• 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.

• The Journal of the Korea Contents Association
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• v.12 no.11
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• pp.469-481
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• 2012

The demand for small-sized housing has been increasing due to the recession of real-estate price and the increase of small-sized households. Especially, the demand for affordable housing has been increasing since the style of housing and the location fits the lifestyle of small-sized household. In addition, many investors have been buying it because it has advertised as an investment property holding high-return ratio. However, an empirical analysis about the selling price and the return ratio has not been done yet. Therefore, the purpose of the research is having the empirical analysis based on the selling price and return ration by examining the affordable housing in Seoul. The urban-life housing more than 50 generations of the Seoul was irradiated for the analysis. And the linear regression analysis and PLS(Partial Least Square Regression) analysis was used for the empirical analysis. The result of analysis, based on the linear regression analysis, showed that factors including neighboring housing price and subway catchment area have a significant effect to the determinant factors of housing price. The analysis for return ratio showed neighboring housing price, subway catchment area and amenities affects the ratio. Especially, the fault of using small sample was covered by using the partial least square regression in this research.

• Journal of the Korean Geotechnical Society
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• v.35 no.1
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• pp.5-15
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• 2019

In this study, the in situ deformation moduli, which were measured by borehole loading tests at basaltic rock masses located in the northeastern onshore and offshore and the northwestern onshore of Jeju Island, were examined in relation to RQD and RMR. The measured deformation moduli were also compared with the estimated deformation moduli from conventional empirical formulas using RQD and RMR. In addition, the measured deformation moduli were analyzed with respect to both the velocity ratio ($V_P/V_S$) and dynamic Poisson's ratio, which were obtained from the elastic wave velocities measured by velocity logging tests. As results, with only RQD, it was inappropriate to evaluate the quality of the Jeju island basaltic rock masses, which are characterized by vesicular structures, to select a measurement method of in situ deformation moduli, and to estimate the deformation moduli. On the other hand, it was desirable to evaluate the quality of the Jeju Island basaltic rock masses, and to estimate the deformation moduli by using RMR. The conventional empirical formulas using RMR overestimated the deformation moduli of the Jeju Island basaltic rock masses. There was qualitative consistency in the relation between velocity ratio and deformation moduli. To estimate appropriately the deformation moduli of the Jeju Island basaltic rock masses, empirical formulas were proposed as the function of RMR and velocity ratio, respectively.

• Transactions of the Korean Society of Mechanical Engineers
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• v.12 no.3
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• pp.520-527
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• 1988

Liquid ejectors are widely used as marine pumps, inducer stage for the boiler feed water pump, boiler recirculating pump, cooling water recirculating pump in boiling water type nuclear reactor and a deep well pump, because of their high working confidence and simplicity. Furthermore, it requires only a modest net positive suction head for cavitation-free operation and it can be installed in remote location from mechanical power source. It is not easy to presume the friction losses, because it is complicately affected by area ratio, flowrate ratio, nozzle spacing, throat length, shape of liquid ejector and so on. Therefore, the optimization of liquid ejector design is still dependent, to a large extent, on the experimental results and empirical procedures. On the design of the liquid ejector, the area ratio and the nondimensional throat length are the most important design factors among the mentioned above. In this experiment, the effects of the area ratio and the nondimensional throat length to ejector efficiency are carried out systematically by the combination of 4 kinds of motive nozzle and 2 kinds of throat length. In this paper, the present experimental results are compared with the calculated ones by the previous computer aided design program based on one dimensional flow equation. And also, an empirical equation for the working limit of liquid ejector is reported.

• Smart Structures and Systems
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• v.9 no.2
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• pp.165-188
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• 2012

In the first part of the paper, the optimal design parameters for tuned liquid column dampers (TLCD) in harmonic pitching motion were investigated. The configurations in design tables include uniform and non-uniform TLCDs with cross-sectional ratios of 0.3, 0.6, 1, 2 and 3 for the design in different situations. A closed-form solution of the structural response was used for performing numerical optimization. The results from optimization indicate that the optimal structural response always occurs when the two resonant peaks along the frequency axis are equal. The optimal frequency tuning ratio, optimal head loss coefficient, the corresponding response and other useful quantities are constructed in design tables as a guideline for practitioners. As the value of the head loss coefficient is only available through experiments, in the second part of the paper, the prediction of head loss coefficients in the form of a design chart are proposed based on a series of large scale tests in pitching base motions, aiming to ease the predicament of lacking the information of head loss for those who wishes to make designs without going through experimentation. A large extent of TLCDs with cross-sectional ratios of 0.3, 0.6, 1, 2 and 3 and orifice blocking ratios ranging from 0%, 20%, 40%, 60% to 80% were inspected by means of a closed-form solution under harmonic base motion for identification. For the convenience of practical use, the corresponding empirical formulas for predicting head loss coefficients of TLCDs in relation to the cross-sectional ratio and the orifice blocking ratio were also proposed. For supplemental information to horizontal base motion, the relation of head loss values versus blocking ratios and the corresponding empirical formulas were also presented in the end.

