• Title/Summary/Keyword: Data Bias

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The Impact of Human Resource Innovativeness, Learning Orientation, and Their Interaction on Innovation Effect and Business Performance : Comparison of Small and Medium-Sized vs. Large-Sized Companies (인적자원의 혁신성, 학습지향성, 이들의 상호작용이 혁신효과 및 사업성과에 미치는 영향 : 중소기업과 대기업의 비교연구)

  • Yoh, Eunah
    • Korean small business review
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    • v.31 no.2
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    • pp.19-37
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    • 2009
  • The purpose of this research is to explore differences between small and medium-sized companies and large-sized companies in the impact of human resource innovativeness(HRI), learning orientation(LO), and HRI-LO interaction on innovation effect and business performance. Although learning orientation has long been considered as a key factor influencing good performance of a business, little research was devoted to exploring the effect of HRI-LO interaction on innovation effect and business performance. In this study, it is investigated whether there is a synergy effect between innovative human workforce and learning orientation corporate culture, in addition to each by itself, to generate good business performance as well as a success of new innovations in the market. Research hypotheses were as follows, including H1) human resource innovativeness(HRI), learning orientation(LO), and interactions of HRI and LO(HRI-LO interaction) positively affect innovation effect, H2) there is a difference of the effect of HRI, LO, and HRI-LO interaction on innovation effect between large-sized and small-sized companies, H3) HRI, LO, HRI-LO interaction, innovation effect positively affect business performance, and H4) there is a difference of the effect of HRI, LO, HRI-LO interaction, and innovation effect on business performance between large-sized and small-sized companies. Data were obtained from 479 practitioners through a web survey since the web survey is an efficient method to collect a national data at a variety of fields. A single respondent from a company was allowed to participate in the study after checking whether they have more than 5-year work experiences in the company. To check whether a common source bias is existed in the sample, additional data from a convenient sample of 97 companies were gathered through the traditional survey method, and were used to confirm correlations between research variables of the original sample and the additional sample. Data were divided into two groups according to company size, such as 352 small and medium-sized companies with less than 300 employees and 127 large-sized companies with 300 or more employees. Data were analyzed through t-test and regression analyses. HRI which is the innovativeness of human resources in the company was measured with 9 items assessing the innovativenss of practitioners in staff, manager, and executive-level positions. LO is the company's effort to encourage employees' development, sharing, and utilizing of knowledge through consistent learning. LO was measured by 18 items assessing commitment to learning, vision sharing, and open-mindedness. Innovation effect which assesses a success of new products/services in the market, was measured with 3 items. Business performance was measured by respondents' evaluations on profitability, sales increase, market share, and general business performance, compared to other companies in the same field. All items were measured by using 6-point Likert scales. Means of multiple items measuring a construct were used as variables based on acceptable reliability and validity. To reduce multi-collinearity problems generated on the regression analysis of interaction terms, centered data were used for HRI, LO, and Innovation effect on regression analyses. In group comparison, large-sized companies were superior on annual sales, annual net profit, the number of new products/services in the last 3 years, the number of new processes advanced in the last 3 years, and the number of R&D personnel, compared to small and medium-sized companies. Also, large-sized companies indicated a higher level of HRI, LO, HRI-LO interaction, innovation effect and business performance than did small and medium-sized companies. The results indicate that large-sized companies tend to have more innovative human resources and invest more on learning orientation than did small-sized companies, therefore, large-sized companies tend to have more success of a new product/service in the market, generating better business performance. In order to test research hypotheses, a series of multiple-regression analysis was conducted. In the regression analysis examining the impact on innovation effect, important results were generated as : 1) HRI, LO, and HRI-LO affected innovation effect, and 2) company size indicated a moderating effect. Based on the result, the impact of HRI on innovation effect would be greater in small and medium-sized companies than in large-sized companies whereas the impact of LO on innovation effect would be greater in large-sized companies than in small and medium-sized companies. In other words, innovative workforce would be more important in making new products/services that would be successful in the market for small and medium-sized companies than for large-sized companies. Otherwise, learning orientation culture would be more effective in making successful products/services for large-sized companies than for small and medium-sized companies. Based on these results, research hypotheses 1 and 2 were supported. In the analysis of a regression examining the impact on business performance, important results were generated as : 1) innovation effect, LO, and HRI-LO affected business performance, 2) HRI by itself did not have a direct effect on business performance regardless of company size, and 3) company size indicated a moderating effect. Specifically, an effect of the HRI-LO interaction on business performance was stronger in large-sized companies than in small and medium-sized companies. It means that the synergy effect of innovative human resources and learning orientation culture tends to be stronger as company is larger. Referring to these result, research hypothesis 3 was partially supported whereas hypothesis 4 was supported. Based on research results, implications for companies were generated. Regardless of company size, companies need to develop the learning orientation corporate culture as well as human resources' innovativeness together in order to achieve successful development of innovative products and services as well as to improve sales and profits. However, the effectiveness of the HRI-LO interaction would be varied by company size. Specifically, the synergy effect of HRI-LO was stronger to make a success of new products/services in small and medium-sized companies than in large-sized companies. However, the synergy effect of HRI-LO was more effective to increase business performance of large-sized companies than that of small and medium-sized companies. In the case of small and medium-sized companies, business performance was achieved more through the success of new products/services than much directly affected by HRI-LO. The most meaningful result of this study is that the effect of HRI-LO interaction on innovation effect and business performance was confirmed. It was often ignored in the previous research. Also, it was found that the innovativeness of human workforce would not directly influence in generating good business performance, however, innovative human resources would indirectly affect making good business performance by contributing to achieving the development of new products/services that would be successful in the market. These findings would provide valuable managerial implications specifically in regard to the development of corporate culture and education program of small and medium-sized as well as large-sized companies in a variety of fields.

