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This study investigates organizations’ activities and their subsequent consequences during highly uncertain business environment, Asian Financial Crisis. Building upon the behavioral theory of the firm and institutional theory, this study predicts the impacts of organizations’ past performance and organization size on the firms’ decisions on the changes of workforce size, investment on employee training and development, and fixed assets. In addition, this study examines how these strategic decisions of firms influence future firm performance by applying resource-based view of the firm, human capital theory, and social capital theory. Furthermore, this study predicts the interaction effect of two variables (changes on the workforce size and investment on employee training and development) on future firm performance. The hypotheses of this study were tested with a sample of 283 firms in manufacturing industry, which were listed in Korean Stock Exchange between 1996 and 1999, before and during Asian financial crisis. The results of this study show the negative effects of an organization’s past performance on the organizational change related to workforce size. In addition, this study found the main and interaction effect of organizational change variables (workforce size, investment on employee training and development, fixed assets) on future firm performance. This study contributes to accumulating knowledge on the field of research on human resource management and provides firms with practical implications.

In this study, I examine the fund performance of National Pension Service (NPS) of Korea and analyzed the mutual risk transfer (volatility spillover) effect between Korea Composite Stock Price Index (KOSPI) and several investment sectors of NPS funds. Major findings are as belows. Firstly, almost every sector of NPS funds reveals favorable performance on the basis of risk-adjusted return measure such as Sharpe ratio, Treynor ratio, and Jensen's alpha. However, it is required to enhance the share of stock investment in the near future resulting from the fact that annual profitability of stock on average is far better than that of bond in the past 14 years according to the additional separate analysis. Secondly, the volatility shock from the NPS' domestic stock sector shows significant positive impact on the KOSPI market through the estimation results of multivariate GARCH(generalized autorgressive conditional heteroscedasticity) model. Accordingly, it is needed that NPS should decrease the weight of domestic stock investment as well as increase the weight of overseas stock investment to mitigate the volatility shock of the overall domestic stock market from the NPS stock holdings. Thirdly, down shock from the NPS' bond holding sector is shown to be transferred to the Korean stock market as well as the NPS' stock holding sector. This means that NPS' bond holding sector as the biggest institutional bond investor in Korea may lead to the stock market disturbances. Accordingly, it is desirable to decrease the domestic bond investment weight gradually as well as to increase the foreign stock investment weight in order to mitigate the shock from the NPS' bond holding sector. Finally, it is required to accelerate the globalization of investment target, specialization of risk management process instead of satisfying the past favorable fund performance of NPS if we remember the fact that NPS' pension fund is the last resort for the basic senior life planning of the ordinary people in Korea.

The purpose of this study is to explore the effect of calling on the job attitudes such as organizational citizenship behavior and intention to turnover. Especially, it proposed and examined the mediating role of person-environmental fit such as person-job fit and person-organization fit. Even though previous researches on calling have focused on the effect of calling on the job attitudes, they had limitation that did not explain a process in which calling influences the job attitudes. Nowadays, interests and concerns on the calling have been increased in Korean society, especially after the disaster event in a couple of years ago. However, the academic research on the calling has been in the early stage and little study has been conducted especially in the business administration area. Most of studies on the calling have been conducted in the psychology or theology areas and the calling has been treated as having a meaning of religious connotations. However, there has been some changes in the understanding on the calling and scholars started to consider the calling as one of important values in the vocational world. In the vein, some studies started to treat the calling in the organizational studies and personnel management fields. The calling can be interpreted one example of applying positive psychology to organizational environments. In this approach, the calling has been studied to have an impact on a variety of job attitudes. However, there has been little research on why and how the calling influences job attitudes. This study examines and focuses on the process of this effect and pays special attention to the role of person-environment fit such as person-job fit and person-organization fit. Especially, it presents the mediating effect of person-job fit and person-organization fit in the relationship between the calling and turnover intention and organizational citizenship behavior. To test this research model, we analyzed survey of the 513 newly employed employees in about 300 Korean domestic companies. According to the results of this study, the calling was found to have a positive effect on organizational citizenship behavior, but not for turnover intention. We also found statistically significant partially mediating effects of person-job fit between calling and organizational citizenship behavior. However, person-organization fit did not show statistically significant mediating effect in the relationship between calling and organizational citizenship behavior. In addition, person-job fit and person-organization fit had fully mediating effects in the relationship between calling and turnover intention. Based on the results of this study, we discuss theoretical and practical implications for research on calling. We also pointed out limitations of the study and presented directions for future research.

