• Title/Summary/Keyword: cognitive ability

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An experimental study on the impact of an agreement on the means to achieve nursing goals in the early postpartum period of primiparous mothers and enhance their self-confidence and satisfaction in maternal role performance (산욕초기 초산모의 간호목표달성방번 합의가 어머니 역할수행에 대한 자신감 및 만족도에 미치는 영향에 관한 실험적 연구)

  • 이영은
    • Journal of Korean Academy of Nursing
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    • v.22 no.1
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    • pp.81-115
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    • 1992
  • The problem addressed by this study was to determine the effect of nurse - patient agreement on the means to achieve nursing goals in the early postpartum period of primiparous mothers. It was hypothesized that the experimental treatment would result in hegher self-confidence and satisfaction in maternal role performance. This purpose was to contribute to the planning of nursing care to enhance self- confidence and satisfaction in maternal role performance and to the development of relevant nursing theory. Especially, the early postpartum period is crucial toward in recovery from childbirth and attainment of the maternal role. Maternal role attaintment is a complex social and cognitive process of stimulus -response accomplished by learning. Most women attain the maternal role sucessfully. But, some primiparous mothers experience difficultites in attainment of the maternal role due to lack of experience and knowledge. Self-confidence and satisfaction in maternal role performance are important factors in attainment and adjustment to the maternal role (Mercer, 1981a, 1981b ; Lederman, Weigarten, and Lederman, 1981 :Bobak and Jensen, 1985). Nursing is defined as behaviors of nurses add patients that attain nursing goals through action, reaction, interaction, and transaction. For attainment of nursing goals, active participating transactions must occur by agreement on the means to achieve those goals through nurse -patient mutual goal setting and establishment of their active relationships(King, 1981, Ha, 1977). Based on King's theory of goal attainment (1981), this stuy was planned as a non-equivalent control group, non -synchronized quasi -experimental design using agreement on the means to achieve nursing goals in early postpartum as the experimental treatment. The data were collected from July 20 to Sep. 1, 1991 by questionnaires with 60 primiparous mothers planing to breast feed after normal deliveries at W hospital in Pusan, Korea. The subjects were divided into a control group(conventional group) -those admitted from July 20 to Aug. 12, and an experimental group(agreement group) - those admitted from Aug. 13 to Sep. 1. The instument for agreement on the means to nursing goals in the early postpartum period included five steps - identification of disturbances of problems through action, reaction, and interaction with primiparous mothers : mutual early postpartal nursing goal setting : exploration of the means to achieve goals ; agreement on the means (self- care, ealry maternal -infant contact, performance of mothering behavior, and communicating about the infant's behavior and health condition) : implementation of the means. This instrument was developed on the basis of King's elements that lead to transactions in nurse-patient interactions. Lederman et al's (1981) scale for Confidence in ability to cope with tasks of motherhood and Lederman et al's(1981) scale for Mother's satisfaction with motherhood and infant care were used to measure self-confidence and satisfaction in maternal role performance ·with the subjects immediately after admission and on the day of discharge. Self-care performance in the experimental group was measured by self -evaluation tool developed by the investigator from the literature concerned. The tools to measure Pelf-confidence and satisfaction in maternal role performance, and the tool to measure self-evaluation of self-care performance were tested for internal reliability. Cronbach's Alphas were 0.94, 0.94, and 0.63. The data were analysed by using in S.P.S.S. computerized program and included percentage, x²-test, t-test, ANOVA, and Pearson Correlation Coefficient. The conclusions obtained from this study are summerized as follows : 1. The degree of self-confidence in maternal role performance of the total subjects group measured before the experimental treatment was above average with a mean score of 2.77(range 2.14-3.64). Out of 14 items, those with relatively high mean scores were ‘I would like to be a better mother than I am’(3.95), and ‘I have my doubts about whether I am a good mother’(2.87). Those with low mean scores were ‘I