• Journal of Navigation and Port Research
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• v.43 no.2
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• pp.134-141
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• 2019

The objective of this study was to establish whether global macroeconomic indicators affect the profitability of Korean shipping companies by using panel regression analysis. OROA (operating return on assets) and ROA (ratio of net profit to assets) were selected as proxy variables for profitability. OROA and ROA were used as dependent variables. The world GDP growth rate, interest rate, exchange rate, stock index, bunker price, freight, demand and supply of the world shipping market were set as independent variables. The size of the firm was added to the control variable. For small-sized firms, OROA was not affect by macroeconomic indicators. However, ROA was affected by variables such as interest rates, bunker prices, and size of firms. For medium-sized firms, OROA was affected by demand, supply, GDP, freight, and asset variables. However, macroeconomic indicators did not affect ROA. For large-sized firms, freight, GDP, and stock index (SCI; Shanghai Composite Index) have an effect on OROA. ROA was analyzed to be influenced by bunker price and SCI.

• Journal of the Korean Data and Information Science Society
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• v.21 no.1
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• pp.71-86
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• 2010

In life insurance, the net premium is derived based on the expected life time distribution and expected interest rate. The losses or risks of the insurer are significantly affected by the obtained net premium. Thus, in life insurance, these two factors, the life time distribution and expected interest rate, are considered as important influential factors. In this paper, we investigate the effect of these influential factors on the net premiums, management risks, and the probability of losses. Furthermore, relative influence of these factors is also studied.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.325-334
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• 2021

This study aims to investigate whether economic growth is elevated by banking industry development in Jordan. The study adopts time-series econometric methodologies, which comprise the bounds testing approach within the autoregressive distributed lag (ARDL) and the conditional causality analysis. Consistent with the assumptions of the adopted methodology, the study utilized annual time-series data for a relatively long period of thirty-nine years, between 1980 and 2018. The empirical results show that Jordan's economic growth is strongly responsive in respect to any changes in banking industry development. Also, the results reveal the harmful impact of rising lending interest rate; as this rate increases, economic growth will decrease. The findings are in line with the conceptual arguments of the supply-leading hypothesis, which confirmed that banking development is considered as one of the main pillars that have stimulating effects on economic growth. The evidence of the current study may provide important implications for policymakers and bankers. Those professionals should work to maintain a stable regulatory system that enhances the banking system function in activating economic growth. Also, a considerable focus should be placed on designing a steady interest rate policy to avoid the inherently undesirable impacts of high-interest rates on the Jordanian economy.

• Korean Journal of Construction Engineering and Management
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• v.16 no.1
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• pp.101-109
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• 2015

The expected economic effect by investment was divided by square of real discount rate annually for change to present value. Thus, the impact of real discount rate on economic analysis is larger than other factors. The existing general method for prediction of real discount rate is application of average data during past certain period. This study proposed prediction method of real discount rate for accuracy improvement. First, the economic variables which impact on interest rate of business loan and consumer price of real discount rate were determined. The variables which impact on interest rate of business loan were selected to call rate and exchange rate. The variable which impact on consumer price index was selected to producer price index. Next, the effect relation was analyzed between real discount rate and selected variables. The significant effect relation were analyzed to exit. Lastly, the real discount rate was predicted from 2008 to 2010 based on related economic variables. The accuracy of prediction result was compared with actual data and average data. The real discount rate based on actual data, predicted data, and average data were analyzed to -1.58%, -0.22%, and 6.06%, respectively. Though the proposed method in this study was not considered special condition such as financial crisis, the prediction accuracy was much higher than result based on average data.

• The Journal of Industrial Distribution & Business
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• v.10 no.11
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• pp.15-23
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• 2019

Purpose: Global economic integration has provided good opportunities and conditions for the development of foreign direct investment in Finances. Therefore, this paper attempts to explore what determines foreign direct investment in Finances of Organization for Economic Co-operation and Development (OECD) countries. Research design, data and methodology: This paper employs the panel data over the period 2005-2017 and uses the random effect model to estimate this proposition. Results: The results indicate that the foreign direct investment in services, growth rate of GDP, interest rate and saving are positively related with foreign direct investment in finances. Conversely, the growth rate of wage and fluctuation rate of exchange rate are negatively related with foreign direct investment in finances. Moreover, the results verify that the effect of these variables on foreign direct investment in finances is different before and after 2008 (global economic crisis). In addition, the results also manifest that the regional effect exists. Namely, the effect of these variables on foreign direct investment in finances between G7 countries and G20 countries exist significant difference. Conclusions: Those variables used in this paper are related with foreign direct investment in Finances of (OECD) countries.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.2
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• pp.37-47
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• 2022

This study uses monthly data from January 2009 to December 2020 to examine the effectiveness of foreign currency intervention and its influence on monetary policy in Vietnam using a Hierarchical Bayesian VAR model. The findings suggest that foreign exchange intervention has little influence on the exchange rate level or exports, but it can significantly minimize exchange rate volatility. As a result, we can demonstrate that the claim that Vietnam is a currency manipulator is false. As well, the forecast error variance decomposition results reveal that interest rate differentials mainly determine the exchange rate level instead of foreign exchange intervention. Moreover, the findings suggest that foreign exchange intervention is not effectively sterilized in Vietnam. Inflation is caused by an increase in international reserves, which leads to an expansion of the money supply and a decrease in interest rates. Although the impact of foreign exchange intervention grows in tandem with the growth of international reserves, if the sterilizing capacity does not improve, rising foreign exchange intervention will instead result in inflation. Finally, we use a rolling window approach to examine the time-varying effect of foreign exchange intervention.

