• KDI Journal of Economic Policy
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• v.28 no.2
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• pp.131-177
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• 2006

This paper examines a simultaneous determination of corporate control mechanisms, and its effects on firm performance. The corporate control mechanisms considered include the following; insider shareholding, institutional shareholding, the board of directors, dividend policy, and capital structure. This paper applies a simultaneous equation methodology and investigates the interdependence among the corporate control mechanisms. In the first part, the paper finds that firm-level variations of control mechanisms are large across time although average variations are relatively small. These variations are related to one another, which is confirmed by Granger causality test based on dynamic panel autoregression model. More specifically insider shareholding, institutional shareholding and outside director ratio cause each other. With regard to interdependence among the control mechanisms, 2SLS(two stage least squares) regression results show that insider shareholding and institutional shareholding are substitutes while institutional shareholding acts as complements to the ratio of outside members in the board of directors. Then in the second part, the paper examines the relationship between firm performance and corporate governance. Firm performance, measured by Tobin's Q, has a positive association with leverage ratio while that has a negative relation to outside director ratio. This suggests that there may be a room for reforming corporate governance in Korea. Specifically it is necessary to enhance the independence of the outside directors.

• Journal of the Society of Naval Architects of Korea
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• v.33 no.3
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• pp.35-47
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• 1996

A surface panel method treating a boundary-value problem of the Dirichlet type is presented to design a three dimensional body with free surface corresponding to a prescribed pressure distribution. An integral equation is derived from Green's theorem, giving a relation between total potential of known strength and the unknown local flux. Upon discretization, a system of linear simultaneous equations is formed including free surface boundary condition and is solved for an assumed geometry. The pseudo local flux, present due to the incorrect positioning of the assumed geometry, plays a role f the geometry corrector, with which the new geometry is computed for the next iteration. Sample designs for submerged spheroids and Wigley hull and carried out to demonstrate the stable convergence, the effectiveness and the robustness of the method. For the calculation of the wave resistance, normal dipoles and Rankine sources are distributed on the body surface and Rankine sources on the free surface. The free surface boundary condition is linearized with respect to the oncoming flow. Four-points upwind finite difference scheme is used to compute the free surface boundary condition. A hyperboloidal panel is adopted to represent the hull surface, which can compensate the defects of the low-order panel method. The design of a 5500TEU container carrier is performed with respect to reduction of the wave resistance. To reduce the wave resistance, calculated pressure on the hull surface is modified to have the lower fluctuation, and is applied as a Dirichlet type dynamic boundary condition on the hull surface. The designed hull form is verified to have the lower wave resistance than the initial one not only by computation but by experiment.