Assessment and Calibration of Ultrasonic Velocity Measurement for Estimating the Weathering Index of Stone Cultural Heritage (석조문화재의 풍화지수 산정을 위한 초음파속도의 평가 및 보정)

  • Lee, Young-Jun;Keehm, Young-Seuk;Lee, Min-Hui;Han, June-Hee;Kim, Min-Su
    • Journal of the Korean earth science society
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    • v.33 no.2
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    • pp.126-138
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    • 2012
  • Ultrasonic method is widely used for the evaluation of weathering index and of degree of deterioration because it is easily applicable $in$ $situ$. The basic idea of the method is that the ultrasonic velocity decreases as a rock is being weathered. Thus, the difference of ultrasonic velocities between fresh rock and weathered rock indicates the degree of weathering. In this method, the ultrasonic velocity of fresh rock is assumed to be 5,000 m/s. However, this assumption can cause significant errors in estimating weathering index, especially in case that those rocks of the same type have a wide range of ultrasonic velocities such as in Korea. Therefore, we obtained twenty rock specimens and sixty core samples commonly used for stone cultural heritages in Korea, and measured ultrasonic velocities. From the results, we found that the ultrasonic velocities of the same rock type, granite samples range from 3,118 to 5,380 m/s, and that the estimated weathering index can be highly biased if we use the fixed value of 5,000 m/s. We created a database (DB) by combining the measurement data and reported it. We also measured ultrasonic velocities by direct and indirect methods to quantify the calibration coefficient for each sampling site. We found that the calibration coefficients vary widely from site to site (1.31-1.76). Other factors, such as operator bias and temperature did not show any significant effect on errors in ultrasonic velocity measurements. Lastly, we applied our ultrasonic velocity DB and calibration coefficients to a stone cultural heritage, Bonghwang-ri Buddha statue. Our estimation of the weathering index was 0.3, 0.1 smaller than that by conventional method. The degree of deterioration was also different, "moderately weathered", while conventional method gave "highly weathered". Since other independent studies reported that the degree of deterioration of the Buddha statue was "moderately weathered", our estimation seems to be more accurate. Thus our method can help accurately evaluate the weathering index and the conservation planning for a stone cultural heritage.

The Effect on Pulmonary Indices of Surfactant Therapy for Meconium Aspiration Syndrome: Systematic Review and Meta-analysis (태변흡인증후군에서 폐표면활성제 사용이 호흡기지표에 미치는 영향에 대한 체계적 문헌고찰과 메타분석)

