System & Data
Person DB System
Comprehensively check personal relationships utilizingNICE evaluation and corporate information of Korea Listed Companies Association
Person DB
- 1)Corporate governance,
- 2)Executive information,
- 3)Relationship Map to verify independence of executives,
- 4)Statistics for companies and executives,
- 5)voting history of general meetings
Corporate governance
- 1)ESG rating,
- 2)Shareholder rights related to the exercise of shareholder's voting rights,
- 3)Current status of full-time and part-time executives in the company,
- 4)Internal transaction status,
- 5)Status of stock ownership of at least 5%,
- 6)Status of Major Committees
- 7)Payment and limit of executive remuneration,
- 8)Current status of shares of the largest shareholders and related persons
Executive Information
- 1)Personal info (DOB, academic background, title, etc.)
- 2)Employment history of executives,
- 3)News articles related to executives
Proxy Simulation
(When the agenda for executive candidates of the relevant company is presented to the general meeting)
Provide a system that can determine whether the candidate is disqualified based on grounds such as whether corporate value is damaged, disciplinary status, excessive concurrent position, and independence
Provide a system that can determine whether the candidate is disqualified based on grounds such as whether corporate value is damaged, disciplinary status, excessive concurrent position, and independence
Relationship Map
Verify the independence of existing members of the BOD of the relevant company if outside directors and auditors are presented as new candidates
Statistics
Provide statistical data on corporate goverance & person information and time series data through grouping, i.e. by company size
Dividend Evaluation Model
Extracted based on quantitative data by subdividing 1) industry-specific characteristics 2) characteristics of cash flows Selects under/over-dividend companies by considering investor preferences, TSR, and treasury stock purchases.
Support dividend policy decision with
our on-premise model
Qualitative data analysis and selection of under/over-dividend companies based on our proprietary qualitative standards, and present a range of appropriate dividend payout ratio
Determination of appropriate
dividend yield
dividend yield
Difficulty and challenges
- Dividend is a unique area of financial judgment for companies
- Limited information disclosed to the market (limited information on growth opportunities, investment plans, etc.)
- Heavily influenced by mental accounting
Selection of Under/over-dividend
companies
companies
Identify factors that affect
dividends
dividends
Multiple regression analysis
with cash dividend payout
ratio and factors
with cash dividend payout
ratio and factors
Sensitivity calculations of
significant variables that
affect dividends
significant variables that
affect dividends
Quantitative analysis
through actual data for
evaluation year
through actual data for
evaluation year
Select under/over-dividend
companies
companies
Application of proprietary
qualitative methodologies
qualitative methodologies
Derive appropriate dividend payout
- Be in favor for dividends estimated by the company's appropriate dividend policy
- Dividend shall be opposed If the payment level is insufficient or excessive to impair shareholder value in consideration of the company's profit size, financial situation, investment opportunities, size of treasury stock purchases, compensation and donations to executives and employees, etc.
Minimum requirements to avoid compromising shareholder value
Monitoring System
Phase 1
Collection of media articles and disclosures about companies under coverage (keywords: dividends, mergers, prosecutions, etc.)
Phase 2
Group issues collected for companies under coverage
Phase 3
Publish company-specific reports on relevant issues
Able to update corporate issues even after providing a proxy analysis report through the permanent monitoring system
Disclosures
Media Articles
