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

• The Journal of the Korea Contents Association
• /
• v.20 no.3
• /
• pp.245-253
• /
• 2020

If the conversion rate of jeonse price to monthly rent is the market interest rate or the landlord's expected return, then the conversion rate of jeonse price to monthly rent in the country should be the same. However, the conversion rate of jeonse price to monthly rent has always been higher than the market interest rate. This study identifies the supply cost components of rental housing as a risk premium in the presence of current housing prices, market interest rates, depreciation costs, holding taxes, and leases, and identifies the relationship between the current housing prices and each factor. Housing rent is expressed as the current price. This overcomes the shortcomings that implicitly assume fluctuations in housing prices or do not include current housing prices in the conversion rate of jeonse price to monthly rent. This study found that the conversion rate of jeonse price to monthly rent is the required rate of return or required rate of renter, not market interest rate, by expressing the supply cost of rental housing as a combination of components. This not only explained the fact that the conversion rate of jeonse price to monthly rent was always higher than the market interest rate, but also explained the regional differences. It also explained why the conversion rate of jeonse price to monthly rent varies by type of housing.

• Journal of the Korea Society of Computer and Information
• /
• v.25 no.2
• /
• pp.221-229
• /
• 2020

As the cosmetics beauty industry grows into a key next-generation industry, the establishment of an industrialization center is needed, but failure to verify the adequacy and feasibility of the investment could lead to financial burdens. In this study, the project costs and facilities of an industrial center are reviewed to analyze its economic feasibility based on the cost estimates, revenue estimates, estimated profit or loss calculations, and estimated operating cash flows. The profit estimation criteria were analyzed by applying 90 per cent of expected orders for research projects (24 billion won) and 12 per cent of rental rates for testing equipment (4.5 billion won for construction), and the benefit/cost ratio is higher than 1.02 per cent and the net present value is higher than '0' won, and the internal rate of return is also more than 5.06 per cent for all three analytical methods. Therefore, in order for the construction of a cosmetics beauty industrialization center to be economically feasible, it is necessary to maintain research project orders of more than 90 percent and return on equipment rent of more than 12 percent, and a strategic approach is needed to diversify business profits.

• Journal of Korea Trade
• /
• v.27 no.1
• /
• pp.1-18
• /
• 2023

Purpose - Using a sample of Korean multinational corporations, we examine whether the relationship between tax risk and the implied cost of capital discriminates between the environmental, social, and corporate governance (ESG) of highly rated firms. Design/methodology - Firms with high tax risks have an increased uncertainty of future cash flows. Therefore, as the volatility of future cash flow increases, information asymmetry and the required return increases. Highly rated ESG firms can reduce information asymmetry, thereby weakening the positive relationship between tax risk and cost of capital. We employ the standard deviation of the cash effective tax rate as proxy of tax risk. We utilize the ESG rating data of the Korea Corporate Governance Service (KCGS). We use a PEG model, MPEG model, and GM model to measure the implied cost of capital. Findings - We find a positive association between the implied cost of capital and tax risk. The positive relationship between tax risk and the implied cost of capital weakens in highly rated ESG firms. Highly rated ESG firms prefer a stable tax position to invest after-tax cash flows into sustainable management. Therefore, the negative effects of tax risk on cost of capital can be reduced. Originality/value - This study provides empirical evidence that ESG activities can mitigate the negative impact of tax risk on the cost of capital for Korean multinational corporations. In a business environment where ESG activities are more important, the empirical results that ESG activities can reduce the corporate risk of Korean FDI companies are expected to provide implications for the ESG activities of multinational corporations.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.12
• /
• pp.423-431
• /
• 2020

This study examines the cost and benefit (i.e., income) of the Forest Stewardship Council (FSC) rubber plantations in Thailand. The study attempts to identify the challenges to the implementation of FSC standards in rubber plantations in the country. A total of 60 rubber farmers in two Southern provinces, namely, Songkhla and Rayong, were interviewed through a standardized questionnaire to gather primary data. The study found that small-, medium- and large-sized FSC rubber plantations were worth investing in. All sizes of rubber plantations had similar values of benefit cost ratio (BCR). It was also found that the values of the discount payback period (DPP) of the three forms of FSC rubber plantations were 9-12 years, while the large rubber plantations had the highest internal rate of return (IRR) (19.0%). It implies that the large-size plantations had the highest values. The rubber farmers in the study area reported that they are facing a number of problems and hardships in implementing FSC standards, lacking knowledge and understanding of FSC, especially for preparing documentation. Therefore, the Thai government should take proper policy initiatives to remove all the problems and barriers in implementing FSC standards for the sustainable rubber production in the country.

