• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.1
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• pp.50-56
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• 2017

The IRR (internal rate of return) is often used by investors for the evaluation of engineering projects. Unfortunately, it is widely known that it has serial flaws. Also, External rate of returns (ERRs) such as ARR (Average Rate of Return) or MIRR (MIRR, Modified Internal Rate of Return) do not differentiate between the real investment and the expenditure. The PRR (Productive rate of return) is faithful to the conception of the return on investment. The PRR uses the effective investment instead of the initial investment. In this paper, we examined two cases of the engineering project. the one is a traditional engineering project with financing activity, another is the project with R&D. Although the IRR has only one value, it overestimates or underestimate profitabilities of Engineering Projects. The ARR and the MARR assume that a returned cash reinvest other projects or assets instead of the project currently executing. Thus they are only one value of a project's profitability, unlike the IRR. But the ARR does not classify into the effective investment and non-investment expenditure. It only accepts an initial expenditure as for an investment. The MIRR also fails to classify into the investment and the expenditure. It has an error of making a loss down as the investment. The IRR works as efficiently as a NPW (Net Present Worth). It clearly expresses a rate of return in respect of an investment in an engineering project with a loan. And it shows its ability in an engineering project with a R&D investment.

• Asian Journal of Business Environment
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• v.13 no.2
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• pp.9-20
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• 2023

Purpose: This study aims to map the spatial distribution of poverty using nighttime light satellite images as a proxy indicator of economic activities and infrastructure distribution in D.I Yogyakarta, Indonesia. Research design, data, and methodology: This study uses official poverty statistics (National Socio-economic Survey (SUSENAS) and Poverty Database 2015) to compare satellite imagery's ability to identify poor urban areas in D.I Yogyakarta. National Socioeconomic Survey (SUSENAS), as poverty statistics at the macro level, uses expenditure to determine the poor in a region. Poverty Database 2015 (BDT 2015), as poverty statistics at the micro-level, uses asset ownership to determine the poor population in an area. Pearson correlation is used to identify the correlation among variables and construct a Support Vector Regression (SVR) model to estimate the poverty level at a granular level of 1 km x 1 km. Results: It is found that macro poverty level and moderate annual nighttime light intensity have a Pearson correlation of 74 percent. It is more significant than micro poverty, with the Pearson correlation being 49 percent in 2015. The SVR prediction model can achieve the root mean squared error (RMSE) of up to 8.48 percent on SUSENAS 2020 poverty data.Conclusion: Nighttime light satellite imagery data has potential benefits as alternative data to support regional poverty mapping, especially in urban areas. Using satellite imagery data is better at predicting regional poverty based on expenditure than asset ownership at the micro-level. Light intensity at night can better describe the use of electricity consumption for economic activities at night, which is captured in spending on electricity financing compared to asset ownership.

• Journal of Korean society of Dental Hygiene
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• v.6 no.4
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• pp.437-453
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• 2006

