• Journal of Intelligence and Information Systems
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• v.21 no.4
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• pp.111-131
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• 2015

There are only a handful number of research conducted on pattern analysis of corporate distress as compared with research for bankruptcy prediction. The few that exists mainly focus on audited firms because financial data collection is easier for these firms. But in reality, corporate financial distress is a far more common and critical phenomenon for non-audited firms which are mainly comprised of small and medium sized firms. The purpose of this paper is to classify non-audited firms under distress according to their financial ratio using data mining; Self-Organizing Map (SOM). SOM is a type of artificial neural network that is trained using unsupervised learning to produce a lower dimensional discretized representation of the input space of the training samples, called a map. SOM is different from other artificial neural networks as it applies competitive learning as opposed to error-correction learning such as backpropagation with gradient descent, and in the sense that it uses a neighborhood function to preserve the topological properties of the input space. It is one of the popular and successful clustering algorithm. In this study, we classify types of financial distress firms, specially, non-audited firms. In the empirical test, we collect 10 financial ratios of 100 non-audited firms under distress in 2004 for the previous two years (2002 and 2003). Using these financial ratios and the SOM algorithm, five distinct patterns were distinguished. In pattern 1, financial distress was very serious in almost all financial ratios. 12% of the firms are included in these patterns. In pattern 2, financial distress was weak in almost financial ratios. 14% of the firms are included in pattern 2. In pattern 3, growth ratio was the worst among all patterns. It is speculated that the firms of this pattern may be under distress due to severe competition in their industries. Approximately 30% of the firms fell into this group. In pattern 4, the growth ratio was higher than any other pattern but the cash ratio and profitability ratio were not at the level of the growth ratio. It is concluded that the firms of this pattern were under distress in pursuit of expanding their business. About 25% of the firms were in this pattern. Last, pattern 5 encompassed very solvent firms. Perhaps firms of this pattern were distressed due to a bad short-term strategic decision or due to problems with the enterpriser of the firms. Approximately 18% of the firms were under this pattern. This study has the academic and empirical contribution. In the perspectives of the academic contribution, non-audited companies that tend to be easily bankrupt and have the unstructured or easily manipulated financial data are classified by the data mining technology (Self-Organizing Map) rather than big sized audited firms that have the well prepared and reliable financial data. In the perspectives of the empirical one, even though the financial data of the non-audited firms are conducted to analyze, it is useful for find out the first order symptom of financial distress, which makes us to forecast the prediction of bankruptcy of the firms and to manage the early warning and alert signal. These are the academic and empirical contribution of this study. The limitation of this research is to analyze only 100 corporates due to the difficulty of collecting the financial data of the non-audited firms, which make us to be hard to proceed to the analysis by the category or size difference. Also, non-financial qualitative data is crucial for the analysis of bankruptcy. Thus, the non-financial qualitative factor is taken into account for the next study. This study sheds some light on the non-audited small and medium sized firms' distress prediction in the future.

• Journal of Intelligence and Information Systems
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• v.25 no.2
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• pp.39-55
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• 2019

