• Korean Chemical Engineering Research
• /
• v.56 no.4
• /
• pp.496-523
• /
• 2018

The objective of this study is to evaluate the economic feasibility of two fast pyrolysis and biooil upgrading (FPBU) plants including feed drying, fast pyrolysis by fluidized-bed, biooil recovery, hydro-processing for biooil upgrading, electricity generation, and wastewater treatment. The two FPBU plants are Case 1 of an FPBU plant with steam methane reforming (SMR) for $H_2$ generation (FPBU-HG, 20% yield), and Case 2 of an FPBU with external $H_2$ supply (FPBUEH, 25% yield). The process flow diagrams (PFDs) for the two plants were constructed, and the mass and energy balances were calculated, using a commercial process simulator (ASPEN Plus). A four-level economic potential approach (4-level EP) was used for techno-economic analysis (TEA) under the assumption of sawdust 100 t//d containing 40% water, 30% equity, capital expenditure equal to the equity, $H_2$ price of $1050/ton, and hydrocarbon yield from dried sawdust equal to 20 and 25 % for Case 1 and 2, respectively. TCI (total capital investment), TPC (total production cost), ASR (annual sales revenue), and MFSP (minimum fuel selling price) of Case 1 were $22.2 million, $3.98 million/yr, $4.64 million/yr, and $1.56/l, respectively. Those of Case 2 were $16.1 million, $5.20 million/yr, $5.55 million/yr, and $1.18/l, respectively. Both ROI (return on investment) and PBP (payback period) of Case 1(FPBU-HG) and Case 2(FPBU-EH) were the almost same. If the plant capacity increases into 1,500 t/d for Case 1 and Case 2, ROI would be improved into 15%/yr.

• Management & Information Systems Review
• /
• v.28 no.1
• /
• pp.71-97
• /
• 2009

In this study, I compare the ability of alternative accounting method for employee stock option to reflect firm value using the Ohlson's(1995) valuation model for 200 firms. The each methods, I compare are employee stock option expense recognition based on the K-GAAP disclosures, and asset recognition at the grant date based on the SFAS No. 123 Exposure Draft: Accounting for stock-based compensation. The model include: (1) a model that uses reported earnings, equity book value, and compensation expense based on the K-GAAP disclosures; (2) a model that uses pro-forma earnings, equity book value and adds a measure of the unrecognized asset arising form granting of employee stock options. Finding form estimating equations that the K-GAAP method for calculating compensation has no explanatory power, and the SFAS No.123 Draft Exposure method for arising asset and fair value compensation better captures than market's perception of the economic impact of stock options on firm values. However, the correlation of employee stock option compensation expense is positive. These results suggest that incentive benefits derived from employee stock option plans outweigh the cost associated with plan. In addition, I couldn't find evidence that company in KOSDAQ that have high growth potential benefit more from employee stock option plan compared to lager, more mature firm in SEC.

• Korean Journal of Construction Engineering and Management
• /
• v.15 no.5
• /
• pp.94-102
• /
• 2014

This study analyzes necessity of expanding construction insurance and estimates required budget. Construction insurance is obliged by National Contract Law and Local Contract Law to protect projet owners and contractors from any unexpected construction risk such as financial losses in construction process. Currently the contracts of design-build and alternate-bid projects as well as PQ project, which are greater than 20 billion won, require the contractors to provide construction insurances in Korea. Insurance premiums are borne by the public project owner. Those contractors whose contract volume is less than 20 billion won burden all risks of projects at their cost. This causes equity problem. Because small-and-medium contractors are discriminated against large contractors since insurance-obliged projects are performed by large contractors and insurance premiums are borne by the public project owner. On the other hands, in all engineering projects, regardless of volume, insurance premiums are borne by the project owner. Therefore current regulation has to be improved, by expanding to all public projects. The average ratio of unobliged projects is 46%, in recent 3 years, prime cost of insurance companies is estimated 0.2%. Moreover considering risks of each construction type, prime cost of unobliged works is estimated as 0.13%. Hence additional necessary budget is estimated to be 2.09 billion won if total volume of public work is 3.5 trillion won. And 2.39 billion won is derived if total volume of public projects is 4 trillion won.

