• East Asian Economic Review
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• v.23 no.4
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• pp.333-351
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• 2019

We use a data-mining bootstrap procedure to investigate the predictability test in the eight Asia-Pacific regional stock markets using in-sample and out-of-sample forecasting models. We address ourselves to the data-mining bias issues by using the data-mining bootstrap procedure proposed by Inoue and Kilian and applied to the US stock market data by Rapach and Wohar. The empirical findings show that stock returns are predictable not only in-sample but out-of-sample in Hong Kong, Malaysia, Singapore, and Korea with a few exceptions for some forecasting horizons. However, we find some significant disparity between in-sample and out-of-sample predictability in the Korean stock market. For Hong Kong, Malaysia, and Singapore, stock returns have predictable components both in-sample and out-of-sample. For the US, Australia, and Canada, we do not find any evidence of return predictability in-sample and out-of-sample with a few exceptions. For Japan, stock returns have a predictable component with price-earnings ratio as a forecasting variable for some out-of-sample forecasting horizons.

• KDI Journal of Economic Policy
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• v.33 no.1
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• pp.93-124
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• 2011

In this paper, we claim the asymmetric response of asset returns on the past asset returns' signs may be explained from the market behavioral portfolio choice of investors. For this, we admit the anchor and adjustment mechanism of investors which partly explains the momentum in the asset prices. We also claim the prospect theory based on the risk aversions may simultaneously work with the anchor and adjustment effect, whenever the lagged asset return was positive and investors accrued the gain. To identify these effects empirically in a threshold autoregressive model, we suppose the risk aversions inducing the volatility effect is related with the past volatility of asset returns. In application of suggested method to Korean stock and real estate markets, we found these effect exist as expected.

• Asian Journal of Innovation and Policy
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• v.10 no.1
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• pp.68-89
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• 2021

The expansion of irrigated agricultural production can be appropriate for the southeast region in the U.S. as a climate change adaptation strategy. This study investigated the effect of supplemental development of irrigated agriculture on the regional economy by applying the supply side Georgia multiregional input-output (MRIO) model. For the analysis, 100% conversion of non-irrigated cultivable acreage into irrigated acreage for cotton, peanuts, corn, and soybeans in 42 counties of southwest Georgia is assumed. With this assumption, the difference in total net returns of production between the non-irrigation and irrigation method is calculated as input data of the Georgia MRIO model. Based on the information of a 95% confidence interval for each crop's average price, the lower and upper bounds of estimated results are also presented. The total impact of cotton production was $60 million with the range of $35 million to $85 million: The total impact of peanuts, soybeans, corn was $10.2 million (the range of $3.28 million to $23.7 million), $6.6 million (the range of $3.1 million to $10.2 million), $1.2 million (the range of -$6 million to $8.5 million), respectively.

• KDI Journal of Economic Policy
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• v.13 no.2
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• pp.141-161
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• 1991

Resale price maintenance has long been employed in book distribution, perhaps longer than for any other product. Another unusual practice in the book trade that has proven to be quite durable in spite of its substantial cost in real resources is the returns policy. Publishers typically grant the right to return unsold books within a stipulated time for full credit against future orders. This paper investigates the functions and effects of resale price maintenance in the book trade, and argues that resale price maintenance and returns are substitute methods of providing the same economic function. Resale price maintenance can be used to compensate booksellers for initially stocking books with uncertain prospects and for providing a conduit through which manufacturers acquire information about consumer demand (market testing services). Permitting the return of unsold books for full credit places a floor under retail prices and transfers a considerable portion of the cost of introducing a new product line back to the publisher. Both reflect publishers' needs to have their books displayed. In the U.S. returns privileges were first proposed in 1913, roughly coincident with the Macy decision outlawing RPM. Publishers slowly granted return privileges, which become nearly universal by 1970. The decline in margins in recent years has been accompanied by an increase in returns as the return policy served to substitute for lost margins on successful titles as a methods of compensating full-line booksellers. In contrast, returns privileges are unusual in countries where price maintenance in books has been practiced. These observations are consistent with our analysis. In Korea, resale price maintenance of books is practiced under an exception to Korean antitrust law. The availability of effective price maintenance is likely to reduce the use of returns programs. Since consumers prefer to obtain books at outlets where they know the books are likely to be stocked rather than taking a chance on stores that carry a more limited line, it also provides a strong incentive for booksellers to expand. But the privilege of resale price maintenance should be confined to books which publishers want to be price maintained. Resale price maintenance and returns system differ in the transactions costs associated with inventory holding, and publishers' judgement on the comparative advantage of the two schemes should be honored. Publishers should also remain free to authorize sales at discount at any time not to impair the ability of booksellers to dispose of product variants that prove unpopular.

