• Analyses & Alternatives
• /
• v.3 no.1
• /
• pp.135-157
• /
• 2019

The linkages between asset prices and macroeconomic outcomes are long-standing issue to both economists and monetary authorities. This paper explores the impact of asset prices on output and price in China. It focuses on the impacts of asset prices on the low quantiles of GDP gap and high quantiles of price gaprespectively. The main findings are the following: the influence of stock price gap, stock returns, and money growth on the different quantile of GDP gap and price gap are noticeable different, and there are significant impacts on the left tail of GDP gap distribution and on the right tail of price gap distribution. This implies that the results coming from simple regression will underestimate the economic risk imposed by asset price volatility. Moreover, these results also provide the caveat that one should cautiously distinguish the meaning of asset price gap and asset price growth rate and use them, through their contents are similar in some sense. One implication for monetarypolicy is that authority should interpret the relationship between asset prices and macro-economy in wider perspectives, and make the policy decision taking the impacts of asset prices on the tails of economy.

• KDI Journal of Economic Policy
• /
• v.36 no.4
• /
• pp.33-69
• /
• 2014

We investigate determinants of fund investment flows using Korean equity investment funds. Unlike previous studies which analyzed net-flows (inflow minus outflow), we analyze fund investment inflows and outflows separately that should properly reflect investors' fund selection and redemption decision. We find similar effects of past return, fund age on net-flows to existing studies based on US market data. The analysis of determinants of inflows shows that inflows are related to past return, fund age and sales fee as net-flows. In contrast, outflows are found to behave quite differently from inflows. Apparently, asymmetry exists between fund investment inflows and outflows at the Korean fund selection market. Specifically, high past returns increase fund investment inflows while increase, rather than decrease, fund outflows. Moreover, 'convexity' is detected both in inflows and outflows: higher past returns accelerate outflows as well as inflows. Effects of sales fee also differ between inflows and outflows. In the 'affiliated' fund sample, sales fee is negatively related to inflows while positively related to outflows. In the 'unaffiliated' fund sample, sales fee is positively related to inflows, but no significant relationship exists with outflows. Empirical findings of this paper imply that the rational investor's fund selection view cannot provide a consistent explanation of the Korean fund selection market. In particular, the positive and convex relationship between past returns and fund outflows is inconsistent with the rational investor view. The fact that investor's fund investment appears to display 'disposition effect', which has been reported by studies of individual investors' stock investment behaviour suggests that the behavioral finance view should be a part of explanation for the Korean fund selection market. In addition, the strikingly different patterns between the 'affiliated' funds and the 'unaffiliated' funds, imply that brokers' incentive structure is another prevailing factor for fund investment flows.

• Journal of Digital Convergence
• /
• v.16 no.12
• /
• pp.175-183
• /
• 2018

This study analyzes determinants of bond returns in terms of systematic risk versus idiosyncratic risk by examining relationship among those factors. First we examined the cross-sectional determinants of corporate bond returns with Korean bond market data from 2001 to 2014. This paper uses term factor and default factor for systematic risk, and duration factor and credit rating factor for idiosyncratic risk. The empirical result shows that systematic risk can explain cross-sectional differences of bond returns rather than idiosyncratic risk which is the same result in advanced markets(US or Europe). This result is different from the previous Korean studies which showed that idiosyncratic risk is more important than systematic risk in Korean bond market. The reason for the different result may be the longer sample period which includes the most recent period. It is insisted that Korean bond market is getting more synchronized with the advanced bond market. In conclusion, this empirical result implies that Korean bond portfolio managers should focus on systematic risk, which is contrary to current system in Korean asset management industry.

