• Korean System Dynamics Review
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• v.12 no.1
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• pp.5-37
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• 2011

This article aims to clarify what is the best investment behavior in Capital Intensive Industries(hereinafter CIIs) which show repeated business cycles. In CIIs, investments is centered in the period of upturns and goes beyond the adequate level because of the time that takes to completion of facilities. This over-investment causes oversupply and downturn, and in period of downturn, investments shrinks under the adequate level. The repeated change of over-investment and under-investment is the reason for the business cycles. In this article, a simulation model replicating the business cycles in CIIs was constructed and the effects of various investment strategies was tested. The results are as follows. First, the investment behavior following market condition causes the ongoing fluctuation of profits. Second, strategic increase in flexibility such as adjustment of facility utilization and shortening of facility construction time contributes to the increase in profit and stabilization of income. Third, in relation to market condition, the constant investment is more profitable in stagnated market and the counter-market investment is more profitable in growing market. In sum, it is desirable not to synchronize their investment with those of competitors.

• Journal of Korean Institute of Industrial Engineers
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• v.21 no.3
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• pp.299-311
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• 1995

Conventional discounted cash flow techniques fail to capture the risk associated with investments. This paper proposes an annual cash flow model that considers risk, cost structure and inventory liquidation in the evaluation of investment alternatives. The risk differential of investments is included using the capital asset pricing model while the stochastic version of the cost-volume-profit approach is used to consider inventory liquidation and cost structure. Tradeoffs between fixed and variable costs have been investigated, and portrayed using iso-cash flow curves. The proposed cash flow model has been developed, in particular, to enable an accurate evaluation of advanced manufacturing systems.

• The Korean Journal of Applied Statistics
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• v.24 no.6
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• pp.1021-1031
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• 2011

Equity linked securities are indirect investments where the return of investment depends on the performance of the underlying equities. In this paper, we review the profit structure of typical equity linked securities through a profit diagram and investigate which characteristics of time series at the investment affect the early repayment of the stepdown ELS based on KOSPI 200 and HSI. We also compare VaRs using the empirical distribution function for risk management.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.51 no.6
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• pp.269-275
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• 2002

Recently, Korea's electric industry has experienced substantial changes in its structure and function including the introduction of competition in the generation sector. Korea is in the early stages of market competition where the market price is determined by generation costs. In the future, the market Price will be determined by generators'bids. Therefore, the generators'profit is determined by market pool price, the prospects of pool price are very important for new capacity investment decision made by generators and IPPS. This study analyzes hourly marginal costs and LOLP considering basic generation mix and characteristics develops the relationship of pool price and Profit by generation-type using the change in reserve margin, and proposes basic direction for profits variation and supply-demand analysis in the electricity market in future.

• International Journal of Quality Innovation
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• v.9 no.2
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• pp.57-77
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• 2008

The $21^{st}$ century is a new century of environmental protection. Environmental protection is one of the most important subject matters yet to come. Moreover, as the public pays more attention to environmental problems, enterprises should increase their investment in environmental management. Therefore, determining the investment level for environmental management and allocating the investment to associated environmental management activities has become a major task. The principal and agent theory and sales response functions are used for analysis in this research. The allocation of capital investment in environmental management is found to have significant impact on the aggregate sales response, aggregate profit and investment level. Therefore, in preparing the budget for environmental management, enterprises should focus on investment allocation decisions, determine the investment level and allocation method using integrated means, and apply submarket data in the allocation decision-making process. In other words, in setting the investment level, executive management should take managers' willingness into consideration. In allocating capital investment, managers should identify the optimal allocation method based on submarket characteristics.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.2
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• pp.75-82
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• 2019

The paper aims to investigate the impacts of long-term savings motives on fostering household participation and contribution to savings mechanisms in rural Vietnam. The paper is organized in five parts: introduction, data description, methodology, empirical results, and conclusion. The quantitative methodology is employed and three simultaneous estimation methods, including instrumental variable model, two-step model, and Heckman model are used to test these impacts as well as the robustness of results. In each model, the paper examines the impacts of independent factors on both household participation and household contribution to savings mechanisms. Two sets of independent variables: long-term savings motives (profit-making investment, accumulation for big expenditure, providing for old age, and cost of educations) and control variables (dependency rate, number of people in household, and household wealth) are in each model. A set of dataset of 2,314 households for analysis is obtained from household survey in rural Vietnam. Robust statistical findings indicate that profit-making investment emerged to be the strongest motive fostering household participation to savings mechanisms while other long-term savings motives have little or no impact on fostering household participation to savings mechanisms. In addition, education investment encourages household contribution to savings mechanisms in rural Vietnam.

