• Journal of Distribution Science
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• v.13 no.9
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• pp.37-45
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• 2015

Purpose - This paper's aim is to investigate whether or not gross profitability explains the cross-sectional variation of the stock returns in the Korean stock market. Gross profitability is an alternative profitability measure proposed by Novy-Marx in 2013 to predict cross-sectional variation of stock returns in the US. He shows that the gross profitability adds explanatory power to the Fama-French 3 factor model. Interestingly, gross profitability is negatively correlated with the book-to-market ratio. By confirming the gross profitability premium in the Korean stock market, we may provide some implications regarding the well-known value premium. In addition, our empirical results may provide opportunities for the fund distribution industry to promote brand new styles of funds. Research design, data, and methodology - For our empirical analysis, we collect monthly market prices of all the companies listed on the Korea Composite Stock Price Index (KOSPI) of the Korea Exchanges (KRX). Our sample period covers July1994 to December2014. The data from the company financial statementsare provided by the financial information company WISEfn. First, using Fama-Macbeth cross-sectional regression, we investigate the relation between gross profitability and stock return performance. For robustness in analyzing the performance of the gross profitability strategy, we consider value weighted portfolio returns as well as equally weighted portfolio returns. Next, using Fama-French 3 factor models, we examine whether or not the gross profitability strategy generates excess returns when firmsize and the book-to-market ratio are controlled. Finally, we analyze the effect of firm size and the book-to-market ratio on the gross profitability strategy. Results - First, through the Fama-MacBeth cross-sectional regression, we show that gross profitability has almost the same explanatory power as the book-to-market ratio in explaining the cross-sectional variation of the Korean stock market. Second, we find evidence that gross profitability is a statistically significant variable for explaining cross-sectional stock returns when the size and the value effect are controlled. Third, we show that gross profitability, which is positively correlated with stock returns and firm size, is negatively correlated with the book-to-market ratio. From the perspective of portfolio management, our results imply that since the gross profitability strategy is a distinctive growth strategy, value strategies can be improved by hedging with the gross profitability strategy. Conclusions - Our empirical results confirm the existence of a gross profitability premium in the Korean stock market. From the perspective of the fund distribution industry, the gross profitability portfolio is worthy of attention. Since the value strategy portfolio returns are negatively correlated with the gross profitability strategy portfolio returns, by mixing both portfolios, investors could be better off without additional risk. However, the profitable firms are dissimilar from the value firms (high book-to-market ratio firms); therefore, an alternative factor model including gross profitability may help us understand the economic implications of the well-known anomalies such as value premium, momentum, and low volatility. We reserve these topics for future research.

• Proceedings of the Korean Society of Precision Engineering Conference
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• 2012.05a
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• pp.917-918
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• 2012

• Journal of the Korean Institute of Intelligent Systems
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• v.24 no.5
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• pp.504-511
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• 2014

This paper presents a hybrid recognition method, which is based on the nonlinear histogram equalization and the multidimensional intensity variation of an images. The nonlinear histogram equalization based on a adaptively modified function is applied to improve the quality by adjusting the brightness of the image. The multidimensional intensity variation by considering the a extent of 4-step changes in brightness between the adjacent pixels is also applied to reflect accurately the attributes of image. The statistical correlation that is measured by the normalized cross-correlation(NCC) coefficient, is applied to comprehensively measure the similarity between the images. The NCC is considered by the intensity variation of each 2-direction(x-axis and y-axis) image. The proposed method has been applied to the problem for recognizing the 50-face images of 40*40 pixels. The experimental results show that the proposed method has a superior recognition performances to the method without performing the histogram equalization, or the linear histogram equalization, respectively.

• The Transactions of the Korean Institute of Electrical Engineers D
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• v.50 no.8
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• pp.361-366
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• 2001

This thesis proposes a fuzzy logic cross coupled controller for a multi axis servo system. The overall control system consists of three elements: the axial position controller, the speed controller, and a fuzzy logic cross coupled controller. In conventional multi axis servo system, the motion of each axis is controlled independently without regard to the motion of other axes, in which the contour error, defined as the shortest distance between the desired and actual contours is compensated only by the position error of each axis. This decoupled control approach may result in degraded contouring performance due to such factors as mismatch of axial dynamics and axial loop gains. In practice, such systems contain many uncertainties, Therefore, the multi axis servo system must receive and evaluate the motion of all axes for a better contouring accuracy. Cross coupled controller utilizes all axis position error information simultaneously to produce accurate contours. However the existing cross coupled controllers cannot overcome friction, backlash and parameter variation. Also, since it is difficult to obtain an accurate mathematical model of multi axis system, here we investigate a fuzzy logic cross coupled controller method. Some simulations and experimental results are presented to illustrate the performance of the proposed controller.

• Proceedings of the Korean Society for Technology of Plasticity Conference
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• 2004.10a
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• pp.319-324
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• 2004

Cross wedge rolling process is utilized to manufacture multi-stepped axis symmetrical parts. This process is generally performed under high temperature conditions in order to induce serious deformation. But cold cross wedge rolling process has been rarely studied due to the limits of deformation. Recently, the cold cross wedge rolling process has been utilized to enhance the material strength in specified parts of manufactured products. In this paper, experimental researches were carried out with various forming conditions of cold cross wedge rolling process in order to suggest the design guidance to make preform for cold cross wedge rolling. The tensile strength and the surface hardness of specified region were compared to that of initial material with the variation of the area reduction and the rotational speed of rolling die. With respect to the area reduction, the maximum tensile strength was linearly increased and the surface hardness was rapidly increased within lower percent of area reduction. The surface hardness was saturated over the rotational die speed of 0.8 RPM.

