• Title/Summary/Keyword: Financial Feasibility Test

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An Empirical Study on Appraisal Indices' Discrimination Significance for Technology Financing: Focusing on KOTEC's Business Feasibility Appraisal Indices (기술금융 평가지표의 판별유의성에 관한 실증연구 : 기술보증기금의 기술사업성 평가지표를 중심으로)

  • Lee, Yong Hoon
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.15 no.5
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    • pp.37-50
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    • 2020
  • This study aims to investigate meaningful relationship between technology appraisal indices and SMEs' financial performances for their continuous growth. The empirical data for this study were based on the technology appraisal results of Korea Technology Finance Corporation(KOTEC) and the financial data of the following 2 years 0f 3,688 SMEs. The meaningful differences between SMEs with superb financial performances and the others, by using t-test analysis, statistically were verified in 25 indices(75.8%) out of total 33 indices. All of five independent variables, namely CEO's capability, technology manpower, R&D intensiveness, market competitiveness and investment feasibility, were verified to have a positive effect on business feasibility respectively and business feasibility also has a positive influence on financial performance, such as sales growth, labor productivity and financial stability.

A Case Study of Feasibility Analysis Based On Black-Sholes Model for Ubiquitous Computing Technology Development (블랙-숄즈 모형을 활용한 유비쿼터스 기술 개발 타당성 분석 사례 연구)

  • Kwon, Oh-Byung;Kim, Ji-Hoon
    • The Journal of Society for e-Business Studies
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    • v.13 no.4
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    • pp.49-69
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    • 2008
  • Recently, ubiquitous computing technology becomes available to develop advanced electronic commerce:u-commerce. Hence, it is the very time to perform feasibility analysis in applying ubiquitous computing technology, especially estimating economical value of the on-going technology. Hence, the purpose of this paper is to propose a financial value estimating methodology in performing feasibility test on ubiquitous computing technology. To do so, Black and Scholes model is basically adopted. To show the feasibility if the idea proposed in this paper, actual case study through focused group interview with those who are actually performing on-going ubiquitous computing projects. As the result, we validated the possibility of applying Black-Sholes model to assessing feasibility analysis for ubiquitous technology development with the price of call option, volatility, and the comparison with other similar technologies.

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The Financial Behavior of Investment Decision Making Between Real and Financial Assets Sectors

  • HALA, Yusriadi;ABDULLAH, Muhammad Wahyuddin;ANDAYANI, Wuryan;ILYAS, Gunawan Bata;AKOB, Muhammad
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.12
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    • pp.635-645
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    • 2020
  • This research was conducted to achieve several objectives and focus research was based on financial behavior theory and prospect theory as grounded theory e.g., investigate the financial decision-making behavior between financial and real assets investment, and confirm the relationship existing between herding behavior and overconfidence factors to the level of loss and regret aversion, and financial literacy into real assets investment decisions. The study used 220 real estate auction respondents as investor samples at the State Assets and Auction Service Office Makassar, South Sulawesi, Indonesia. Data was collected through the use of a questionnaire consisting of 23 questions to measure the variables. Moreover, the research data passed through several feasibility tests like the inner and outer modeling by Partial Least Square - Structural equation model (PLS-SEM) while the hypotheses formulated were also tested to determine the magnitude of the variable relationship. Through the use of the direct and intervening test, loss and regret aversion variables have a positive and significant effect while financial literacy variables have no significant effect. There is a slight difference in the decision-making process for real assets and financial assets investors. Investment decision making behavior in the financial assets sector requires less complicated decisions compared to the decisions related to real assets investments.

On the Relationship between Evaluation Indexes and Firms' Performance: An Empirical Study on Venture Firms in Korea (중소벤처기업성과와 국내 지원기관들의 평가지표간의 상관관계에 관한 실증연구)

  • Choi, Jong-Yeon;Yang, Dong-Woo
    • Journal of Korea Technology Innovation Society
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    • v.9 no.4
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    • pp.812-841
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    • 2006
  • Previous studies have shown that the ex-ante financial ratios, mainly used by financial institutions for loan evaluation purpose, are related to the ex-post finn's performance of venture firm's. The main objective of this study is to examine whether non-financial variables such as 'technology', 'marketability', and 'other business indexes' have extra explanatory power in forecasting the ex-post firm's performance of small and medium size venture firm's in Korea. The implications and results of this study are expected to be useful in loan evaluation, investment decision and internal management decisions of venture firms. Among small and medium sized manufacturing firms funded in the year of 1999 through 2005, 416 firms are selected for our analysis. The relationship between evaluation indexes and firm's success/failure is investigated using binary logistic regression analysis and factor analysis with an aid of SPSS program. The summarized results are as follows. First, current evaluation model, used for loan evaluation purpose for small and medium size manufacturing firms show the same discriminatory power as previous prediction model. Second, among the tested additional variables, significant indices are 'technological capability of CEO', 'managerial capability of CEO', and 'business feasibility'. Third, while previous studies on evaluation structure had 3 factors, this study showed that valuation's structure has 6 factors.