• Proceedings of the Korean Institute of Building Construction Conference
• /
• 2002.11a
• /
• pp.103-109
• /
• 2002

This research is aiming to specify the requirement of the investment such as initial cost, running cost earning rate to make effective investment considering the purpose of remodeling and economical value of store building enough to meet the initial purpose of remodeling. The review of earning rate for economical evaluation was performed by the on-site auditing on the structure and function of the building and applying the assessment simulation program, which is to find the possible business model to identify the requirement of building owner through case study. After the research, the following results are obtained. First, it is important that many aspects should be carefully analysis and the best method should be selected as characteristics of remodeling can be defer each other in their implementations. Second, though the remodeling of exist buildings to promote the functions has been applied. no suitable assessment tool has bee developed for deciding the level of remodeling in the view of economical efficiency so far. Third, the economical benefit was evaluated by analysing annual earning rate which is applied by investment items and recovery period for the investment. More specific data bate should be established to apply the suggested economic accession in business enough to forecast the future circumstances. More researches should be promoted on this area continuously as well as the integrated economic evaluation of remodeling on existing building.

• The Journal of Society for e-Business Studies
• /
• v.11 no.1
• /
• pp.91-112
• /
• 2006

Unlike typical corporate investments, IT expenditures have direct impact on many aspects of a business, including those that are difficult to quantify. Therefore, financial indicators alone do not do justice to the full effect of an If investment. Proposed in this paper is a methodology to measure the return on IT investments, including non-financial impacts expressed in terms of monetary values. This methodology shows tangible cost as well as hidden cost by analyzing total cost of ownership. The methodology also produces ROI by performing cost benefit analysis including financial and non-financial factors. This paper suggests a more objective validation of If's impact on the business activities. It rationalizes investment priorities and provides a systematic approach to effective IT investment.

• Journal of the Korean Institute of Landscape Architecture
• /
• v.33 no.3 s.110
• /
• pp.84-93
• /
• 2005

The purpose of this study is to analyze the economic feasibility of the construction of a new ecological park, based on the case of a plan in Yeongcheon City. For fulfilling the purpose of this study, questionnaire survey was conducted in Yeongcheon City. Based on the survey data, cost-benefit analysis is conducted. For this study, costs and benefits of the project are estimated. Then, using NPV, IRR, and B/C ratio criteria, cost-benefit analysis for this study is conducted. from the empirical cost-benefit analysis, NPV of the proposed project is estimated at 5,420 million Won, IRR is estimated at 12.16%, and B/C ratio is estimated at 1.44. Thus, it is found that the construction of a new ecological park in this area would be feasible from the economic point of view.

• Journal of the Korean Society of Fisheries and Ocean Technology
• /
• v.48 no.4
• /
• pp.360-369
• /
• 2012

The main purpose of this study is to analyse economic feasibility of low-carbon-oriented trawl gear. The results of benefit/cost analysis showed that use of the low-carbon fishing gear is economically feasible. Considering the fuel saving and relatively low $CO_2$ emission by reducing the resistance of gear, net present value by such gear improvement was estimated about 2,430~2,853 million won with the benefit-cost ratio 1.65~1.84 and the internal rate of return 29.18~30.48 percent. Development of low-carbon trawl gear would render significant contributions to reducing $CO_2$ emission in fishing operations and lead to reduce fishing costs due to fuel savings.

• Journal of the Korean Society of Fisheries and Ocean Technology
• /
• v.48 no.4
• /
• pp.346-351
• /
• 2012

The fuel cost of fishing lights for squid jigging fishing vessels takes about 30% of total fishing costs and over 65% of total fuel costs, which indicates the necessity of development of cost-reducing and high efficient fishing light system. This study aimed to analyze the economic effectiveness of LED fishing light systems in combination with metal halide lamp for the squid jigging fishery. Analytical results showed that the level of fishing profits of vessels using LED lights could be different with those of vessels using metal halide lights. That is, when a fuel cost could be reduced by 30%, fishing profits of vessels using LED lights might be the same as those of vessels using metal halide lights, and fishing profits of vessels using LED lights could be higher than those of vessels using metal halide lights when a fuel cost could be reduced by 50%.