  • Choi, Hyun-Jin;Hahn, Seo-Kyung;Lee, Soon-Min;Kim, Han-Suk;Bae, Chong-Woo
    • Neonatal Medicine
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    • v.18 no.2
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    • pp.189-196
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    • 2011
  • Purpose: Surfactants have been used to improve oxygenation for infants with meconium aspiration syndrome (MAS). We evaluated the change of pulmonary indices after surfactant therapy for MAS through a systematic meta-analysis. Methods: Relevant randomized controlled studies (RCTs) were identified by database searches in MEDLINE, EMBASE, and CENTRAL, up to June 2011, and by additional hand searches. Data were extracted regarding pulmonary indices, such as the oxygen index and arterial alveolar oxygen gradient. Meta-analyses were separately conducted for the studies of surfactant lavage therapy and surfactant bolus therapy. The risk of bias was assessed, and clinical as well as statistical heterogeneities were also investigated. Results: Two RCTs for bolus surfactant therapy and two RCTs for surfactant lavage therapy were identified. The oxygenation index results were heterogeneous between the two studies in which bolus surfactant therapy was given, while a/A $PO_2$ showed significantly better results in the treatment group over time after use of surfactant (12 hours: WMD 0.08, 95% CI 0.04-0.12; 24 hours: WMD 0.17, 95% CI 0.06-0.28). For surfactant lavage therapy, both studies consistently suggested an interventional benefit in terms of the pulmonary indices although it did not reach statistical significance. Conclusion: Surfactant therapy appeared to improve oxygenation of infants with MAS. Since a limited number of RCTs are available in the current literature and those studies were also clinically heterogeneous in terms of illness severity and the method of surfactant use, further research is needed to gather evidence to support surfactant therapy in MAS.

Importance of End User's Feedback Seeking Behavior for Faithful Appropriation of Information Systems in Small and Medium Enterprises (중소기업 환경에서의 합목적적 정보시스템 활용을 위한 최종사용자 피드백 탐색행위의 중요성)

  • Shin, Young-Mee;Lee, Joo-Ryang;Lee, Ho-Geun
    • Asia pacific journal of information systems
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    • v.17 no.4
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    • pp.61-95
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    • 2007
  • Small-and-medium sized enterprises(SMEs) represent quite a large proportion of the industry as a whole in terms of the number of enterprises or employees. However researches on information system so far have focused on large companies, probably because SMEs were not so active in introducing information systems as larger enterprises. SMEs are now increasingly bringing in information systems such as ERP(Enterprise Resource Planning Systems) and some of the companies already entered the stage of ongoing use. Accordingly, researches should deal with the use of information systems by SME s operating under different conditions from large companies. This study examined factors and mechanism inducing faithful appropriation of information systems, in particular integrative systems such as ERP, in view of individuals` active feedback-seeking behavior. There are three factors expected to affect end users` feedback-seeking behavior for faithful appropriation of information systems. They are management support, peer IT champ support, and IT staff support. The main focus of the study is on how these factors affect feedback-seeking behavior and whether the feedback-seeking behavior plays the role of mediator for realizing faithful appropriation of information systems by end users. To examine the research model and the hypotheses, this study employed an empirical method based on a field survey. The survey used measurements mostly employed and verified by previous researches, while some of the measurements had gone through minor modifications for the purpose of the study. The survey respondents are individual employees of SMEs that have been using ERP for one year or longer. To prevent common method bias, Task-Technology Fit items used as the control variable were made to be answered by different respondents. In total, 127 pairs of valid questionnaires were collected and used for the analysis. The PLS(Partial Least Squares) approach to structural equation modeling(PLS-Graph v.3.0) was used as our data analysis strategy because of its ability to model both formative and reflective latent constructs under small-and medium-size samples. The analysis shows Reliability, Construct Validity and Discriminant Validity are appropriate. The path analysis results are as follows; first, the more there is peer IT champ support, the more the end user is likely to show feedback-seeking behavior(path-coefficient=0.230, t=2.28, p<0.05). In other words, if colleagues proficient in information system use recognize the importance of their help, pass on what they have found to be an effective way of using the system or correct others' misuse, ordinary end users will be able to seek feedback on the faithfulness of their appropriation of information system without hesitation, because they know the convenience of getting help. Second, management support encourages ordinary end users to seek more feedback(path-coefficient=0.271, t=3.06, p<0.01) by affecting the end users' perceived value of feedback(path-coefficient=0.401, t=6.01, p<0.01). Management support is far more influential than other factors that when the management of an SME well understands the benefit of ERP, promotes its faithful appropriation and pays attention to employees' satisfaction with the system, employees will make deliberate efforts for faithful appropriation of the system. However, the third factor, IT staff support was found not to be conducive to feedback-seeking behavior from end users(path-coefficient=0.174, t=1.83). This is partly attributable to the fundamental reason that there is little support for end users from IT staff in SMEs. Even when IT staff provides support, end users may find it less important than that from coworkers more familiar with the end users' job. Meanwhile, the more end users seek feedback and attempt to find ways of faithful appropriation of information systems, the more likely the users will be able to deploy the system according to the purpose the system was originally meant for(path-coefficient=0.35, t=2.88, p<0.01). Finally, the mediation effect analysis confirmed the mediation effect of feedback-seeking behavior. By confirming the mediation effect of feedback-seeking behavior, this study draws attention to the importance of feedback-seeking behavior that has long been overlooked in research about information system use. This study also explores the factors that promote feedback-seeking behavior which in result could affect end user`s faithful appropriation of information systems. In addition, this study provides insight about which inducements or resources SMEs should offer to promote individual users' feedback-seeking behavior when formal and sufficient support from IT staff or an outside information system provider is hardly expected. As the study results show, under the business environment of SMEs, help from skilled colleagues and the management plays a critical role. Therefore, SMEs should seriously consider how to utilize skilled peer information system users, while the management should pay keen attention to end users and support them to make the most of information systems.