know that my baby wants most of the times’(2.28), ‘When the baby cries, I can tell what she /he wants’(2.37), and ‘I have confidence in my ability to care for the baby’(2;50). That is, the self - confidence of Primiparous mothers was considerably high in mothering, but rather low in activities concerning the infant care and understanding of the infant behavior. The degree of satisfaction in maternal role performance of the total subjects group measured before the experimental treatment was high with a mean score of 3.18(range 1.92-3.92). Out of 13 items, those with relatively high mean scores were ‘I am glad 1 had this baby now’(3.75), ‘I play with the baby between feedings when s/he is awake and quiet’(3.67), and ‘I enjoy being a mother’(3.27). Those with low mean scores were ‘I am upset about having too many responsibilities as a mother’(2.78), ‘It bothers me to get up for the baby at night’(2.82), and ‘I get annoyed if the baby frequently interrupts my activities’.(2.82), That is, the satisfaction of primiparous mothers was considerably high in mothering and infant care, but rather low in restraints in time or on the mother's self accomplishment and development. 2. Agreement on the means to achieve nursing goals in the early postpartum period included process of mutual goal setting, exploration of the means to achieve goals, and ahreement in concert means to achieve goals based on the mothers' condition, concerns, self-perception of the nurse - patient interactions. In the process of agreement, there was agreement that the means to achieve goals should be through trust and establishment of active relationships with the nurse through identification of problems according to planned nursing goals and active interaction, such as explanations, teaching, changing of opinions, acceptance or rejection of explanations, and proposing of questions. Therefore agreement on the means to achieve nursing goals in the early postpartum period appears to be an effective nursing intervention for primiparous mothers. 3. The degree of self- confidence in maternal role performance of the exprimental group was higher than that of the control group(t=3.95, p<0.01). Out of 14 items, those with higher score in the experimental group were ‘I would like to be a better mother than I am’(t=1.93, p<0.05), ‘I know that my baby wants most of the times’(t=2.75, p<0.01), ‘When the baby cries, 1 can tell what she/he wants’(t=2.10, p<0.05), ‘I have confidence in my ability to care for the baby’(t=3.72, p<0.01), ‘I trust my own judement in deciding how to care for the baby’(t=1.96, p<0.05), ‘I feel that I know my baby and what to do for him /her’(t=2.44, p<0.01), ‘I am concerned about being able to meet the baby's needs’(t=2.87, p<0.01), ‘I know what my baby likes and dislikes’(t=3.26, p<0.01), ‘I don't know to care for the baby as well as I should’(t=2.07, p<0.05), and ‘I am unsure about whether I give enough attention to the baby’(t=3.04, p<0.01), That is, the degree of self-confidence in mothering, activities concerning infant care, and understanding of infant behavior of the experimental group was higher than that of the control group. Therefore, the first hypothesis, that the degree of self-confidence in maternal role performance of the experimental group would be higher than that of the control group, was supported(t=3.95, p<0.01). 4. The degree of satisfaction in the maternal role performance of the exprimental group was higer than that or the control group(t=2.31, p<0.05). Out of 13 items, those with higher score in the experimental group were ‘I am glad I had this baby now’(t=2.29, p<0.05), ‘I enjoy taking care of the baby’(t=2.4g, p<0.01), ‘It is boring for me to care for the baby and do the same thing over and over’(t=2.87, P<0.01), ‘I am unhappy with the amount of time I have for activities other than childcare’(t=2.51, p<0.01), and ‘When bathing and diapering the baby, I would like to be doing something else’(t=2.43, p<0.01). That is, the degree of satisfaction in mothering, infant care, and restraints in time of on the mother's self accomplishment and development in the experimental group was higher than that of the control group. Therefore, the second hypothesis, that the degree of satisfaction in maternal role performance of the experimental group would be higher than that of the control group, was supported(t=2.31, p<0.05). 5. The third hypothesis, that the higher the degree of satisfaction in materenal role performance, the higher the degree of self-confidence in materenal role performance in the experimental group, was supported (r=0.57, p<0.01)

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Analysis of newborn hearing screening using automated auditory brainstem response (자동화 청성뇌간반응을 이용한 신생아 청력선별검사 결과 분석)

