• Structural Engineering and Mechanics
• /
• v.32 no.1
• /
• pp.147-165
• /
• 2009

This study proposes a certain measure or investment strategy for decision making associated with seismic retrofitting. This strategy reduces the risk of a large-scale malfunction such as water supply loss under seismic risks. The authors developed a stochastic value index that will be used in the overall evaluation of social benefit, income gain, life cycle costs and failure compensation associated with existing lifeline systems damaged by an earthquake during the remaining service period. Optimal seismic disaster prevention investment of deteriorated lifeline systems is discussed. Finally, the present study provides a performance-based design method for seismic retrofitting strategies of existing lifelines which are carried out using the target probabilities of value loss and structural failure.

• Proceedings of the KSR Conference
• /
• 2007.05a
• /
• pp.577-583
• /
• 2007

In railway business plan, operations require a strategic and sustained level of planned investment to ensure assets are fit for purpose over the whole of their planned life. Therefore it is essential that operator can confidently plan and predict capital investment requirements over a number of years. This research addresses that how the London Underground apply a systematic risk based approach to their health and safety planning and investment decision making. Through this case study, we investigate the elements of management system that includes arrangements for the ongoing identification of hazards, assessment of risks and the implementation necessary control measures. Risk based business planning processes are also addressed.

• International Journal of Human Ecology
• /
• v.11 no.2
• /
• pp.51-61
• /
• 2010

Using data from the 2007 SCF, this study examined the use of information source for investment decisions of elderly consumers. The results indicated that many elderly consumers (about 88%) involved savings /investment decisions. The elderly used 'Experts' (39.48%) as a major information source for their investment decisions, followed by 'Friends' (24.18%). The results of the multinomial logit analysis suggested that the perceived value, the cost for search, knowledge, risk and some of the demographic factors were significantly related to the choice of the information sources for investments by elderly consumers.

• Korean small business review
• /
• v.39 no.2
• /
• pp.89-107
• /
• 2017

This study investigates the effect of risk avoiding activities and characteristic of venture capital on the financial performance of invested companies. Based on the review on the literature, we present staged financing, syndicated investment and preferred stock investment as the measurements for risk avoiding activities. Types and age of venture capital were chosen as the variables for characteristic. The financial performance data of the invested companies was derived from their publicly announced yearly financial report. Data were analysed using logistic regression technique. The result show that syndicated investment and independent venture capital have positive influence on the growth of sales revenue and asset of the invested companies. Age of venture capital appears to be positively associated with growth of sales revenue. Staged financing and preferred stock investment, however, have no impact on any financial growth and profitability. Activities and characteristic of venture capital show no influence on the profitability.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.3
• /
• pp.717-729
• /
• 2021

This paper examines the efficacy of the default risk factor in an emerging market context using the Fama-French five-factor model. Our aim is to test whether the Fama-French five-factor model augmented with a default risk factor improves the predictability of returns of portfolios sorted on the firm's characteristics as well as on industry. The default risk factor is constructed by estimating the probability of default using a hybrid version of dynamic panel probit and artificial neural network (ANN) to proxy default risk. This study also provides evidence on the temporal stability of risk premiums obtained using the Fama-MacBeth approach. Using a sample of 3,806 firm-year observations on non-financial listed companies of Pakistan over 2006-2015 we found that the augmented model performed better when tested across size-investment-default sorted portfolios. The investment factor contains some default-related information, but default risk is independently priced and bears a significantly positive risk premium. The risk premiums are also found temporally stable over the full sample and more recent sample period 2010-2015 as evidence by the Fama-MacBeth regressions. The finding suggests that the default risk factor is not a useless factor and due to mispricing, default risk anomaly prevails in the Pakistani equity market.

• Journal of the Korean Institute of Gas
• /
• v.7 no.3 s.20
• /
• pp.1-6
• /
• 2003

This study has suggested a decision method which determine optimum investment level for safety management by process risk assessment at gas governor station. Hazard and operability study(HAZOP), fault tree analysis(FTA) and consequence analysis(CA) were carried out and potential accident cost and benefit for safety management were estimated. As a result, we could be found the trend of safety cost and benefit by the nonlinear regression method and could be determined the optimum investment level for safety management from analysis of safety management cost and potential accident cost.

