• Journal of Distribution Science
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• v.13 no.9
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• pp.37-45
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• 2015

Purpose - This paper's aim is to investigate whether or not gross profitability explains the cross-sectional variation of the stock returns in the Korean stock market. Gross profitability is an alternative profitability measure proposed by Novy-Marx in 2013 to predict cross-sectional variation of stock returns in the US. He shows that the gross profitability adds explanatory power to the Fama-French 3 factor model. Interestingly, gross profitability is negatively correlated with the book-to-market ratio. By confirming the gross profitability premium in the Korean stock market, we may provide some implications regarding the well-known value premium. In addition, our empirical results may provide opportunities for the fund distribution industry to promote brand new styles of funds. Research design, data, and methodology - For our empirical analysis, we collect monthly market prices of all the companies listed on the Korea Composite Stock Price Index (KOSPI) of the Korea Exchanges (KRX). Our sample period covers July1994 to December2014. The data from the company financial statementsare provided by the financial information company WISEfn. First, using Fama-Macbeth cross-sectional regression, we investigate the relation between gross profitability and stock return performance. For robustness in analyzing the performance of the gross profitability strategy, we consider value weighted portfolio returns as well as equally weighted portfolio returns. Next, using Fama-French 3 factor models, we examine whether or not the gross profitability strategy generates excess returns when firmsize and the book-to-market ratio are controlled. Finally, we analyze the effect of firm size and the book-to-market ratio on the gross profitability strategy. Results - First, through the Fama-MacBeth cross-sectional regression, we show that gross profitability has almost the same explanatory power as the book-to-market ratio in explaining the cross-sectional variation of the Korean stock market. Second, we find evidence that gross profitability is a statistically significant variable for explaining cross-sectional stock returns when the size and the value effect are controlled. Third, we show that gross profitability, which is positively correlated with stock returns and firm size, is negatively correlated with the book-to-market ratio. From the perspective of portfolio management, our results imply that since the gross profitability strategy is a distinctive growth strategy, value strategies can be improved by hedging with the gross profitability strategy. Conclusions - Our empirical results confirm the existence of a gross profitability premium in the Korean stock market. From the perspective of the fund distribution industry, the gross profitability portfolio is worthy of attention. Since the value strategy portfolio returns are negatively correlated with the gross profitability strategy portfolio returns, by mixing both portfolios, investors could be better off without additional risk. However, the profitable firms are dissimilar from the value firms (high book-to-market ratio firms); therefore, an alternative factor model including gross profitability may help us understand the economic implications of the well-known anomalies such as value premium, momentum, and low volatility. We reserve these topics for future research.

• Health Policy and Management
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• v.9 no.2
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• pp.1-20
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• 1999

This study was conducted to investigate the predictors of hospital bankruptcy in Korea and to examine the predictive power for 3 types of statistical models of hospital bankruptcy. Data on 17 financial and 4 non-financial indicators of 30 bankrupt and 30 profitable hospitals in 1. 2, and 3 years before bankruptcy were obtained from the hospital performance databank of Korea Institute of Health Services Management. Significant variables were identified through mean comparison of each indicator between bankrupt and profitable hospitals, and the predictive power of statistical models of hospital bankruptcy were compared. The major findings are as follows. 1. Nine out of 21 indicators - fixed ratio, quick ratio, operating profit to total assets, operating profit to gross revenue, normal profit to total assets,normal profit to gross revenue, net profit to gross revenue, inventories turnrounds, and added value per adjusted patient - were found to be significantly predictitive variables in Logit and Probit models. 2. The predicdtive power of discriminant model of hospital bankruptcy in 1. 2, and 3 years before bankruptcy were 85.4, 79.0, and 83.8% respectively. With regard to the predictive power of the Logit model of hospital bankruptcy, they were 82.3, 75.8, and 80.6% respectively, and of the Probit model. 87.1. 80.6, and 88.7% respectively. 3. The predictive power of the Probit model of hospital bankruptcy is better than the other two predictive models.

• Proceedings of the KSME Conference
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• 2000.11b
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• pp.234-240
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• 2000

The Energy is the basis for almost all industrial activities and domestic needs. But recently there are increasing concerns internationally over environmental problems and consequent climate changes caused by the excessive use of fossil fuels. Furthermore the price of crude oil is increasing steadily with unstable supplies. In order to solve these national energy problems, the utilization of Ocean Energy is introduced as one of the best alternative technologies for the future. OTEC Power Plant has been installed at the West Inchon Power Plant Site. Temperature differences of $20{\sim}25^{\circ}C$ have been utilized for plant operations, where R22 is used as a working fluid. The system is composed of low pressure turbine, plate type heat exchanger, and pumps. In the present investigation the experimental results, such as gross power, net power and objective function, are analysed when temperature differences change from the reference design point.

• Korean Journal of Fisheries and Aquatic Sciences
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• v.41 no.6
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• pp.485-492
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• 2008

To propose proper vessel characteristics for sustainable fisheries in Korean waters, we analyzed the fishing capacity, scale efficiency and utilization of large pair-trawl vessels based on the database of catch, effort and vessel characteristics (gross tonnage and engine power) in 1990 by applying data envelopment analysis (DEA). The input factors were gross tonnage, horse power and days operated; whereas the output factor was expected catch by vessel characteristics. The optimal vessel types, selected based on the input-oriented technical efficiency and gross tonnages, was 100 GT with engine power <600 HP. The output-oriented unbiased estimate of capacity utilization (CD) decreased with increasing vessel tonnage. For the same tonnage vessels, the CD decreased with increasing engine power.

