• Journal of Agricultural Extension & Community Development
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• v.23 no.2
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• pp.169-180
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• 2016

This paper assesses the role of informal institutions in determining risk preference among smallholders in Tigray, Ethiopia. We use data from a household survey conducted by the Institute of Poverty Alleviation and International Development (IPAID). We find that households which participate in Debo, an informal labor-sharing institution, or have a friend from whom they can receive help are less likely to be risk-averse. However, participation in Iddir, a traditional form of insurance, is not significantly associated with risk preference. Hence, the existence of social institutions that provide assistance and social connections through reciprocity may be affording security against risk beyond that brought by more monetary forms of insurance. Given the importance of risk attitude in mediating the adoption of improved agricultural production, a policy suggestion is to provide selected aid to households which are less risk-averse agricultural investors. Also, Debo as a labor-sharing institution may serve as a nexus for managing aid and knowledge sharing.

• Journal of Korea Trade
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• v.24 no.1
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• pp.1-34
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• 2020

Purpose - In this study, we investigate determinants of hedging with derivatives and its effect on firm value and firm risk for Korean firms. Design/methodology - To avoid the endogeneity problem pointed out in previous studies, we use a two-stage analysis by using gains and losses from derivatives as instrument variable for hedging with derivatives. Findings - Our analysis on the determinants of hedging shows that firms that are more leveraged and less profitable, and with more growth opportunities are likely to hedge through derivatives. Additionally, large firms, firms less diversified into industry, and firms more diversified geographically are likely to use derivatives. Our two-stage analysis shows that indicators of hedging with derivatives have an insignificant effect on firm value, and the indicator of futures/forwards use and of swaps use have significant negative effect on firm value. Whereas, the extent of hedging with derivatives has positive effect on firm value for all types of foreign currency derivatives, which suggests that moderately low hedgers use derivatives inefficiently, but extensive hedgers use derivatives properly. With regard to firm risk, hedging with derivatives increases market-based risk, but decreases accounting-based risk. Thus, we conclude that Korean firms use derivatives to manage operational volatility rather than to manage market risk, and accounting-based risk reduction through hedging is not directly translated into higher firm value. Originality/value - This is not the first study to investigate hedging behavior of Korean firms, but the sample period that that this study analyzed is the longest and various method are used to control the endogeneity problem. We investigate not only total foreign currency derivatives but also by types of derivatives, including futures/forwards, options, and swaps.

• Asia-Pacific Journal of Business
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• v.5 no.2
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• pp.37-50
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• 2014

Banking institutions have been facing variety of difficulties but the major cause of serious banking problems relates to lax credit standards for borrowers and counterparties, poor portfolio risk management, or a lack of attention to changes in economic or other circumstances that can lead to deterioration in the credit standing of a bank's counterparties. Although credit risk is an important factor that financial institutions should cope with, but the determinants of measuring credit risk have been studied less. This paper attempts to explore the determinants of credit risk measurement and to identify the factors that contribute to credit risk measurement practices in Indian banks and to compare credit risk measurement practices followed by Indian public and private sector banks, the empirical study has been conducted and views of employees of various banks have been tested using statistical tools. This study explored the phenomenon from different perspectives and revealed that single-name credit risk measurement and portfolio credit risk measurement are the key components that contribute to credit risk measurement in Indian banks. From the descriptive and analytical results, it can be concluded that Indian banks efficiently measure credit risk. The results also indicate that there is a significant difference between the Indian public and private sector banks in single-name credit risk measurement while, these banks do not significantly differ in portfolio credit risk measurement aspect.

