• 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.

• Journal of Korea Water Resources Association
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• v.52 no.10
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• pp.753-761
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• 2019

Localized heavy storm is one of the major causes of flood damage in urban regions. According to the recent disaster statistics in South Korea, the frequency of urban flood is increasing more frequently, and the scale is also increasing. However, localized heavy storm is difficult to predict, making it difficult for local government officials to deal with floods. This study aims to construct a Flood risk matrix (FRM) using ensemble weather prediction data and to assess its applicability as a means of reducing damage by securing time for such urban flood response. The FRM is a two-dimensional matrix of potential impacts (X-axis) representing flood risk and likelihood (Y-axis) representing the occurrence probability of dangerous weather events. To this end, a regional FRM was constructed using historical flood damage records and probability precipitation data for basic municipality in Busan and Daegu. Applicability of the regional FRMs was assessed by applying the LENS data of the Korea Meteorological Administration on past heavy rain events. As a result, it was analyzed that the flood risk could be predicted up to 3 days ago, and it would be helpful to reduce the damage by securing the flood response time in practice.

• Journal of Korea Water Resources Association
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• v.55 no.9
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• pp.657-668
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• 2022

With the occurrence of localized heavy rain while river flow has increased, both flow and rainfall cause riverside flood damages. As the degree of damage varies according to the level of social and economic impact, it is required to secure sufficient forecast lead time for flood response in areas with high population and asset density. In this study, the author established a flood risk matrix using ensemble rainfall runoff modeling and evaluated its applicability in order to increase the damage reduction effect by securing the time required for flood response. The flood risk matrix constructs the flood damage impact level (X-axis) using flood damage data and predicts the likelihood of flood occurrence (Y-axis) according to the result of ensemble rainfall runoff modeling using LENS rainfall data and as well as probabilistic forecasting. Therefore, the author introduced a method for determining the impact level of flood damage using historical flood damage data and quantitative flood damage assessment methods. It was compared with the existing flood warning data and the damage situation at the flood warning points in the Taehwa River Basin and the Hyeongsan River Basin in the Nakdong River Region. As a result, the analysis showed that it was possible to predict the time and degree of flood risk from up to three days in advance. Hence, it will be helpful for damage reduction activities by securing the lead time for flood response.

• Journal of Korea Water Resources Association
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• v.48 no.7
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• pp.567-579
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• 2015

This study performed the non-stationary flood frequency analysis considering time-varying parameters of a probability density function. Also, return period and risk under non-stationary condition were estimated. A stationary model and three non-stationary models using Generalized Extreme Value(GEV) were developed. The only location parameter was assumed as time-varying parameter in the first model. In second model, the only scale parameter was assumed as time-varying parameter. Finally, the both parameters were assumed as time varying parameter in the last model. Relative likelihood ratio test and Akaike information criterion were used to select appropriate model. The suggested procedure in this study was applied to eight multipurpose dams in South Korea. Using relative likelihood ratio test and Akaike information criterion it is shown that the inflow into the Hapcheon dam and the Seomjingang dam were suitable for non-stationary GEV model but the other six dams were suitable for stationary GEV model. Also, it is shown that the estimated return period under non-stationary condition was shorter than those estimated under stationary condition.

• Korean Journal of Social Welfare Studies
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• v.40 no.2
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• pp.5-32
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• 2009

The purpose of this study is analyze the pattern and factors affecting the shelter exit and the patterns of homeless women in Korea. For this study, survey data were collected from 139 sheltered homeless women in Seoul in May of 2007. And respondent's exit time and exit pattern from the shelter were investigated through administration data of shelter in December of 2008. Life table analysis, Cox-proportional hazard analysis and competing risk survival analysis were employed in order to analyze data. The major findings were as follows. First, life table analysis shows that the exit ratio of homeless women started to fall sharply in 24 months from entry into shelter. Second, subjective health status, ratio of the homeless in social network and shelter entry with children affected the likelihood of shelter exit of homeless women. Third, age, subjective health status, depression and shelter entry with children affected the likelihood of positive exit. And ratio of the homeless in social network affected the likelihood of negative exit. Based on these findings, this study implied the introduction of case management service concerning individual shelter exit plan and policy for residential stability of homeless women.