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Potential of four corn varieties at different harvest stages for silage production in Malaysia

  • Nazli, Muhamad Hazim;Halim, Ridzwan Abdul;Abdullah, Amin Mahir;Hussin, Ghazali;Samsudin, Anjas Asmara
    • Asian-Australasian Journal of Animal Sciences
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    • v.32 no.2
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    • pp.224-232
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    • 2019
  • Objective: Apart from various climatic differences, corn harvest stage and varieties are two major factors that can influence the yield and quality of corn silage in the tropics. A study was conducted to determine the optimum harvest stage of four corn varieties for silage production in Malaysia. Methods: Corn was harvested at four growth stages; silking, milk, dough, and dent stages from four varieties; Sweet Corn hybrid 926, Suwan, breeding test line (BTL) 1 and BTL 2. Using a split plot design, the treatments were then analysed based on the plant growth performance, yield, nutritive and feeding values followed by a financial feasibility study for potential commercialization. Results: Significant differences and interactions were detected across the parameters suggesting varying responses among the varieties towards the harvest stages. Sweet Corn was best harvested early in the dough stage due to high dry matter (DM) yield, digestible nutrient, and energy content with low fibre portion. Suwan was recommended to be harvested at the dent stage when it gave the highest DM yield with optimum digestible nutrient and energy content with low acid detergent fibre. BTL 1 and BTL 2 varieties can either be harvested at dough or dent stages as the crude protein, crude fibre, DM yield, DM content, digestible nutrient and energy were not significantly different at either stage. Further financial analysis showed that only Sweet Corn production was not financially feasible while Suwan had the best financial appraisal values among the grain varieties. Conclusion: In conclusion, only the grain varieties tested had the potential for silage making according to their optimum harvest stage but Suwan is highly recommended for commercialization as it was the most profitable.

An Economic Feasibility Study for the Slow Food Expo in Korea (산업연관분석을 통한 슬로푸드박람회의 경제적 파급효과 추정)

  • Choi, Jong Du
    • Environmental and Resource Economics Review
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    • v.22 no.4
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    • pp.817-841
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    • 2013
  • The purpose of this study is to examine feasibility of the 'Master Plan of 2013 Slow Food Expo(2013 AsiO Gusto), Korea' and to analyze the following economic effect. To this end, we used existing data and statistics, and estimated the demand by means of survey for people's traveling and questionnaires for ordinary Koreans. For examining financial feasibility for hosting the Expo, BC ratio (Benefit-Cost Ratio) and NPV (Net Present Value) was applied. For estimating the economic effect following the Expo, the effect on all over the country and the Gyeong-gi province was analyzed, using the MRIO (Model of Regional Input-Output). Specifically, with the net effect of Expo, the economic feasibility test shows 1.04~2.15 BC ratio with 10% free admission, and 1.02~2.27 BC ratio in Finance analysis. Furthermore, the Expo feeds through Gyeong-gi (including Nam-yang-ku) regional economies with production induction effect, value-added induction effect, and employment induction effect. The amounts of regional effects are 373.6~738.7 billion won, 166.2~327.4 billion won, and 1,971~2,009 persons, respectively. Also, the "2013 Slow Food Expo, Korea" was analyzed profitable in general. Residents in Nam-yang-ju expects the Expo to bring vitalities into their hometown. The Expo is highly related to the positive economic effectiveness of Nam-yang-ju.

Establishing the Importance Weight Model of IT Investment Evaluation Criteria through AHP Analysis (AHP 기법을 적용한 IT프로젝트 사전타당성 평가항목의 가중치 산출)

  • Kwon, Min-Young;Koo, Bon-Jae;Lee, Kuk-Hie
    • Information Systems Review
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    • v.8 no.1
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    • pp.265-285
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    • 2006
  • The purpose of this research is to identify the major evaluation criteria of IT investment projects and establish the importance weights of criteria through AHP analysis. Seven evaluation criteria which have been drawn from prior studies and industry practices are direct costs, indirect costs, financial benefits, strategic value, risk, technical necessity, and political considerations. Data have been collected from 95 IT projects in 40 public organizations and private firms in Korea. After having applied the data reliability test, 79 projects have been selected. The results of AHP analysis show the importance weights and priorities of seven evaluation criteria as follows: financial benefits 25.2%, strategic value 22.36%, direct costs 14.34%, risk 12.10%, technical necessity 11.55%, political considerations 8.3%, and indirect costs 6.48%. And the weights of seven criteria shows considerable differences among three different IT project types such as transactional, informational, and infrastructural.

