• 신재생에너지
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• 제7권2호
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• pp.18-27
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• 2011

Management flexibility to adapt its future actions in response to altered future market conditions can expand the value of an investment opportunity by improving its upside potential without the change in the downside losses. Module manufacturers in solar industry continuously have to decide how much and when its production capacity should be expanded with regards to the demand in the global markets. Either over- or under-investment can cause sunk and/or opportunity costs to the module manufacturers. Option of exercising the additional investments only on favorable opportunities can increase total value of the investment. This paper analyzes the case which shows that the expansion of production capacity with more expandibility can have more value than the rigid plan of capacity expansion. The expansion option value is equivalent to KRW 38.286 billion, thus switching the negative NPV of the initial investment opportunity into the positive value. High volatility and the high growth in the cashflows as the major business features of the renewable energy provide condition where real options can play the crucial role in increasing the investment value as well as in determining the size and timing of capacity expansion in the course of capital budgeting process.

• 기술경영경제학회:학술대회논문집
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• 기술경영경제학회 2001년도 제19회 하계학술발표회 논문집
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• pp.117-130
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• 2001

R&D is the core competence of an enterprise. Furthermore, R&D requires huge capital investment and has very risky characteristics. Therefore, to be successful in R&D process, several approaches of engineering economics are used prior to decision-making. Until now, typical approaches of engineering economics such as NPV(net present value) or DCF(Discounted cash flow) have been used. But, they cannot properly capture managerial flexibility to adapt and revise later decisions in response to unexpected market development. In a constantly changing and always uncertain marketplace, managerial operation flexibility and strategic adaptability have become vital in order to successfully capitalize on favorable future investment opportunities and limit losses from adverse market development. For the alternatives of conventional static decision-making approaches, new concept of using real options is introduced. Real option theory is based on financial option's characteristics and checks every revision interval whether situation have changed favorable to decision maker or not. In advantageous situation, the decision maker has only to go on. In contrast, with unfavorable situation, he abandons the investment immediately. In this aspect, real option model is more suitable in very uncertain and dynamic business environment in that it can provide the opportunity to cope with flexibility. This paper suggests efficient and effective R&D investment strategy by using real options model. In addition, this paper compares financial options and real options.

• The Journal of Asian Finance, Economics and Business
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• 제8권12호
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• pp.129-139
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• 2021

The aim of this study is to provide insight into tax avoidance through planning and management, and its investment consequences in financially constrained and unconstrained firms, as well as to empirically examine the interrelationships between the variables studied. Data was extracted from the financial statement analysis of non-financial companies listed on the Pakistan stock exchange (PSX) published by the State Bank of Pakistan, covering ten major manufacturing sectors. KZ index and WW index are used to identify financially constrained and unconstrained firms. Tax avoidance is measured by using GETR and LETR. All the equations are estimated through panel data regression models using common, fixed, and random effects. The empirical investigation of the role of tax avoidance in all firms collectively and constrained and unconstrained firms separately showed that the tax avoidance behavior of these firms is translated into investments by these firms. The study will help policymakers in strategy formulation and implementation related to tax planning and investment decisions in constrained and unconstrained firms to overcome their financial constraints and to optimize their investment decisions for value maximization. This will substantially increase the investment in the country by providing growth opportunities and lowering the tax rates.

• 산경연구논집
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• 제10권9호
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• pp.7-17
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• 2019

Purpose - In recent years, the bilateral political relationship between Vietnam and India was upgraded to strategic and comprehensive partnership. Thus, the purpose of this paper is to analyze current relations and prospects of the Vietnam-India trade. Research design, data and methodology - The data was mainly based on World Integrated Trade Solution (WITS) and Foreign Investment Agency of Vietnam Ministry of Planning and Investment (FIA) from 2010-2018. The relationship of the two countries has showed growth in all sectors, including trade cooperation. This paper focused on assessing the current relations of trade cooperation of the two countries and then andlyzed the prospects of trade cooperation in the next period. Result - The Indian Government's strategy shifted from "Look East" policy to "Look East" action by the end of 2015. Vietnam is a partner and a pillar of India's Look East policy (Muni, 2011). The governments of both countries should further strengthen exchanges and trade connections in order to provide cooperation opportunities for investors and businesses of the two countries. Conclusion - The paper discusses and gives an overview of the current status of the trade relations of Vietnam and India as well as lucidating the opportunities and challenges for two countries in the future.