• Journal of the Korean Home Economics Association
• /
• v.47 no.6
• /
• pp.91-108
• /
• 2009

The aim of this study was to assist the development of parenting-aid policies by analyzing information from life perspectives, family system theory, and integrated family policy perspectives. For this purpose, we conducted a literature using a variety of sources including internet sites, laws, published material related to current parenting-aid policies. Based on analyses we formulated four agendas: empowering parent competency, supporting diverse family parenting, guaranteeing parent's rights, and supporting parenting of dual-income families parenting. The results were as follow: Firstly, for empowering parent competency, we proposed the development of family relationship empowerment programs including family life cycle and children-raising support services. Secondly, for diverse family parenting, we proposed access to integrated parenting-aid programs dependent on family types. Thirdly, for guaranteeing parent’s rights, we proposed the supporting of child raising costs and tax returns to families with children, and provide child allowances. Finally, for dual-income family parenting, we proposed that schools and communities must recognize that dual-income families are a universal family type, establish family friendly business culture, and to develop a more democratic domestic family-relationship. This policy proposed a new paradigm where parents must be recognized as partners and stakeholder in development of family related policies. Ultimately, such policies will contribute to increased birth rate and development of a more respectful society.

• STI Policy Review
• /
• v.4 no.2
• /
• pp.41-54
• /
• 2013

R&D is inherently an uncertain endeavor, yet now more than ever those performing R&D with public funding are called upon to clarify the utility of their research. Calls for public accountability are mounting with the increase in constraints on government budgets due to the recent worldwide economic recession, in response to which both policymakers and researchers pay much more attention to rigorously assessing publicly funded R&D. A key issue complicating R&D evaluation in these circumstances is how to adequately account for the nature and degree of risk involved in a given R&D program or project. This study deliberates on certain issues involving the measurement of ex-ante risk in public R&D evaluation: (i) information asymmetry between R&D sponsors and performers, (ii) ambiguity in the measurement of returns in both prospective and retrospective evaluation, and (iii) the dilemma between measurement error and omitted variable bias for empirical estimation of R&D performance. The study then presents an analysis of hypothetical evaluation results that apply risk-relevant weights to the annual evaluation outcomes of South Korea's national R&D programs funded during 2006~2012. In this counterfactual re-evaluation of public R&D program performance, high-risk R&D programs turn out to receive higher evaluation than non-high-risk programs. The current study suggests that R&D evaluation ignoring ex-ante risk is not only conceptually invalid since R&D activities are intrinsically uncertain endeavors, but unfair as R&D performers are asked to be accountable for the results that were in fact out of their reach.

• Journal of Korea Society of Industrial Information Systems
• /
• v.23 no.2
• /
• pp.29-39
• /
• 2018

In this paper, we discuss a discrete-time queueing system with dyadic server control policy that combines workload control and multiple vacations. Customers arrive at the system with Bernoulli arrival process. If there is no customer to serve in the system, an idle single server spends a vacation of discrete random variable V and returns. The server repeats the vacation until the total service time of waiting customers exceeds the predetermined workload threshold D. In this paper, we derived the steady-state workload distribution of a discrete-time queueing system which is operating under a more realistic and flexible server control policy. Mean workload is also derived as a performance measure. The results are basis for the analysis of system performance measures such as queue lengths, waiting time, and sojourn time.

• Korea Trade Review
• /
• v.47 no.6
• /
• pp.335-353
• /
• 2022

There are two aspects of digital trade: the digitalisation of goods/services being traded and the digitalisation of the transactional act. Digital data (i.e. machine-readable industrial data and transactional data) is the major driving force for both aspects of digital trade. Digital data is a non-rivalrous input, whether for production or marketing activities, and is thus able to be used by many firms or government agencies without limiting the use of others. Digital platforms provide online infrastructure for the interactions between groups, for instance, consumers and producers. The externality effect refers to the situation in which prosperity in one group on a given platform will improve the returns of other groups on the same platform. In the era of the data-driven economy, strategic trade policy can involve data-related policies. The major objective of these policies is to improve the competitiveness of domestic firms. For instance, firms may be subsidised if they use cloud services provided by specific platforms. This strand of strategic trade policies might be useful for increasing the competitiveness of small-and medium-sized enterprises (SMEs) via the digitalisation of production/marketing processes. Alternatively, strategic trade policy may also exploit the externality effect via platform economy-related policies. Further, some countries may form data coalitions to facilitate cross-border data flow. This paper uses cases in Asian countries to illustrate which role these strategic trade policies can play in the digital economy.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.4 no.4
• /
• pp.45-70
• /
• 2009