  • Park, Sung Won;Yun, Byung Ho;Kim, Kyung Ah;Ko, Sun Young;Lee, Yeon Kyung;Shin, Son Moon;Hong, Sung Hwa
    • Clinical and Experimental Pediatrics
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    • v.49 no.10
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    • pp.1056-1060
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    • 2006
  • Purpose : As hearing ability affects language and cognitive development, early detection and intervention of congenital hearing defects is very important. We analyzed the result of newborn hearing screening using automated auditory brainstem response and estimated the incidence of congenital hearing defects in newborn infants in Korea. Methods : Hearing screening tests were done on 7,218 newborn infants who were delivered at Cheil General Hospital from July 1, 2004 to June 30, 2005. The first screening test was done on the second day of life with automated auditory brainstem response(AABR) using $ALGO{\bigcirc}^{(3)}$ Newborn hearing screener($Natus^{(R)}$ Medical Incorporated, San Carlos, USA) with 35 dB sound level. The newborn infants who did not pass the initial screening test took the second screening AABR test before discharge from the nursery. Infants who did not pass these screenings at the nursery were followed up at the Department of Otorhinolaryngology, Samsung Seoul Hospital. Results : Total 7,218 infants(83.3 percent of total 8,664 live births of the Cheil General Hospital) were screened in the nursery, and 55 of them failed to pass the newborn screening. Among 55 infants who were referred, six were lost during follow-up, and 14 were confirmed as hearing impaired. Six of them(42.8 percent) do not have any risk factors for hearing impairment. We can estimate that the incidence of hearing defects is about 1.9-2.8 per 1,000 live births. Conclusion : Automated auditory brainstem response is an effective tool to screen the hearing of newborn infants. Congenital hearing loss is more frequent than metabolic diseases on which screening tests are available in the newborn period. About 40 percent of infants who have hearing defects do not have any risk factors for hearing impairment. Therefore, universal newborn hearing screening must be recommended to all neonates.

A COMPARATIVE STUDY ON AUDITORY ATTENTION AND PHONEME DIFFERENTIAL ABILITY AMONG CHILDREN WITH READING DISABILITY AND WITH ATTENTION DEFICIT/HYPERACTIVITY (읽기 장애와 주의력 결핍/과잉 운동 장애아동의 주의력 과제와 음소 변별 과제 수행 비교 - 청각 과제를 중심으로 -)

  • Lee, Kyung-Hee;Shin, Min-Sup;Kim, Boong-Nyun;Cho, Soo-Churl
    • Journal of the Korean Academy of Child and Adolescent Psychiatry
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    • v.14 no.2
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    • pp.197-208
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    • 2003
  • Objective:In this study, we hypothesized that deficit in processing rapid linguistic stimuli is at the heart of Reading Disability(RD) and deficit in response inhibition is at the heart of Attention Deficit/Hyperactivity(ADHD). We conducted experiments to identify the core cognitive characteristics of children either with RD or with ADHD or with both, using attentional tasks and phoneme differential tests. Method:In the study 1, 28 children with ADHD, 16 children with RD+ADHD were individually administered visual/auditory performance tests. Then, the differences of performance on attentional tasks between two groups were compared while IQs of two groups were controlled. In the study 2, 13 children with RD+ADHD/RD, 13 children with ADHD, and 13 normal children were administered computerized phoneme differential tests. Result:Visual attentional tasks did not distinguish an ADHD group from a RD+ADHD group. With auditory attentional tasks, however, the comorbid group showed significantly more difficulties, causing a large variance in reaction time. RD, RD+ADHD, and ADHD groups showed more errors in phoneme differential tests than a normal control group, and each group showed distinctive performance patterns. Discussion:An ADHD group had difficulty in response inhibition and sustained attention, and children who also had RD along with ADHD magnified the auditory attentional difficulties. Even though children with RD had more trouble with responding correctly to target stimuli, their responses were not significantly different from those of children with ADHD.

