This study examines the problems associated with the management fee on outsourced CIOs in the public pension funds in Korea and proposes a better management fee structure. The…
Abstract
This study examines the problems associated with the management fee on outsourced CIOs in the public pension funds in Korea and proposes a better management fee structure. The main results of this study are summarized as follows. First, the outsourced CIO is likely to make a profit, provided that the management cost of the outsourced CIO is lower than a fixed ratio in a fee structure. Second, the profit margin of public funds increases as the fixed ratio decreases. Third, the outsourced CIOs can make a sure profit under the existence of the fixed fee only, regardless of the performance of public funds. In addition, the profit of outsourced CIOs increases as the level of delegation fees for sub-management firms decreases. However, such a fee structure may result in making worse the overall performance of funds ultimately. Fourth, it is necessary to introduce the performance-linked fee structure when the outsourced CIOs of public pension funds are selected. Such a fee structure can mitigate the possibility that the outsourced CIOs reassigns fund to sub-management firms with low management capacities, thereby lowering the fund’s overall performance.
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We examine the effects of new regulations introduced by Korean government to cool down overheated Korean ELW markets. We also investigate whether ELWs are fairly priced as noted…
Abstract
We examine the effects of new regulations introduced by Korean government to cool down overheated Korean ELW markets. We also investigate whether ELWs are fairly priced as noted in the previous research. The empirical findings are as follows. Firstly, ELW was more expensive than KOSPI200 option not only before but also after the introduction of the new regulations. But degrees of the overpricedness are decreased significantly with the new regulations. Secondly, we confirm the well known facts in the literature that liquidity providers get extra profits as monopolistic providers for ELWs. Thirdly, we analyze the determinants of the differences in premiums between ELW and KOSPI200 option. The trading volume is negatively correlated with premium difference, however, timeto-maturity and market share are not statistically significant. Even though it seems that the financial regulator achieve their primary purpose to control the overheated market, we find that the new regulations have almost no effects on the overpricing problem, which implies that overpricing in ELW is not related to the market inefficiency.
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Sangki Kim, Sanghyo Lee and Jaejun Kim
This study aims to analyze the relationship between the financial crisis of Korean construction firms and macroeconomic fluctuations.
Abstract
Purpose
This study aims to analyze the relationship between the financial crisis of Korean construction firms and macroeconomic fluctuations.
Design/methodology/approach
In this study, current ratio has been used an acting variable for liquidity ratio, and debt ratio for leverage ratio. GNI (Gross National Income), L (index of Liquidity), exchange rate, interest, and CPI (Consumer Price Index) were used for the macroeconomic variables. VECM consisted of Crt model and Drt model to analyze the relationship between current ratio and macroeconomic variables, and between debt ratio and macroeconomic variables, in order to analyze each model through variance decomposition and impulse response function.
Findings
In Crt model, L is revealed as highly influencing current ratio. In other words, most fundraising is focused on highly capable financial institutes, investment corporations and public funds, since the scale of construction project funds is huge. Such financial sources actually belong to index L (index of Liquidity), but are calculated as current liability in the financial statements of construction firms, knotting an inverse relationship with current ratio. In Drt model, interest is revealed as significant against debt ratio. This seems to be because each construction project needs to raise substantial funds, and the amount to repay is directly influenced by interest fluctuation.
Research limitations/implications
The collected data are limited, as the time series data of current ratio and debt ratio were secured based on the financial statements of the most capable 30 construction firms in Korea. If the sample companies were divided in future research according to scale, in order to analyze the relation between financial crisis and macroeconomic fluctuation by company scale, a more developed result could be obtained.
Practical implications
This study is a useful research to analyze the dynamic relationship between the financial crisis of construction firms and macroeconomic fluctuations. This study can be used to establish a set of countermeasures to apply in the event of macroeconomic fluctuation.
Originality/value
The financial ratios of construction firms are directly used for analysis, making this a more practical analysis than studies of the relationship between macroeconomic fluctuations and the comprehensive indices of construction business.
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Aida Darmenova and Kim Normann Andersen
This paper aims to present the results of a project deployment on voluntary data exchange between a municipality and commercial entities built on the Commitment-Trust theory. The…
Abstract
Purpose
This paper aims to present the results of a project deployment on voluntary data exchange between a municipality and commercial entities built on the Commitment-Trust theory. The research also discovers whether data sharing can be a vital instrument to foster city socio-economic development.
Design/methodology/approach
Inspired by the engaged scholarship approach, this research explores the economic and operational results of data integration from two different information sources, the legislation impact and the effects on citizens as final beneficiaries. Over a period of 27 months, the authors observed changes the voluntary data sharing brings in traditional interaction between multiple ecosystems. The impact of positive and negative factors was validated via 12 exit interviews with key stakeholders.
Findings
Voluntary data sharing is driven by parties’ goodwill to improve public services for residents, the organisations gain tremendously much more benefits than they can do separately on their own. When the parties commit to voluntarily share data, this increases trust in each other and the responsibility of each data contributor. This research proposes that the Commitment-Trust theory is well-replicable for the government-to-business relationship.
Originality/value
This research contributes to the current body of knowledge of voluntary data exchange between different ecosystems, especially between a government and its environment. This paper presents a relevant project deployment from an emerging economy and its consequences for a city municipality, businesses and residents.
