• Proceedings of the Korea Water Resources Association Conference
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• 2010.05a
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• pp.452-456
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• 2010

Water is an indispensable input to human's existence and industrial production. In these days, people are getting more concerned about their health and the interest in the safety of drinking water has increased. In this situation, this paper attempts to measure the economic benefits of the tap water quality improvement. The study area was restricted to Busan, the second largest city in Korea, where local government is planning to implement a tap water quality improvement program. We apply a one-and-one-half bounded dichotomous choice contingent valuation (CV) method to obtain at least a preliminary evaluation of the benefits. CV is developed for valuing goods or services that cannot be valued either directly or indirectly from market observations and has been applied to several environmental goods. The CV survey was rigorously designed to comply with the guidelines for best-practiced CV studies. We surveyed a randomly selected sample of 400 households in Busan and asked respondents questions in person-to-person interviews about how they would be willing to pay for the water quality improvement. Respondents overall accepted the contingent market and were willing to contribute a significant amount (US$1.66), on average, per household per month. We can also calculate the aggregate value of the program which improves the water quality in Busan. This study is expected to provide policy-makers with useful information for evaluating and planning environmental policies relating specifically to water.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.409-419
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• 2022

This paper examines the post-IPO price volatility in the first trading days after the IPO of SOEs that carry out equitization, on a sample of 76 IPOs on the Hanoi Stock Exchange (Vietnam) in the period 2013-2018. Oversubscription rate, firm size, issuance size, internal equity ownership, and listing delay are all factors that influence IPO price volatility in a primitive stock market. The results showed that the average initial market-adjusted return for the first three trading days was -11.95%; -9.58% and -7.29% and the level of price volatility is related to the rate of oversubscription and company size. Issuance price, issuance size, internal equity holdings, and listing delay do not seem to contribute significantly to post-IPO share prices. Individual investors based their valuation on information released during and after the IPO. In general, the number of IPOs that yield positive and negative returns in the first trading days is about the same, indicating that the two phenomena of undervaluation and overvaluation still occur in the process of valuing shares of Vietnamese SOEs for IPOs.

• The Journal of Fisheries Business Administration
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• v.49 no.3
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• pp.85-99
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• 2018

This study is to compare and evaluate the estimating method of WTP(willingness to pay) for the valuation of oceans and fisheries resources with non-market goods characteristics using contingent valuation method. In general, when estimating parameters of the WTP function, we should take into account the assumption of probability distribution, inclusion of covariates, method of inducement of payment, and the treatment of 0 payment intention and resistance responses. This study utilizes survey data that was used to estimate the value of fisheries resource protection zones, with a total of 1,200 samples. The main results of this study are summarized as follows: First, the final willness to pay amount is estimated at a statistical significance of less than 1 percent, and the distribution of the final willness to pay amount is from \6,926 of the double bounded dichotomous model to \10,721 of the spike model. Second, the willness to pay amount based on assumptions about the normal and logistic probability distributions are estimated to be \9,429 and \9,370 respectively, so there was no significant difference. Third, the willness to pay amount of the single bounded dichotomous model and the double bounded dichotomous model are estimated to be \8,951 and \6,926 respectively, making a relatively large difference. Fourth, the willness to pay amount of the model without covariates and the model with covariates are estimated to be \9,429 and \8,951, respectively, so the willness to pay amount is underestimated when the covariates are included. Fifth, the Spike model that considers zero payment intention and resistance response estimates \10,405 as the highest payment in this study. Finally, the CVM analysis guidelines proposed by the Korea Development Institute (KDI) are estimated to be \9,749 and \10,405 respectively, depending on including no covariates and with covariates. Compared to other models, the final willness to pay amount is not estimated underestimated. Therefore this study suggests the use of KDI's guidance under government public policy projects. In view of these results, the estimating model for willness to pay amount model will be selected by considering the sample size, the suitability of the model, the sign of the estimated coefficient, the statistical significance, the ratio of the zero payment intention and the payment rejection. And, for CVMs on government public policy projects, it is desirable to estimate by the method proposed by the KDI.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.26 no.6D
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• pp.945-950
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• 2006

In implementing transportation projects, benefits have been estimated using conventional benefit components. However, these components have a lot of assumptions and limitations for benefit estimations and thus it seems to be difficult to obtain values of parameters as well as to overlook benefits of non-market goods in calculation process. In other words, current benefit estimations are considered that can be solely measured by directly depending on traffic volumes. Existing economic analysis do not reflect the full benefits, including direct and indirect of the project implementations. To illustrate this fact, bicycle road construction can result in various functional benefits, including improved quality of life, balanced regional development, and good scenery composition. These benefits can not be explained with conventional economic analysis. The objective of this research is to estimate valuation of bicycle road construction using Contingent Valuation Method (CVM). CVM can evaluate user's direct willingness-to-pay as well as maximize bicycle utilization with balanced regional development. This research used the coastline bicycle road construction project for example. The proposed method can be well calculated or estimated benefits for non-market goods of bicycle road constructions using CVM.