• Journal of Intelligence and Information Systems
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• v.20 no.1
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• pp.35-48
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• 2014

According to the 2013 construction market outlook report, the liquidation of construction companies is expected to continue due to the ongoing residential construction recession. Bankruptcies of construction companies have a greater social impact compared to other industries. However, due to the different nature of the capital structure and debt-to-equity ratio, it is more difficult to forecast construction companies' bankruptcies than that of companies in other industries. The construction industry operates on greater leverage, with high debt-to-equity ratios, and project cash flow focused on the second half. The economic cycle greatly influences construction companies. Therefore, downturns tend to rapidly increase the bankruptcy rates of construction companies. High leverage, coupled with increased bankruptcy rates, could lead to greater burdens on banks providing loans to construction companies. Nevertheless, the bankruptcy prediction model concentrated mainly on financial institutions, with rare construction-specific studies. The bankruptcy prediction model based on corporate finance data has been studied for some time in various ways. However, the model is intended for all companies in general, and it may not be appropriate for forecasting bankruptcies of construction companies, who typically have high liquidity risks. The construction industry is capital-intensive, operates on long timelines with large-scale investment projects, and has comparatively longer payback periods than in other industries. With its unique capital structure, it can be difficult to apply a model used to judge the financial risk of companies in general to those in the construction industry. Diverse studies of bankruptcy forecasting models based on a company's financial statements have been conducted for many years. The subjects of the model, however, were general firms, and the models may not be proper for accurately forecasting companies with disproportionately large liquidity risks, such as construction companies. The construction industry is capital-intensive, requiring significant investments in long-term projects, therefore to realize returns from the investment. The unique capital structure means that the same criteria used for other industries cannot be applied to effectively evaluate financial risk for construction firms. Altman Z-score was first published in 1968, and is commonly used as a bankruptcy forecasting model. It forecasts the likelihood of a company going bankrupt by using a simple formula, classifying the results into three categories, and evaluating the corporate status as dangerous, moderate, or safe. When a company falls into the "dangerous" category, it has a high likelihood of bankruptcy within two years, while those in the "safe" category have a low likelihood of bankruptcy. For companies in the "moderate" category, it is difficult to forecast the risk. Many of the construction firm cases in this study fell in the "moderate" category, which made it difficult to forecast their risk. Along with the development of machine learning using computers, recent studies of corporate bankruptcy forecasting have used this technology. Pattern recognition, a representative application area in machine learning, is applied to forecasting corporate bankruptcy, with patterns analyzed based on a company's financial information, and then judged as to whether the pattern belongs to the bankruptcy risk group or the safe group. The representative machine learning models previously used in bankruptcy forecasting are Artificial Neural Networks, Adaptive Boosting (AdaBoost) and, the Support Vector Machine (SVM). There are also many hybrid studies combining these models. Existing studies using the traditional Z-Score technique or bankruptcy prediction using machine learning focus on companies in non-specific industries. Therefore, the industry-specific characteristics of companies are not considered. In this paper, we confirm that adaptive boosting (AdaBoost) is the most appropriate forecasting model for construction companies by based on company size. We classified construction companies into three groups - large, medium, and small based on the company's capital. We analyzed the predictive ability of AdaBoost for each group of companies. The experimental results showed that AdaBoost has more predictive ability than the other models, especially for the group of large companies with capital of more than 50 billion won.

• Asian Pacific Journal of Cancer Prevention
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• v.16 no.17
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• pp.7967-7973
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• 2015

