Is Inventory Management Asymmetric to the Direction of Sales Change? Korean Evidence

• 발행기관: People & Global Business Association
• 저자명: Sang-Giun Yim
• 간행물 정보: 『Global Business and Finance Review』Vol.29 No.10, 69~83쪽, 전체 15쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2024.11.30

국문 초록

Purpose: This study investigates whether asymmetry in inventory management exists in Korean-listed firms. A recent study using US-listed firm data found that inventory adjustment is asymmetric in relation to the direction of sales change. They argue that this asymmetry is caused by keeping safe stock in case future demand rises even when sales fall. However, given the recent trend of minimizing inventory costs and Korean characteristics, it is unclear whether the asymmetry in inventory adjustment also exists in Korean firms. Design/methodology/approach: This study uses multiple regression analysis to look into various aspects of inventory management in data from Korean-listed firms, such as listed markets, detailed inventory accounts, and production rates. Findings: KOSDAQ-listed firms exhibit inventory management asymmetry, whereas KOSPI-listed firms do not. This difference only appears in the work-in-process account. Furthermore, when the asymmetry of inventory adjustment is found, it confirms that inventory at the time of sales decrease is incrementally informative for future sales increase. Research limitations/implications: This study demonstrates that when sales decline, Korean firms, particularly those listed on the KOSPI, suppress their safe stock holdings. Compared to the results of previous studies, this study implies that Korean firms have a stronger tendency to suppress the costs of holding inventory and shows that inventories during sales declines are less reflective of managers' expectations of future sales increases. Originality/value: This is the first study to examine the asymmetry of inventory management in Korean firms. This study provides practical and important implications for the analysis and interpretation of inventory accounts.

목차

Ⅰ. Introduction

Ⅱ. Research Background and Research Questions

Ⅲ. Research Methodology

Ⅳ. Sample and Descriptive Statistics

Ⅴ. Empirical Results

Ⅵ. Conclusion

Funding Statement

Conflicts of Interest

Author Contributions

References

키워드

Inventory Management Sales Decrease Inventory Future Sales