• Journal of the Korean Society for Railway
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• v.10 no.2 s.39
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• pp.137-145
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• 2007

In traditional financial theory, the discount cash flow model(DCF or NPV) operates as the basic framework for most analyses. In doing valuation analysis, the conventional view is that the net present value(NPV) of a project is the measure of the present value of expected net cash flows. Thus, investing in a positive(negative) NPV project will increase(decrease) firm value. Recently, this framework has come under some fire for failing to consider the options of the managerial flexibilities. Real option valuation(ROV) considers the managerial flexibility to make ongoing decisions regarding the implementation of investment projects and the deployment of real assets. The appeal of the framework is natural given the high degree of uncertainty that firms face in their technology investment decisions. This paper suggests an algorithm for estimating volatility of logarithmic cash flow returns of real assets based on the Black-Sholes option pricing model, the binomial option pricing model, and the Monte Carlo simulation. This paper uses those models to obtain point estimates of real option value with the G7- HSR350X(high-speed train).

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.7
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• pp.3016-3021
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• 2011

While there is ample information on the investment plans about Korea's selected new growth businesses, it is hard to find any analysis on the valuation of the projects. In this paper, I intend to do a valuation for the three particular technologies, which are solar cell, automotive battery, and bio-pharmaceutical, based on compound option model so that the valuation can capture not only the expected net cash flow but also the value originated from the flexibility of the decision maker. In addition, the real option pricing theory is reviewed and its practical limitations are thoroughly investigated.

• Environmental and Resource Economics Review
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• v.15 no.5
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• pp.921-937
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• 2006

In this paper, we apply fuzzy theory in a discrete choice Contingent Valuation Method(CVM) in order for dealing preference uncertainty problem. Fuzzy membership function is used in an empirical analysis to estimate the willingness-to-pay(WTP) for the preservation of the endangered Asiatic Black Bear in Korea. The estimated WTP was about 9,090 Korea Won per household with 78 percent of confidence level. The advantage of applying fuzzy theory in the valuation method could be found in its ability to measure the confidence level of the estimated WTP.

• IE interfaces
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• v.18 no.2
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• pp.184-192
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• 2005

In recent research there has been intense interest in understanding how real option valuation (ROV) approaches might usefully complement conventional discounted cash flow (DCF) techniques. However, investment decision makers in a real world have been worried about adopting the ROV approaches mainly because of difficulty in technically understanding the theory of the ROV approaches as indicated by many researchers. With this difficulty in mind, we propose the opportunity cost model as another discrete-time model to value a deferral option. The main advantage of observing a real options value in terms of the opportunity cost concept is to provide a technique for practitioners to estimate a wide range of real options values without sticking to a financial option modelling. The fundamental ground for developing the opportunity cost model proposed in this paper lies in the work of dissecting the structure of the real options value into three categories: capital gain, expected opportunity loss, and expected opportunity gain. At the end of the paper, we will present a short illustrative example to demonstrate the applicability of the model.

• Journal of Digital Convergence
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• v.12 no.10
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• pp.179-189
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• 2014

Unlisted stocks, each country applies a systematic evaluation of the proposed regulations and how the objectivity and reliability of the valuation is trying to improve. In the case of Korea, the law relating to the assessment of unlisted stocks of a representative and 'Inheritance and Gift Tax Law' and the majority of the information in accordance with this law is. IFRS to the valuation of securities at fair value, such as unlisted stocks, but with the exception that non-marketable securities, the acquisition cost can be replaced by a well-known professional organizations calculation of the amount of stocks that the rules are followed. Therefore, in this study, together with the other examples given statutory valuation theory or technique has been referred to various valuation models in practice. It is significant to provide data that can be used to present a variety of methods for the valuation of unlisted shares and enable rationalization study. But the limitations of this study, the implication is obtained through a single enterprise, the research will continue to be applied to the case study and plan the future by the various sectors of the corporate scale.

• 한국경영정보학회:학술대회논문집
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• 2008.06a
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• pp.129-134
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• 2008

Dividend is one of essential factors determining the value of a firm. According to the valuation theory in finance, discounted cash flow (DCF) is the most popular and widely used method for the valuation of any asset. Since dividends play a key role in the pricing of a firm value by DCF, it is natural that the accurate prediction of future dividends should be most important work in the valuation. Although the dividend forecasting is of importance in the real world for the purpose of investment and financing decision, it is not easy for us to find good theoretical models which can predict future dividends accurately except Marsh and Merton (1987) model. Thus, if we can develop a better method than Marsh and Merton in the prediction of future dividends, it can contribute significantly to the enhancement of a firm value. Therefore, the most important goal of this study is to develop a better method than Marsh and Merton model by applying artificial intelligence techniques.