• Journal of Distribution Science
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• v.16 no.11
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• pp.21-27
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• 2018

Purpose - This study investigates the financial ratio of savings banks and the effect of the ratio having influence upon bankruptcy by quantitative empirical analysis of forecast model to give material of better management and objective evidence of management strategy and way of advancement and risk control. Research design, data, and methodology - The author added two growth indexes, three fluidity indexes, five profitability indexes, and four activity indexes CAMEL rating to not only the balance sheets but also the income statement of thirty savings banks that suspended business from 2011 to 2015 and collected fourteen financial ratio indexes. IBMSPSS VER. 21.0 was used. Results - Variables having influence upon bankruptcy forecast models included total asset increase ratio and operating income increase ratio of growth index and sales to account receivable ratio, and tangible equity ratio and liquidity ratio of liquidity ratio. The study selected total asset operating ratio, and earning and expenditure ratio from profitability index, and receivable turnover ratio of activity index. Conclusions - Financial supervising system should be improved and financial consumers should be protected to develop saving bank and to control risk, and information on financial companies should be strengthened.

• Journal of Navigation and Port Research
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• v.39 no.1
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• pp.69-75
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• 2015

The concrete purpose of this study is to suggest actually a debt ratio to optimize the capital structure providing a kind of approach to estimate the proper debt ratio with an analytical model and empirical data in Korean shipping industry. The mathematical and analytical model is started from the first equation about ROE, return of net operating income on equity, with an independent variable, debt ratio. It is constructed with several parameters, ROS(return of operating income on sales), TAT(total assets turnover), and NFCL(net finance cost to liabilities). There could not be a certain relationship between debt ratio and ROS or TAT, while some correlation or causality between debt ratio and NFCL. In other words, most of firms with high debt ratio is likely to burden higher finance cost than others with low one. In this case, there is a linearity relationship between debt ratio and NFCL, so then the second equation considering this relation could be included within the analytical approach of this paper. To be short, if the criteria of adequate debt ratio has to be defined as some level of debt ratio to optimize ROE, the ROE could be illustrated as a quadratic equation to debt ratio from two equations. Next, this research estimated those parameters' numbers through the single regression method with data over 12 years of Korean shipping industry, and identified empirically the fact that optimal debt ratio would be approximately 400%. To conclude, if that industry's sales and operating incomes are stable, the debt ratio could be accepted until twice of 200% had forced in order to guarantee its financial safety in past time.

• KIEAE Journal
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• v.10 no.1
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• pp.65-72
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• 2010

The use of natural light has the potential for improving both the energy efficiency and indoor environmental quality in buildings. A light-pipe system can introduce daylight to spaces that would otherwise not be able to benefit from the advantages of daylight penetration. For the light-pipe system to be widely used in Korea, it is important to quantify its daylighting performance with due consideration regarding the effects imposed by the local climate conditions. This paper presents the evaluation results of existing semi-empirical models to predict daylighting performance of a light-pipe system. The evaluation of the existing models was based on the monitoring data obtained from a underground parking lot in which the light-pipe system was installed. Comparisons were made between the predicted and the monitored data obtained from the study. The results indicated that semi-empirical models which was developed using the experimental data obtained under the Korean climatic conditions had a good prediction performance. We also quantified the effects caused by sky conditions, solar altitudes, room dimensions, and the aspect ratio of a light-pipe system on both the daylighting performance of the light-pipe system and the indoor illuminance distributions of the space using the semi-empirical model. Finally, this paper provides the design guideline of the light-pipe system for its application to an underground parking lot space.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.13 no.5
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• pp.2434-2453
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• 2019

To improve the separation performance of time-frequency overlapped radar and communication signals from a single channel, this paper proposes an effective separation method based on an improved empirical wavelet transform (EWT) that introduces a fast boundary detection mechanism. The fast boundary detection mechanism can be regarded as a process of searching, difference optimization, and continuity detection of the important local minima in the Fourier spectrum that enables determination of the sub-band boundary and thus allows multiple signal components to be distinguished. An orthogonal empirical wavelet filter bank that was designed for signal adaptive reconstruction is then used to separate the input time-frequency overlapped signals. The experimental results show that if two source components are completely overlapped within the time domain and the spectrum overlap ratio is less than 60%, the average separation performance is improved by approximately 32.3% when compared with the classic EWT; the proposed method also improves the suitability for multiple frequency shift keying (MFSK) and reduces the algorithm complexity.

• Proceedings of the Korea Concrete Institute Conference
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• 2001.11a
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• pp.1161-1166
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• 2001

Fatigue behavior of reinforced concrete(RC) elements has been experimentally and analytical investigated. Fatigue behavior influenced by longitudinal reinforcement ratio, strength of concrete and load ratio $P_{u}$/ $P_{o}$. The purpose of these studies is to propose an empirical formula for fatigue behavior on basis of experimental results. Also an analytical method to predict the crack propagation of RC beams has been developed based on the relationships between bond stress and slip.