Risk Factors Related to Uterine Leiomyoma in Korean Women - A Retrospective Study - (한국인 여성에서 자궁근종 발생에 관여하는 인자들에 대한 연구 - 후향적 연구 -)

  • Hong, D.G.;Chung, M.J.;Kim, B.S.;Lee, J.M.;Cho, Y.L.;Lee, T.H.;Chun, S.S.
    • Clinical and Experimental Reproductive Medicine
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    • v.33 no.3
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    • pp.159-170
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    • 2006
  • Objective: The purpose of this study is to find out risk factors related to uterine leiomyoma in Korean women and to compare with the results of previous western studies. Methods: A retrospective analysis was carried out. All the cases of uterine leiomyoma (n=244) were diagnosed surgically or sonographically between Jannuary 1998 and December 2004. Total of 269 controls not having uterine leiomyoma were collected from patients who visited Kyungpook national university hospital for routine gynecologic check-up or treatment of their gynecologic or obstetric diseases other than uterine leiomyoma. Data were collected through review of medical records and interviews and analyzed with $x^2$ and logistic regression model. Results: In multivariate analysis, patient's age (OR 1.070; 95% CI 1.041~1.099), number of artificial abortion (OR 1.182; 95% CI 1.018~1.374) and alcohol drinking (OR 1.865; 95% CI 1.231~2.824) had significantly positive correlation with uterine leiomyoma. The duration of lactation was the only factor which had negative correlation (OR 0.985; 95% CI 0.972~0.998). BMI, parity, age at menarche, the duration and interval of menstruation, caffeine consumption and marital status did not show any correlations. Conclusion: In this study, patient's age, number of artificial abortion, and alcohol drinking were the risk factors of uterine leiomyoma in Korean women and the result was similar to that of western studies. Though we couldn't find out the specific risk factors related to the development of uterine leiomyoma in this study, but it has a great meaning to be the first trial in Korean women. The role of information bias should be carefully evaluated and further multicentered, randomized, controlled prospective studies will be needed to know the possible risk factors among Korean women.

The KALION Automated Aerosol Type Classification and Mass Concentration Calculation Algorithm (한반도 에어로졸 라이다 네트워크(KALION)의 에어로졸 유형 구분 및 질량 농도 산출 알고리즘)

  • Yeo, Huidong;Kim, Sang-Woo;Lee, Chulkyu;Kim, Dukhyeon;Kim, Byung-Gon;Kim, Sewon;Nam, Hyoung-Gu;Noh, Young Min;Park, Soojin;Park, Chan Bong;Seo, Kwangsuk;Choi, Jin-Young;Lee, Myong-In;Lee, Eun hye
    • Korean Journal of Remote Sensing
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    • v.32 no.2
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    • pp.119-131
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    • 2016
  • Descriptions are provided of the automated aerosol-type classification and mass concentration calculation algorithm for real-time data processing and aerosol products in Korea Aerosol Lidar Observation Network (KALION, http://www.kalion.kr). The KALION algorithm provides aerosol-cloud classification and three aerosol types (clean continental, dust, and polluted continental/urban pollution aerosols). It also generates vertically resolved distributions of aerosol extinction coefficient and mass concentration. An extinction-to-backscatter ratio (lidar ratio) of 63.31 sr and aerosol mass extinction efficiency of $3.36m^2g^{-1}$ ($1.39m^2g^{-1}$ for dust), determined from co-located sky radiometer and $PM_{10}$ mass concentration measurements in Seoul from June 2006 to December 2015, are deployed in the algorithm. To assess the robustness of the algorithm, we investigate the pollution and dust events in Seoul on 28-30 March, 2015. The aerosol-type identification, especially for dust particles, is agreed with the official Asian dust report by Korean Meteorological Administration. The lidar-derived mass concentrations also well match with $PM_{10}$ mass concentrations. Mean bias difference between $PM_{10}$ and lidar-derived mass concentrations estimated from June 2006 to December 2015 in Seoul is about $3{\mu}g\;m^{-3}$. Lidar ratio and aerosol mass extinction efficiency for each aerosol types will be developed and implemented into the KALION algorithm. More products, such as ice and water-droplet cloud discrimination, cloud base height, and boundary layer height will be produced by the KALION algorithm.

