• The Journal of Small Business Innovation
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• v.20 no.3
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• pp.1-17
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• 2017

There is a serious information asymmetry between internal managers and outside investors in the process during IPOs. One mechanism that mitigates this information asymmetry is a high quality auditor. Since prior research document auditors' effect on newly listed firms at the IPO year, what has not yet been revealed in previous studies is the behavior of firms and auditors after listing. In this study, we investigate (i) the firms tendency of contracting with Big N auditors, and (ii) the effect of Big N auditors on accounting quality after the years of IPOs. Using a sample of 7,678 (1,892 firm-years of after IPOs, and 5,786 control firm-years) KOSDAQ observations between 2002 and 2012, we find that the likelihood of contracting with Big N auditor lasts only for two years after IPO compare to that of non-IPO control years. Secondly, we find that the effect of Big N auditors on clients' earnings management lasts for a very short period after IPO. These findings suggest that although prior literature argue that Big N auditors reduce earnings management of their clients, at least the period right after IPO, it is not consistent. Our study contributes to the existing literature in several ways. First, we provide new evidences of firms' auditor selection decisions by investigating years after the listing. In second, as an evidence of accruals reversal, we document decrease in discretionary accruals after IPOs. Third, we find that there is not always a positive relation between Big N auditor and accounting quality by showing the insignificant Big N auditor effect after IPOs. Our results also suggest several implications to IPO related stakeholders. First, to IPO firms, we provide evidences that decisions of hiring auditors affect firms earnings. Also, lead IPO underwriters may consider how these decisions influence future performance. Second, investors may want to use information not only in the preofferings but also after public offerings. Our study insists that auditor hiring decisions affects their own welfare. Finally, accounting standard setters may find these results useful for evaluating how much discretion they should allow corporate managers to hire auditors. In addition, our result casts doubt on auditor designation.

• Journal of the Institute of Electronics Engineers of Korea SP
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• v.41 no.2
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• pp.23-34
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• 2004

Video camera can be a useful tool to capture images for use in colorimeter. However the RGB signals generated by different video camera are not equal for the same scene. The video camera for use in colorimeter is characterized based on the CIE standard colorimetric observer. One method of deriving a colorimetric characterization matrix between camera RGB output signals and CIE XYZ tristimulus values is least squares polynomial modeling. However it needs tedious experiments to obtain camera transfer matrix under various white balance point for the same camera. In this paper, a new method to obtain camera transfer matrix under different white balance by using 3${\times}$3 camera transfer matrix under a certain white balance point is proposed. According to the proposed method camera transfer matrix under any other white balance could be obtained by using colorimetric coordinates of phosphor derived from 3${\times}$3 linear transfer matrix under the certain white balance point. In experimental results, it is demonstrated that proposed method allow 3${\times}$3 linear transfer matrix under any other white balance having a reasonable degree of accuracy compared with the transfer matrix obtained by experiments.

• Journal of Intelligence and Information Systems
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• v.26 no.2
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• pp.105-129
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• 2020

This study uses corporate data from 2012 to 2018 when K-IFRS was applied in earnest to predict default risks. The data used in the analysis totaled 10,545 rows, consisting of 160 columns including 38 in the statement of financial position, 26 in the statement of comprehensive income, 11 in the statement of cash flows, and 76 in the index of financial ratios. Unlike most previous prior studies used the default event as the basis for learning about default risk, this study calculated default risk using the market capitalization and stock price volatility of each company based on the Merton model. Through this, it was able to solve the problem of data imbalance due to the scarcity of default events, which had been pointed out as the limitation of the existing methodology, and the problem of reflecting the difference in default risk that exists within ordinary companies. Because learning was conducted only by using corporate information available to unlisted companies, default risks of unlisted companies without stock price information can be appropriately derived. Through this, it can provide stable default risk assessment services to unlisted companies that are difficult to determine proper default risk with traditional credit rating models such as small and medium-sized companies and startups. Although there has been an active study of predicting corporate default risks using machine learning recently, model bias issues exist because most studies are making predictions based on a single model. Stable and reliable valuation methodology is required for the calculation of default risk, given that the entity's default risk information is very widely utilized in the market and the sensitivity to the difference in default risk is high. Also, Strict standards are also required for methods of calculation. The credit rating method stipulated by the Financial Services Commission in the Financial Investment Regulations calls for the preparation of evaluation methods, including verification of the adequacy of evaluation methods, in consideration of past statistical data and experiences on credit ratings and changes in future market conditions. This study allowed the reduction of individual models' bias by utilizing stacking ensemble techniques that synthesize various machine learning models. This allows us to capture complex nonlinear relationships between default risk and various corporate information and maximize the advantages of machine learning-based default risk prediction models that take less time to calculate. To calculate forecasts by sub model to be used as input data for the Stacking Ensemble model, training data were divided into seven pieces, and sub-models were trained in a divided set to produce forecasts. To compare the predictive power of the Stacking Ensemble model, Random Forest, MLP, and CNN models were trained with full training data, then the predictive power of each model was verified on the test set. The analysis showed that the Stacking Ensemble model exceeded the predictive power of the Random Forest model, which had the best performance on a single model. Next, to check for statistically significant differences between the Stacking Ensemble model and the forecasts for each individual model, the Pair between the Stacking Ensemble model and each individual model was constructed. Because the results of the Shapiro-wilk normality test also showed that all Pair did not follow normality, Using the nonparametric method wilcoxon rank sum test, we checked whether the two model forecasts that make up the Pair showed statistically significant differences. The analysis showed that the forecasts of the Staging Ensemble model showed statistically significant differences from those of the MLP model and CNN model. In addition, this study can provide a methodology that allows existing credit rating agencies to apply machine learning-based bankruptcy risk prediction methodologies, given that traditional credit rating models can also be reflected as sub-models to calculate the final default probability. Also, the Stacking Ensemble techniques proposed in this study can help design to meet the requirements of the Financial Investment Business Regulations through the combination of various sub-models. We hope that this research will be used as a resource to increase practical use by overcoming and improving the limitations of existing machine learning-based models.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.13 no.1
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• pp.61-72
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• 2018