• International Journal of Aeronautical and Space Sciences
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• v.14 no.4
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• pp.310-323
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• 2013

In this paper, the aeroelastic static response of flexible wings with arbitrary cross-section geometry via a coupled CUF-XFLR5 approach is presented. Refined structural one-dimensional (1D) models, with a variable order of expansion for the displacement field, are developed on the basis of the Carrera Unified Formulation (CUF), taking into account cross-sectional deformability. A three-dimensional (3D) Panel Method is employed for the aerodynamic analysis, providing more accuracy with respect to the Vortex Lattice Method (VLM). A straight wing with an airfoil cross-section is modeled as a clamped beam, by means of the finite element method (FEM). Numerical results present the variation of wing aerodynamic parameters, and the equilibrium aeroelastic response is evaluated in terms of displacements and in-plane cross-section deformation. Aeroelastic coupled analyses are based on an iterative procedure, as well as a linear coupling approach for different free stream velocities. A convergent trend of displacements and aerodynamic coefficients is achieved as the structural model accuracy increases. Comparisons with 3D finite element solutions prove that an accurate description of the in-plane cross-section deformation is provided by the proposed 1D CUF model, through a significant reduction in computational cost.

• Journal of the Korean Wood Science and Technology
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• v.39 no.4
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• pp.326-332
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• 2011

Radial variation of sound absorption capability and air permeability of yellow poplar (Liriodendron tulipifera) wood in cross sectional surface and effect of steam explosion treatment were estimated by the two microphone transfer function method and the capillary flow porometry, respectively. The sound absorption coefficients of steam explosion treated wood was higher than those of control wood and these values increased with frequency. Abundant and big vessel may behave as sound absorbing pore observed on the cross sectional surface of yellow poplar wood. The sound absorption coefficients and air permeability of sapwood were higher than those of heartwood for Liriodendron tulipifera.

• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.199-215
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• 2020

Purpose - This article tries to test if the conditional consumption capital asset pricing model (CCAPM) with bank credit for household as a conditional variable can explain the cross-sectional variation of stock returns in Korea. The performance of conditional CCAPM is compared to that of multifactor asset pricing models based on Arbitrage Pricing Theory. Design/methodology/approach - This paper extends the simple CCAPM to the conditional version of CCAPM by using bank credit for household as conditioning information. By employing KOSPI and KOSDAQ stocks as test assets from the second quarter of 2003 to the first quarter of 2018, this paper estimates risk premiums of conditional CCAPM and a variety of multifactor linear models such as Fama-French three and five-factor models. The significance of risk factors and the adjusted coefficient of determination are the basis for the comparison in models' performances. Findings - First, the paper finds that conditional CCAPM with bank credit performs as well as the multifactor linear models from Arbitrage Pricing theory on 25 test assets sorted by size and book-to-market. When using long-term consumption growth, the conditional CCAPM explains the cross-sectional variation of stock returns far better than multifactor models. Not only that, although the performances of multifactor models decrease on 75 test assets, conditional CCAPM's performance is well maintained. Research implications or Originality - This paper proposes bank credit for household as a conditional variable for CCAPM. This enables CCAPM, one of the most famous economic asset pricing models, to conform with the empirical data. In light of this, we can now explain the cross-sectional variation of stock returns from an economic perspective: Asset's riskiness is determined by its correlation with consumption growth conditional on bank credit for household.

• Transactions of the Korean Society for Noise and Vibration Engineering
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• v.13 no.5
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• pp.364-374
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• 2003

The performance of an acoustic transducer is determined by the effects of many design variables. and mostly the influences of these design variables are not linearly independent of each other To achieve the optimal performance of an acoustic transducer, we must consider the cross-coupled effects of the design variables. In this study with the FEM. we analyzed the variation of the resonance frequency and sound pressure of a flextensional transducer in relation to Its design variables. Through statistical multiple regression analysis of the results, we derived functional forms of the resonance frequency and sound pressure in terms of the design variables, and with which we determined the optimal structure of the transducer by means of a constrained optimization technique, SQP-PD. The proposed method can reflect all the cross-coupled effects of multiple design variables, and can be utilized to the design of general acoustic transducers.

• Journal of computational fluids engineering
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• v.4 no.1
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• pp.27-33
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• 1999

Spiral tube heat exchangers can find numerous applications in many engineering fields. Flow in spiral tubes is interest to engineers due to occurrence of secondary flow which enhances the cross-sectional mixing and the heat transfer rate. In the present study, an incompressible viscous 3-D flow in spiral tubes with rectangular cross-section of various torsion rate and Reynolds number is studied by using a finite volume method. It is shown that the axial velocity profile is affected by the secondary flow motion. Because there is some difference from correlation proposed by Hur et al., a lot of analysis and arrangement of experimental results are needed. This study showed the results of variation of hydrodynamic entry length for torsion and Re numbers.