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The Content Analysis of the Clothing Life Unit in the Technology.Home Economics Textbooks of Middle School Based on the Elaboration Theory (정교화 교수이론에 근거한 중학교 기술.가정 교과서 의생활 영역 분석)

  • Heo, YoungSun;Choi, MinJi;Son, Juyoung;Kim, SaetByeol;Baek, MinKyung;Shim, Huensup
    • Journal of Korean Home Economics Education Association
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    • v.26 no.3
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    • pp.35-52
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    • 2014
  • This study analyzed the 12 different technology home economics textbooks I, II for middle school students and the content systems of the textbooks by 7 instructional strategies in Reigeluth's elaboration theory. The units analyzed were 'Clothing and self-expression' and 'Eco-friendly clothing life and recycling by reform'. The purpose of this study was to provide basic information for the development of textbooks and teaching materials by analyzing current textbooks. Researchers analyzed the textbooks individually using pre-developed analysis frame using Reigeluth's elaboration theory. The results of the study were as follows. The conceptual elaboration process was used in the unit of 'Clothing and self-expression' of all the textbooks used in this study, and procedural elaboration process was mostly used in the unit of 'Eco-friendly clothing life and recycling by reform'. The strategies of advance learning ability were presented mostly in the forms of 'Learning Objective', 'Thought Opening', 'Key terms' in either unit and sub unit. The strategies of summarizer were presented as 'Unit Summary', 'Cleanup' and 'Assessment'. The strategies of synthesizer were used in all the textbooks as the 'Exploration' to increase the students interest through the promotion of the learning content in a variety of activities and projects. The cognitive activator strategies were shown in all of the textbooks using mostly 'Figure,' and others such as 'Table,' 'Diagram', and 'Explanation of Terms'. The strategies of learner control were used to guide the supplement and deepen the learning by various forms. However the analogy strategies were hardly used in units of textbooks analyzed in this study. As a result, the technology home economics textbooks I, II for middle school students applied the Reigeluth's elaboration theory, except the analogy strategies. It is recommended to utilize th analogy strategies and various activities to enhance the students' understanding and participation.

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Relationships between Collective Intelligence Quality, Its Determinants, and Usefulness: A Comparative Study between Wiki Service and Q&A Service in Perspective of Korean Users (집단지성의 품질, 그 결정요인, 유용성의 관계: 수용자 관점에서 한국의 위키서비스와 Q&A 서비스의 비교)

  • Joo, Jaehun;Normatov, Ismatilla R.
    • Asia pacific journal of information systems
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    • v.22 no.4
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    • pp.75-99
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    • 2012
  • Innovation can come from inside or outside organizations. Recently, organizations have begun turning to external knowledge more often, through various forms of collective intelligence (CI) as collaborative platform to solve complex problems. Several factors facilitate this CI utilization phenomenon. First, with the rapid development of Internet and social media, numerous web applications have become available to millions of the Internet users over the past few decades. Web 2.0 and social media have become innovative web applications that provide an environment for human social interaction and collaboration. Second, the diffusion of simple and easy-to-use technologies that enable users to interact and design web applications without programming skills have led to vast, previously unknown amounts of user-generated content. Finally, the Internet has enabled communities to connect and collaborate, creating a virtual world of CI. In this study, web enabled CI is defined as a composed ability of individuals who are acting as a single cognitive unit to achieve common goals, think reasonably, solve problems, make decisions, carry out complex tasks, and develop creative ideas collectively through participation and collaboration on the web. Although CI plays a critical role in organizational innovation and collaboration, the dubious quality of CI is still problem that is difficult to solve. In general, the quality level of content collected from the crowd is lower than that from professionals. Thus, it is important to identify determinants of CI quality and to analyze the relationship between CI quality and its usefulness. However, there is a lack of empirical study on the quality factors of web-enabled CI. There exist a variety of web enabled CI sites such as Threadless, iStockphoto or InnoCentive, Wikipedia, and Youtube. One of the most successful forms of web-enabled CI is the Wikipedia online encyclopedia, accessible all over the world. Another one example is Naver KnowledgeiN, a typical and popular CI site offering question and answer (Q&A) services. It is necessary to study whether or not different types of CI have a different effect on CI quality and its usefulness. Thus, the purpose of this paper is to answer to following research questions: ${\bullet}$ What determinants are important to CI quality? ${\bullet}$ What is the relationship between CI quality factors and the usefulness of web-enabled CI? ${\bullet}$ Does CI type have a moderating effect on the relationship between CI quality, its determinants, and CI usefulness? Online survey using Google Docs with email and Kakao Talk was conducted for collecting data from Wikipedia and Naver KnowledgeiN users. A totoal of 490 valid responses were collected, where users of Wikipedia were 220 while users of Naver KnowledgeiN were 270. Expertise of contributors, community size, and diversity of contributors were identified as core determinants of perceived CI quality. Perceived CI quality has significantly influenced perceived CI usefulness from a user's perspective. For improving CI quality, it is believed that organizations should ensure proper crowd size, facilitate CI contributors' diversity and attract as many expert contributors as possible. Hypotheses that CI type plays a role of moderator were partially supported. First, the relationship between expertise of contributors and perceived CI quality was different according to CI type. The expertise of contributors played a more important role in CI quality in the case of Q&A services such as Knowledge iN compared to wiki services such as Wikipedia. This implies that Q&A service requires more expertise and experiences in particular areas rather than the case of Wiki service to improve service quality. Second, the relationship between community size and perceived CI quality was different according to CI type. The community size has a greater effect on CI quality in case of Wiki service than that of Q&A service. The number of contributors in Wikipeda is important because Wiki is an encyclopedia service which is edited and revised repeatedly from many contributors while the answer given in Naver Knowledge iN can not be corrected by others. Finally, CI quality has a greater effect on its usefulness in case of Wiki service rather than Q&A service. In this paper, we suggested implications for practitioners and theorists. Organizations offering services based on collective intelligence try to improve expertise of contributeros, to increase the number of contributors, and to facilitate participation of various contributors.

