• The Journal of Industrial Distribution & Business
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• v.9 no.7
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• pp.53-59
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• 2018

Purpose - This study examines the effect of control-ownership wedge on stock crash risk. In Korea, controlling shareholders have exclusive control rights compared to their cash flow rights. With increasing disparity, controlling shareholders abuse their power and extract private benefits at the expense of the minority shareholders. Managers who are controlling shareholders of the companies tend not to disclose critical information that would prevent them from pursuing private interests. They accumulate negative information in the firm. When the accumulated bad news crosses a tipping point, it will be suddenly released to the market at once, resulting in an abrupt decline in stock prices. We predict that stock price crash likelihood due to information opaqueness increases as the wedge increases. Research design, data, and methodology - 831 KOSPI-listed firm-year observations are from KisValue database from 2005 to 2011. Control-ownership wedge is measured as the ratio (UCO -UCF)/UCO where UCF(UCO) is the ultimate cash-flow(control) rights of the largest controlling shareholder. Dependent variable CRASH is a dummy variable that equals one if the firm has at least 1 crash week during a year, and zero otherwise. Logistic regression is used to examine the relationship between control-ownership wedge and stock price crash risk. Results - Using a sample of KOSPI-listed firms in KisValue database for the period 2005-2011, we find that stock price crash risk increases as the disparity increases. Specifically, we find that the coefficient of WEDGE is significantly positive, supporting our prediction. The result implies that as controlling shareholders' ownership increases, controlling shareholders tend to withhold bad news. Conclusions - Our results show that agency problems arising from the divergence between control rights and cash flow rights increase the opaqueness of accounting information. Eventually, the accumulated bad news is released all at once, leading to stock price crashes. It could be seen that companies with high control-ownership wedge are likely to experience future stock price crashes. Our study is related to a broader literature that examined the effect of the control-ownership wedge on stock markets. Our findings suggest that the disparity is a meaningful predictor for future stock price crash risk. The results are expected to provide useful implications for firms, regulators, and investors.

• International Commerce and Information Review
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• v.16 no.4
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• pp.307-330
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• 2014

The purpose of this study is to estimation of Technical Barriers of Trade(TBT) between Korea and China. TBT is one of the key issues in which both governments are interested since the Korea-China FTA negotiations had launched in 2012. In this paper, we aggregate nine country HS codes from World Bank and AIO codes from JETRO. Our estimation model based on modified price wedge approach differentiate previous researches in the sense that it covers all manufacture industries and uses nine country data set. Estimation results confirm the importance of TBT showing that TBT high ranking items significantly overlap high ranking export items. We also find that the size of Chinese TBT are much larger than that of Korean TBT, implying that Korean government needs smart and well prepared strategy for key items in TBT/FTA negotiation with Chinese government.

• Journal of the Korean Society of Manufacturing Process Engineers
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• v.19 no.8
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• pp.28-34
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• 2020

In this study, hole-boss locking washers were developed to prevent vibrational loosening, and a benchmark test was conducted to compare these washers with existing wedge locking washers, which are imported and high-priced. The developed washers consist of an upper washer with bosses and a lower washer with holes, and the bosses are caught in the holes so that the bolt is not loosened. Additionally, the top side of the upper washer and the underside of the lower washer have small wedges perpendicular to the direction of the bolt loosening, suppressing slips. A test by the Korea Test Laboratory indicated that the ratio of the loosening torque to the joining torque is greater than 70%, confirming that the developed washers have a sufficiently high anti-loosening performance. A Junker test apparatus was manufactured for the testing of vibrational loosening and a test comparison between the proposed washers and the existing wedge locking washers shows that the proposed washers have a slower reduction in the clamping force and a higher loosening-resistance in a vibrational circumstance compared with the wedge locking washers. These results indicate that the developed washers demonstrate a high performance and boast price competitiveness.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.1
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• pp.599-608
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• 2017

This paper proposed a methodology to analyze the economic and quantitative effects of lifting the import ban on Japanese pears by applying a price gap approach in the absence of any preference for either type of pear. Assuming that Korea will allow Japanese pear imports in 2018, the simulation results show that an annual average of 50,000 tons will flow into the domestic market from Japan. These imports will cause a decrease in the price and production of domestic pears, which would have a direct effect on the domestic pear industry, leading to an annual average reduction of 93 billion won. The cultivation area and production quantity are projected to be decreased by 0.7% and 1.4%, respectively, compared to the baseline. Also, the annual average reduction in the overall agriculture sector is predicted to be about 209 billion won, which is a 0.4% reduction compared to the baseline. This research is expected to improve the methodologies available for proactive analysis, with the existing analysis focused on customs tariffs when Korea considers joining mega-FTAs.