• Journal of The Korean Society of Integrative Medicine
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• v.10 no.1
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• pp.1-11
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• 2022

Purpose : Obesity is a major public health burden in developed countries and a well-known risk factor for cardiovascular disease. Short sleep duration is associated with obesity, as well as diabetes, heart disease and death. In modern society, habitual sleep restrictions seem unavoidable due to social obligations and work schedules along with a tendency toward decreased sleep time. Therefore, the purpose of this study is to examine the effect of differences in sleep time between weekdays and weekends on body mass index (BMI). Methods : This study involved 4,234 Korean adults aged 20 to 64 years based on data obtained from the 7th national health and nutrition examination survey (2016). All subjects were classified into the weekend catch-up sleep group (weekend CUS group). and the non catch-up sleep group (non-CUS group). Results : The longer the average sleep time, the lower was the BMI, and the larger the difference in sleep time between weekdays and weekends, the lower was the BMI. Compared with those with an average sleep time of 8 hours or more, obesity was 1.6-fold higher when the average sleep time was less than 6 hours, and 1.2-fold higher in the case of sleep time of 7 hours or more and less than 8 hours. When the difference in sleep time between weekdays and weekends was 0 or less, more than 0 hours but less than 1 hour, and more than 1 hour and less than 2 hours, the risk of obesity was 1.2-fold, 1.1-fold and 1.1-fold higher, respectively, compared with the risk associated with a sleep time difference of 2 hours or greater between weekdays and weekends. However, the difference was not statistically significant. Conclusion : Short sleep duration is positively associated with obesity. In addition, weekend catch-up sleep affects BMI.

• Journal of Distribution Science
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• v.13 no.5
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• pp.71-82
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• 2015

Purpose - The purpose of this study is to investigate risk price implied from the pricing kernel of Korean stock distribution market. Recently, it is considered that the quantitative easing programs of major developed countries are contributing to a reduction in global uncertainty caused by the 2007~2009 financial crisis. If true, the risk premium as compensation for global systemic risk or economic uncertainty should show a decrease. We examine whether the risk price in the Korean stock distribution market has declined in recent years, and attempt to provide practical implications for investors to manage their portfolios more efficiently, as well as academic implications. Research design, data and methodology - To estimate the risk price, we adopt a non-parametric method; the minimum norm pricing kernel method under the LOP (Law of One Price) constraint. For the estimation, we use 17 industry sorted portfolios provided by the KRX (Korea Exchange). Additionally, the monthly returns of the 17 industry sorted portfolios, from July 2000 to June 2014, are utilized as data samples. We set 120 months (10 years) as the estimation window, and estimate the risk prices from July 2010 to June 2014 by month. Moreover, we analyze correlation between any of the two industry portfolios within the 17 industry portfolios to suggest further economic implications of the risk price we estimate. Results - According to our results, the risk price in the Korean stock distribution market shows a decline over the period of July 2010 to June 2014 with statistical significance. During the period of the declining risk price, the average correlation level between any of the two industry portfolios also shows a decrease, whereas the standard deviation of the average correlation shows an increase. The results imply that the amount of systematic risk in the Korea stock distribution market has decreased, whereas the amount of industry-specific risk has increased. It is one of the well known empirical results that correlation and uncertainty are positively correlated, therefore, the declining correlation may be the result of decreased global economic uncertainty. Meanwhile, less asset correlation enables investors to build portfolios with less systematic risk, therefore the investors require lower risk premiums for the efficient portfolio, resulting in the declining risk price. Conclusions - Our results may provide evidence of reduction in global systemic risk or economic uncertainty in the Korean stock distribution market. However, to defend the argument, further analysis should be done. For instance, the change of global uncertainty could be measured with funding costs in the global money market; subsequently, the relation between global uncertainty and the price of risk might be directly observable. In addition, as time goes by, observations of the risk price could be extended, enabling us to confirm the relation between the global uncertainty and the effect of quantitative easing. These topics are beyond our scope here, therefore we reserve them for future research.