Recently banks and large financial institutions have introduced lots of Robo-Advisor products. Robo-Advisor is a Robot to produce the optimal asset allocation portfolio for investors by using the financial engineering algorithms without any human intervention. Since the first introduction in Wall Street in 2008, the market size has grown to 60 billion dollars and is expected to expand to 2,000 billion dollars by 2020. Since Robo-Advisor algorithms suggest asset allocation output to investors, mathematical or statistical asset allocation strategies are applied. Mean variance optimization model developed by Markowitz is the typical asset allocation model. The model is a simple but quite intuitive portfolio strategy. For example, assets are allocated in order to minimize the risk on the portfolio while maximizing the expected return on the portfolio using optimization techniques. Despite its theoretical background, both academics and practitioners find that the standard mean variance optimization portfolio is very sensitive to the expected returns calculated by past price data. Corner solutions are often found to be allocated only to a few assets. The Black-Litterman Optimization model overcomes these problems by choosing a neutral Capital Asset Pricing Model equilibrium point. Implied equilibrium returns of each asset are derived from equilibrium market portfolio through reverse optimization. The Black-Litterman model uses a Bayesian approach to combine the subjective views on the price forecast of one or more assets with implied equilibrium returns, resulting a new estimates of risk and expected returns. These new estimates can produce optimal portfolio by the well-known Markowitz mean-variance optimization algorithm. If the investor does not have any views on his asset classes, the Black-Litterman optimization model produce the same portfolio as the market portfolio. What if the subjective views are incorrect? A survey on reports of stocks performance recommended by securities analysts show very poor results. Therefore the incorrect views combined with implied equilibrium returns may produce very poor portfolio output to the Black-Litterman model users. This paper suggests an objective investor views model based on Support Vector Machines(SVM), which have showed good performance results in stock price forecasting. SVM is a discriminative classifier defined by a separating hyper plane. The linear, radial basis and polynomial kernel functions are used to learn the hyper planes. Input variables for the SVM are returns, standard deviations, Stochastics %K and price parity degree for each asset class. SVM output returns expected stock price movements and their probabilities, which are used as input variables in the intelligent views model. The stock price movements are categorized by three phases; down, neutral and up. The expected stock returns make P matrix and their probability results are used in Q matrix. Implied equilibrium returns vector is combined with the intelligent views matrix, resulting the Black-Litterman optimal portfolio. For comparisons, Markowitz mean-variance optimization model and risk parity model are used. The value weighted market portfolio and equal weighted market portfolio are used as benchmark indexes. We collect the 8 KOSPI 200 sector indexes from January 2008 to December 2018 including 132 monthly index values. Training period is from 2008 to 2015 and testing period is from 2016 to 2018. Our suggested intelligent view model combined with implied equilibrium returns produced the optimal Black-Litterman portfolio. The out of sample period portfolio showed better performance compared with the well-known Markowitz mean-variance optimization portfolio, risk parity portfolio and market portfolio. The total return from 3 year-period Black-Litterman portfolio records 6.4%, which is the highest value. The maximum draw down is -20.8%, which is also the lowest value. Sharpe Ratio shows the highest value, 0.17. It measures the return to risk ratio. Overall, our suggested view model shows the possibility of replacing subjective analysts's views with objective view model for practitioners to apply the Robo-Advisor asset allocation algorithms in the real trading fields.

• The korean journal of orthodontics
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• v.27 no.5 s.64
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• pp.815-824
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• 1997

The purpose of this study is to develop the basic algorithm for the finite element method modeling of individual malocclusions. Usually, a great deal of time is spent in preprocessing. To reduce the time required, we developed a standardized procedure for measuring the position of each tooth and a program to automatically preprocess. The following procedures were carried to complete this study. 1. Twenty-eight teeth morphologies were constructed three-dimensionally for the finite element analysis and saved as separate files. 2. Standard brackets were attached so that the FA points coincide with the center of the brackets. 3. The study model of a patient was made. 4. Using the study model, the crown inclination, angulation, and the vertical distance from the tip of a tooth was measured by using specially designed tools. 5. The arch form was determined from a picture of the model with an image processing technique. 6. The measured data were input as a rotational matrix. 7. The program provides an output file containing the necessary information about the three-dimensional position of teeth, which is applicable to several finite element programs commonly used. The program for a basic algorithm was made with Turbo-C and the subsequent outfile was applied to ANSYS. This standardized model measuring procedure and the program reduce the time required, especially for preprocessing and can be applied to other malocclusions easily.

• Journal of KIISE:Software and Applications
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• v.33 no.2
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• pp.143-153
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• 2006

Microarray which enables us to obtain hundreds and thousands of expression of gene or genotype at once is an epoch-making technology in comparative analysis of genes. First of all, we have to measure the intensity of each gene in an microarray image from the experiment to gain the expression level of each gene. But it is difficult to analyze the microarray image in manual because it has a lot of genes. Meta-gridding method and various auto-gridding methods have been proposed for this, but thew still have some problems. For example, meta-gridding requires manual-work due to some variations in spite of experiment in same microarray, and auto-gridding nay not carried out fully or correctly when an image has a lot of noises or is lowly expressed. In this article, we propose Hierarchical Grid Alignment algorithm for new methodology combining meta-gridding method with auto-gridding method. In our methodology, we necd a meta-grid as an input, and then align it with the microarray image automatically. Experimental results show that the proposed method serves more robust and reliable gridding result than the previous methods. It is also possible for user to do more reliable batch analysis by using our algorithm.