• Journal of Korea Port Economic Association
• /
• v.38 no.2
• /
• pp.81-93
• /
• 2022

Since 2008, China's shipping industry has been in a slump, with shipbuilding orders falling sharply, and high-growth excess capacity has become increasingly apparent, leaving many firms with sharply reduced orders at risk of bankruptcy and shutdown. To ensure the development of the shipbuilding industry and enhance the international competitiveness of the shipbuilding industry, it is necessary to analyze the present situation of the shipbuilding industry and the financial situation of the shipbuilding enterprises. And analyzing the problems faced by enterprises from the perspective of capital structure is very meaningful to the shipbuilders with high capital operation. We are trying to analyze the determinants of capital structure of China's shipbuilding listed companies. 30 listed Chinese shipbuilding and listed companies have been designated as sample companies that can obtain financial statements for 13 consecutive years. They also divided 30 sample companies into shipbuilding, shipbuilding-related manufacturing, and shipbuilding-related transportation. Dependent variable is the debt level of the year, independent variable includes the debt level of the previous year, fixed asset ratio, profitability ratio, depreciation cost ratio and asset size. The regression model of the panel used to analyze determinants is capital structure. The results of the empirical analysis are as follows. First, a fixed-effect model for the entire entity showed that the debt-to-equity ratio and the size of the asset in the previous period had a positive effect on the debt-to-equity ratio in the current period. Second, the impact of the profitability ratio on the debt level in the prior term also supports the capital procurement ranking theory rather than the static counter-conflict theory. Third, it was shown that the ratio of the depreciation of the prior term, which replaces the non-liability tax effect, affects the debt-to-equity ratio in the current period.

• The Journal of Fisheries Business Administration
• /
• v.49 no.1
• /
• pp.67-89
• /
• 2018

In fisheries, as well as in other natural resource-based industries, there is difference between profit and rent. The former is a basic indicator for gauging the business performance of firms, while the latter is for the evaluation of the contribution of resources and industry to economic welfare. Put simply, resource economists are mainly concerned about rent, including pure resource rent and producer surplus (intra-marginal rent [IMR]). In other hand, business economists are mainly concerned about the profitability of the firms comprising the industry. In the academic literature, there are not always clear definitions of the profit and rent concepts and their use in actual analyses. This article will mainly discuss and clarify differences and similarities in profit and rent concepts. In the classical fisheries economic model with one-dimensional homogenous effort and a constant cost per unit of effort, no rent exists in open-access equilibrium. A simple change in this model, for example by introducing heterogeneous effort, opens it to the existence of rent, specifically IMR, at open-access equilibrium. We estimated resource rent and profit from the data using SNA(system of national accounts) and accounting data methods. RR(resource rent) is composed of value-added, compensation of employees, consumption of fixed capital and normal profit in SNA. RR(resource rent) is composed of EBT, Depreciation of fishing rights, financial costs of fishing rights and calculated interests on equity in accounting data methods. We found that the result of two methods is equal. RR is composed of excess profit, rent and interest expenses. In Korea, the magnitude of RR and profit is not different significantly.

• The Journal of the Korea Contents Association
• /
• v.15 no.5
• /
• pp.475-487
• /
• 2015

This study measures the managerial efficiency of Korea's 14 public enterprises using bootstrap DEA in 2013. In addition, it examines the factors that affect on the bootstrap bias-corrected efficiency using truncated regression analysis. The results and implications of this study are as follows. First, using bootstrap DEA model analysis, the results showed that the mean technical efficiency was 0.3182, the mean pure technical efficiency was 0.4994 and the mean scale efficiency was 0.6585. The main cause of technical inefficiency was due to pure technical inefficiency. Second, rank test between technical efficiency of general DEA model and bootstrap DEA model was no significant difference under CRS and VRS assumption. Third, the main cause of the inefficiency in 11 DMUs among 14 DMUs were mainly due to the pure technology and three DMUs were because of the scale efficiency. Finally, in the truncated regression analysis, cost of labor, profit, sales, return of equity, and the number of employees appeared as factors affecting the scale efficiency at the 10% significance level.