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Changes in High School Students' Creative Leader Competency through STEAM R&E (STEAM R&E를 통한 고등학생의 창의적 인재 역량 변화)

  • Mun, Kongju;Mun, Jiyeong;Hwang, Yohan;Kim, Sung-Won
    • Journal of The Korean Association For Science Education
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    • v.37 no.5
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    • pp.825-833
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    • 2017
  • The Korean Ministry of Education has emphasized human resource development with creative and convergent ability for future science and technology development. Korean STEAM Education aims to enhance students' interest and their understanding of science and technology as well as to develop students' creative problem-solving skills. Through STEAM R&E project, students experience self-directed research in order to solve the problem in the context of everyday life. In this study, we aim to find out whether the creative leader competency of high school students changed after they experienced the STEAM R&E project. The creative leader competency consisted of three domains: cognitive, affective, and societal domain. We measured the creative leader competency using the questionnaire scales. The questionnaire was administered to 612 high school students who participated in the 2016 STEAM R&E project. Pre- and post- test scores were collected, and we analyzed it. We compared the mean difference between pre- and post- test scores as well as the mean differences among science high school, gifted school, science core school, and general high school. From the result, we found that all student' creative leader competency improved after participating in the STEAM R&E project in all three domains. The result also showed that students' test scores of science high school and gifted school showed no significant mean differences, while student's scores of both science core school and general high school improved significantly. From the results, we concluded that STEAM R&E activities could be an effective tool in cultivating creative leader competency, especially for general high school students and science core school students. We also suggested that further researches are needed to find how we could enhance students' creative leader competency.

A Study of Masterplot of Disaster Narrative between Korea, the US and Japan (한·미·일 재난 서사의 마스터플롯 비교 연구)