• Journal of Intelligence and Information Systems
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• v.21 no.2
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• pp.131-150
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• 2015

Omission of noun phrases for obligatory cases is a common phenomenon in sentences of Korean and Japanese, which is not observed in English. When an argument of a predicate can be filled with a noun phrase co-referential with the title, the argument is more easily omitted in Encyclopedia texts. The omitted noun phrase is called a zero anaphor or zero pronoun. Encyclopedias like Wikipedia are major source for information extraction by intelligent application systems such as information retrieval and question answering systems. However, omission of noun phrases makes the quality of information extraction poor. This paper deals with the problem of developing a system that can restore omitted noun phrases in encyclopedia documents. The problem that our system deals with is almost similar to zero anaphora resolution which is one of the important problems in natural language processing. A noun phrase existing in the text that can be used for restoration is called an antecedent. An antecedent must be co-referential with the zero anaphor. While the candidates for the antecedent are only noun phrases in the same text in case of zero anaphora resolution, the title is also a candidate in our problem. In our system, the first stage is in charge of detecting the zero anaphor. In the second stage, antecedent search is carried out by considering the candidates. If antecedent search fails, an attempt made, in the third stage, to use the title as the antecedent. The main characteristic of our system is to make use of a structural SVM for finding the antecedent. The noun phrases in the text that appear before the position of zero anaphor comprise the search space. The main technique used in the methods proposed in previous research works is to perform binary classification for all the noun phrases in the search space. The noun phrase classified to be an antecedent with highest confidence is selected as the antecedent. However, we propose in this paper that antecedent search is viewed as the problem of assigning the antecedent indicator labels to a sequence of noun phrases. In other words, sequence labeling is employed in antecedent search in the text. We are the first to suggest this idea. To perform sequence labeling, we suggest to use a structural SVM which receives a sequence of noun phrases as input and returns the sequence of labels as output. An output label takes one of two values: one indicating that the corresponding noun phrase is the antecedent and the other indicating that it is not. The structural SVM we used is based on the modified Pegasos algorithm which exploits a subgradient descent methodology used for optimization problems. To train and test our system we selected a set of Wikipedia texts and constructed the annotated corpus in which gold-standard answers are provided such as zero anaphors and their possible antecedents. Training examples are prepared using the annotated corpus and used to train the SVMs and test the system. For zero anaphor detection, sentences are parsed by a syntactic analyzer and subject or object cases omitted are identified. Thus performance of our system is dependent on that of the syntactic analyzer, which is a limitation of our system. When an antecedent is not found in the text, our system tries to use the title to restore the zero anaphor. This is based on binary classification using the regular SVM. The experiment showed that our system's performance is F1 = 68.58%. This means that state-of-the-art system can be developed with our technique. It is expected that future work that enables the system to utilize semantic information can lead to a significant performance improvement.

• Journal of the Institute of Electronics Engineers of Korea SP
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• v.44 no.2 s.314
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• pp.63-73
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• 2007

This paper proposes an illuminant-adaptive reproduction method using light adaptation and flare conditions for a mobile display. Displayed images in daylight are perceived as quite dark due to the light adaptation of the human visual system, as the luminance of a mobile display is considerably lower than that of an outdoor environment. In addition, flare phenomena decrease the color gamut of a mobile display and de-saturating the chroma. Therefore, this paper presents an enhancement method composed of lightness enhancement and chroma compensation. First, the ambient light intensity is measured using a lux-sensor, then the flare is calculated based on the reflection ratio of the display device and the ambient light intensity. To improve the perceived image, the image's luminance is transformed by linearization of the response to the input luminance according to the ambient light intensity. Next, the displayed image is compensated according to the physically reduced chroma, resulting from flare phenomena. This study presents a color reproduction method based on an inverse cone response curve and flare condition. Consequently, the proposed algorithm improves the quality of the perceived image adaptive to an outdoor environment.

• Proceedings of the Korean Society of Near Infrared Spectroscopy Conference
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• 2001.06a
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• pp.1522-1522
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• 2001