In a rapidly changing environment, such as globalization, technology-based startups are attracting attention as a new growth engine that creates jobs and added value and promotes national competitiveness. At present, countries around the world recognize the development of technology-based start-up companies as a major policy task and strive to make policy efforts to revitalize start-ups and strengthen innovation capabilities of companies. Especially, in order to secure superiority in the fierce market competition, it is becoming more and more important for the growth and development of technological start-up companies that pioneer new markets and energize the economy based on original and innovative technologies. Therefore, it is necessary to study systematically and plan for survival and growth of technology start-up companies. The purpose of this study is to investigate the entrepreneurial spirit of Innovation, Entrepreneurship, Risk Sensibility and Technology Innovation Capacity, R&D ability, Technology Accumulation Capacity, Technology Innovation System, The results of this study are as follows. the effects of marketing ability on technical performance and financial performance are examined. First, the CEO 's entrepreneurial spirit has an effect on the technical performance and financial performance of the management performance. Second, the technology accumulation ability and the R & D capability have a positive effect on the technical performance. Finally, it was found that the ability to commercialize the technology commercialization capacity affects both technical performance and financial performance. The policy implications that can be gained through this are as follows. First, by strengthening cooperation between universities and research institutes, related technology entrepreneurship education programs should be upgraded so that technology entrepreneurs or preliminary entrepreneurs can capture business opportunities and secure market price competitiveness. Secondly, R & D for the purpose of start-up should be developed and marketable technology should be developed and linked to direct start-up. Third, it is necessary to activate the program to match the company with the honorary retirement manpower of large enterprises and SMEs, which have more experience in field experience than the founders.

• Journal of Intelligence and Information Systems
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• v.24 no.3
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• pp.221-241
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• 2018

As we enter the knowledge society, the importance of information as a new form of capital is being emphasized. The importance of information classification is also increasing for efficient management of digital information produced exponentially. In this study, we tried to automatically classify and provide tailored information that can help companies decide to make technology commercialization. Therefore, we propose a method to classify information based on Korea Standard Industry Classification (KSIC), which indicates the business characteristics of enterprises. The classification of information or documents has been largely based on machine learning, but there is not enough training data categorized on the basis of KSIC. Therefore, this study applied the method of calculating similarity between documents. Specifically, a method and a model for presenting the most appropriate KSIC code are proposed by collecting explanatory texts of each code of KSIC and calculating the similarity with the classification object document using the vector space model. The IPC data were collected and classified by KSIC. And then verified the methodology by comparing it with the KSIC-IPC concordance table provided by the Korean Intellectual Property Office. As a result of the verification, the highest agreement was obtained when the LT method, which is a kind of TF-IDF calculation formula, was applied. At this time, the degree of match of the first rank matching KSIC was 53% and the cumulative match of the fifth ranking was 76%. Through this, it can be confirmed that KSIC classification of technology, industry, and market information that SMEs need more quantitatively and objectively is possible. In addition, it is considered that the methods and results provided in this study can be used as a basic data to help the qualitative judgment of experts in creating a linkage table between heterogeneous classification systems.

