information security institutions to consider deterrence and self-punishment and to manage compliance with information security policy effectively and securely.

FDI CONSEQUENCES OF DOWNWARD WAGE–COST RIGIDITIES

This paper estimates an adjusted gravity model by directly measuring downward wage rigidities based on our modified regime-switching specification in order to investigate the effect of labor market flexibility on the flows of foreign direct investment (FDI) between Korea and 18 counterpart countries. To measure wage–cost rigidities, we employ firm-specific sales data for 410,012 firms in 19 countries obtained from Compustat as a relevant driver of wage costs extracted from earnings data by International Labor Organization (ILO). Our results suggest that greater wage rigidities in a counterpart country are associated with less net-outflows of FDI in Korea.

STAMP Analysis of the Hanmi Short Selling Episode

The financial market has been evolving as an increasingly complex sociotechnical system, ever since it experienced expansion on account of information technology developments. Our approach is rooted in engineering-based accident analysis, or so-called systems-theoretic accident modeling and processes (STAMP). From the STAMP model, systems-theoretic process analysis (STPA) can be developed on the basis of the accident analysis method and hazard analysis. STPA attempts to systematically inspect accidents, and is involved in system redesigns that, had they been implemented, could have precluded those accidents. Through the lens of STPA, we aim to pinpoint the overarching causes of problems in the South Korean disclosure system and find more effective remedies. Having suspected Hanmi Pharmaceutical of being part of an insider trading scandal, South Korea’s Financial Supervisory Service investigated that company. By applying the STAMP model, we derive more insightful recommendations regarding the timely disclosure of company information, and thus the prevention of suspicious (and possibly illegal) short selling in the stock market.