A Meta-analysis of Ambient Air Pollution in Relation to Daily Mortality in Seoul, $1991\sim1995$ (메타분석 방법을 적용한 서울시 대기오염과 조기사망의 상관성 연구 (1991년$\sim$1995년))

  • Dockery, Douglas W.;Kim, Chun-Bae;Jee, Sun-Ha;Chung, Yong;Lee, Jong-Tae
    • Journal of Preventive Medicine and Public Health
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    • v.32 no.2
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    • pp.177-182
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    • 1999
  • Objectives: To reexamine the association between air pollution and daily mortality in Seoul, Korea using a method of meta-analysis with the data filed for 1991 through 1995. Methods: A separate Poisson regression analysis on each district within the metropolitan area of Seoul was conducted to regress daily death counts on levels of each ambient air pollutant, such as total suspended particulates (TSP), sulfur dioxide $(SO_2)$, and ozone $(O_3)$, controlling for variability in the weather condition. We calculated a weighted mean as a meta-analysis summary of the estimates and its standard error. Results: We found that the p value from each pollutant model to test the homogeneity assumption was small (p<0.01) because of the large disparity among district-specific estimates. Therefore, all results reported here were estimated from the random effect model. Using the weighted mean that we calculated, the mortality at a $100{\mu}g/m^3$ increment in a 3-day moving average of TSP levels was 1.034 (95% Cl 1.009-1.059). The mortality was estimated to increase 6% (95% Cl 3-10%) and 3% (95% Cl 0-6%) with each 50 ppb increase for 9-day moving average of SO2 and 1-hr maximum O3, respectively. Conclusions: Like most of air pollution epidemiologic studies, this meta-analysis cannot avoid fleeing from measurement misclassification since no personal measurement was taken. However, we can expect that a measurement bias be reduced in a district-specific estimate since a monitoring station is hefter representative cf air quality of the matched district. The similar results to those from the previous studios indicated existence of health effect of air pollution at current levels in many industrialized countries, including Korea.

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Evaluation of the Simulated PM2.5 Concentrations using Air Quality Forecasting System according to Emission Inventories - Focused on China and South Korea (대기질 예보 시스템의 입력 배출목록에 따른 PM2.5 모의 성능 평가 - 중국 및 한국을 중심으로)

