• KSCE Journal of Civil and Environmental Engineering Research
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• v.28 no.1D
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• pp.107-117
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• 2008

Private financing is playing an increasing role in public infrastructure construction projects worldwide. However, private investors/operators are exposed to the financial risk of low profitability due to the inaccurate estimation of facility demand, operation income, maintenance costs, etc. From the operator's perspective, a sound and thorough financial feasibility study is required to establish the appropriate capital structure of a project. Operators tend to reduce the equity amount to minimize the level of risk exposure, while creditors persist to raise it, in an attempt to secure a sufficient level of financial involvement from the operators. Therefore, it is important for creditors and operators to reach an agreement for a balanced capital structure that synthetically considers both profitability and repayment capacity. This paper presents an optimal capital structure model for successful private infrastructure investment. This model finds the optimized point where the profitability is balanced with the repayment capacity, with the use of the concept of utility function and multi-objective GA (Generic Algorithm)-based optimization. A case study is presented to show the validity of the model and its verification. The research conclusions provide a proper capital structure for privately-financed infrastructure projects through a proposed multi-objective model.

• Journal of Contemporary Eastern Asia
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• v.12 no.2
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• pp.89-97
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• 2013

This paper explores the influences of the traditional Chinese culture on social relations in China. It provides an introduction to the concept of Guanxi, the notion that social connections are based on socially situated reciprocity. This is different from social interaction in Western society that is based on self-interest and equity. Guanxi represents the foundation of social networks in many Eastern countries. As such, the study of social networks in China requires scholars to examine Guanxi networks. The paper demonstrates how a Guanxi perspective might be added to the examination of various theories that comprise structural (network) theory, including social capital theory, social exchange theory, cognitive and contagion theories, and the role of homophily for the study of Chinese society and its social organizations.

• Korea Journal of Hospital Management
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• v.13 no.3
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• pp.1-16
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• 2008

According to Myers (1984) and Myers and Majluf(1984), there exists a financial hierarchy from internal to external financing, from long-tenn debt to equity, due to information costs. The purpose of this study is to assess the profit-making corporation of healthcare institutions. Data was collected from 130 hospital presidents and financial managers. We analysed the frequency and one way ANOVA by SPSS Windows 14.0K. The major findings of the study were as follows: We found that the priorities which a healthcare institutions financing were internal financial, other allowance, a credit loan, a security loan, and a lease through this study. The priorities which a healthcare institutions raised the capital differed as to the number of beds and revenues. The priorities were no difference from ownership, location and an annual business.

• Asian Journal for Public Opinion Research
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• v.8 no.4
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• pp.409-431
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• 2020

This study explores the images and ideas presented by the editorial cartoons that have appeared in the author's Facebook timeline during Duterte's enhanced community quarantine (ECQ). The study analyzed 70 editorial cartoons posted between March 14, 2020, when Duterte declared ECQ in the National Capital Region of the Philippines, and June 22, 2020, a few days before the emergency powers of Duterte expired. This study used (visual-verbal) textual analysis as the research method to surface discourses embedded in the selected editorial cartoons. The editorial cartoons were clustered according to the roles the powerful people play in the images, and the details of each image were compared and contrasted to surface nuances in representation. The 70 editorial cartoons were classified into seven categories: (1) invisible (non-suffering) persons, (2) front liners, (3) privileged homeowners, (4) priority clients, (5) judges, (6) gatekeepers, and (7) dysfunctional public officials. They gravitated towards the tragic realities that call for acts of social justice and equity, and underscore specific contexts that need to be fixed by those in power.

• Asian Journal of Innovation and Policy
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• v.11 no.3
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• pp.277-292
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• 2022

This study examines the implications on the valuations of privately held firms when stakes are acquired by venture capitalists in India. In addition, the effect of fund size and revenue multiple is considered as a determinant of firm value. The study is based on a sample of 1229 rounds of funding during the period 2007-2015. The data was obtained from Venture Intelligence. Three major observations emerged based on an OLS regression. Firstly, it is observed that the stake acquired by venture capitalists has a negative effect on firm value. It supports the belief that when a firm reaches its maximum valuation from the promoter's perspective, there is a tendency to liquidate additional stakes. Secondly, a positive association between the revenue multiple and valuation is recognized. Thirdly, the convex relationship (U-shaped) between the fund size and firm valuations as seen in the case of developed economies, appears to be non-existent in India.

• Journal of Distribution Science
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• v.13 no.10
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• pp.73-82
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• 2015