• 산업경영시스템학회지
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• 제22권51호
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• pp.151-161
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• 1999

For many decades, Deterministic DCF approach has been widely used to evaluate investment opportunities. Under new manufacturing conditions involving uncertainty and risk, the DCF approach is not appropriate. In DCF, Risk is incorporated in two ways: certainty equivalent method, risk adjusted discount rate. This paper proposes a determination method of the Risk Adjusted Discount Rate for economically decision making advanced manufacturing technologies. Conventional DCF techniques typically use discount rate which do not consider the difference in risk of differential investment options and periods. Due to their relative efficiency, advanced manufacturing technologies have different degree of risk. The risk differential of investments is included using $\beta$ coefficient of capital asset pricing model. The comparison between existing and proposed method investigated. The DCF model using proposed risk adjusted discount rate enable more reasonable evaluation of advanced manufacturing technologies.

• Asian Journal of Business Environment
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• 제5권4호
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• pp.59-66
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• 2015

Purpose - The aim of the study is to analyze the impact of the European Union's (EU) focus on innovation and consumption, after the EU Eastern enlargement, on trade, investment, and technology cooperation patterns of Korea to formulate a pan-European marketing strategy, with a special emphasis on the mobile phone industry. Research design, data, and methodology - This study compares the intersection of the pivotal areas in the markets in the "post-new normal" era to identify outlets to commercialize development and innovation in this region. The EU would like to realize potential trade and investment opportunities with the Central European Economic Community (CEEC) from this enlargement. Results - The study analysis suggests a positive impact for innovation and consumption from the EU Eastern enlargement on trade, investment, and technology cooperation patterns of Korea to formulate a pan-European marketing strategy with a special emphasis on the mobile phone industry or motorcar e-strategy. Conclusions - Due to the evolving close interdependencies some hubs have emerged between regional, small markets and the central, larger ones such as Germany and France.

• 국제학술발표논문집
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• The 2th International Conference on Construction Engineering and Project Management
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• pp.196-205
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• 2007

China power market is fast changing. The strong economic growth does make BOT power projects to be one of the focuses for investment in China due to the huge demand for energy by the Chinese government. Since late 80's,various power projects BOT studies have been carried out but appear too fragmented which fail to linked the BOT studies to the most recent government policies' changes or market movement. This study has carried out analysis on the recent changes in China power industry reform and local government authority empowerment. The impact of those changes to BOT investment has been identified and recommendations have been made on the new opportunities and new strategies especially from the Singapore's investors' point of view. A case study on BOT hydropower plant has been presented which could be a suitable model for Singapore investors.

• Journal of Korea Trade
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• 제23권7호
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• pp.156-172
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• 2019