• Journal of Korean Society for Quality Management
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• v.18 no.2
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• pp.117-126
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• 1990

The Purpose of this study is to grasp the general effects of measurement-related investment by industrial firms. We presupposed the hypothesis that the measurement-related investment affects the decrease of product inferiority rates and analyzed the investigation results by means of PIMS(Profit Improvement of Market Strategy) model. As the results, we found out that the firms with positive measurement-related investment showed for less inferiority rates of products considerably. This study put an emphasis on the verification results showing that the considerable increase of measurement-related investment decreases the product inferiority rate by the statistical methods.

• Proceedings of the Safety Management and Science Conference
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• 2003.05a
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• pp.245-253
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• 2003

In general, manufacture of medicine has demerit of long period in investment effect, high risk, expensiveness through new drug development. At empirical test, R&D investment for new drug development positively affects on profit in manufacture of medicine. In Korea, effect on R&D investment in manufacture of medicine occur faster than previous period. Manufacture of medicine is value added industry, compared to other industries. Moreover, U.S & Japan in R&D expenditure on sales respectively has 10.1%, 8.07%. This is 3-4 times, compared to R&D expenditure on sales of Korea. Conclusionally, the importance of R&D investment increase more and more in future. So, manufacture of medicine and Companies related this will care for R&D investment.

• Culinary science and hospitality research
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• v.3
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• pp.385-421
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• 1997

This study was performed as placing stress on business plan preparation and investing economy analysis centered to cases upon presenting the premises of study for new foundation of food service business. The summarized results are as follows: 1. In the aspect of carrying out process of practical project, establishing the promotion strategy, the facility project program, the menu program, the facility and furniture program, organization & manning schedule, the business operation schedule, review of all laws & provisions and the allout promotion schedule in order were deployed. 2. Analysis of investing economy for review of profitability 1) In case of investment, excluding 600million for the real setate lease among the total investment of 1billion, it was required by 161, 235, 000 for interior project, 161, 110, 000 for facility & equipment, 19, 235, 000 for fittings, 27, 600, 000 for menu plate & uniform, 27, 600, 000 for furniture, 13, 800, 000 for sign article. 2) In case of loss & profit presumed the annual turnover is to be 1, 115, 856, 000 the contigent profit(before tax) is to be 148, 966, 000 which is 13.3% in comparson to the sales amount and the net profit(after tax) for this term s to be 104, 276, 000 which is 9.3% against the sales and the profitable ratio to the equity investment( 500 million) is 20.9% and it satisfies 20% of the premises of study. 3) In case of the payback period will be approximately two(2) years which indicated within three(3) years that is standard of new project evaluation term of ordinary enterprise. 4) In case of internal rate of return it will be 21.5% which is favorable profitability as taking into account of 15% that is standard of new project evaluation by ordinary enterprise based on general downtown money interest. That the investing value of Happy Day profitability is hinted as it is sufficient enough as the case under this study based upon such results and considered that securing supremacy is competitive power in case of commitment will be possible.

• The Journal of Economics, Marketing and Management
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• v.3 no.3
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• pp.7-23
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• 2015

Women are more disadvantaged than men in many fronts and this confines them to informal sector livelihood activities. Any attempt to improve women's economic status will require information on the organization, cost and returns to investment in the livelihood activities in which they predominate. This is the issue for this study which compared yield performance in artisanal fishing and fresh fish marketing. Primary data collected through multi-stage sampling method were analyzed using inferential statistics, budgeting and regression models. Empirical findings revealed that about 75.0% of fisher folks either had no formal education or acquired only primary school education while 50.0% of marketers had secondary school education. The budgeting model revealed fisher-folks' and marketers' annual net profit to be N2,882,626.00 and N640,227.00, respectively. Profit from fishing was significantly higher than that of fish marketing. At 53.2% for fishing and 40.3% for marketing, returns to investment was better in fishing. Regression model results showed the significant factors influencing returns to each livelihood strategy to include fishing ground, distance covered and years of experience. The major constraint faced by operators of both livelihoods groups was insufficient credit. Despite this, the livelihood strategies were shown to be profitable ventures which contributed to households' consumption expenditure. Organizing women informal sector operators into groups to enhance access to government support and formal credit are recommended for improving livelihood strategy performance.