• Journal of Distribution Science
• /
• v.18 no.9
• /
• pp.31-43
• /
• 2020

Purpose: This study examined a comprehensive model for assessing the success probability of electric vehicle (EV) commercialization in the Korean market. The study identified three risks associated with successful commercialization which were technology, social, policy, environmental, and consumer risk. Research design, methodology: The assessment of the riskiness was represented by a Bayes belief network, where the probability of success at each stage is conditioned on the outcome of the preceding stage. Probability of success in each stage is either dependent on input (i.e., investment) or external factors (i.e., air quality). Initial input stages were defined as the levels of investment in product R&D, battery technology, production facilities and battery charging facilities. Results: Reasonable levels of investment were obtained by expert opinion from industry experts. Also, a survey was carried out with 78 experts consisting of automaker engineers, managers working at EV parts manufacturers, and automobile industry researchers in government think tanks to obtain the conditional probability distributions. Conclusion: The output of the model was the likelihood of success - expressed as the probability of market acceptance - that depended on the various input values. A model is a useful tool for understanding the EV industry as a whole and explaining the likely ramifications of different investment levels.

• Journal of Digital Convergence
• /
• v.14 no.7
• /
• pp.127-133
• /
• 2016

The objective of this study is to investigate the association between MBTI personality types of potential investors and their cognitive behavioral investment disposition. Three questionnaires related with MBTI, cognitive investment disposition, and behavioral one from 400 subjects were collected and analyzed. Based on both cognitive and behavioral investment disposition scores, potential investors having E(Extroversion), S(Sensing), and F(Feeling) types tend to put up with the risk resulting from their investment better than ones who having I(Introversion), N(Intuition), and T(Thinking) types. However, the difference between J(Judging) and P(Perceiving) types was not significant. Also investor group with ENF combination had the most aggressive investment disposition among other groups. On the contrary the group with ISF had an tendency to avoid the investment risk. In addition the correlation between cognitive and behavioral investment dispositions was 0.86. This study is expected to be used as basic data with which investment companies and banks recommend adequate financial instruments to consumers.

• Korean Journal of Construction Engineering and Management
• /
• v.14 no.1
• /
• pp.23-31
• /
• 2013

Following the U.S sub-prime mortgage crisis and a slump in properties market, the probability is rising that housing investment would not yield high profit as it used to do until early 2000s. For this reason, the nature of properties market is undergoing a change from a source of lucrative investment to a source of a relatively low but stable profit, such as profit-oriented real estate. This trend is likely to promote REITs market, which is a leading product for indirect investment. Until now, the REITs market has been growing slowly compared to a general housing market or financial markets. However, as the importance of risk management based on portfolio theories increases, stable profit generation of REITs can be effective in risk management. This study conducts an empirical analysis on how investment risks can be diversified by including REITs-a source of relatively stable profit in the equity market-in investment portfolio. The analysis results showed that, similar to food and beverage stocks of highly defensive nature, REITs has a relatively weak correlation with KOSPI that reflects the overall market performance. It also showed very low standard deviation in case of minimum variance portfolio. This suggests that including REITs in investment portfolio can be as effective as including food and beverage stocks for risk diversification. Due to uncertainties, investment always accompanies risks, and balancing potential profits and risks is essential.

• Journal of Korean Institute of Industrial Engineers
• /
• v.12 no.1
• /
• pp.147-155
• /
• 1986

Nations, especially developing countries, hope to license the technology developed at the expense of government Research and Development (R&D) investment to the corresponding firms for commercial exploitation. Since commercial process is owing to lots of risk, firms have to grope the possibility of forming a partnership in order to reduce the risk. Therefore, a joint venture between firms would be needed to share the risk. This methodology suggests a way that probabilistic information of commercial project payoffs can be obtained using experts in project evaluation committee and the ratio of individual firm's investment size can be derived using risk sharing concept. Also simple examples are given.