Beverages based on fruit juices are among the most popular commercially available drinks. There is an ever-increasing demand for these juices in the market. Orange juice is one of the most common as well as most favorite flavor. The fruit processing industries have a tremendous responsibility of quality control. For quality evaluation estimation of various components of the juice is necessary. Sucrose, glucose, fructose, citric acid and malic acid are the prime components of orange juice. Little information is available on analysis of orange juice. However, conventional and general wet chemistry procedures are currently being used which are no longer desired by the industry owing to the time involved, labor input and harmful chemicals required for each analysis. Need to replace these techniques with new, highly specific and automated sophisticated techniques viz. HPLC and spectroscopy has been realized since long time. Potential of Near Infrared Spectroscopy in quantitative analysis of different components of food samples has also been well established. A rapid, non-destructive and accurate technique based on Near Infrared Spectroscopy for determination of sugars and organic acids in orange juice will be highly useful. The current study is an investigation into the potential of Near Infrared Diffuse Reflectance Spectroscopy for rapid quantitative analysis of sucrose, glucose, fructose citric acid and malic acid in orange juice. All the Near Infrared measurements were peformed on a dispersive NIR spectrophotometer (ELICO 153) in diffuse reflectance mode. The spectral region from 1100 to 2500nm has been explored. The calibration has been performed on synthetic samples that are mixtures of sucrose, glucose, fructose, citric acid and malic acid in different concentration ranges typically encountered real orange juice. These synthetic samples are therefore considered to be representatives of natural juices. All the Near Infrared spectra of synthetic samples were subjected to mathematical analysis using Partial Least Square (PLS) algorithm. After the validation, calibration was applied to commercially available real samples and freshly squeezed natural juice samples. The actual concentrations were compared with those predicted from calibration curve. A good correlation is obtained between actual and predicted values as indicated by correlation coefficient ($R^2$) value, which is close to unity, showing the feasibility of the technique.

• Journal of KIISE:Databases
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• v.37 no.1
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• pp.1-11
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• 2010

Recently, there has been a growing interest in the processing of continuous queries over multiple data streams. When the arrival rates of tuples exceed the memory capacity of the system, a load shedding technique is used to avoid the system becoming overloaded by dropping some subset of input tuples. In this paper, we propose an effective load shedding algorithm for multi-way windowed joins over multiple data streams. Most previous load shedding algorithms estimate the productivity of each tuple, i.e., the number of join output tuples produced by the tuple, based on its "join attribute value" and drop tuples with the lowest productivity. However, the productivity of a tuple cannot be accurately estimated from its join attribute value when the join attribute values are unique and do not repeat, or the distribution of the join attribute values changes over time. For these cases, we estimate the productivity of a tuple based on its "arrival order" on data streams, rather than its join attribute value. The proposed method can effectively estimate the productivity of a tuple even when the productivity of a tuple cannot be accurately estimated from its join attribute value. Through extensive experiments and analysis, we show that our proposed method outperforms the previous methods in terms of effectiveness and efficiency.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.11
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• pp.878-883
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• 2020

Cryptographic algorithms are used to prevent the illegal manipulation of data. They are divided into public-key cryptosystems and symmetric-key cryptosystems. Public-key cryptosystems require considerable time for encryption and decryption compared to symmetric-key cryptosystem. On the other hand, key management, and delivery are easier for public-key cryptosystems than symmetric-key cryptosystems because different keys are used for encryption and decryption. Furthermore, hash functions are being used very effectively to verify the integrity of the digital content, as they always generate output with a fixed size using the data of various sizes as input. This paper proposes a method using RSA public-key cryptography and a hash function to determine if a digital image is deformed or not and to detect the manipulated location. In the proposed method, the entire image is divided into several blocks, 64×64 in size. The watermark is then allocated to each block to verify the deformation of the data. When deformation occurs, the manipulated pixel will be divided into smaller 4×4 sub-blocks, and each block will have a watermark to detect the location. The safety of the proposed method depends on the security of the cryptographic algorithm and the hash function.

• Journal of Broadcast Engineering
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• v.17 no.3
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• pp.519-528
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• 2012

Voice activity detection (VAD) is generally conducted by extracting features from the acoustic signal and a decision rule. The performance of such VAD algorithms driven by the input acoustic signal highly depends on the acoustic noise. When video signals are available as well, the performance of VAD can be enhanced by using the visual information which is not affected by the acoustic noise. Previous visual VAD algorithms usually use single visual feature to detect the lip activity, such as active appearance models, optical flow or intensity variation. Based on the analysis of the weakness of each feature, we propose to combine intensity change measure and the optical flow in the mouth region, which can compensate for each other's weakness. In order to minimize the computational complexity, we develop simple measures that avoid statistical estimation or modeling. Specifically, the optical flow is the averaged motion vector of some grid regions and the intensity variation is detected by simple thresholding. To extract the mouth region, we propose a simple algorithm which first detects two eyes and uses the profile of intensity to detect the center of mouth. Experiments show that the proposed combination of two simple measures show higher detection rates for the given false positive rate than the methods that use a single feature.