• Spatial Information Research
• /
• v.9 no.1
• /
• pp.91-105
• /
• 2001

This study aimed to develop an effective decision support system for the locational decision of urban parks through integrating decision analysis techniques with spatial analysis functions of GIS, and by doing so, to improve the efficiency and quality of the decision-making process. The system provides an efficient management process by integrating analysis, alternative generation and evaluation procedures into a coherent system environment. Evaluation criteria used in the system includes Equity, Efficiency, Service population, Land cost, Park ratio buildings, and Connectivity of greenery. The system also improves the efficiency and rationality of the decision-making process by incorporating various decision analysis techniques such as MAUT, AHP, and ELECTRE into a decision-making process. The analysis and decision support methods used in the system can be utilized for the locational decisions of other urban public facilities, and the system can also be expanded to a comprehensive park management system by incorporating general management functions for urban parks.

• Journal of Korea Port Economic Association
• /
• v.26 no.2
• /
• pp.58-81
• /
• 2010

The economic appraisal of a port remodeling project must be transparent and persuasive to the public over the entire stage of the project. A project evaluator need to be familiar with the guidelines on evaluation, and to do his best to follow the guidelines to evaluate the given project. To make the right decision on investment, the evaluator must take into consideration not only economic efficiency, but also equity issues such as income redistribution and balanced development between regions. Port remodeling projects tend to produce externalities to the environment. However, these externalities are of qualitative nature, and hard to measure in monetary terms, so these are liable to be ignored in the process of project evaluation. Two different approaches - RP(revealed preference) and SP(stated preference) have been tried to assess the value of these non-market goods. Government authorities need to set minimum guidelines which project evaluators must follow in order to make the evaluation more reliable.

• Asia Marketing Journal
• /
• v.15 no.3
• /
• pp.53-77
• /
• 2013

As advertising and promotions are categorized as operating expenses, managers tend to reduce marketing budget to improve their short term profitability. Gauging the value and accountability of marketing spending is therefore considered as a major research priority in marketing. To respond this call, recent studies have documented that financial market reacts positively to a firm's marketing activity or marketing related outcomes such as brand equity and customer satisfaction. However, prior studies focus on the relation of marketing variable and financial market variables. This study suggests a channel about how marketing activity increases firm valuation. Specifically, we propose that a firm's marketing activity increases the level of the firm's product market information and thereby the dispersion in financial analysts' earnings forecasts decreases. With less uncertainty about the firm's future prospect, the firm's managers and shareholders have less information asymmetry, which reduces the firm's cost of capital and thereby increases the valuation of the firm. To our knowledge, this is the first paper to examine how informational benefits can mediate the effect of marketing activity on firm value. To test whether marketing activity contributes to increase in firm value by mitigating information asymmetry, this study employs a longitudinal data which contains 12,824 firm-year observations with 2,337 distinct firms from 1981 to 2006. Firm value is measured by Tobin's Q and one-year-ahead buy-and-hold abnormal return (BHAR). Following prior literature, dispersion in analysts' earnings forecasts is used as a proxy for the information gap between management and shareholders. For model specification, to identify mediating effect, the three-step regression approach is adopted. All models are estimated using Markov chain Monte Carlo (MCMC) methods to test the statistical significance of the mediating effect. The analysis shows that marketing intensity has a significant negative relationship with dispersion in analysts' earnings forecasts. After including the mediator variable about analyst dispersion, the effect of marketing intensity on firm value drops from 1.199 (p < .01) to 1.130 (p < .01) in Tobin's Q model and the same effect drops from .192 (p < .01) to .188 (p < .01) in BHAR model. The results suggest that analysts' forecast dispersion partially accounts for the positive effect of marketing on firm valuation. Additionally, the same analysis was conducted with an alternative dependent variable (forecast accuracy) and a marketing metric (advertising intensity). The analysis supports the robustness of the main results. In sum, the results provide empirical evidence that marketing activity can increase shareholder value by mitigating problem of information asymmetry in the capital market. The findings have important implications for managers. First, managers should be cognizant of the role of marketing activity in providing information to the financial market as well as to the consumer market. Thus, managers should take into account investors' reaction when they design marketing communication messages for reducing the cost of capital. Second, this study shows a channel on how marketing creates shareholder value and highlights the accountability of marketing. In addition to the direct impact of marketing on firm value, an indirect channel by reducing information asymmetry should be considered. Potentially, marketing managers can justify their spending from the perspective of increasing long-term shareholder value.