Existing theories have conflicting views as to whether employee satisfaction is beneficial for corporate performance or corporate value. Agency theory advocates that entrenched CEOs pay more to employees. Employee satisfaction increases when employees are overpaid and/or underworked, which eventually decrease firm value. In contrast, modern human relations theory considers employees as key organizational assets, who can create firm value by enhancing competitive advantage. This paper evaluates above two competing theories by investigating the relationship between corporate employee satisfaction and its long-run firm performance in Korea. It is likely that most previous studies examining the relationship focused on job satisfaction and performance rather than firm-level value. The employee satisfaction category score of the KEJI index is used to measure corporate employee satisfaction at the company level. Our samples are the industrial firms listed in the Korean Market (KRX) with stock returns and financial data during the period of 2012～2014. The first proxy of corporate performance is stock returns. The second proxy of corporate performance is operating performance. We use the ratio of earnings before interest, taxes, depreciation and amortization to total assets as operating performance following the recommendation of Barber and Lyon (1996). The third proxy of firm performance is Tobin’s Q. We calculate Tobin’s Q following Chung and Prutts (1994) equation. Based on prior studies, we add the control variables such as firm size, risk, growth, volatility, leverage, research and development (R&D), advertising, and firm age. The empirical results are as follows. Firstly, the t-test findings show that firms with higher employee satisfaction have superior stock returns, operating performance, and Tobin’s Q than ones with lower employee satisfaction during the sample period. Also, the findings provide evidence to support the influence of employee satisfaction on contemporaneous and next year stock returns, operating performance, and Tobin’s Q. Secondly, the evidence of several cross-sectional regression models shows that employee satisfaction positively affects on firm performance. Based on the empirical findings, we can conclude that the modern human relations theory rather than the agency theory has explanatory power in Korea.

This study is carrying out an empirical analysis on the effect of youth entrepreneurship on entrepreneurial intentions of adolescents. As indicated in preceding researches, the study divided youth entrepreneurship into risk taking, innovativeness and proactiveness. And it analyzed the effect of the youth entrepreneurship on adolescents' entrepreneurial intentions focused on moderating effect of social support. The results of an empirical analysis for 251 adolescents living in Suncheon are as follows: First, as youth entrepreneurship, risk taking, innovativeness, and proactiveness positively (+) affected entrepreneurial intentions. This result, as preceding researches put emphasis, means that the fact that as risk taking, innovativeness and proactiveness appear high, entrepreneurial intentions also appear high, applies equally to adolescents as well. Second, as a verification result of moderating effect, social support adjusted the relationship between proactiveness and entrepreneurial intentions positively (+). This result shows that the positive effect of adolescents' proactiveness on entrepreneurial intentions is reinforced by the social support that adolescents hold. It is expected that the results of this study will be able to present a useful implication both theoretically and practically by suggesting that in view of social capital, the relationship between youth entrepreneurship and entrepreneurial intentions of adolescents can depend on social support. This study also focuses on adolescents as the subject of this study, and this subject is very meaningful because future foundation of company would be positively affected by the entrepreneurial intentions grown during an adolescent period. Finally, education for adolescents on entrepreneurship must be important because youth entrepreneurship have positive effect on the entrepreneurial intentions.

This research examined the effect of individual characteristics, working environment characteristics, and educational satisfaction on the desire to seek employment of outplacement trainee. For this investigation, a survey was carried out for the discharge-scheduled soldiers who wish to find a job in defense industry and the following results were obtained. First, no significant difference in the desire to seek employment was found between different ages and academic groups. Second, a significant difference was observed in the desire to seek employment according to the different military ranks. Lastly, it was observed that outplacement educational satisfaction significantly affected the desire to seek employment. With these research results, a need can be proposed for developing a customized curriculum related to the knowledge or work ability acquired during military service, diversification and systematization of job-seeking programs that connects jobs in society, and cooperation between departments for developing employment position in society that reflects experiences during military service. In addition, further observation can be made that there is a need of interchange between professional education institutions to support professional instructors and to organize differentiated education programs. There is a limitation in generalization, as this research was only conducted on outplacement trainees who wish to find jobs in defense industry, but there is significance in investigating the effect of educational satisfaction on the desire to seek employment. If further research examines the key figures of outplacement educational satisfaction and desire to seek employment for more expanded occupation beyond the current research limitation, the outplacement education can acts as a job-seeking coordinator that matches the experience in military service and talents which the society wants.