• Journal of the Korean Society of Safety
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• v.29 no.1
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• pp.80-85
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• 2014

A survey of risk perception in South Korea was conducted in 2007 to evaluate relative riskiness of typical industrial and technological risks. This article summarizes the characteristics of risk perception using psychometric analyses. The survey with a sample size of 1,194 reviews the perceived level of 25 risk items in the areas of transportation, chemicals, environment, industry, nuclear power generation, and newly-introduced risks. Six categories of risk identified by a factor analysis show that the level of perceived risk does not correspond to the statistical level. Psychometric analyses including voluntariness, severity, effect manifestation, exposure pattern, controllability, familiarity, benefit and necessity demonstrate that voluntary, familiar and immediate risks are perceived as less risky than involuntary, unfamiliar and delayed ones. Risk communication is critical in reducing the discrepance between objective and subjective level of risk. However, the amount of risk information does not always justify a successful risk communication. A safety policy, risk communication strategy in particular, should take into account diverse dimensions of risk reviewed by psychometric analyses in the study. Social policy toward safety can be improved by integrating policy, human, and social factors as well as technological advances.

• Journal of the Korean Statistical Society
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• v.27 no.4
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• pp.485-494
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• 1998

In the white noise model we construct an adaptive estimate for f(0) for a decreasing function f. We also show that the maximum mean square error of this estimate attains the same rate as the minimax risk simultaneously over a range of Lipschitz classes of order less than or equal to one.

• Proceedings of the Korean Institute of Intelligent Systems Conference
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• 2006.05a
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• pp.3-6
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• 2006

Methods for risk engineering is a bundle of engineering tools including fundamental concepts and approaches of soft computing with application to real issues of risk management. In this talk fundamental concepts and soft computing approaches of risk engineering will be introduced. As the term of risk implies both advantageous and hazardous uncertainty in its origins, a fundamental theory to describe uncertainties is introduced that includes traditional probability and statistical models, fuzzy systems, as well as less popular modal logic. In particular, modal logic capabilities to express various kinds of uncertainties are emphasized and relations with rough sets and evidence theory are described. Another topic is data mining related to problems in risk management. Some risk mining techniques including fuzzy clustering are introduced and a recently developed algorithm is overviewed. A numerical example is shown.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.36 no.3
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• pp.43-50
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• 2013

In this paper, the single-period inventory problem, what is called newsboy problem, has been revisited with two different conditions, uncertain supply and risk-averseness. Eeckhoudt et al. [5] investigated the effect of risk-averseness of a newsboy on the optimal order quantity in a stochastic demand setting. In contrary to Eeckhoudt et al. [5] this paper investigates the effect of risk-averseness in a stochastic supply setting. The findings from this investigation say that if ${\alpha}^*$ represents the optimal order quantity without risk-averseness then the risk-averse optimal order quantity can be greater than ${\alpha}^*$ and can be less than ${\alpha}^*$ as well.

• Nutrition Research and Practice
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• v.5 no.3
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• pp.236-245
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• 2011

This study investigated the correlation between consumption of sugar intake by fifth grade students in primary schools and development of Attention Deficit Hyperactivity Disorder (ADHD). A total of 107 students participated, and eight boys and one girl (8.4% of the total) categorized as high risk for ADHD according to diagnostic criteria. There were significant differences in the occupations and drinking habits of the respondents' fathers between the normal group and risk group. In a comparison of students' nutrition intake status with daily nutrition intake standards for Koreans, students consumed twice as much protein as the recommended level, whereas their calcium intake was only 60% of the recommended DRI (dietary reference intake). Regarding intake volume of vitamin C, the normal group posted 143.9% of the recommended DRI, whereas the risk group showed only 65.5% of the recommended DRI. In terms of simple sugar intake from snacks, students in the normal group consumed 58.4 g while the risk group consumed 50.2 g. These levels constituted 12.5% of their total daily volume of sugar intake from snacks, which is higher than the 10% standard recommended by the WHO. In conclusion, children who consumed less sugar from fruit snacks or whose vitamin C intake was less than RI was at increased risks for ADHD (P < 0.05). However, no significant association was observed between total volume of simple sugar intake from snacks and ADHD development.