• East Asian Economic Review
• /
• v.24 no.1
• /
• pp.89-124
• /
• 2020

Even with the sizable Foreign Exchange (FX) holdings and good credit ratings of its top assets, Asia remains vulnerable to various shocks. This paper highlights the limited cross-border asset pledgeability as a significant factor for the lingering vulnerability in Asia. The dichotomy in asset holdings between pledgeable FX and non-pledgeable domestic assets in major economies in Asia has been the source of increasing stabilization costs as well as weakened market momentum in the region. Specifically, the peculiar feature of asset holdings in Asia reflects seriously deficient cross-border asset pledgeability that is left unaddressed. Asset pledgeability contributes toward financial stability via three channels: 1) capital market development by recognizing the role of collateral, 2) increased shock absorption capacity via collateral management, 3) and the newly activated safe asset provision. Therefore, it is crucial to go beyond the usual market development strategy and expand the overall asset pledgeability in the region that has remained unduly depressed.

• Industrial Engineering and Management Systems
• /
• v.13 no.4
• /
• pp.442-448
• /
• 2014

Portfolio optimization in the presence of estimation error can be stabilized by incorporating norm-constraints; this result was shown by DeMiguel et al. (A generalized approach to portfolio optimization: improving performance by constraining portfolio norms, Management Science, 5, 798-812, 2009), who reported empirical performance better than numerous competing approaches. We extend the idea of norm-constraints by introducing a powerful enhancement, grouped selection for portfolio optimization. Here, instead of merely penalizing norms of the assets being selected, we penalize groups, where within a group assets are treated alike, but across groups, the penalization may differ. The idea of groupwise selection is grounded in statistics, but to our knowledge, it is novel in the context of portfolio optimization. Novelty aside, the real benefits of groupwise selection are substantiated by experiments; our results show that groupwise asset selection leads to strategies with lower variance, higher Sharpe ratios, and even higher expected returns than the ordinary norm-constrained formulations.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.29 no.1
• /
• pp.143-150
• /
• 2006

Box-Cox model and T-factor method have been widely used to measure economic depreciations for industrial property. The Box-Cox model which combines economic efficiency with depreciation pattern is here extended to the reliability function. To do so a Rayleigh distribution which has been used to estimate the reliability of current assets was chosen as an efficiency curve of marginal productivity. Such an approach provides the possibility to classify the efficiency curves into four categories. It is also possible to analyze the types of depreciation curves. Therefore, the power family of a non-linear Box-Cox model could be set at certain constant values, then the model can be transformed into a linear model to estimate the economic depreciation rates by utilizing the reliability function. Estimating the resultant linear regression equation requires minimal number of observations, while at the same time facilitating the test of hypothesis on depreciation rates.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.29 no.2
• /
• pp.45-57
• /
• 2004

The purpose of this paper is studying the valuation of option prices in Incomplete markets. A market is said to be incomplete if the given traded assets are insufficient to hedge a contingent claim. This situation occurs, for example, when the underlying stock process follows jump-diffusion processes. Due to the jump part, it is impossible to construct a hedging portfolio with stocks and riskless assets. Contrary to the case of a complete market in which only one equivalent martingale measure exists, there are infinite numbers of equivalent martingale measures in an incomplete market. Our research here is focusing on risk minimizing hedging strategy and its associated minimal martingale measure under the jump-diffusion processes. Based on this risk minimizing hedging strategy, we characterize the dynamics of a risky asset and derive the valuation formula for an option price. The main contribution of this paper is to obtain an analytical formula for a European option price under the jump-diffusion processes using the minimal martingale measure.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.33 no.1
• /
• pp.24-32
• /
• 2010

The first full-scale u-City operation has started in Dongtan u-City. As local cities take over and operates the u-City, unexpected issues arise such as securing the budget of operating costs and self-providing the costs with business models utilizing the u-City assets. The paper presents a strategy for solving these issues. The strategy provides a foundation(infrastructure) for long-term operation models which may reduce the long-term operation costs. In order to establish the economic operating framework of u-City, suggested are some cost-reduction models based on the operating costs structure. For each model, a base framework with comparative analysis of operating costs is provided. With these models, each u-City may select a relevant model according to the characteristics of it. We hope that the framework provides the foundation for efficient and sustainable u-City operations.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.34 no.4
• /
• pp.17-24
• /
• 2011

The government supports politic funds to Small Business having difficulties of insufficient capital and weak assets. Also the effect of governmental politic funds are evaluated better than the effect of substitute loans of the commercial bank. Especially governmental politic funds contribute to the external growth of the enterprise sales and the increment of total assets size. It is necessary however related supporting programs with funding provision to reduce the risk of insolvency politic funds of small business and reinforce the competitive power of company. This paper introduces the model of the corporate diagnosis system of the Small Business Corporation as part of these intention and analysis supported companies' management performance last four years and proposes direction of development.