To analyze dental hygienists and other manpower at dental care service institutions where a dental coordinator was working among about 200 dental care service institutions in Seoul, Gyeonggi Province, and Incheon as of June 2005 for contents of training for dental coordinators, opinions of qualification of dental coordinators, present and future services provided by dental coordinators, and awareness of dental coordinators and to provide basic data about future services, roles, and cultivation of dental coordinators, a survey was conducted and 216 copies returned were analyzed, obtaining the following results. 1. 83.8 percent needed an educational program for dental coordinators as an educational content; 41.7% had awareness of the educational content; and 83.8 percent insisted that over the intermediate level of curricula should be taken. Dental coordinator cultivation institutions identified included the institution under the control of the Korean Dental Hygienists Association and the education center for the department of dental hygiene; 76.9% insisted that an appropriate qualifying examination should be necessary. They suggested the central government department and the local government as a certification institution; 39.4% insisted that financial support for the education should be provided by financing education alone. Only 28.7% experienced dental coordinator education and 73.1% hoped to serve as a dental coordinator. They were found to expect a rise in payment(64.4%) and in the title(46.8%) after completion of the educational program. 2. 66.2% saw a dental hygienist as the most appropriate for a dental coordinator; clinical career (39.4%) and practical capacity(29.2%) were suggested as requirements for a dental coordinator; and a period of over three years(47.2%) was suggested for appropriate dental career. 3. Dental coordinators' present services included 'reservation management' for customer management, 'staff service training' for organization management, 'understanding of customer reception attitudes and actions' for self-management, 'hospital information management' for hospital marketing, 'acceptance' for hospital affairs management, and 'hospital environment management' for hospital facilities management; their future services included 'acquisition of ability to use a foreign language' for self-management, followed by 'staff service training' for organization management, 'training and counseling' for customer management, 'acquisition of counseling capacity' for self-management, 'complaining customer reception' for customer management, and 'marketing strategy implementation' for hospital marketing. 4. After comparing dental hygienists and other manpower in terms of dental coordinators' future services, dental hygienists showed interest in 'acquisition of ability to use a foreign language,' 'staff service training,' 'complaining customer reception,' and 'acquisition of counseling capacity' while other manpower showed interest in 'acquisition of ability to use a foreign language,' 'document data management,' 'acquisition of basic service manner,' 'acquisition of counseling capacity,' 'manpower management,' 'establishment and evaluation of a marketing strategy,' and 'education and counseling.' 5. As for awareness of dental coordinators, they were thought of as helpful in improving image of a dental clinic; it was found that continuous training should be necessary to develop dental coordinators' capacity; dental coordinators' services should be important and contribute to patients' qualitative satisfaction.

• Journal of the Korean association of regional geographers
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• v.11 no.5
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• pp.488-499
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• 2005

The trends of Chinese and Yanbian University's reform were studied in this work. Although the history of Chinese modem university education is short, and all Chinese Universities experienced same social problems, however, development of each university was different. Especially after 90's, with applying socialism market economy theory, Chinese university education have changed a lot. Main conclusions were summarized as follows. First, to exert university's self-determination, University management system was changed. More and more rights and freedoms of operating university were given to universities which were originally controlled by central and local government. With that, universities were cheered to develop extensively based on its ability. Second, efforts to fit market economy were observed. It reflects in all aspects, such as systems of university financing, operating, admission and graduation of students. Third, professor competition system was adopted to promote professors enthusiasm. Forth, to survival in hot competition among universities, differentiation policy was applied. In brief, it could be said that rapid developments of Chinese university education have achieved recently. However, problems such as universities are still under supervision of central and local government: expand of university scale rather than education quality was focused on: limit of investment to university: lack of legal protection for finical supporting: lack of university democratization were still remain. It was expected that these problems will be solved in future university reforms.

• Asia-Pacific Journal of Business
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• v.12 no.1
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• pp.135-149
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• 2021

Purpose - I analyzes risk-to-performance evaluated in the market using data from sale and lease back. Specifically, I analyze from the perspective of financial institutions that purchase sale and lease back based on the cases of investment by ship investment companies and acquisition of ships. Design/methodology/approach - I use 49 sale and lease back data from 2017 to 2019 for empirical analysis. Findings - The main results of this paper are as follows. First, after sale and lease back of domestic ships, the average amount of sales by the leased shipping company is 25.1 billion won, the average amount of investment by the purchased financial institution is 14.6 billion won (60%) and the average length of the ship is nine years. In ship finance, sale and lease back is deemed to be appropriately used as a means of restructuring for a large amount of money. Second, the main risk factor for sale and lease back of domestic ships is credit risk and can be measured in VaR in practice. As a result of the empirical analysis, the average credit risk burden ratio is 9%. As a major risk factor, low creditworthiness of restructuring companies is the key. Third, as a result of measuring the profitability of financial institutions that purchase sale and lease back of domestic ships at a net current price, it has an average value of 300 million won, but the deviation by case is very large. Fourth, the risk adjusted performance of sale and lease back of domestic ships is 0.54 on average compared to the total risk capital, and 0.52 compared to the stock-risk capital, and as with profitability earlier, the deviation of each case is very large and misaligned. In order to boost the sale and lease back market for large and long-term assets, in order to overcome low profitability as a prerequisite for future participation of commercial purchased financial institutions, it is expected that purchase decisions based on expectations versus risk will be necessary. Research implications or Originality - The results of this paper are expected to broaden the understanding of sale and lease back and foster the ability to assess long-term risk and performance. Based on this, it is believed that rapid restructuring of companies through sale and lease back of large amounts of long-term assets will greatly increase the utility of the domestic financial market.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.6
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• pp.89-104
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• 2022