  • Park, In-Seong
    • Journal of Popular Narrative
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    • v.26 no.2
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    • pp.39-85
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    • 2020
  • This paper examines the aspects of disaster narrative, which makes the most of the concept of 'masterplot' as a narrative simulation to solve problems. By analyzing and comparing the remnants of 'masterplots' operating in the disaster narratives of Korea, the United States, and Japan, the differences between each country and social community problem recognition and resolution will be discussed. Disaster narrative is the most suitable genre for applying the 'masterplot' toward community problem solving in today's global risk society, and the problem-solving method has cognitive differences for each community. First, in the case of American disaster narratives, civilian experts' response to natural disasters tracks the changes of heroes in today's 'Marvel Comic Universe' (MCU). Compared to the past, the close relationship between heroism and nationalism has been reduced, but the state remains functional even if it is bolstered by the heroes' voluntary cooperation and reflection ability. On the other hand, in Korea's disaster narratives, the disappearance of the country and paralysis of the function are foregrounded. In order to fill the void, a new family narrative occurs, consisting of a righteous army or people abandoned by the state. Korea's disaster narratives are sensitive to changes after the disaster, and the nation's recovery never returns to normal after the disaster. Finally, Japan's disaster narratives are defensive and neurotic. A fully state-led bureaucratic system depicts an obsessive nationalism that seeks to control all disasters, or even counteracts anti-heroic individuals who reject voluntary sacrifices and even abandon disaster conditions This paper was able to diagnose the impact and value of a 'masterplot' today by comparing a series of 'masterplots' and their variations and uses. In a time when the understanding and utilization of 'masterplots' are becoming more and more important in today's world where Over-the top(OTT) services are being provided worldwide, this paper attempt could be a fragmentary model for the distribution and sharing of global stories.

Investment Priorities and Weight Differences of Impact Investors (임팩트 투자자의 투자 우선순위와 비중 차이에 관한 연구)

  • Yoo, Sung Ho;Hwangbo, Yun
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.18 no.3
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    • pp.17-32
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    • 2023
  • In recent years, the need for social ventures that aim to grow while solving social problems through the efficiency and effectiveness of commercial organizations in the market has increased, while there is a limit to how much the government and the public can do to solve social problems. Against this background, the number of social venture startups is increasing in the domestic startup ecosystem, and interest in impact investors, which are investors in social ventures, is also increasing. Therefore, this research utilized judgment analysis technology to objectively analyze the validity and weight of judgment information based on the cognitive process and decision-making environment in the investment decision-making of impact investors. We proceeded with the research by constructing three classifications; first, investment priorities at the initial investment stage for financial benefit and return on investment as an investor, second, the political skills of the entrepreneurs (teams) for the social impact and ripple power, and social venture coexistence and solidarity, third, the social mission of a social venture that meets the purpose of an impact investment fund. As a result of this research, first of all, the investment decision-making priorities of impact investors are the expertise of the entrepreneur (team), the potential rate of return when the entrepreneur (team) succeeds, and the social mission of the entrepreneur (team). Second, impact investors do not have a uniform understanding of the investment decision-making factors, and the factors that determine investment decisions are different, and there are differences in the degree of the weighting. Third, among the various investment decision-making factors of impact investment, "entrepreneur's (team's) networking ability", "entrepreneur's (team's) social insight", "entrepreneur's (team's) interpersonal influence" was relatively lower than the other four factors. The practical contribution through this research is to help social ventures understand the investment determinant factors of impact investors in the process of financing, and impact investors can be expected to improve the quality of investment decision-making by referring to the judgment cases and analysis of impact investors. The academic contribution is that it empirically investigated the investment priorities and weighting differences of impact investors.

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The Effect of the Use of Concept Mapping on Science Achievement and the Scientific Attitude in Ocean Units of Earth Science (해양단원 개념도 활용 수업이 과학성취도 및 태도에 미치는 효과)