Purpose - Without question, globalization has presented different opportunities to entrepreneurs seeking to expand their companies in foreign markets. The aim of this study is to examine the relationship between entrepreneurial orientation, entrepreneurial activity, information internalization, and product differentiation in export oriented firms. As such, entrepreneurial activities are divided into exploitative and exploratory opportunities. These opportunities are crucial in improving firms' performance. Design/methodology - A structural questionnaire was developed using 21 factors/indicators from previous researches. The subjects of this study were recruited using convenience sampling in export SMEs in the Seoul Metropolitan Area. Data were collected through visits or e-mails from the export managers, executives, and CEOs of export SMEs in advance. 321 questionnaires were collected over a period of one month. 316 questionnaires were used in the final analysis. Findings - First, International Entrepreneurial-orientation (IE) has a positive effect on the exploration and exploitation of business opportunities. Second, the exploration and exploitation of business opportunities have a positive impact on information internalization. Third, information internalization has a significant effect on product differentiation and plays a mediating role in seeking opportunities, utilizing opportunities, and differentiating products. Originality/value - This study contributes to the development of academic discussions by explaining existing research gaps. First, there is currently a lack of research focusing precisely on the product differentiation capability of SMEs in manufacturing field in terms of IE. To bridge these gaps, we examined the entrepreneurial factors impact on product differentiation and tries to expand the discussion about the internationalization of SMEs, which were mainly focused on IT companies, and manufacturing companies. Second, there is no intuitive explanation regarding international entrepreneurial activity in terms of exploration and exploitation within existing. In this study, international entrepreneurship activities were classified in terms of exploration and exploitation.

• 벤처창업연구
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• 제16권1호
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• pp.1-19
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• 2021

환경에 대한 관심의 증가와 4차산업혁명 기술의 발전으로 지속적인 성장이 기대되는 글로벌 물시장에서 국내 물산업은 공공성과 안정성에 대한 강조로 기술 발전 및 혁신적 성장에 한계를 보이고 있다. 이러한 한계 극복을 위해서 최근 한국수자원공사는 오픈이노베이션에서 중요한 역할을 하고 있는 스타트업을 중심으로 국내 물산업 생태계를 활성화하면서 동시에 물산업 혁신을 위해 물산업 창업기업을 발굴, 육성하고 있다. 본 연구는 물산업 창업기업이 국내 물시장을 혁신시키고 글로벌 물시장을 선도하는 유니콘 기업으로 성장하기 위해 반드시 필요한 벤처투자 유치의 성공률 제고를 목적으로 하고 있다. 본 연구는 선행연구를 참고 후 초기 투자자 대상 FGI기법을 통해 투자결정요인에 대한 주요요인 5개 항목과 세부요인 17개 항목을 도출하였다. 도출된 투자결정요인을 토대로 41명의 창업기업 대표를 대상으로 조사를 진행하였다. 응답자 그룹은 투자유치 경험이 있는 창업기업과 투자유치 경험이 없는 창업기업으로 구분하여 비교분석하였고 분석방법은 AHP 기법을 활용하였다. 분석 결과 투자유치경험이 있는 기업과 초기투자자의 투자결정요인의 우선순위가 유사함을 확인할 수 있었고, 투자유치경험이 없는 그룹은 투자를 자금 조달의 방법으로만 생각하고 있음을 확인할 수 있었다. 이러한 결과를 토대로 물산업 창업기업을 발굴, 육성하고 있는 기관에게 육성중인 창업기업의 투자유치율 제고를 위한 시사점을 제안하였다.

• 유통과학연구
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• 제21권2호
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• pp.1-6
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• 2023

Purpose: Research on attracting foreign direct investment plays an important role in ASEAN countries. ASEAN has needed FDI capital for development and integration with many developing countries. Research design, data and methodology: This study is conducted to assess the impact of factors: inflation (INF), economic growth (GDP), population (POP), and trade (TRADE) on attracting foreign direct investment (FDI) of ASEAN countries. The study will find out how factors distribution contributes to FDI attraction. The study collects data from 10 ASEAN countries from 2010 to 2020. With data collected for ten countries from 2010 to 2020, data analysis with panel data will be used in this study. The Regression with Driscoll-Kraay standard errors correction model will be used in the study. Results: Panel data analysis shows that economic growth and population positively impact FDI attraction in ASEAN countries. However, two factors: INF and TRADE, do not affect FDI. Conclusions: Countries need to focus on economic development, create many good conditions for people and domestic enterprises and create opportunities for foreign investors to pay more attention. improving the quality of domestic human resources will help to better improve the working quality factor when the demand for high-quality human resources increases.