• Journal of Environmental Policy
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• v.7 no.3
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• pp.1-40
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• 2008

In this paper, I examine the welfare effects of various revenue-neutral tax reforms in the case of two vertically-related oligopolies(downstream and upstream), where the upstream industry is polluting. I show analytically when and how government can improve welfare by initiating various tax reforms, regardless of either the feasibility of a lump sum transfer or the availability of a tax on pollution. The profit wedge that is the difference between the unit price and the unit cost and the marginal environmental damages(MED) becomes important to decidethe direction of a tax reform and is crucial to determine the direction of welfare-improving tax-subsidy schemes. I also show that a tax on pollution(Pigouvian tax) is superior to a tax on intermediate good even in the case of vertically-related oligopolies, because the former always brings in positive welfare effect from the upstream firms' input substitutability, which a tax on intermediate good cannot provide. Some policy implications for 'reducing environmentally-harmful subsidies' are also discussed.

• Nuclear Engineering and Technology
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• v.55 no.9
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• pp.3133-3139
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• 2023

Neutron imaging technology as a means of non-destructive detection of materials is complementary to X-ray imaging. Silicon photomultiplier (SiPM), a new type of optical readout device, has overcome some shortcomings of traditional photomultiplier tube (PMT), such as high-power consumption, large volume, high price, uneven gain response, and inability to work in strong magnetic fields. Its application in the field of neutron detection will be an irresistible general trend. In this paper, a thermal neutron imaging detector based on ⁶LiF/ZnS scintillation screen and SiPM array readout was developed. The design of the detector geometry was optimized by geant4 Monte Carlo simulation software. The optimized detector was evaluated with a step wedge sample. The results show that the detector prototype with a 48 mm × 48 mm sensitive area can achieve about 38% detection efficiency and 0.26 mm position resolution when using a 300 ㎛ thick ⁶LiF/ZnS scintillation screen and a 2 mm thick Bk7 optical guide coupled with SiPM array, and has good neutron imaging capability. It provides effective data support for developing high-performance imaging detectors applied to the China Spallation Neutron Source (CSNS).

• Proceedings of the Korean Geotechical Society Conference
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• 1991.10a
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• pp.87-102
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• 1991

It has been reported that the failure of Carsington Dam in Eng1and occured due to the existence of a thin yellow clay layer which was not identified during the design work, and due to pre-existing shears of the clay layer. The slope stability analyses during the design work, which utilized traditional circular arc type failure method and neglected the existence of the clay layer, showed a safety factor of 1.4. However, the post-failure analyses which utilized translational failure mode considering the clay layer and the pre-existing shear deformation revealed the reduction of safety factor to unity. The post-failure analysis assumed 10。 inclination of the horizontal forces onto each slice based on the results of finite element analyses. In this paper, Bishop's simplified method, Janbu method, and Morgenstern-Price method were used for the comparison of both circular and translational failure analysis methods. The effects of the pre-existing shears and subsquent movement were also considered by varying the soil strength parameters and the pore pressure ratio according to the given soi1 parameters. The results showed factor of safefy 1.387 by Bishop's simplified method(STABL) which assumed circular arc failure surface and disregarding yellow clay layer and pre-failure material properties. Also the results showed factor of safety 1.093 by Janbu method(STABL) and 0.969 by Morgenstern-Price method(MALE) which assumed wedge failure surface and considerd yellow clay layer using post failure material properties. In addition, dam behavior was simulated by Cam-Clay model FEM program. The effects of pore pressure changes with loading and consolidation, and strength reduction near or at failure were also considered based on properly assumed stress-strain relationship and pore pressure characteristics. The results showed that the failure was initiated at the yellow clay layer and propagated through other zones by showing that stress and displacement were concentrated at the yel1ow clay layer.