• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2005.05a
• /
• pp.506-516
• /
• 2005

This paper deals with an investment scheduling problem of maximizing net present value of dividend with reinvestment allowed, where each investment has certain capital requirement and generates deterministic profit. Such deterministic profit is calculated at completion of each investment and then allocated into two parts, including dividend and reinvestment, at each predetermined reinvestment time point. The objective is to make optimal scheduling of investments over a fixed planning horizon which maximizes total sum of the net present values of dividends subject to investment precedence relations and capital limit but with reinvestment allowed. In the analysis, the scheduling problem is transformed to a kind of parallel machine scheduling problem and formulated as an integer programming which is proven to be NP-complete. Thereupon, a depth-first branch-and-bound algorithm is derived. To test the effectiveness and efficiency of the derived algorithm, computational experiments are performed with some numerical instances. The experimental results show that the algorithm solves the problem relatively faster than the commercial software package (CPLEX 8.1), and optimally solves the instances with up to 30 investments within a reasonable time limit.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.38 no.4
• /
• pp.53-63
• /
• 2013

Together with soaring interest on Big Data, now there are vigorous reports that unearth various social values lying underneath those data from a number of application areas. Among those reports many are using such data as Internet search histories from Google site, social relationships from Facebook, and transactional or locational traces collected from various ubiquitous devices. Many of those researches, however, are conducted based on the data sets that are accumulated over the North American and European areas, which means that direct interpretation and application of social values exhibited by those researches to the other areas like Korea can be a disturbing task. This research has started from a validation study against Korean environment of the former paper which says an investment strategy that exploits up and down of Google search volume on a carefully selected set of terms shows high market performance. A huge difference between North American and Korean environment can be eye witnessed via the distinction in profit rates that are exhibited by the corresponding set of search terms. Two sets of search terms actually presented low correlation in their profit rates over two financial markets. Even in an experiment which compares the profit rates with two different investment periods with the same set of search terms showed no such meaningful result that outperforms the market average. With all these results, we cautiously conclude that establishing an investment strategy that exploits Internet search volume over a specified word set needs more conscious approach.

• Culinary science and hospitality research
• /
• v.22 no.6
• /
• pp.52-60
• /
• 2016

This study attempts to measure the financial performance of the food distribution company. In order to achieve the goal, this study have measured the ratios of ROE, ROA applying the DuPont analysis, which have been demonstrated with tables to show the change periodically. DuPont analysis is based on analysis of Return on Equity (ROE) & Return on Investment (ROI). The return on equity disaggregate performance into three components: Net Profit Margin, Total Asset Turnover, and the Equity Multiplier. The return on investment consists of Assets Turnover (Operating Income${\times}$Total Assets) and Profit Margin (EBIT${\times}$Operating Income). From the study it if found that Hyundae Green Food's Financial performance is high followed by Foodmerce and then Dongwon home food and Lotte Food. The four companies are significant at their level. In conclusion, ROE & ROI is the most comprehensive measure of profitability of a firm. It considers the operating and investing decisions can be made as well as the financing and their leverage-related decisions.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2008.10a
• /
• pp.520-524
• /
• 2008

This research verifies the phenomenon of which the Momentum and Reversal effect of stock price would depend on the subject of investment in the point of view of the Behavior Finance hypothesis. For the experiment, this paper uses the KOSPI200 daily data and Net Investment Flow from Jan. 1999 to Dec. 2006. And we analyze the marginal profit and loss with foreigners, individual investors, and institutions. We verify the response of the subjects of investment based on the CAR for 3 days after more than 3 percent rising or drop. We also verify the response with respect to the ascending and descending trend based on the profit trend and subjects' behaviors a week before the drop.

• Management & Information Systems Review
• /
• v.34 no.3
• /
• pp.179-196
• /
• 2015

The purpose of this study is to examine the influence of variable cash compensation depending on short-term performances instead of stock compensation for the executives on the investment in tangible assets, investment and R&D, and profit reconciliation. The detailed objectives of the study include, first, to examine the influence of the cash compensation on investment in tangible assets and profit reconciliation depending on the characteristics of the company and, second, to examine the influence of cash compensation on the profit reconciliation of the investment in R&D depending on the characteristics of the company. The results of the analysis in this study can be summarized as follows; Firstly, the result of the positive analysis, as the compensation for the executives increased, by the characteristics of the companies conducted on the significant 'positive' (+) on the investment in R&D and the profits reconciliation showed that the high tech industry and the share ratio of the executives did not show a significant result, while the debt ratio showed a significantly positive result. Secondly, the result of the positive analysis, as the compensation for the executives increased, by the characteristics of the companieson the significant 'positive' (+) of the investment in tangible assets and reconciliation of profits showed that the high-tech industry did not show a significant result, while the hypothesis on the share ratio of the executives and the hypothesis on the debt ratio showed results that are significantly positive as expected. In other words, it can help Korean companies, which have to investment in R&D and tangible assets to increase their competitiveness and promote future growth dynamics, to design a manager compensation system that is appropriate for our country to support efficient investment decision-making.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.5
• /
• pp.885-896
• /
• 2021