• Journal of Korean Institute of Industrial Engineers
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• v.25 no.1
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• pp.67-74
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• 1999

Market share is one of the most important measures in the valuation of prospering firm. It plays a role of composite indicator for the competitiveness of firm. So, the understanding of the underlying process of market share is inevitable factor for the econometricians and the business engager. Lately, the Korean Economy has been placed in the control of IMF. This shock will cause a lot of influence over the domestic economy. The idea that the information about the past shock-response experience will do us good for dealing with this kind of economic shocks is not new. Among numerous markets, we pay attention to the durable goods market, especially automobile market. The automobile market has large repercussion effect over the domestic economy on the issue of both national employment and technology integration. We divided the Korean automobile market into three segments: small, medium, and large-sized car, while each proportion of these segments has been changing slowly. We propose a Bayesian approach to detect and forecast structural changes in time series of the market shares in the domestic automobile market, especially for level shifts and drift changes, and compare the empirical results with other existing approaches.

• ETRI Journal
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• v.24 no.1
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• pp.56-64
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• 2002

This paper investigates how market participants react to mergers and acquisitions (M&As) involving telecommunications companies. The empirical evidence suggests that such activities convey bad news to the market. This is consistent with the synergy trap hypothesis and extant empirical findings of value-reducing diversification strategies in recent literature. The evidence also indicates that a cross-border, rather than a domestic M&A deal, is the main driver of the negative market reaction. Further, our evidence of negative impacts on the bidder's business after an M&A reinforces our main finding that market participants, on average, perceive M&A activities to be detrimental to shareholder value. This suggests that value creation or synergy through an M&A deal is not warranted even though it can generate an increase in size of the firm.

• Journal of the Korean Operations Research and Management Science Society
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• v.21 no.1
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• pp.51-69
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• 1996

We consider a consumer self-selection model in which a regulated firm faces two market segments with differing valuation of quality of telecommunication services and examine some economic implications from the behaviors of the firm. In the context of a regulated monopolist, even though the results depend on the degree of privatization, the firm could lower the quality of the low-end model and reduce the price of the high-end in order to alleviate cannibalization. This justifies the provision of universal service policy in the telecommunications market. Based on this self-selection model, we also analyze an extended model of product introduction and show that the monopolist will introduce new product with the same introduction time of social planner. However, when we consider competition among firms, the market equilibrium may not guarantee the efficient time of product introduction.

• Journal of Information Technology Services
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• v.8 no.3
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• pp.67-81
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• 2009

This study aims to test the valur relevance of development cost particularly focusing on IT firms of KOSDAQ. Test period is from 2005 to 2007 and the samples are 2,271 year-firms including 1,692 firms that reported development cost in financial statements. The basic test model is a modified Ohlson(1995)'s linear model. The empirical results show that there is the negative relation between stock price and development cost reported as asset. It means that development costs reported as asset is considered as expense in the market. It implies that development activities of KOSDAQ IT firms is not related to market-leading technologies or goods. Otherwise it might reflect the conservative valuation of market on the unstability of KOSDAQ market itself.

• Korean Management Science Review
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• v.25 no.2
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• pp.43-55
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• 2008

Contingent valuation method(hereafter CVM) is generally believed to be one of the most popular methods used for quantifying the value of non-market goods or services particularly by asking respondents of willingness to pay. This study deals with how to use CVM in calculating the value of mobile telephone service by suggesting methodology of estimation and eliminating biases. This study represents an attempt to estimate the WTP(Willingness To Pay) of the mobile telephone service using the face-to-face interview which is the qualitative technique is used. In this study, by using the single bound dichotomous choice model(SBDC) in order to analyze the valuation of mobile telephone service, WTP was estimated. Also we analyze the factors to pay for mobile service in which it becomes the important factor of demanding services. We used logit model. In order to provide robust estimates of WTP, we have used the Method of Montecarlo Simulation. Consequently, consumers showed that WTP about the mobile communications service is generally high. And it could know that the WTP will fell down as the specialized knowledge about the mobile communications frequency was high. It will be able to become the important part to not only the business carrier but also the policy maker to estimate the economic value of mobile telephone service.

• Knowledge Management Research
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• v.6 no.1
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• pp.19-32
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• 2005

The reliability of technology valuation depends on, among other things, the reliability of the discount rate estimate. The weighted average cost of capital, generally accepted as discount rate, consists of cost of equity and cost of debt. The model used to estimate the cost of equity for publicly traded firms can not be used directly for small-sized venture firms. In addition, the estimation of cost of debt become very difficult, given the limited and volatile price history, because these small-sized venture firms do not have associated credit ratings. Since two kinds of cost of capital for the small-sized venture firms can not be estimated directly from market data, this study suggests statistical frame works for estimating unknown two kinds of cost of capital. The estimates of underlying cost of capital will help determine the size of appropriate discount rate with logical and scientific way when the technology valuation for small-sized venture firms is made. This study also suggests the necessity of the risk premium for the technology competitiveness to improve the estimation of the appropriate discount rate for small-sized venture firms.