• Journal of Navigation and Port Research
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• v.44 no.2
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• pp.119-127
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• 2020

In this study, the current state of management efficiency of ocean carriers in Korea and the factors affecting them were analyzed. The purpose of this research is to enhance global competitiveness of ocean carriers by presenting suggestions that can improve management efficiency based on the analysis results. The measurement of management efficiency was made using the DEA model. The results of testing the adequacy of the input and output variables used are as follows. Appropriate inputs are total assets, cost of goods sold, charter expenses, sales and general management expenses, and interest expenses. Appropriate variables are sales, operating income, and operating cash flow. According to the analysis results of the DEA model by these variables, inefficient carriers (78%) are nearly four times more than efficient carriers(22%). However, container carriers have the most improved management efficiency compared to 2016 and 2017. According to the panel regression analysis, the charter rate has the greatest negative impact on efficiency (CRS), and the debt rate has a significant negative impact. Thus, it appears that reducing the charter size and the debt-to-sale rate facilitate improvement of the management efficiency of ocean carriers. Additionally, the pre-sales tax return rate, value added rate, total asset turnover rate, and the scale variable and interest coverage rate have a positive (+) effect. Thus ocean carriers should restore their global competitiveness by improving management efficiency by securing stable cargoes increasing sales profitability from the cost management perspective, increasing productivity, and enhancing the efficiency of their total assets through efficient fleet management.

• Earthquakes and Structures
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• v.4 no.6
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• pp.607-627
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• 2013

The application of shape memory alloys (SMAs) to the seismic response reduction of civil engineering structures has attracted growing interest due to their self-centering feature and excellent fatigue performance. The loading rate dependence of SMAs raises a concern in the seismic analysis of SMA-based devices. However, the implementation of micromechanics-based strain-rate-dependent constitutive models in structural analysis software is rather complicated and computationally demanding. This paper investigates the feasibility of replacing complex rate-dependent models with rate-independent constitutive models for superelastic SMA elements in seismic time-history analysis. Three uniaxial constitutive models for superelastic SMAs, including one rate-dependent thermomechanical model and two rate-independent phenomenological models, are considered in this comparative study. The pros and cons of the three nonlinear constitutive models are also discussed. A parametric study of single-degree-of-freedom systems with different initial periods and strength reduction factors is conducted to examine the effect of the three constitutive models on seismic simulations. Additionally, nonlinear time-history analyses of a three-story prototype steel frame building with special SMA-based damping braces are performed. Two suites of seismic records that correspond to frequent and design basis earthquakes are used as base excitations in the seismic analyses of steel-braced frames. The results of this study show that the rate-independent constitutive models, with their parameters properly tuned to dynamic test data, are able to predict the seismic responses of structures with SMA-based seismic response modification devices.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1135-1142
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• 2021

This study aims to examine the factors that determine bond yields in infrastructure companies listed on the Indonesia Stock Exchange. The research sample used 31 bonds issued by the company during the 2015-2019 period. The data analysis method to estimate the determinant of bond yield uses multiple regression models. The results prove that the increase in the coupon rate causes bond yields to increase, while the inflation rate has the opposite effect of decreasing bond yield. Interest rate, exchange rate, duration, and bond rating variables cannot affect the bond yield. The results of this study imply that investors will be interested in investing in bonds with better yields if the company has to set a higher coupon rate, especially in economic conditions that experience low inflation rates. Interest rates and exchange rates as macroeconomic variables have not been considered by investors in purchasing bonds. Bond characteristic factors, namely, the duration and rating of the bonds, are considered less important factors in bond investment decisions because they are more oriented towards getting higher yields. Therefore, further research needs to be explored further related to the behavior of Indonesian bond investors who may have different characters from investors in other countries.

• Journal of the Korean Society of Systems Engineering
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• v.12 no.1
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• pp.73-87
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• 2016

Combining power generation and water production by desalination is economically advantageous. Most desalination projects use fossil fuels as an energy source, and thus contribute to increased levels of greenhouse gases. Environmental concerns have spurred researchers to find new sources of energy for desalination plants. The coupling of nuclear power production with desalination is one of the best options to achieve growth with lower environmental impact. In this paper, we will per-form a sensitivity study of coupling nuclear power to various combinations of desalination technology: {1} thermal (MSF [Multi-Stage Flashing], MED [Multi-Effect Distillation], and MED-TVC [Multi-Effect Distillation with Thermal Vapour Compression]); {2} membrane RO [Reverse Osmosis]; and {3} hybrid (MSF-RO [Multi-Stage Flashing & Reverse Osmosis] and MED-RO [Multi-Effect Distillation & Reverse Osmosis]). The Korean designed reactor plant, the APR1400 will be modeled as the energy production facility. The economical evaluation will then be executed using the computer program DEEP (Desalination Economic Evaluation Program) as developed by the IAEA. The program has capabilities to model several types of nuclear and fossil power plants, nuclear and fossil heat sources, and thermal distillation and membrane desalination technologies. The output of DEEP includes levelized water and power costs, breakdowns of cost components, energy consumption, and net saleable power for any selected option. In this study, we will examine the APR1400 coupled with a desalination power plant in the Kingdom of Saudi Arabia (KSA) as a prototypical example. The KSA currently has approximately 20% of the installed worldwide capacity for seawater desalination. Utilities such as power and water are constructed and run by the government. Per state practice, economic evaluation for these utilities do not consider or apply interest or carrying cost. Therefore, in this paper the evaluation results will be based on two scenarios. The first one assumes the water utility is under direct government control and in this case the interest and discount rate will be set to zero. The second scenario will assume that the water utility is controlled by a private enterprise and in this case we will consider different values of interest and discount rates (4%, 8%, & 12%).