Professor Pae of SKK GSB Selected as the 54th Maeil Business Newspaper Economist Award Winner.

Professor Pae published a paper titled "Career Concerns, Investment, and Management Forecasts" in the world-renowned academic journal "Accounting Review".

In this paper, Professor Pae used a mathematical model to analyze how corporate investment and disclosure differ depending on the characteristics of managers. This attracted attention from the academic community and led to the award-winning achievement.

According to Professor Pae's analysis, managers with general management skills tend to underinvest, while managers with specialized skills tend to overinvest.

In addition, managers with general management skills were less likely to disclose earnings forecast information than managers with specialized skills, especially when their contribution to corporate value was uncertain.

Professor Pae's paper attracted attention by focusing on the theoretical verification of the factors that many companies consider when selecting professional managers.

The paper revealed that when professional and general management tendencies are taken to extremes, companies make inefficient investment decisions and damage corporate value. Overinvestment is a problem, but underinvestment also prevents quick responses when plant expansion or new construction is necessary, putting companies at a disadvantage in competition.

○ Coverage in the media

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