The general role of commercial banks is to provide financial services to the general public and business, ensuring economic and social stability and sustainable growth of the economy. Commercial banks play an important role in mobilizing and channelizing funds for investment activities. This study analyzes the impact of the key financial variables on the net profit of the selected commercial banks in Oman. The study employs times series panel data - cross-sectional analysis of the key financials of five leading commercial banks for a period of 13 years from 2007 to 2019. The results reveal that the correlation matrix of the selected variables has a positive relationship with net profit, assets, deposits, loans, and interest income. However, the findings also shows a negative relationship between net profit and net loans to total deposits ratio. The study found net loans is the main independent variable that influences the profitability of the banks since the key source of revenue comes from the lending operations. The assets, total capital adequacy ratio have a mixed effect on the profitability of commercial banks. The total deposits and capital adequacy ratio have a negative effect on profitability mainly because excessive liquidity will increase the cost of capital and reduce the return on investment. Focusing on lending operations with a sound credit portfolio will improve profitability.

• Journal of Technology Innovation
• /
• v.24 no.3
• /
• pp.81-105
• /
• 2016

The purpose of this study is to estimate the cost-saving effect of R&D investment in the ICT industry. As is well known, the R&D investment induces both the product innovation and the process innovation, in turn leads the effect of creating profit and cutting cost. However, it appears that studies concerned with the cost-saving effect of R&D investment have been unproductive, while most existing studies concentrate on the topic involved with the creating profit of R&D investment. Therefore, we extend the effect of R&D investment to a framework of the cost-saving focusing on the ICT industry. To empirically analyze the effect, we built a simultaneous three-equation model comprising a translog cost function and two cost share equations, and employed the SUR analysis. As a result, we found out that the cost-saving effect on the total cost is statistically significant. In addition, we examined relationships between the R&D investment and each cost of production elements. The results show that on the one hand, the R&D investment and the intermediate good cost have the substitution relationship. On the other hand, the complementary relationship is observed between the R&D investment and each labor or capital cost.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.19 no.4
• /
• pp.115-125
• /
• 2024

This study defined the appraisal items of technology appraisal for investment as innovation characteristics and derived the determining factors for predicting high-growth companies. Through this, we presented a direction for improving the technology appraisal model for investment. High-growth companies were classified into high-growth companies in sales, high-growth companies in operating profit, and high-growth companies in both sales and operating profit. At this time, the concept of a gazelle company was applied and defined as a company with an average growth rate of 20% or more over three years after the appraisal year. As for the analysis results, in terms of technicality (appraisal items), it was significant in predicting high-growth companies in sales and high-growth companies in sales and operating profit. Therefore, it will be possible to increase the discrimination power of predictions by strengthening the technicality (appraisal items). On the other hand, the business feasibility (appraisal items) was significant in predicting high-growth companies in sales and high-growth companies in sales and operating profit, but in a negative direction. This is due to the composition and criteria of the business feasibility (appraisal items), and it was concluded that changes to the composition and criteria for the relevant items are necessary for future model improvement.

• Journal of Korea Society of Digital Industry and Information Management
• /
• v.11 no.4
• /
• pp.177-187
• /
• 2015

Although actual business environment is getting difficult and hard, IT companies tend to shy away from of annual investment. Many firms have already reached the 25 percent level. However, the profit and the result of their annual investment needs to be evaluated objectively. IT investment analysis usually proceeds by comparing benefits and costs of an IT investment. Much of the problem derives from the historical treatment of IT as an overhead expense rather than a capital asset. What is most worrying about the current situation is the pressure to take a very short-term view of IT. Therefore, this research aims to analyses and justify the necessity of Visionary IT Investment. For this, it is crucial to identify the factors, which affect positively Visionary IT Investment and understand the role of CIO and explain the result of Visionary IT Investment, which is differed to related business and by different business environment. As a result of this study, the legitimacy of IT Investment is proved through analyzing the business value of not investing and cost-avoidance strategies.

• Journal of the Korean Regional Science Association
• /
• v.36 no.1
• /
• pp.37-50
• /
• 2020

Estimating investment profits of real estate is critical to understand real estate markets and create relevant policy as real estate market and capital market combines closely. Thus, this study applied the concept of Tobin's Q to estimate investment profits for apartments as well as row-houses and multi-family homes in Seoul from 2010 to 2018. Investment profits were estimated by two approaches: subtracting the replacement cost from the transaction price and calculating ratio of the transaction price to the replacement cost, respectively. The spatio-temporal changes in investment profits were apparent in apartments compared with row-houses and multi-family homes. As a result of analyzing the spatial econometrics models, the investment profit was higher in the area with high density and new developments regardless of the housing types. The framework and key findings would be the effective reference to understand residential investment behavior, create relevant housing policy, introduce value capture of windfall, measure regional competitiveness, and estimate housing bubble.