The study pursues to investigate the effect of authentic leadership on followers’ voice behavior. In particular followers’ organizational cynicism as a moderator and person-job fit as a moderator are also examined to help understand the mechanism and situation on the relationship between authentic leadership and followers’ voice behavior. Authentic leadership theory focuses on the positive and developmental relationship between leader and followers. Followers tend to actively engage in their works and jobs and express their ideas and opinions when they work with authentic leader because they believe that authentic leader intends to provide emotional and cognitive supports based on high level mutual trust. For this study, a set of two hundreds sixty-six respondents who work in a public organization was employed to test hypotheses. The results of study show that authentic leadership has a positive, significant effect on followers’ voice behavior. Thus the relationship between authentic leadership and followers’ voice behavior is mediated through organizational cynicism. However the moderating effect of person-job fit was not supported in this study. From the results, this study helps understand the relationship between authentic leadership and followers’ voice behavior. Authentic leader presents his or her authentic self to others, share information openly, and try to minimize displays of immature emotions and feelings. Followers who work with an authentic leader tend to actively engage in organizational issues to improve its efficiency and effectiveness or rectify wrong practices or work processes because authentic leaders foster followers’ self-discovery process. These enhanced self-discovery or self-clarity lead voice behaviors of followers. In particular, authentic leadership decrease the level of organizational cynicism among followers, and the decreased organizational cynicism links to active voice behavior. Mutual trusts and goals which authentic leader and followers have developed encourage followers to identify less with personal issues or goals, and more with the core values of the collective(Howell & Shamir, 2005). When followers are interested in the collective issues, they are more likely to present their ideas or opinions which are helpful to improve work or organizational performance. However, the moderating effect of person-job fit was not supported. There are two plausible explanations. One is the inappropriate operational definition of the construct. Another comes from the context where employees work. The employees work public agency for education, and their jobs regularly rotate. The job assignments may influence less with employees’ attitude and behavior rather than do organizational systems or relationship with other. In conclusion, some implications and limitations are presented.

This study investigates whether firm’s share prices correctly reflect two types of dirty surplus items in Korean capital market. The first of these is commonly referred to as “other comprehensive income,” which is a component of comprehensive income that is excluded from reported earnings, and therefore violates clean surplus accounting. The second accounting measure we consider is “hidden dirty surplus”, which arises when a firm issues or reacquires its own shares in a transaction that does not record the shares at fair market value. An Example this kind of transaction is a conversion of a bond into common stock at other than fair market value. Unlike other comprehensive income, which is readily observable from the comprehensive income statement under K-IFRS, hidden dirty surplus is unobservable. Therefore, it is very difficult for investor to estimate the valuation impact of equity transactions that give rise to hidden dirty surplus. As a result, hidden dirty surplus is less likely to be correctly priced than are other comprehensive income. Specifically, we compute other comprehensive income(OCI) as sum (1) the change in value of available-for-sale securities. (2) the foreign exchange gains and losses arising from translations of financial, (3) the effective portion of gains and losses on hedging instruments in a cash flow hedge, (4) the change in value of property, and (5) the actuarial gains and losses on defined benefit plans. Based on Landsman et al. (2011), we compute hidden dirty surplus(HDS) as the change in the book value of common equity, less OCI, less net income, plus dividends, less share price at middle of fiscal year times change in common shares outstanding. To achieve the afore-mentioned research objectives, we first assess whether investors properly value each of these two types of dirty surplus by estimating a residual income forecasting equation and an attendant valuation equation that includes both of these components, using financial statement and stock price data from 2011-2014. We next employ Carhart’s (1997) four-factor market model in order to see market-based financial performance measured by stock return incorporates these two components of dirty surplus. Using the four factor model, we analyze whether investors can obtain abnormal returns by holding long position in firms with relatively large OCI or HDS and short position in firms with relatively small OCI or HDS. The analysis yields following key findings. First, other comprehensive income are irrelevant for forecasting abnormal very comprehensive income in next period and setting stock prices. Second, hidden dirty surplus is also irrelevant for forecasting abnormal very comprehensive income in next period but investors appear to undervalue the HDS component of income, i. e., over-value equity. Third, hedge returns are insignificant when the sample firms are ranked based on the other comprehensive income, but it is positive and significant when the HDS is used to rank the sample firms. These results are suggest that investors fail to understand the lack of persistence of hidden dirty surplus, and therefore apparently over-valuing firms that have hidden dirty surplus.

The purpose of the paper is to measure cost-based capacity efficiencies under given existing outputs in Korean listed securities companies using short-run and long-run cost frontiers for 2010~2014. The reason why we selected Korean securities industry in the research is because, in the times which it was very difficult to increase profits due to restructuring and reduction of labor force for overcoming finance crisis since 2008, Korean securities industry had made effort to improve efficiency by reducing costs. But, as there has been many insistences that the performance of such efforts were slight in that profit did not much increase, and cost saving was also not enough, we thought that the cost reduction could be happened not only reduction of labor forces but also in use of capital facilities. Cost-based capacity efficiency in the study is defined as ratio of long-run cost efficiency over short-run cost efficiency. We measure how much observed cost is deviated from shortand long-run minimum costs through the concept of capacity efficiency. Specially, the capacity efficiency is measured in terms of cost when output produced is given. Expressing cost-based capacity in other words, the concept is defined as the gaps between short-run cost frontier and long-run cost frontier, and the gaps can be considered as gaps between the optimal fixed input and actual fixed input. If we do not use fixed input optimally, idle facilities may happen, and this brings additional costs, and another factor of inefficiency. The main point is to estimate the extent of unused capacities. That is, when the fixed inputs are not optimal in the short-run, additional cost occurs and the capacity inefficiency can exist. Empirical result reported that the fixed input was not used suitably in the most of Korean securities companies, and there existed the possibility to reduce cost a little more by adjusting the fixed inputs and output in the long-run.