System Improvement Research for Commercial Propulsion about Government R&D Product(In Case of LRT) (국가 R&D 성과품 상용화 추진을 위한 제도개선방안 연구 (경량전철을 중심으로))

  • Hong, Jai-Sung;Park, Kwang-Bok;Rhy, Sang-Whan;Lee, An-Ho
    • Proceedings of the KSR Conference
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    • 2009.05a
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    • pp.322-330
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    • 2009
  • Traffic congestions in local cities have been getting worse since 1990s, so many local governments have considered the introduction of an LRT system. So far, there is no city operating the LRT due to social environments, financial reasons, feasibility and so on. But still many cities have examined LRT or started the construction. Until now, more than 30 cities are constructing LRT or planning the introduction of LRT and it becomes 96 routes, approximately 700km. With the support of MLTM, KRRI has developed automatic LRT system with rubber-wheels, K-AGT as a result of "LRT system technology development project" from 1999 to 2005 by investing 50.32 billion wons(the public 37, the private 13.32) and finished running durability test of 100,000km at Kyeong-san test line. Currently, two trains, coupled two cars respectively have running and signaling tested. K-AGT was appointed to supply for an extension line at Busan Subway Line 3(Minam-Anpyeong section) with 17 trains(six-unit car) 102 cars. However, except for Minam-Anpyeong section, other cities such as Uijeongbu, Yongin, Daegu(Line 3) and Kwangmyeong decided to use the foreign systems, not to use the product, a result of national R&D project. This results in a huge waste of foreign currency and it is expected to require much additional cost for maintenance. If local governments use the products of national R&D projects, many national benefits such as reducing imports and protecting home industries could be expected, therefore in this paper, some plans to encourage to use products of national R&D projects were dealt with.

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Financial Fraud Detection using Text Mining Analysis against Municipal Cybercriminality (지자체 사이버 공간 안전을 위한 금융사기 탐지 텍스트 마이닝 방법)

  • Choi, Sukjae;Lee, Jungwon;Kwon, Ohbyung
    • Journal of Intelligence and Information Systems
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    • v.23 no.3
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    • pp.119-138
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    • 2017
  • Recently, SNS has become an important channel for marketing as well as personal communication. However, cybercrime has also evolved with the development of information and communication technology, and illegal advertising is distributed to SNS in large quantity. As a result, personal information is lost and even monetary damages occur more frequently. In this study, we propose a method to analyze which sentences and documents, which have been sent to the SNS, are related to financial fraud. First of all, as a conceptual framework, we developed a matrix of conceptual characteristics of cybercriminality on SNS and emergency management. We also suggested emergency management process which consists of Pre-Cybercriminality (e.g. risk identification) and Post-Cybercriminality steps. Among those we focused on risk identification in this paper. The main process consists of data collection, preprocessing and analysis. First, we selected two words 'daechul(loan)' and 'sachae(private loan)' as seed words and collected data with this word from SNS such as twitter. The collected data are given to the two researchers to decide whether they are related to the cybercriminality, particularly financial fraud, or not. Then we selected some of them as keywords if the vocabularies are related to the nominals and symbols. With the selected keywords, we searched and collected data from web materials such as twitter, news, blog, and more than 820,000 articles collected. The collected articles were refined through preprocessing and made into learning data. The preprocessing process is divided into performing morphological analysis step, removing stop words step, and selecting valid part-of-speech step. In the morphological analysis step, a complex sentence is transformed into some morpheme units to enable mechanical analysis. In the removing stop words step, non-lexical elements such as numbers, punctuation marks, and double spaces are removed from the text. In the step of selecting valid part-of-speech, only two kinds of nouns and symbols are considered. Since nouns could refer to things, the intent of message is expressed better than the other part-of-speech. Moreover, the more illegal the text is, the more frequently symbols are used. The selected data is given 'legal' or 'illegal'. To make the selected data as learning data through the preprocessing process, it is necessary to classify whether each data is legitimate or not. The processed data is then converted into Corpus type and Document-Term Matrix. Finally, the two types of 'legal' and 'illegal' files were mixed and randomly divided into learning data set and test data set. In this study, we set the learning data as 70% and the test data as 30%. SVM was used as the discrimination algorithm. Since SVM requires gamma and cost values as the main parameters, we set gamma as 0.5 and cost as 10, based on the optimal value function. The cost is set higher than general cases. To show the feasibility of the idea proposed in this paper, we compared the proposed method with MLE (Maximum Likelihood Estimation), Term Frequency, and Collective Intelligence method. Overall accuracy and was used as the metric. As a result, the overall accuracy of the proposed method was 92.41% of illegal loan advertisement and 77.75% of illegal visit sales, which is apparently superior to that of the Term Frequency, MLE, etc. Hence, the result suggests that the proposed method is valid and usable practically. In this paper, we propose a framework for crisis management caused by abnormalities of unstructured data sources such as SNS. We hope this study will contribute to the academia by identifying what to consider when applying the SVM-like discrimination algorithm to text analysis. Moreover, the study will also contribute to the practitioners in the field of brand management and opinion mining.