This article investigates which types of the strategies announced by the listed firms contribute to enhancing the long-term performance of the companies. Since 2002, Korean Exchange adopted the "faire disclosure policy" which mandates that all publicly traded companies must disclose material information to all investors at the same time. Thanks to the policy, Korean investors can, now, easily access the board's decision on management strategies on the same day the decision is made. If the companies trustfully carry out their announced strategies, we can decide which types of strategies actually enhance or deteriorate the long-term performance, simply by comparing the announced strategies and the firm's performance. The sample companies are confined to 60 firms that became listed in the KOSDAQ market through back-door listing from 2003 to 2005. Using only the newly listed companies, we can avoid the interference on the long-term performance of the strategies pursued before the event date. This often holds true, for many companies radically modify their strategies after the listing. Furthermore, the back-door listing companies serve our purpose better than IPO companies do, because the former tend to have a variety of announcement within a given period of time beginning the listing date. Using these sample companies, this article analyzes the effect on one year buy-and-hold returns and abnormal buy-and-hold returns after the listing of the various types of strategies announced during the same period of time. The results show that those evidences of restructuring such as 'reduction of capital' and 'resignation of incumbent board members', actually contribute to the increase in adjusted long-term stock returns. Those strategies which can be view as evidence of new investment such as 'increase in tangible assets', 'acquisition of other companies', do also helps the stockholders better off. On the contrary, 'increase in bank loans', 'changes of CEO' and 'merger' deteriorate the equity value. The last findings let us to presume that the back-door listing companies appear to use the bank loans for value-reducing activities; the change in CEO is not a sign of restructuring, but rather a sign of failure of the restructuring; another merger carried out after back-door listing itself is also value-reducing activity. This article's findings on reduction of capital, merger and bank loans oppose the results of the former empirical studies which analyze only the short-term effect on stock price. Therefore, more long-term performance studies on public disclosures are in order.

• Korean Institute of Interior Design Journal
• /
• v.19 no.2
• /
• pp.225-233
• /
• 2010

At this point in time South Korea is rapidly metastasizing to a aging society. A major cause of aging can be summarized as increased life expectancy, decrease of nuclear family and birthrate, and South Korea's progress is faster than any other country. From the 1970s, western society has changed social welfare to deinstitutionalization and community care because of problems about economic reason and facilities protection, so the type of elderly social service has also changed from the facility welfare service which is accommodated old people in certain facility to community welfare service which provides various welfare services with living together. Public facilities for low income group which are supported by government are lower, 6.6%, than the United States or Japan, 50%. They are divided into private manage facilities and subscription elderly facilities. These subscription elderly residential facilities show poor administration because of focusing on development and market analysis for investment returns. Therefore, in order to vitalize the elderly welfare residential facilities in Korea, we need plans about systematic services facilities for welfare and phased medical treatments. Therefore, the purpose of this study is that (1) the types and functions of residents for community elderly residential facilities in elderly welfare policies of U.S., and supported policies are researched as a transcendental model, (2) data about operating system with the principles of the market is analyzed, and (3) basic data about welfare facility plan for community residential elderly people is provided.

• KDI Journal of Economic Policy
• /
• v.33 no.1
• /
• pp.45-72
• /
• 2011

This study uses Korea's equity fund-related data ranging from Jan. 2002 to Apr. 2010 to analyze the existence of cross-subsidization among funds managed by the same management company. The findings are as follows: i) a transfer of performance outcome is confirmed to move from low-fee funds to high-fee funds, meaning that management companies tend to maximize their own interest than investors' return. And such a tendency has been strengthened since 2008. ii) young funds overperform old funds, iii) funds with high returns in the previous quarter perform better than funds with low return in the same period. These results suggest that in order to protect investors, it is necessary to conduct close monitoring on transactions that might undermine the benefits of investors and comprehensive evaluation on the capability of management companies.