• KDI Journal of Economic Policy
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• v.12 no.2
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• pp.95-120
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• 1990

The underpricing of new shares of a firm that are offered to the public for the first time (initial offerings) is well known and has puzzled financial economists for a long time since it seems at odds with the optimal behavior of the owners of issuing firms. Past attempts by financial economists to explain this phenomenon have not been successful in the sense that the explanations given by them are either inconsistent with the equilibrium theory or implausible. Approaches by such authors as Welch or Allen and Faulhaber are no exceptions. In this paper, we develop a signalling model of capital investment to explain the underpricing phenomenon and also analyze the efficiency of investment. The model focuses on the information asymmetry between the owners of issuing firms and general investors. We consider a firm that has been owned and operated by a single owner and that has a profitable project but has no capital to develop it. The profit from the project depends on the capital invested in the project as well as a profitability parameter. The model also assumes that the financial market is represented by a single investor who maximizes the expected wealth. The owner has superior information as to the value of the firm to investors in the sense that it knows the true value of the parameter while investors have only a probability distribution about the parameter. The owner offers the representative investor a fraction of the ownership of the firm in return for a certain amount of investment in the firm. This offer condition is equivalent to the usual offer condition consisting of the number of issues to sell and the unit price of a share. Thus, the model is a signalling game. Using Kreps' criterion as the solution concept, we obtained an essentially unique separating equilibrium offer condition. Analysis of this separating equilibrium shows that the owner of the firm with high profitability chooses an offer condition that raises an amount of capital that is short of the amount that maximizes the potential profit from the project. It also reveals that the fraction of the ownership of the firm that the representative investor receives from the owner of the highly profitable firm in return for its investment has a value that exceeds the investment. In other words, the initial offering in the model is underpriced when the profitability of the firm is high. The source of underpricing and underinvestment is the signalling activity by the owner of the highly profitable firm who attempts to convince investors that his firm has a highly profitable project by choosing an offer condition that cannot be imitated by the owner of a firm with low profitability. Thus, we obtained two main results. First, underpricing is a result of a signalling activity by the owner of a firm with high profitability when there exists information asymmetry between the owner of the issuing firm and investors. Second, such information asymmetry also leads to underinvestment in a highly profitable project. Those results clearly show the underpricing entails underinvestment and that information asymmetry leads to a social cost as well as a private cost. The above results are quite general in the sense that they are based upon a neoclassical profit function and full rationality of economic agents. We believe that the results of this paper can be used as a basis for further research on the capital investment process. For instance, one can view the results of this paper as a subgame equilibrium in a larger game in which a firm chooses among diverse ways to raise capital. In addition, the method used in this paper can be used in analyzing a wide range of problems arising from information asymmetry that the Korean financial market faces.

• Asia pacific journal of information systems
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• v.20 no.2
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• pp.157-180
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• 2010