Entrepreneurship by seniors who have accumulated skills and expertise in the industrial field is very important from a social point of view. This study aimed at seniors to find out the major start-up capabilities of seniors in an economic situation where instability factors and uncertainties are amplified due to the social structure of jobs that has changed due to COVID-19 during the 4th industrial revolution and the rapidly progressing high interest rates and global supply chain problems. The purpose of this study was to empirically verify how variables affect entrepreneurial intention. In addition, from the perspective of mindset, which is the individual psychological characteristic of pre-entrepreneurs, we tried to empirically verify whether growth mindset and fixed mindset have a significant effect on senior entrepreneurship intention. The psychological characteristics of founders were approached from the perspective of mindset, and an attempt was made to apply them to the field of entrepreneurship and to obtain practical implications. This study empirically analyzed the effects of growth mindset, fixed mindset, technical competency, network competency, and funding competency, which are components of mindset, on senior entrepreneurial intention, and verified the mediating effect of entrepreneurial efficacy. As a result of the empirical analysis, it was verified that growth mindset and technological competency had a positive (+) effect on entrepreneurial intention. In addition, it was verified that the mediating effect of entrepreneurial efficacy was significant in the influence of growth mindset and technological competency on entrepreneurial intention, and it was verified that growth mindset and technological competency are important variables in senior entrepreneurship. The study results provide the following policy implications. In order to activate senior entrepreneurship, first, to maximize the effect of founder education, programs such as customized entrepreneurship education that match the growth mindset characteristics, which are the psychological characteristics of founders, are needed. Second, it is required to expand the base of technology startups by expanding government support, such as expanding low-interest policy financing, for senior startups with technological capabilities and expertise. Third, it is necessary to provide institutional support for starting a business, such as providing a start-up program even before retirement, so that the expertise and technology accumulated by seniors can be linked to start-ups even after retirement.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.3
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• pp.17-32
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• 2023

In recent years, the need for social ventures that aim to grow while solving social problems through the efficiency and effectiveness of commercial organizations in the market has increased, while there is a limit to how much the government and the public can do to solve social problems. Against this background, the number of social venture startups is increasing in the domestic startup ecosystem, and interest in impact investors, which are investors in social ventures, is also increasing. Therefore, this research utilized judgment analysis technology to objectively analyze the validity and weight of judgment information based on the cognitive process and decision-making environment in the investment decision-making of impact investors. We proceeded with the research by constructing three classifications; first, investment priorities at the initial investment stage for financial benefit and return on investment as an investor, second, the political skills of the entrepreneurs (teams) for the social impact and ripple power, and social venture coexistence and solidarity, third, the social mission of a social venture that meets the purpose of an impact investment fund. As a result of this research, first of all, the investment decision-making priorities of impact investors are the expertise of the entrepreneur (team), the potential rate of return when the entrepreneur (team) succeeds, and the social mission of the entrepreneur (team). Second, impact investors do not have a uniform understanding of the investment decision-making factors, and the factors that determine investment decisions are different, and there are differences in the degree of the weighting. Third, among the various investment decision-making factors of impact investment, "entrepreneur's (team's) networking ability", "entrepreneur's (team's) social insight", "entrepreneur's (team's) interpersonal influence" was relatively lower than the other four factors. The practical contribution through this research is to help social ventures understand the investment determinant factors of impact investors in the process of financing, and impact investors can be expected to improve the quality of investment decision-making by referring to the judgment cases and analysis of impact investors. The academic contribution is that it empirically investigated the investment priorities and weighting differences of impact investors.