Background: The abrupt rise of colorectal cancer in developing countries is raising concern in healthcare settings. Studies on assessing relationships with modifiable and non-modifiable risk factors in the Pakistani population have been limited. The present investigation was designed to examine associations of dietary practices, addictive behavior and bowel habits in developing colorectal cancer (CRC) among patients in a low-resource setup. Materials and Methods: An age-gender matched case control study was conducted from October 2011 to July 2015 in Karachi, Pakistan. Cases were from the surgical oncology department of a public sector tertiary care hospital, while their two pair-matched controls were recruited from the general population. A structured questionnaire was used which included questions related to demographic characteristics, family history, dietary patterns, addictive behavior and bowel habits. Results: A family history of cancer was associated with a 2.2 fold higher chance of developing CRC. Weight loss reduced the likelihood 7.6 times. Refraining from a high fat diet and consuming more vegetables showed protective effects for CRC. The risk of CRC was more than twice among smokers and those who consumed Asian specific addictive products as compared to those who avoid using these addictions (ORsmoking: 2.12, 95% CI: 1.08 - 4.17, ORpan: 2.92, 95% CI: 1.6 - 5.33, ORgutka: 2.13, 95% CI: 1.14 - 3.97). Use of NSAID attenuated risk of CRC up to 86% (OR: 0.14, 95% CI: 0.07 - 0.31). Conclusions: Most of the findings showed concordance with the literature elucidating protective effects of consuming vegetables and low fat diet while documenting adverse associations with family history, weight loss, constipation and hematochezia. Moreover, this study highlighted Asian specific indigenous addictive products as important factors. Further studies are needed to validate the findings produced by this research.

• The Korean Journal of Financial Management
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• v.26 no.3
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• pp.199-226
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• 2009

We examine the intertemporal relation between risk and return in the Korean stock market and foreign exchange market based on the two factor ICAPM framework. The standard GARCH model and the GJR(1993) model are employed to estimate conditional variances of the stock returns and foreign exchange rates. The covariance between the rates of stock returns and changes in the exchange rates are estimated by the constant conditional correlation model of Bollerslev(1990) and the dynamic conditional correlation model of Engle(2002). The multivariate GARCH in mean model and quasi-maximum likelihood estimation method, consequently, are applied to investigate riskreturn relation jointly. We find that the estimated coefficient of relative risk aversion is negative and statistically significant in the post-financial crisis sample period in the Korean stock market. We also show that the expected stock returns are negatively related to the dynamic covariance with foreign exchange rates. Both estimated parameters of conditional variance and covariance in the foreign exchange market, however, are not statistically significant. The GJR model is better than the standard GARCH model to estimate the conditional variances. In addition, the dynamic conditional correlation model has higher explanatory power than the constant correlation model. The empirical results of this study suggest following two points to investors and risk managers in hedging and diversifying strategies for their portfolios in the Korean stock market: first, the variability of foreign exchange rates should be considered, and second, time-varying correlation between stock returns and changes in foreign exchange rates supposed to be considered.

• Journal of Industrial Convergence
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• v.18 no.3
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• pp.73-82
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• 2020

The purpose of this study was to explore sexual behaviors among adolescents in multicultural families in Korea. The data were obtained from the 15th Korea Youth Risk Behavior Survey 2019. Complex-sample descriptive statistics and the chi-square test were used for data analysis in SPSS 25. Among adolescents in multicultural families, 8.2% reported having sexual experience. Condoms were the most commonly used contraceptive method, and most adolescents received sex education at school. Their likelihood of sexual experience differed according to grade, academic achievement, economic status, residential area, perceived stress, and drinking and smoking experience (p<.001). The results of this study suggest that sex education should be conducted with appropriate consideration of the important factors associated with adolescents in multicultural families.

• Safety and Health at Work
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• v.8 no.3
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• pp.267-275
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• 2017

Background: The mining industry is known worldwide for its highly risky and hazardous working environment. Technological advancement in ore extraction techniques for proliferation of production levels has caused further concern for safety in this industry. Research so far in the area of safety has revealed that the majority of incidents in hazardous industry take place because of human error, the control of which would enhance safety levels in working sites to a considerable extent. Methods: The present work focuses upon the analysis of human factors such as unsafe acts, preconditions for unsafe acts, unsafe leadership, and organizational influences. A modified human factor analysis and classification system (HFACS) was adopted and an accident predictive fuzzy reasoning approach (FRA)-based system was developed to predict the likelihood of accidents for manganese mines in India, using analysis of factors such as age, experience of worker, shift of work, etc. Results: The outcome of the analysis indicated that skill-based errors are most critical and require immediate attention for mitigation. The FRA-based accident prediction system developed gives an outcome as an indicative risk score associated with the identified accident-prone situation, based upon which a suitable plan for mitigation can be developed. Conclusion: Unsafe acts of the worker are the most critical human factors identified to be controlled on priority basis. A significant association of factors (namely age, experience of the worker, and shift of work) with unsafe acts performed by the operator is identified based upon which the FRA-based accident prediction model is proposed.