Rapid development of information technology has generated a new industry and market. In particular, network technology such as the Internet and other computer networks made transaction activities switched from traditional offline commerce to e-commerce. Among them, digital content is bit-based object which is created and distributed through electronic environment. In particular, many entertainment contents such as the music, the movies, and the computer game softwares are main products. Although digital content commerce has high potential demand, it lacks the consideration about the factor related to maintaining existing customer such as customer loyalty and switching costs. There has been a number of research on customer loyalty and other factors affecting it in the traditional electronic commerce environment, but there is a lack of research which examines the characteristics of digital content. The study about the effect of switching costs on customer loyalty in digital content commerce is necessary because the customers of digital content commerce market are from those of other e-commerce market or traditional offline commerce market. In addition, customer loyalty and switching costs are important factors because they may build up greater customer retention. For that reason, this study focused on examining the relationships among switching costs, antecedents for switching costs, and customer loyalty in online digital music service industry. The study has three major purposes: (1) to find antecedents of switching costs on digital content commerce and examine effect of antecedents for switching costs; (2) to identify effect of switching costs on customer loyalty in digital content commerce and examine moderating effects of alternative attractiveness; (3) to identify the differences of antecedents for switching costs by contents transmission type(streaming service and downloading service). And, the online digital music service industry is selected in this study since there are many users and transactions incurring. To accomplish these purposes, a survey questionnaire was developed and distributed to 256 informants. Survey instrument was developed based on previous research and pre-established survey items. Total of 206 surveys are collected and used in the data analysis. Among the respondents, 56.8% is male and 43.2% is female. Also, 86 responses were streaming service user group and 120 responses were download service user group. These data was analyzed using regression analysis. Major findings of empirical analysis can be summarized as follows. First, switching costs have positive effect on customer loyalty in digital content commerce environment. Second, the influence of switching costs on customer loyalty increases under conditions of high alternative attractiveness. Third, DRM convenience and breadth of use have positive effect on switching costs. The findings imply that the digital content provider should pay more attention to switching costs in addition to customer satisfaction in order to attract customers. Also, increasing the convenience of DRM use by securing the convenience of user interface and expanding the support device and increasing the service use scope by providing diverse value-added service helps to create a switching barrier. The result of the study can become a practical use in marketing strategy for maintaining existing customer. In particular, switching barrier is very important under conditions of high competition in the online music service market. This study can be used as a basis for further studies about customer retention in digital content commerce.

• Therapeutic Science for Rehabilitation
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• v.7 no.1
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• pp.79-88
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• 2018

Objective : Conventional therapy approaches for stroke survivors have required considerable demands on therapist's effort and patient's expense. Thus, new robotics rehabilitation therapy technologies have been proposed but they have suffered from less than optimal control algorithms. This article presents a novel technical healthcare solution for the real-time, simultaneous and propositional myoelectric control for stroke survivors' upper limb robotic rehabilitation therapy. Methods : To implement an appropriate computational algorithm for controlling a portable rehabilitative robot, a linear regression model was employed, and a simple game experiment was conducted to identify its potential of clinical utilization. Results : The results suggest that the proposed device and computational algorithm can be used for stroke robot rehabilitation. Conclusion : Moreover, we believe that these techniques will be used as a prominent tool in making a device or finding new therapy approaches in robot-assisted rehabilitation for stroke survivors.

• The Journal of the Korea Contents Association
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• v.17 no.7
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• pp.144-157
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• 2017

Although student satisfaction is important in university development, there have been many studies in this area. Especially student satisfaction is closely related to emotional aspect, but most studies have tended to study it with cognitive view. To suggest the model of student satisfaction with hedonic view, the model which we present in this study includes professor presence and interaction, PAD(pleasure, arousal, dominance), satisfaction(dependent variable). Through reviewing previous studies, we expect that these professor presence and students' interaction effect PAD, in turn, PAD effect satisfaction. Survey research is employed to test hypotheses involving professor presence, students' interaction, PAD and satisfaction. Previous researches, such as education, marketing, game, have been referenced to measure constructs. We collected data involving students in a university, and used 219 respondents to analyze these data using LISREL structural modeling. Professor presence had positive effects on professor-student interaction, pleasure, arousal, and dominance. Also professor-student interaction had positive effect on pleasure and arousal, and student-student interaction had positive effects on pleasure and arousal, dominance. As a result, PAD had effects on students' satisfaction. In the final section, we discussed several limitations of our study and suggested directions for future research. We concluded with a discussion of managerial implications, including the potential to advance understanding learning in a university.

• Science of Emotion and Sensibility
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• v.14 no.1
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• pp.157-164
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• 2011

Emotion science is one of the rapidly expanding engineering/scientific disciplines which has a major impact on human society. Such growing interests in emotion science and engineering owe the recent trend that various academic fields are being merged. In this paper we propose the potential importance of the biochip technology in which the human emotion can be precisely measured in real time using body fluids such as blood, saliva and sweat. We firstly and newly name such a biochip an Emotion-On-a-Chip (EOC). EOC consists of biological markers to measure the emotion, electrode to acquire the signal, transducer to transfer the signal and display to show the result. In particular, microfabrication techniques made it possible to construct nano/micron scale sensing parts/chips to accommodate the biological molecules to capture the emotional bio-markers and gave us a new opportunities to investigate the emotion precisely. Future developments in the EOC techniques will be able to help combine the social sciences and natural sciences, and consequently expand the scope of studies.