• Journal of Intelligence and Information Systems
• /
• v.20 no.2
• /
• pp.59-71
• /
• 2014

System trading is becoming more popular among Korean traders recently. System traders use automatic order systems based on the system generated buy and sell signals. These signals are generated from the predetermined entry and exit rules that were coded by system traders. Most researches on system trading have focused on designing profitable entry and exit rules using technical indicators. However, market conditions, strategy characteristics, and money management also have influences on the profitability of the system trading. Unexpected price deviations from the predetermined trading rules can incur large losses to system traders. Therefore, most professional traders use strategy portfolios rather than only one strategy. Building a good strategy portfolio is important because trading performance depends on strategy portfolios. Despite of the importance of designing strategy portfolio, rule of thumb methods have been used to select trading strategies. In this study, we propose a SVM-based strategy portfolio management system. SVM were introduced by Vapnik and is known to be effective for data mining area. It can build good portfolios within a very short period of time. Since SVM minimizes structural risks, it is best suitable for the futures trading market in which prices do not move exactly the same as the past. Our system trading strategies include moving-average cross system, MACD cross system, trend-following system, buy dips and sell rallies system, DMI system, Keltner channel system, Bollinger Bands system, and Fibonacci system. These strategies are well known and frequently being used by many professional traders. We program these strategies for generating automated system signals for entry and exit. We propose SVM-based strategies selection system and portfolio construction and order routing system. Strategies selection system is a portfolio training system. It generates training data and makes SVM model using optimal portfolio. We make $m{\times}n$ data matrix by dividing KOSPI 200 index futures data with a same period. Optimal strategy portfolio is derived from analyzing each strategy performance. SVM model is generated based on this data and optimal strategy portfolio. We use 80% of the data for training and the remaining 20% is used for testing the strategy. For training, we select two strategies which show the highest profit in the next day. Selection method 1 selects two strategies and method 2 selects maximum two strategies which show profit more than 0.1 point. We use one-against-all method which has fast processing time. We analyse the daily data of KOSPI 200 index futures contracts from January 1990 to November 2011. Price change rates for 50 days are used as SVM input data. The training period is from January 1990 to March 2007 and the test period is from March 2007 to November 2011. We suggest three benchmark strategies portfolio. BM1 holds two contracts of KOSPI 200 index futures for testing period. BM2 is constructed as two strategies which show the largest cumulative profit during 30 days before testing starts. BM3 has two strategies which show best profits during testing period. Trading cost include brokerage commission cost and slippage cost. The proposed strategy portfolio management system shows profit more than double of the benchmark portfolios. BM1 shows 103.44 point profit, BM2 shows 488.61 point profit, and BM3 shows 502.41 point profit after deducting trading cost. The best benchmark is the portfolio of the two best profit strategies during the test period. The proposed system 1 shows 706.22 point profit and proposed system 2 shows 768.95 point profit after deducting trading cost. The equity curves for the entire period show stable pattern. With higher profit, this suggests a good trading direction for system traders. We can make more stable and more profitable portfolios if we add money management module to the system.