Purpose - This paper aims to investigate whether information asymmetry could explain capital structures in Korean corporations. According to Myers (1984), firms prefer internal funding to external financing due to the costs associated with information asymmetry. When external financing is necessary, firms prefer to issue debt rather than equity by the same reasoning. Since Shyam-Sunder and Myers (1999), numerous studies continue to debate the validity of the theory. In this paper, we show how the theory depends on assumptions and incorporated variables. We hope our investigation can provide helpful implications regarding capital structure, information asymmetry, and other firm characteristics. Specifically, our empirical results are complementary to the analysis of Son and Lee's (2015), a recent study that examines the pecking order theory prediction for Korean retail firms. Research design, data, and methodology - We test empirical models that are some variants of model used in Shyam-Sunder and Myers (1999). The financial and accounting data are provided by WISEfn for the firms listed on the KOSPI during 1990 to 2013. Bond ratings are supplied by the Korea Investor Service (KIS). We take into account the heterogeneity in debt capacity; a firm's debt capacity is measured by using the method of Lemmon and Zender (2010) based on its bond ratings. Finally, we estimate empirical models suggested by Shyam-Sunder and Myers (1999), Frank and Goyal (2003), and Lemmon and Zender (2010). Results - First, we find that Shyam-Sunder and Myers' (1999) prediction fails to explain total debt changes of Korean firms. Second, we find a non-monotonic relationship between total debt changes and financial deficits with respect to debt capacity. This contradicts the prediction of Lemmon and Zender (2010) that argues the pecking order theory survives with a monotonically increasing relationship. Third, we estimate a negative correlation coefficient between financial deficit and current debt changes. The result is the complete opposite of the prediction of Lemmon and Zender (2010). Finally, we also confirm the non-monotonic relationship between non-current debt changes and financial deficits with respect to debt capacity. Yet, the slope of coefficient is smaller than that of total debt change case. Indeed, the results are, to some extent, consistent with the prediction of pecking order theory, if we exclude the mid-debt capacity firms. Conclusions - Our empirical results complementary to the analysis of Son and Lee (2015), a recent study focusing on capital structure in Korean retail firms; their paper suggests interesting topics regarding capital structure, information asymmetry, and other firm characteristics in Korean corporations. Contrary to Son and Lee (2015), our results show that total debt changes and current debt changes are inconsistent with the prediction of Shyam-Sunder and Myers (1999). However, similar to Son and Lee (2015), non-current debt changes are consistent with the pecking order prediction, in the case of excluding the mid-level debt capacity firms. This contrast allows us to infer that industry characteristics significantly affect the validity of the pecking order prediction. Further studies are needed to analyze the economics behind this phenomenon, which is beyond the scope of our paper. In addition, the estimation bias potentially matters regarding the firm-level debt capacity calculation. We also reserve this topic for future research.

• Korean Business Review
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• v.19 no.2
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• pp.1-21
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• 2006

The purpose of this study is to analysis of the policy and problems of the capital gain tax. So this study identified the problems in the tax system and the method, suggested some ideas that can be useful for reforming the current capital gain tax system. The followings are the concise of some ideas. First, government should adopt the housing market stabilization policy in the long-term period, not in the short-term period which depend on the financial market and the part of home supply. Second, determining the capital gains tax should be transferred to actual market prices system rather than based on the standard assessed prices by government through the nations. By doing so, the desired principles of taxation come true such as principle of taxation on economic substance, principle of taxation on solid foundation and principle of taxation on tax paying ability. Third, transaction taxes should be minimized in the aborting the property speculations and the stabilizing the actual market prices. Fourth, the system of non tax to the owners of 'one family, one house' should be excluded to the tune of principle of tax equity. By doing so, tax payers could be induced to pay taxes on a timely basis not commit to wrong doings. In conclusion, anti-speculation policy should be progressed in such a comprehensive and sustained way as to wipe out the psychology of expectation about the transfer gain's incomes.

• Journal of Industrial Convergence
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• v.15 no.2
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• pp.45-56
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• 2017

The purpose of this study is to analyze the influence of the number of investors influencing the achievement rate of domestic securities type crowdfunding, to find out why the general investors need to participate and to suggest measures to increase the participation of general investors. The results of this study are as follows. First, the effect of the recruitment amount, the target amount, the recruitment period and the business training is confirmed as factors affecting the achievement rate of domestic securities type crowdfunding. And it was confirmed that the influence factors on achievement rate could have a greater effect as the number of general investors increased. Therefore, the government should make more effort to relax regulations on general investors, and the investor of capital should strengthen the public disclosure of KSM through the KSM market in order to recover the funds of general investors, Crowd funding will be able to attract enough funds.

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

• Journal of Technology Innovation
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• v.25 no.4
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• pp.239-261
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• 2017

This paper analyzes how corporate product innovation affects firms' revenue and financial stability, and thereby draws the implications for the corporate strategy for sustainable growth. Corporate product innovation is defined as the development of new products within the firm, including bought-in products. Corporate revenue is measured by per capita sales and its growth rate, while financial stability is measured by debt-to-equity ratio and liquidity ratio. In the empirical analysis, the two-stage estimation method was used to control for the endogeneity of new product development. The data are drawn from the first (2005) to the sixth (2015) wave of the Human Capital Corporate Panel (HCCP) Survey, which are matched to the data from the Korea Investors Service (KIS). The results of the first-stage estimation indicate that product innovation of the firm is promoted by the firm's knowledge capital stock, human resources investment, and market-leading strategy. The second-stage estimation results indicate a positive relationship between the firm's level of activity in product innovation and short-term revenue (per capita sales and its growth), and financial stability (lower debt-to-equity ratio and higher liquidity ratio). These findings confirm that the firm's investment in technology innovation and subsequent product innovation are important strategies to enhance both short-term corporate revenue and long-term financial stability.