• Korea Journal of Hospital Management
• /
• v.25 no.4
• /
• pp.48-59
• /
• 2020

Purposes: The purposes of this study is analysis of business performance in national university hospitals in Korea. Methodology: Data from 2010 to 2019 were collected from balance sheet, income statement, and annual reports in 11 national university hospitals. The dependant variables are business performance which are operating margin to total assets, operating margin to gross revenue, and net income to gross revenue. The independent variables are the number of bed, hospital location, opening, liquidity, stability, and activity. Findings: In recent years, activity has been shown to have a lot of influence on management performance. National university hospitals increase profitability by using resources as efficiently as possible. The short-term debt and fixed assets have been increased rapidly in recent years. It was found that management performance has been increased through active investment using financial leverage. Practical Implications: Based on these results, this study will be the basic data for efficient management of national university hospitals.

• KDI Journal of Economic Policy
• /
• v.44 no.1
• /
• pp.77-98
• /
• 2022

This paper empirically verifies that the types of capital adjustment costs serve as an important mechanism in relation to investment decision-making after confirming that the investment dispersion of Korean firms is pro-cyclical and can affect business cycles. Specifically, it is found through empirical methods using corporate financial data that capital adjustment costs generally assumed to take a quadratic form in macroeconomics are asymmetric and irreversible in the Korean economy. In particular, capital adjustment costs are empirically proven to cause investment dispersion to expand given that the substitution effect of the marginal value to the marginal cost for one unit of investment in the inter-temporal investment decision is affected by that cost with regard to the resale of owned equipment assets, as opposed to new investments in equipment assets. We ultimately show, albeit indirectly, that investment dispersion can affect business cycles as capital adjustment costs influences investment decisions. What is implied is that the capital adjustment cost is not merely an exogenously deep parameter that fits the dynamics of business cycles in a macroeconomic model but could instead be a policy variable that can be endogenized through government policies.

• KSCE Journal of Civil and Environmental Engineering Research
• /
• v.39 no.6
• /
• pp.945-954
• /
• 2019

Cultural property is a valuable asset that connects the past with the present, and cultural heritage is now included in the international agenda of disaster risk reduction. Accordingly, the importance of building resilience of cultural assets has been on the rise, and the necessity of spatial information has been emphasized in building resilience. Therefore, in this study, A methodology for studying the resilience contained in cultural assets through linkage with historical map and time series spatial information is proposed and the proposed methodology was applied to cultural assets located in Gongju area. Georeferencing was performed on time-series images of aerial images and topographical map, and the changes in cultural assets and surrounding areas were found. The width of the river has changed due to the installation of the Keum River Estuary Dam and the dammed pool for irrigation. Nevertheless, the main cultural assets and monuments are located in the high-altitude area and thus have been well preserved. In this study, cultural property resilience was extracted using only map data and in future, it is necessary to conduct research to extract cultural property resilience through analysis of historical records such as geography.

• Journal of Conservation Science
• /
• v.21
• /
• pp.59-72
• /
• 2007

The relationship between soluble salts and microbial growth on stone surface was investigated. Samples from deteriorated surface layers of several stone monuments were collected, and the soluble salts in samples were chemically analysed. According to the results of chemical analyses, $Na_2SO_4$, $CaSO_4$ $2H_2O$, and NaCl and so on were added to isolation media. As a result of preliminary experiments, 15 bacteria were selected. They are all Gram positives and fourteen of them were rods. Every bacteria could grow not only in media without salts, but also in media with $CaCO_3$, $CaSO_4$ $2H_2O$, and $Ca(OH)_2$. Three bacteria, Bl6, B56, and B6l, secreted viscous substances in these $Ca^{2+}$ added media. $CaCl_2$ $2H_2O$ was the most hygroscopic among 11 soluble salts, but it seemed to interfere with bacterial growth. Ammonium ion was the inhibitor, too.