This paper explores the innovation and value relevance of human resource investment and market reactions of investors on education and training expense in Korean security markets over the period of [2001][2002][2003][2004][2005][2006][2007][2008]. This study tests whether education and training expense is empirically associated with one year after earnings performance and the information content of education and training is immediately reacted in the Korean stock markets. The empirical result of this paper shows consistent results with the hypothesis of this paper. The results document that education and training investment which proxies for human resource investment have innovative value relevance and Korean stock market participants truly recognize the innovative information content of education and training expense.

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The purpose of this paper is to investigate the value relevance of earnings and book value in security prices from 1982 to 2001 in Korean stock market. The study examines whether the accounting earnings and book value have a nonlinear relationship to equity value by using an option-style model of equity. The study uses an option-style model of equity value to test the hypothesis that earnings and book value have a nonlinear relationship to equity value by examining firms listed in the Korean stock market (7,928 firm-year observations). To this end, the paper performs analyses for all samples and across subsamples divided into loss firms and profit firms, and observes changes in relationships over the past twenty years. This paper reports three sets of findings. First, the value-relevance of accounting earnings differs between loss firms and profit firms. Second, Korean firms differently acknowledge accounting earnings and book value for equity valuation. Third, an option-style valuation model can explain the nonlinear relationship between equity value and accounting earnings/book value. The important contribution of the study is to show the nonlinear relationship between equity value and book value in the Korean stock market. And the empirical results of the paper reinforces the adoption of a new equity valuation model that explicitly recognized the option that firms have to adapt their resources to the alternative uses available to them.

This paper aims to investigate the value relevance change before and after the mandatory adoption of Korea's international financial reporting standards (K-IFRS) in the listed Korean financial markets. This paper tests the value relevance change by dividing sample data into the periods before (2008-2010) and after (2011-2013) K-IFRS adoption. This study categorises sample data into several subgroups by firm size (large versus small and medium) and applicable financial market (KOSPI versus the KOSDAQ) for revealing further evidence of the value relevance change in Korean companies. The empirical results in this paper suggest that the value relevance of book value, accounting earnings, operating income, cash flows, and operating cash flows significantly changed before and after K-IFRS adoption. This paper's evidence suggests the possibility of a new debate regarding the primary value relevant factor before and after K-IFRS adoption among the companies listed on the Korea Stock Exchange.