• Journal of Korean Philosophical Society
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• v.137
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• pp.1-31
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• 2016

The aim of this paper is to put forward the significance that Dewey's naturalistic theory of value has today in examining how value arises from experience. This is a necessary discussion as logical-positivists bring about the problem of fact/value dichotomy and further deny the possibility of intellectual discussion on value judgments. In this situation, the task that the discussion on value must be resolved is to go beyond the problem of fact/value dichotomy and to confer objectivity upon value judgments. In the stream of analytic philosophy, the significance of Dewey's theory of value is revealed by how Putnam and Johnson receive it. To overcome the problem of dichotomy, Putnam asserts that they are entangled because the value arises from a criticism through scientific inquiry. Also Johnson proves that Dewey's moral deliberation as valuation is wedded with cognition, feeling, and imagination by the research on cognitive science and shows that Dewey's theory of value is un-relativistic because it is on the basis of shared experience. So, if the absolute value is not given to us, Dewey's theory of value shows us how value is made by open inquiry. It has the significance of proposing the direction that the theory of value orients itself today.

• The Journal of Fisheries Business Administration
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• v.22 no.2
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• pp.53-74
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• 1991

Interest on ocean environment has increased with the development of industrialized activities. Public marine resorces are defined broadly to include fish stocks, beaches, marine waters, recreational fishing, biota, waterfowls, shorebirds, seabirds and marine mammals But, it is not easy to analyze compensation for injury to publicly owned marine resources because the claimants do not exist clearly and the economic methodology of damage on public goods is not developed fully. This paper introduces basic idea of welfare economic theory and environmental legislation to the research question : How the economics and law can be applied to the case of damage on publicly owned marine resource. The paper discusses the concepts of willingness to pay (WTP) and willingness to accept (WTA). It is accepted generally that WTA is correct concept of welfare change in the case of damaged public goods. Four methods (compensating variation, equivalent variation, compensating surplus, equivalent surplus of measuring welfare changes are compared. Compensating variation(CV) is the best measure of welfare changes are compared. Compensating variation(CV) is the best measure of welfare changes caused by environmental damage. Vartia (1983) showed CV could be measured from the ordinary demand function using the differential equations. This paper also provides an overview of the emerging U.S. and Korea legal system for compensation for natural resource damages, with particular emphasis on U.S. legal system under Comprehensive Environmen-tal Response Compensation and Liability Act (CERCLA). These regulations are to include two different types of standardized procedures for assessing natural resources injury : Type A or simplified assessment techniques for small releases ; and Type B protocols that would include detailed and extensive assessment methodologies for major releases. Type A procedures are specified by Natural Resources Damage Assessment Model for Coastal and Marine Environment (NRDAM/CME) of the U.S. CERCLA provides a legal 'legitimization for the use of economic-based nonmarket valuation in the courts and have introduced appropriate and accurate nonmarket valuation methods based on willingness to-pay for damage assessment. By briefly reviewing economic theory and environmental legislation, we hope to help provide a better understanding of the compensation process and the economics of publicly owned marine resources in the U.S. and to integrate the economics and law of natural resources valuation into a single comprehensive package in Korea.

• Journal of Korea Technology Innovation Society
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• v.15 no.3
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• pp.700-721
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• 2012

This paper deals with methods for determining the reasonable royalty rates in the valuation of patents. To calculate the reliable reasonable royalty rate of a patent, we review pros and cons of the 25% rule royalty calculating method and the recent trend of this method. We also review the game theory of Nash Bargaining equation and review the Investment of Rate of Return Method according to the financial analysis. Next, we refer to the reasonable royalty damage cases among the recent patent infringement cases in USA and analyze the corresponding patents. We extract the patent indicators from the patent bibliographic information. Finally, we obtain a regression model for calculating a reasonable royalty rate using the patent indicators and the reasonable royalty rates in the recent patent infringement cases.

• Journal of the Korean Society for information Management
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• v.25 no.3
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• pp.339-355
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• 2008

The purpose of this empirical case study is to explore what factors affect on the economic valuation of academic journals and to ascertain the degree of each impact. For this study, factors were categorized into three groups: internal factors external factors and demand theory factors. The on-line questionnaire was used to collect data and 383 responded from individual users of and the persons in charge of the DDS(Document Delivery Service). Collected data were analyzed using SPSS 12.0 for Windows/PC. The result showed that there exist a strong relationship between the internal factors of academic journals(i.e., Impact Factor, Cost, and Language) and economic valuation in terms of its use value.