• Korean small business review
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• v.31 no.4
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• pp.67-93
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• 2009

The purpose of this paper is to explore the relations between financial constraints and dividend smoothing of innovative small and medium sized enterprises(SMEs) listed on Korea Securities Market and Kosdaq Market of Korea Exchange. The innovative SMEs is defined as the firms with high level of R&D intensity which is measured by (R&D investment/total sales) ratio, according to Chauvin and Hirschey (1993). The R&D investment plays an important role as the innovative driver that can increase the future growth opportunity and profitability of the firms. Therefore, the R&D investment have large, positive, and consistent influences on the market value of the firm. In this point of view, we expect that the innovative SMEs can adjust dividend payment faster than the noninnovative SMEs, on the ground of their future growth opportunity and profitability. And also, we expect that the financial unconstrained firms can adjust dividend payment faster than the financial constrained firms, on the ground of their financing ability of investment funds through the market accessibility. Aivazian et al.(2006) exert that the financial unconstrained firms with the high accessibility to capital market can adjust dividend payment faster than the financial constrained firms. We collect the sample firms among the total SMEs listed on Korea Securities Market and Kosdaq Market of Korea Exchange during the periods from January 1999 to December 2007 from the KIS Value Library database. The total number of firm-year observations of the total sample firms throughout the entire period is 5,544, the number of firm-year observations of the dividend firms is 2,919, and the number of firm-year observations of the non-dividend firms is 2,625. About 53%(or 2,919) of these total 5,544 observations involve firms that make a dividend payment. The dividend firms are divided into two groups according to the R&D intensity, such as the innovative SMEs with larger than median of R&D intensity and the noninnovative SMEs with smaller than median of R&D intensity. The number of firm-year observations of the innovative SMEs is 1,506, and the number of firm-year observations of the noninnovative SMEs is 1,413. Furthermore, the innovative SMEs are divided into two groups according to level of financial constraints, such as the financial unconstrained firms and the financial constrained firms. The number of firm-year observations of the former is 894, and the number of firm-year observations of the latter is 612. Although all available firm-year observations of the dividend firms are collected, deletions are made in the case of financial industries such as banks, securities company, insurance company, and other financial services company, because their capital structure and business style are widely different from the general manufacturing firms. The stock repurchase was involved in dividend payment because Grullon and Michaely (2002) examined the substitution hypothesis between dividends and stock repurchases. However, our data structure is an unbalanced panel data since there is no requirement that the firm-year observations data are all available for each firms during the entire periods from January 1999 to December 2007 from the KIS Value Library database. We firstly estimate the classic Lintner(1956) dividend adjustment model, where the decision to smooth dividend or to adopt a residual dividend policy depends on financial constraints measured by market accessibility. Lintner model indicates that firms maintain stable and long run target payout ratio, and that firms adjust partially the gap between current payout rato and target payout ratio each year. In the Lintner model, dependent variable is the current dividend per share(DPS_t), and independent variables are the past dividend per share(DPS_t-1) and the current earnings per share(EPS_t). We hypothesized that firms adjust partially the gap between the current dividend per share(DPS_t) and the target payout ratio(Ω) each year, when the past dividend per share(DPS_t-1) deviate from the target payout ratio(Ω). We secondly estimate the expansion model that extend the Lintner model by including the determinants suggested by the major theories of dividend, namely, residual dividend theory, dividend signaling theory, agency theory, catering theory, and transactions cost theory. In the expansion model, dependent variable is the current dividend per share(DPS_t), explanatory variables are the past dividend per share(DPS_t-1) and the current earnings per share(EPS_t), and control variables are the current capital expenditure ratio(CEA_t), the current leverage ratio(LEV_t), the current operating return on assets(ROA_t), the current business risk(RISK_t), the current trading volume turnover ratio(TURN_t), and the current dividend premium(DPREM_t). In these control