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This paper investigates the announcement effect of shipping sale-and-leaseback (SLB) transactions. As an emerging source of financing, a growing deal of interest has been paid to the SLB. However, little is known about a variety of aspects of SLB transactions in the shipping industry. In this regard, this study examines the stock market reaction to the SLB announcements of shipping firms and their impact on shareholders' wealth.

A sample of 15 shipping SLB deals commenced by publicly listed Korean shipping companies during 2009–2023 are examined in this research. The announcement effect is measured by abnormal returns (AR) of their stocks based on the event study analysis.

It is found that the AR on the shipping SLB announcement date is, on average, −0.84% while there is no statistical significance. However, the results indicate that shareholders of shipping companies engaging in large-sized SLBs can experience positive AR around the announcement date.

This study is the first attempt to investigate the announcement effect of SLB transactions on the shipping industry and their impact on shareholders' wealth. The findings in this research can offer implications for the financing decisions of shipping companies and investment decisions of stock investors.

Major changes of an aircraft configuration are conducted during the early design stage. It is important to include the airworthiness regulations at this stage while there is extensive freedom for designing. The purpose of this paper is to introduce an efficient design framework that integrates airworthiness guidelines and documentation at the early design stage.

A new design and optimization process is proposed that logically includes the airworthiness regulations as design parameters and constraints by constructing a certification database. The design framework comprises requirements analysis, preliminary sizing, conceptual design synthesis and loads analysis. A design certification relation table (DCRT) describes the legal regulations in terms of parameters and values suitable for use in design optimization.

The developed framework has been validated and demonstrated for the design of a Federal Aviation Regulations (FAR) 23 four-seater small aircraft. The validation results show an acceptable level of accuracy to be applied during the early design stage. The total mass minimization problem has been successfully solved while satisfying all the design requirements and certification constraints specified in the DCRT. Moreover, successful compliance with FAR 23 subpart C is demonstrated. The proposed method is a useful tool for design optimization and compliance verifications during the early stages of aircraft development.

The new certification database proposed in this research makes it simpler for engineers to access a large amount of legal documentation related to airworthiness regulations and provides a link between the regulation text and actual design parameters and their bounds.

The proposed design optimization framework integrates the certification database that is built of several types of legal documents such as regulations, advisory circulars and standards. The Engineering Requirements and Guide summarizes all the documents and design requirements into a single document. The DCRT is created as a summary table that indicates the design parameters affected by a given regulation(s), the design stage at which the parameter can be evaluated and its value bounds. The introduction of the certification database into the design optimization framework significantly reduces the engineer’s load related for airworthiness regulations.

This paper aims to examine the effects of economic policy uncertainty (EPU) on accounting conservatism in Korean firms. An increase in EPU could widen information asymmetry between insiders and outsiders, to the detriment of a firm’s investment decisions, stock price and cost of capital. This paper hypothesizes that Korean firms are likely to decrease accounting conservatism during high EPU due to inefficient institutional structure and weak corporate governance, together with the vulnerability of the Korean economy to exogenous shocks.

This study measures a firm’s level of conservatism using three accrual-based models proposed by Ball and Shivakumar (2006): 1) the cash flow model (CF model), 2) the Dechow and Dichev model (DD model) and 3) the Jones model. As a robustness test, this paper uses C-score model as an alternative measure of accounting conservatism. The data set used in this study is a total of 23,109 firm-year observations during the sample period from 2000 to 2018.

The test results show that an increase in EPU adversely affects Korean firms’ accounting conservatism, and that this adverse impact is more pronounced in financially distressed and non-manufacturing firms. This study’s findings highlight the importance of institutional structure during a period of high EPU, which can create incentives for either improving or deteriorating reporting quality.

This study adds new evidence to extant literature on the effects of EPU on managers’ choice of accounting policies and demonstrates that managers in emerging markets may have different incentives to cope with country-specific EPU fluctuations.