• Nuclear Engineering and Technology
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• v.51 no.6
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• pp.1626-1632
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• 2019

Monitoring of environmental radioactivity is essential for ensuring the radiological safety of residents who live near nuclear power plants. Ulsan, South Korea, is surrounded by 16 nuclear power plants, the highest density in the country. In addition, the city contains facilities for conducting radiological nondestructive testing and using radioisotopes for medical purposes. It makes the confirmation of radiological safety particularly necessary. In this study, sampling points were selected based on regional characteristics, and surface water samples were pretreated and analyzed for gross beta and gamma radiation levels. In addition, the distribution of the city's gamma dose rate was determined using a mobile monitoring system and distribution visualization program. The results showed that there is no effect on the gross beta and gamma nuclides of artificial radionuclides, and the gamma dose rate of the entire region did not exceed the environmental radiation level in South Korea overall, confirming the radiological safety of the city.

• Korean Journal of Air-Conditioning and Refrigeration Engineering
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• v.13 no.10
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• pp.1002-1008
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• 2001

The energy is the basis for almost all industrial activities and domestic needs. But recently there are increasing concerns internationally over environmental problems and consequent climate changes caused by the excessive use of fossil fuels. Furthermore the price of crude oil is increasing steadily with unstable supplies. In order to solve these national energy problems, the utilization of Ocean Energy is introduced as one of the best alterative technologies for the future. OTEC Power Plant has been installed at the West Inchon Power Plant Site. Temperature differences of$20~25^{\circ}C$ been utilized for plant operations, where R22 is used as a working fluid. The system is composed of low pressure turbine, plate type heat exchanger, and pumps. In the present investigation the experimental results, such as gross power, net power and objective function, are analysed when temperature differences change from the reference design point.

• Journal of The Korean Society of Agricultural Engineers
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• v.52 no.6
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• pp.1-7
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• 2010

This study was carried out to investigate the effect of hydro power factors (e.g., irrigation area, watershed area, active storage, gross head) on annual generation capacity and operation ratio for agricultural reservoirs in Chungbuk Province with active storage of over 1 million $m^3$. The annual generation capacity and operation ratio were estimated using HOMWRS (Hydrological Operation Model for Water Resources System) from last 10-year daily hydrological data. The correlation coefficients between annual generation capacity and the hydro power factors except gross head were high (over 0.87), but the correlation coefficients between operational rate and the factors were low (below 0.28). The optimum multiple regression equations of the annual generation capacity were expressed as the functions of watershed area, active storage, and gross head. Also, the simple regression equation of annual generation capacity was expressed as a function of watershed area. The average relative root-mean-square-error (RRMSE) between observed and estimated values by the optimum multiple regression equations was smaller than that by the simple regression equation, suggesting that the former has more accuracy than the latter.

• Journal of Ocean Engineering and Technology
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• v.25 no.1
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• pp.80-84
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• 2011

The cycle performance of closed ocean thermal energy conversion (OTEC) system with 50 kW gross power was evaluated to obtain the basic data for the optimal design of OTEC using waste heat such as solar power, discharged heat from condenser of power plant. The basic thermodynamic model for OTEC is Rankine cycle, and the surface seawater and deep seawater were used for the heat source of evaporator and condenser, respectively. The cycle performance such as efficiency, heat exchanger capacity, etc. was analyzed on the variation of temperature increase by waste heat. The cycle efficiency increased and necessary capacity of evaporator and condenser decreased under 50kW gross power with respect to the temperature increase of working fluid. Also, when the temperature increase is about $13.5^{\circ}C$, the heat which can be used is generated. By generator with 0.9 effectiveness under the simulated condition, the cycle efficiency was improved approximately 3.0% comparing with the basic cycle.

• Journal of the Korea Safety Management & Science
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• v.7 no.3
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• pp.37-46
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• 2005

There are very large differences on the standards of gross weight and single axle weight for commercial motor vehicles between international and Korean standards. Short Wheelbase Truck are produced and run only in Korea. It has very serious effects on the durabilities of bridges and roads and makes logistic competitive power fall back and overconsuming energy. This paper deals with a comparative study of the international standards with Korean, grasps the drawbacks and makes up the suggestions to strengthen the logistic competitive power of Korea and reduce the maintenance cost for the roads and the consumption of energy.

• Nuclear Engineering and Technology
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• v.10 no.1
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• pp.13-25
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• 1978

The present paper deals with the measurement of the environmental radioactivity at the Kori nuclear Power Plant site area for the Period of six years from December 1970 to December 1976. Gross alpha activity was measured in samples of airborne particulate. Gross beta measurement was performed on soil, water, airborne perticulate, pine needle, precipitation, fallout (gummed acetate paper) and various foodstuffs. Radioactivities of strontium-90 and cesium-l37 were determined by means of radiochemical analyses in samples of spinach, cabbage, barley, rice in terrestrial food, sea eel, shell fish, dulse, green laver in marine product and milk, and of fallout (cloumn), Furthermore, tritum was also analyzed in water sample of well, stream and sea by electrical enrichment.