  • Choi, Ki-Chul;Lim, Yongjae;Lee, Jae-Bum;Nam, Kipyo;Lee, Hansol;Lee, Yonghee;Myoung, Jisu;Kim, Taehee;Jang, Limseok;Kim, Jeong Soo;Woo, Jung-Hun;Kim, Soontae;Choi, Kwang-Ho
    • Journal of Korean Society for Atmospheric Environment
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    • v.34 no.2
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    • pp.306-320
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    • 2018
  • Emission inventory is the essential component for improving the performance of air quality forecasting system. This study evaluated the simulated daily mean $PM_{2.5}$ concentrations in South Korea and China for 1-year period (Sept. 2016~Aug. 2017) using air quality forecasting system which was applied by the emission inventory of E2015 (predicted CAPSS 2015 for South Korea and KORUS 2015 v1 for the other regions). To identify the impacts of emissions on the simulated $PM_{2.5}$, the emission inventory replaced by E2010 (CAPSS 2010 and MIX 2010) were also applied under the same forecasting conditions. These results showed that simulated daily mean $PM_{2.5}$ concentrations had generally suitable performance with both emission data-sets for China (IOA>0.87, R>0.87) and South Korea (IOA>0.84, R>0.76). The impacts of the changes in emission inventories on simulated daily mean $PM_{2.5}$ concentrations were quantitatively estimated. In China, normalized mean bias (NMB) showed 5.5% and 26.8% under E2010 and E2015, respectively. The tendency of overestimated concentrations was larger in North Central and Southeast China than other regions under both E2010 and E2015. Seasonal differences of NMB were higher in non-winter season (28.3% (E2010)~39.3% (E2015)) than winter season (-0.5% (E2010)~8.0% (E2015)). In South Korea, NMB showed -5.4% and 2.8% for all days, but -15.2% and -11.2% for days below $40{\mu}g/m^3$ to minimize the impacts of long-range transport under E2010 and E2015, respectively. For all days, simulated $PM_{2.5}$ concentrations were overestimated in Seoul, Incheon, Southern part of Gyeonggi and Daejeon, and underestimated in other regions such as Jeonbuk, Ulsan, Busan and Gyeongnam, regardless of what emission inventories were applied. Our results suggest that the updated emission inventory, which reflects current status of emission amounts and spatio-temporal allocations, is needed for improving the performance of air quality forecasting.

Implant Isolation Characteristics for 1.25 Gbps Monolithic Integrated Bi-Directional Optoelectronic SoC (1.25 Gbps 단일집적 양방향 광전 SoC를 위한 임플란트 절연 특성 분석)

  • Kim, Sung-Il;Kang, Kwang-Yong;Lee, Hai-Young
    • Journal of the Institute of Electronics Engineers of Korea SD
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    • v.44 no.8
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    • pp.52-59
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    • 2007
  • In this paper, we analyzed and measured implant isolation characteristics for a 1.25 Gbps monolithic integrated hi-directional (M-BiDi) optoelectronic system-on-a-chip, which is a key component to constitute gigabit passive optical networks (PONs) for a fiber-to-the-home (FTTH). Also, we derived an equivalent circuit of the implant structure under various DC bias conditions. The 1.25 Gbps M-BiDi transmit-receive SoC consists of a laser diode with a monitor photodiode as a transmitter and a digital photodiode as a digital data receiver on the same InP wafer According to IEEE 802.3ah and ITU-T G.983.3 standards, a receiver sensitivity of the digital receiver has to satisfy under -24 dBm @ BER=10-12. Therefore, the electrical crosstalk levels have to maintain less than -86 dB from DC to 3 GHz. From analysed and measured results of the implant structure, the M-BiDi SoC with the implant area of 20 mm width and more than 200 mm distance between the laser diode and monitor photodiode, and between the monitor photodiode and digital photodiode, satisfies the electrical crosstalk level. These implant characteristics can be used for the design and fabrication of an optoelectronic SoC design, and expended to a mixed-mode SoC field.

An Empirical Study on Korean Stock Market using Firm Characteristic Model (한국주식시장에서 기업특성모형 적용에 관한 실증연구)

  • Kim, Soo-Kyung;Park, Jong-Hae;Byun, Young-Tae;Kim, Tae-Hyuk
    • Management & Information Systems Review
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    • v.29 no.2
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    • pp.1-25
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    • 2010
  • This study attempted to empirically test the determinants of stock returns in Korean stock market applying multi-factor model proposed by Haugen and Baker(1996). Regression models were developed using 16 variables related to liquidity, risk, historical price, price level, and profitability as independent variables and 690 stock monthly returns as dependent variable. For the statistical analysis, the data were collected from the Kis Value database and the tests of forecasting power in this study minimized various possible bias discussed in the literature as possible. The statistical results indicated that: 1) Liquidity, one-month excess return, three-month excess return, PER, ROE, and volatility of total return affect stock returns simultaneously. 2) Liquidity, one-month excess return, three-month excess return, six-month excess return, PSR, PBR, ROE, and EPS have an antecedent influence on stock returns. Meanwhile, realized returns of decile portfolios increase in proportion to predicted returns. This results supported previous study by Haugen and Baker(1996) and indicated that firm-characteristic model can better predict stock returns than CAPM. 3) The firm-characteristic model has better predictive power than Fama-French three-factor model, which indicates that a portfolio constructed based on this model can achieve excess return. This study found that expected return factor models are accurate, which is consistent with other countries' results. There exists a surprising degree of commonality in the factors that are most important in determining the expected returns among different stocks.

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