• Management & Information Systems Review
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• v.31 no.3
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• pp.223-248
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• 2012

This study analyses support policy and structural change of textile industry in Daegu Kyungbuk region, and suggests major issues for textile industry's innovation. In Daegu Kyungbuk, it was 1999 that a policy, so called Milano Project, in order to promote a textile industry was devised. In 2004, the Regional Industrial Promotion Plan was devised. The plan was born from a view point of establishing a regional innovation system and of promoting the innovative clusters under a knowledge based economy. After then, the Regional Industry Promotion Project or Regional Strategic Industry Promotion Project became a core of regional textile industrial policy. Research results indicated that the first stage Milano project (1999-2003) showed both positive and negative effects. There were no long-term development plan, clear vision and strategy. But, core industrial infrastructure for differentiated product development, such as New product Development Support Center and Dyeing Design Practical Application Center, was constructed. The second stage Daegu Textile Industry Promotion Plan (2004-2008) displayed a significant technological performance and new product sales with the assistance of Kyungbuk province. Also, textile industry revealed positive fruits such as financial structure, productivity, and profitability as a result of strong restructuring. In industrial structure, there was a important change from clothe textile material to industry textile material. Most of textile companies did not showed high capability in CEO's technology innovation intention, entrepreneurship, R&D and human resource competency in compare with other industry. We suggested that Daegu Kyungbuk has to select and concentrate on the high-tech textile material and living textile for sustainable development and competitiveness. We also proposed a confidence and cooperation based innovation network and company oriented innovation cluster.

• Journal of Korean Society of Transportation
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• v.23 no.1
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• pp.93-102
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• 2005

An Origin-Destination (O/D) is considered as one of the important information in route choices and trip assignments. A household interview survey is deemed to be the traditional and the most widely used method in making sample O/D and its conversion to the total O/D. Some researchers have studied to estimate dynamic O/D from the relationship between link volumes and trip assignment model. Nowadays, owing to the recent rapid spread of cellular phones. Location information of the cellular phone through the Base Station(BS) is considered as an alternative to O/D estimation. In this study, the methodology of generating BS-based O/D and the methodology of converting this O/D into an administrative district-based O/D are proposed. The information of GPS positions and cellular BS positions have acquired by establishing GPS equipment and cellular phone on taxies in Cheongju. Three weeks data are collected and used in estimating O/D by matching them on a digital map. Scatter diagram and sample correlation coefficients are used to investigate the similarity of the GPS-based O/D pattern among weeks, among days, and among times in day. The results show that there are few significant differences among weeks. But there is a difference in O/C pattern between weekday and weekend. Furthermore, there is a difference between morning peak and afternoon peak. Two methodologies are proposed to convert BS-based O/D into an administrative district-based O/D. The first one is to use the distribution pattern of GPS coordinates, the other is to use the coverage area of the BSs. To validate such converted O/D, GPS O/D is used as a true value. The statical analyses through scatter diagram, MAE and RMSE shows that there is few significant defference of pattern between the estimated BS-based O/D and GPS O/D. In the case of using only cellular information, the methodology using coverage area of the BSs is recommended for estimating O/D.

• Sleep Medicine and Psychophysiology
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• v.26 no.1
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• pp.44-48
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• 2019

Objectives: Insomnia is one of the most prevalent sleep disorders. Recent studies suggest that cognitive and physical arousal play an important role in the generation of primary insomnia. Studies have also shown that information processing disorders due to cortical hyperactivity might interfere with normal sleep onset and sleep continuity. Therefore, focusing on central nervous system arousal and normalizing the information process have become current topics of interest. It has been well known that neurofeedback can reduce the brain hyperarousal by modulating patients' brain waves during a sequence of behavior therapy. The purpose of this study was to investigate effects of neurofeedback therapy on electroencephalography (EEG) characteristics in patients with primary insomnia. Methods: Thirteen subjects who met the criteria for an insomnia diagnosis and 14 control subjects who were matched on sex and age were included. Neurofeedback and sham treatments were performed in a random order for 30 minutes, respectively. EEG spectral power analyses were performed to quantify effects of the neurofeedback therapy on brain wave forms. Results: In patients with primary insomnia, relative spectral theta and sigma power during a therapeutic neurofeedback session were significantly lower than during a sham session ($13.9{\pm}2.6$ vs. $12.2{\pm}3.8$ and $3.6{\pm}0.9$ vs. $3.2{\pm}1.0$ in %, respectively; p < 0.05). There were no statistically significant changes in other EEG spectral bands. Conclusion: For the first time in Korea, EEG spectral power in the theta band was found to increase when a neurofeedback session was applied to patients with insomnia. This outcome might provide some insight into new interventions for improving sleep onset. However, the treatment response of insomniacs was not precisely evaluated due to limitations of the current pilot study, which requires follow-up studies with larger samples in the future.