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Mónica Pazmiño-Sarango, Mijail Naranjo-Zolotov and Frederico Cruz-Jesus
The paper explores the main drivers of the regional-level digital divide in Ecuadorian cities and the extent to which the information and communication technology (ICT) adoption…
Abstract
Purpose
The paper explores the main drivers of the regional-level digital divide in Ecuadorian cities and the extent to which the information and communication technology (ICT) adoption by citizens influences local-level policymakers' decisions to develop eGovernment services.
Design/methodology/approach
The paper used an exploratory approach. The authors empirically assessed the provision of eGovernment services in each of the 36 Ecuadorian local governments following the Local Online Service Index (LOSI) measurement scale proposed by the United Nations, and then evaluated the drivers of the eGovernment divide at a local level. Ordinary least squares regression analysis was used.
Findings
The findings indicate that the digital divide is driven by income and education disparities, and that eGovernment availability is driven by ICT use. It appears that proper attention to technology use by its citizens is not being given by local-level policymakers in Ecuador when they devise their eGovernment strategy.
Research limitations/implications
Because the data were available at different levels of aggregation, there may be some inaccuracy of the indicators and lack of generalizability. Researchers are encouraged to test this hypotheses with data at lower levels of aggregation and from different latitudes to provide a comparative view between countries.
Practical implications
The paper includes implications for policymakers and local authorities regarding how the limitations on eGovernment development may be mitigated.
Originality/value
This study fulfils the need to assess digital development and its impact on eGovernment services at a city level in a developing country.
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Tuğberk Kaya, Mustafa Sağsan, Tunç Medeni, Tolga Medeni and Mete Yıldız
The manner in which people, businesses and governments perform is changing because of the spread of technology. Digitalization of governments can be considered a necessity as we…
Abstract
Purpose
The manner in which people, businesses and governments perform is changing because of the spread of technology. Digitalization of governments can be considered a necessity as we are now entering the era of the Internet-of-Things. The advantages and disadvantages of electronic governments have been examined in several research studies. This study aims to examine the attitudes of decision-makers towards e-government. The research aims are as follows: to determine the problems related with e-government usage, to establish the factors which decrease the usage of e-government services and to propose recommendations for the effective application of e-government practices.
Design/methodology/approach
Qualitative research has been used for the study. Participants were chosen by the snowball sampling method, and face-to-face in-depth interviews were conducted with all decision-makers. In-depth interviews are more efficient and enable the acquisition of better qualitative information, in-depth knowledge and statistics, as the distance between the interviewer and interviewee is reduced (Stokes and Bergin, 2006). Questions asked can be categorized under two sections, where the questions in the first section are related to the decision-maker’s management style/managerial proposition, and in the second section, technological questions are asked in terms of the preferred communication method and the decision-makers’ attitudes towards e-government practices.
Findings
Decision-makers perceive electronic government to be important, while the level of importance is observed to be different among the decision-makers. Chronic problems exist in many countries, such as nepotism, where the decision-makers have conflicting arguments about e-government and the resulting effect on nepotism. Furthermore, the study also indicates that decision-makers are aware of the importance of mobile government, although they acknowledge that more time is required, as their country is still developing. Electronic voting is also perceived to be important, although the decision-makers believe that security and privacy issues need to be solved before related projects can be initiated.
Originality/value
This research can be a benchmark study for the decision-makers of small island developing states by means of e-government. The impediments preventing the effective application of e-government practices are also discussed in the study. This study will be useful to highlight the triggers and obstacles for e-government development in the context of a developing country. Internet penetration has increased significantly since the 2000s, and therefore, decision-makers need to consider the shift in citizens’ behaviour, such as the high usage of smartphones and the emergence of the Internet-of-Things (Kaya and Bicen, 2016; Kumar et al., 2017).
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Anupriya Khan and Satish Krishnan
The purpose of this study is to develop an in-depth understanding of the overall process of facilitating co-creation of e-government services, focusing on the government's role in…
Abstract
Purpose
The purpose of this study is to develop an in-depth understanding of the overall process of facilitating co-creation of e-government services, focusing on the government's role in fostering citizen engagement.
Design/methodology/approach
This study conducted a meta-synthesis of qualitative case studies encompassing analyses on a case-specific level followed by syntheses on a cross-study level.
Findings
Through meta-synthesis, the study developed an integrated framework, the process theory view of enabling co-creation of e-government services, illustrating how co-creation could be initiated and facilitated by the government.
Research limitations/implications
By providing critical insights into co-creation steps, the process theory view offers a holistic theoretical understanding of enabling co-creation by identifying factors driving and motivating governments to initiate co-creation activities, interpreting the prerequisites for co-creation and the importance of impact assessment.
Practical implications
This study offers important implications for public authorities, administrators and policymakers by helping them enhance their knowledge base on the co-creation process to facilitate a higher level of collaboration between citizens and government for effective and efficient public service delivery through e-government.
Originality/value
While it is widely acknowledged that citizen engagement is crucial for improving and transforming the development and delivery of e-government services, it is equally recognized as a challenging and complex task. Through a meta-synthesis of qualitative case studies, this study is one of the first to develop a process theory view for offering a holistic understanding and crucial insights for addressing the concerns over the co-creation of e-government services.