variables, CEA_t, LEV_t, and ROA_t are the determinants suggested by the residual dividend theory and the agency theory, ROA_t and RISK_t are the determinants suggested by the dividend signaling theory, TURN_t is the determinant suggested by the transactions cost theory, and DPREM_t is the determinant suggested by the catering theory. Furthermore, we thirdly estimate the Lintner model and the expansion model by using the panel data of the financial unconstrained firms and the financial constrained firms, that are divided into two groups according to level of financial constraints. We expect that the financial unconstrained firms can adjust dividend payment faster than the financial constrained firms, because the former can finance more easily the investment funds through the market accessibility than the latter. We analyzed descriptive statistics such as mean, standard deviation, and median to delete the outliers from the panel data, conducted one way analysis of variance to check up the industry-specfic effects, and conducted difference test of firms characteristic variables between innovative SMEs and noninnovative SMEs as well as difference test of firms characteristic variables between financial unconstrained firms and financial constrained firms. We also conducted the correlation analysis and the variance inflation factors analysis to detect any multicollinearity among the independent variables. Both of the correlation coefficients and the variance inflation factors are roughly low to the extent that may be ignored the multicollinearity among the independent variables. Furthermore, we estimate both of the Lintner model and the expansion model using the panel regression analysis. We firstly test the time-specific effects and the firm-specific effects may be involved in our panel data through the Lagrange multiplier test that was proposed by Breusch and Pagan(1980), and secondly conduct Hausman test to prove that fixed effect model is fitter with our panel data than the random effect model. The main results of this study can be summarized as follows. The determinants suggested by the major theories of dividend, namely, residual dividend theory, dividend signaling theory, agency theory, catering theory, and transactions cost theory explain significantly the dividend policy of the innovative SMEs. Lintner model indicates that firms maintain stable and long run target payout ratio, and that firms adjust partially the gap between the current payout ratio and the target payout ratio each year. In the core variables of Lintner model, the past dividend per share has more effects to dividend smoothing than the current earnings per share. These results suggest that the innovative SMEs maintain stable and long run dividend policy which sustains the past dividend per share level without corporate special reasons. The main results show that dividend adjustment speed of the innovative SMEs is faster than that of the noninnovative SMEs. This means that the innovative SMEs with high level of R&D intensity can adjust dividend payment faster than the noninnovative SMEs, on the ground of their future growth opportunity and profitability. The other main results show that dividend adjustment speed of the financial unconstrained SMEs is faster than that of the financial constrained SMEs. This means that the financial unconstrained firms with high accessibility to capital market can adjust dividend payment faster than the financial constrained firms, on the ground of their financing ability of investment funds through the market accessibility. Futhermore, the other additional results show that dividend adjustment speed of the innovative SMEs classified by the Small and Medium Business Administration is faster than that of the unclassified SMEs. They are linked with various financial policies and services such as credit guaranteed service, policy fund for SMEs, venture investment fund, insurance program, and so on. In conclusion, the past dividend per share and the current earnings per share suggested by the Lintner model explain mainly dividend adjustment speed of the innovative SMEs, and also the financial constraints explain partially. Therefore, if managers can properly understand of the relations between financial constraints and dividend smoothing of innovative SMEs, they can maintain stable and long run dividend policy of the innovative SMEs through dividend smoothing. These are encouraging results for Korea government, that is, the Small and Medium Business Administration as it has implemented many policies to commit to the innovative SMEs. This paper may have a few limitations because it may be only early study about the relations between financial constraints and dividend smoothing of the innovative SMEs. Specifically, this paper may not adequately capture all of the subtle features of the innovative SMEs and the financial unconstrained SMEs. Therefore, we think that it is necessary to expand sample firms and control variables, and use more elaborate analysis methods in the future studies.