  • Han, Jung-Hwa;Kim, Kwang-Hui;Park, Soo-Kyong
    • Journal of the Korean earth science society
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    • v.23 no.6
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    • pp.461-473
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    • 2002
  • Concept mapping is a device for representing the conceptual structure of a subject discipline in a two dimensional form which is analogous to a road map. In the teaching and learning of earth science, each concept depends on its relationships to many others for meaning. Using concept mapping in teaching helps teachers and students to be more aware of the key concepts and relationships among them. The purpose of this study is to investigate the effect of the use of concept mapping on science achievement and the scientific attitude in ocean units of earth science. The results of this study are as follows; first, the science achievement of a group of concept mapping teaching is significantly higher than that of the group of traditional teaching. Also, when the achievement levels are compared among different cognitive ability groups, the effect is more significant in mid or lower level student groups than in high level groups. The use of concept mapping is more effective when the concepts have a distinct concept hierarchy. Second, the scores of the test of ‘attitude toward scientific inquiry’ and ‘application of scientific attitude’ of the group of concept mapping teaching are significantly higher than those of the group of traditional teaching, whereas the scores of the test of ‘interest in science learning’ of concept mapping teaching is not different from those of group of traditional teaching. Third, the survey on the use of concept mapping shows a positive response across the tested groups. The use of concept mapping is more beneficial in fostering the comprehension of the topic. A concept map of student's own construction facilitates the assessment of learning, thus promising the usefulness of concept mapping as a means of evaluation. In regard to retention aspect, concept mapping is considered to be more effective in confirming and remembering the topic, while less effective in the aspects of activity and interest. In conclusion, the use of concept maps makes learning an active meaningful process and improves student's academic achievement and scientific attitude. If the concept mapping is more effectively as an active teaching strategy, more meaningful learning will be attained.

A Study on Industries's Leading at the Stock Market in Korea - Gradual Diffusion of Information and Cross-Asset Return Predictability- (산업의 주식시장 선행성에 관한 실증분석 - 자산간 수익률 예측 가능성 -)

  • Kim Jong-Kwon
    • Proceedings of the Safety Management and Science Conference
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    • 2004.11a
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    • pp.355-380
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    • 2004
  • I test the hypothesis that the gradual diffusion of information across asset markets leads to cross-asset return predictability in Korea. Using thirty-six industry portfolios and the broad market index as our test assets, I establish several key results. First, a number of industries such as semiconductor, electronics, metal, and petroleum lead the stock market by up to one month. In contrast, the market, which is widely followed, only leads a few industries. Importantly, an industry's ability to lead the market is correlated with its propensity to forecast various indicators of economic activity such as industrial production growth. Consistent with our hypothesis, these findings indicate that the market reacts with a delay to information in industry returns about its fundamentals because information diffuses only gradually across asset markets. Traditional theories of asset pricing assume that investors have unlimited information-processing capacity. However, this assumption does not hold for many traders, even the most sophisticated ones. Many economists recognize that investors are better characterized as being only boundedly rational(see Shiller(2000), Sims(2201)). Even from casual observation, few traders can pay attention to all sources of information much less understand their impact on the prices of assets that they trade. Indeed, a large literature in psychology documents the extent to which even attention is a precious cognitive resource(see, eg., Kahneman(1973), Nisbett and Ross(1980), Fiske and Taylor(1991)). A number of papers have explored the implications of limited information- processing capacity for asset prices. I will review this literature in Section II. For instance, Merton(1987) develops a static model of multiple stocks in which investors only have information about a limited number of stocks and only trade those that they have information about. Related models of limited market participation include brennan(1975) and Allen and Gale(1994). As a result, stocks that are less recognized by investors have a smaller investor base(neglected stocks) and trade at a greater discount because of limited risk sharing. More recently, Hong and Stein(1999) develop a dynamic model of a single asset in which information gradually diffuses across the investment public and investors are unable to perform the rational expectations trick of extracting information from prices. Hong and Stein(1999). My hypothesis is that the gradual diffusion of information across asset markets leads to cross-asset return predictability. This hypothesis relies on two key assumptions. The first is that valuable information that originates in one asset reaches investors in other markets only with a lag, i.e. news travels slowly across markets. The second assumption is that because of limited information-processing capacity, many (though not necessarily all) investors may not pay attention or be able to extract the information from the asset prices of markets that they do not participate in. These two assumptions taken together leads to cross-asset return predictability. My hypothesis would appear to be a very plausible one for a few reasons. To begin with, as pointed out by Merton(1987) and the subsequent literature on segmented markets and limited market participation, few investors trade all assets. Put another way, limited participation is a pervasive feature of financial markets. Indeed, even among equity money managers, there is specialization along industries such as sector or market timing funds. Some reasons for this limited market participation include tax, regulatory or liquidity constraints. More plausibly, investors have to specialize because they have their hands full trying to understand the markets that they do participate in

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