• Journal of the Korean Society for information Management
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• v.28 no.3
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• pp.103-121
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• 2011

This study is to seek to apply resource types of RDA to KCR4. It is difficult to choose appropriate term and to embody FRBR model because GMD of KCR4 is the mixture of content-based vocabularies and carrier-based vocabularies. SMD is to need to reflect the current technological terms. Resource type of RDA was already developed to overcome limitation of AACR2's GMD, and would affect the world cataloging environment, therefore it is need to apply resource type of RDA to Korean cataloging rule. For this study, case study and survey were used. In case study, it was to scan all GMD term for one university library to build by programming and to grape librarian and users' potential need. In the survey by cataloging librarian, it was to figure out the current description of resource type in university library and to test RDA resource type. As a result, it was needed to revise the vocabulary to the obvious and user-understandable list. Also it was different in correction rate in RDA testing by resource type. Based on the case study and the survey, RDA resource type was applied to KCR4 resource list by adding term such as computer game in content type, and by inserting terms such as DVD, CD-ROM, Blu-Ray, computer file in carrier type. It also applied RDA description method and display means to KCR4. This study would apply RDA resource type to KCR4 and contribute to revise KCR4 resource type.

• Review of Culture and Economy
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• v.17 no.2
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• pp.63-80
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• 2014

This study evaluates the importance of negotiation agendas and the possibility of reaching the Korea-China FTA agreement. It assesses the current situation of trade barriers in the audiovisual service sector of China and then examines a survey of practitioners and experts to screen important regulations. The results are as follows: First, considering the national economic situation in Korea and the environment of the Chinese trade barrier, an important agenda is to enable the direct service of online games and to reach a co-production agreement in the audiovisual service sector. Second, an agenda regarding the co-production agreement of an audio-visual service sector has high potential to be realized, followed by agendas regarding online game and music services. In the broadcasting and film service sectors, with their high cultural identity, a mutual cooperative approach is needed. Korea bringing up the agenda regarding online service may allow it to gain a net benefit for the next FATs. To realize a mutual cooperative approach, it is necessary to form a frame of mutual interests and cooperation through a co-production agreement of audio-visual service. If both countries agree to acknowledge co-produced content as each country's contents, both would benefit.

• 한국체육학회지인문사회과학편
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• v.51 no.3
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• pp.427-435
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• 2012

The purpose of this review study is to examine current status of dietary supplement use to enhance athletic performance capacity in elite athletes based upon anti-doping education, sports type, athletic performance capacity, gender, and age. Several previous review studies have focused on the biochemistry characteristics and intake incidence of dietary supplements and those studies have not showed enough evidence of the reason why elite athletes usually take dietary supplements. Anti-doping education may increase the incidence of dietary supplement use in elite athletes because of increasing expertise of dietary supplements. It would be expected that increased incidence of long-term dietary supplement use may induce positive effects on the body having potential effects on athletic performance capacity, although a trace of nutrients may not directly effect on the outcome of the game. Moreover, it seems that the difference of dietary supplement use based upon gender and age may come from sports type and the difference of dietary supplement intake reason may come from health and body condition maintenance rather than athletic performance capacity when considering dietary supplement use items based upon intake reasons. Most elite athletes consume at least over 2 dietary supplement items in a long period of time rather than 1 dietary supplement item in a short period of time; however, the scientific evidence of dietary supplement use seems to be insufficient. Therefore, further experimental approach studies concerning dietary supplement effects would be needed.

• The Mathematical Education
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• v.62 no.1
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• pp.57-78
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• 2023

Students' engagement in lessons not only determines the direction and result of the lessons, but also affects academic achievement and continuity of follow-up learning. In order to provide implications related to teaching strategies for encouraging students' engagement in elementary mathematics lessons, this study implemented lessons for middle-low achieving fifth graders using open-ended tasks and analyzed characteristics of students' engagement in the light of the framework descripors developed based on previous research. As a result of the analysis, the students showed behavioral engagement in voluntarily answering teacher's questions or enduring difficulties and performing tasks until the end, emotional engagement in actively expressing their pleasure by clapping, standing up and the feelings with regard to the topics of lessons and the tasks, cognitive engagement in using real-life examples or their prior knowledge to solve the tasks, and social engagement in helping friends, telling their ideas to others and asking for friends' opinions to create collaborative ideas. This result suggested that lessons using open-ended tasks could encourage elementary students' engagement. In addition, this research presented the potential significance of teacher's support and positive feedback to students' responses, teaching methods of group activities and discussions, strategies of presenting tasks such as the board game while implementing the lessons using open-ended tasks.

• Journal of Intelligence and Information Systems
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• v.22 no.1
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• pp.119-138
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• 2016

Since the Industrial Revolution, which made the mass production and mass distribution of standardized goods possible, machine-made (manufactured) products have accounted for the majority of the market. However, in recent years, the phenomenon of purchasing even more expensive handmade products has become a noticeable trend as consumers have started to acknowledge the value of handmade products, such as the craftsman's commitment, belief in their quality and scarcity, and the sense of self-esteem from having them,. Consumer interest in these handmade products has shown explosive growth and has been coupled with the recent development of three-dimensional (3D) printing technologies. Etsy.com is the world's largest online handmade platform. It is no different from any other online platform; it provides an online market where buyers and sellers virtually meet to share information and transact business. However, Etsy.com is different in that shops within this platform only deal with handmade products in a variety of categories, ranging from jewelry to toys. Since its establishment in 2005, despite being limited to handmade products, Etsy.com has enjoyed rapid growth in membership, transaction volume, and revenue. Most recently in April 2015, it raised funds through an initial public offering (IPO) of more than 1.8 billion USD, which demonstrates the huge potential of online handmade platforms. After the success of Etsy.com, various types of online handmade platforms such as Handmade at Amazon, ArtFire, DaWanda, and Craft is ART have emerged and are now competing with each other, at the same time, which has increased the size of the market. According to Deloitte's 2015 holiday survey on which types of gifts the respondents plan to buy during the holiday season, about 16% of U.S. consumers chose "homemade or craft items (e.g., Etsy purchase)," which was the same rate as those for the computer game and shoes categories. This indicates that consumer interests in online handmade platforms will continue to rise in the future. However, this high interest in the market for handmade products and their platforms has not yet led to academic research. Most extant studies have only focused on machine-made products and intelligent services for them. This indicates a lack of studies on handmade products and their intelligent services on virtual platforms. Therefore, this study used signaling theory and prior research on the effects of sellers' characteristics on their performance (e.g., total sales and price premiums) in the buyer-seller relationship to identify the key influencing e-Image factors (e.g., reputation, size, information sharing, and length of relationship). Then, their impacts on the performance of shops within the online handmade platform were empirically examined; the dataset was collected from Etsy.com through the application of web harvesting technology. The results from the structural equation modeling revealed that the reputation, size, and information sharing have significant effects on the total sales, while the reputation and length of relationship influence price premiums. This study extended the online platform research into online handmade platform research by identifying key influencing e-Image factors on within-platform shop's total sales and price premiums based on signaling theory and then performed a statistical investigation. These findings are expected to be a stepping stone for future studies on intelligent online handmade services as well as handmade products themselves. Furthermore, the findings of the study provide online handmade platform operators with practical guidelines on how to implement intelligent online handmade services. They should also help shop managers build their marketing strategies in a more specific and effective manner by suggesting key influencing e-Image factors. The results of this study should contribute to the vitalization of intelligent online handmade services by providing clues on how to maximize within-platform shops' total sales and price premiums.