• Knowledge Management Research
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• v.13 no.5
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• pp.139-160
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• 2012

Win-win growth between large companies and small and medium enterprises (SMEs) become a critical encomic and social issue in Korea. Korea government has been attempted to establish strong policy to build right win-win relationship between large companies and SMEs. Along with this strong drive from Korea government, a variety of strategies that enhance win-win relationships between large companies and SMEs have been adopted. Win-win growth policy is expected to provide positive impact on sustainable competitive advantage of firms. Therefore, many studies have focused on the win-win growth policy success factors, type of the policy, and the results of the policy. Although there is much literature on the win-win growth policy, the effects of win-win policy on firm value is not well understood. We addressed this issue by exploring how win-win growth policy influences a firm's market value using event study methodology. We evaluated the cumulative abnormal returns for win-win growth policy announced by Korean large firms from 2004 to 2012. The results of this study insisted that the announcements of win-win growth policy show negative impact on firm's market value, which is not consistent with previous studies. The findings of this study offer insights that may help government policy makers and managers to revise their policy for better outcomes of their win-win growth policy.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.4
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• pp.97-109
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• 2014

The purpose of this study is, as to verify the effect of IR announcements, the IR activity to look at the usefulness. In previous study, they found that the IR announcement leads to reductions in information asymmetry, effect to positive stock price. This study examine the abnormal returns between group by corporate characteristics. The data used in this study are daily stock market returns taken from the KOSDAQ listed company with IR announcements during the 2005-2012 year(8 year). We find that follows. First, the capital market is accepted IR activity as the positive information. Second, abnormal returns of small company is higher than big size that. We show the difference of abnormal returns between the venture company and general company, the venture company's high. The abnormal returns of corporate with high ownership is above the group of low ownership. Additionally, consider interaction by firm characteristics, we show the interaction between firm size and business type. The result of two-way ANOVA is that venture corporate with big size are more abnormal returns than others. Also, we demonstrate that firm location is the factor of difference on information effect in venture firm.

• Korean System Dynamics Review
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• v.8 no.2
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• pp.5-23
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• 2007

According to the system dynamics model of this study, if there is a significant network effect on vehicle operating costs, it is difficult to achieve the shift to AFV even in the long term without a policy intervention because the car market is locked in to the current structure. Network effect can be caused by an increasing return to scale in fuel supply sector as well as in maintenance service sector. It is also related to the fact that the reliability and awareness of consumers on new products increases with the growth of the market share of the new products. There are several possible policy options to break the 'locked in' structure of car market, such as subsidy on vehicle price (capital cost), subsidy on fuel (operating cost) and niche management policy. Combined policy options would be more effective than relying on a single policy option to increase the market share of AFV.

• KDI Journal of Economic Policy
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• v.44 no.2
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• pp.29-44
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• 2022

This study compares the wage equation in Korea to those in other countries, focusing on the wage returns to adult education and training (AET) participation. It is found that the wage compensation structure in Korea is associated mainly with job characteristics such as tenure and workplace size rather than with worker characteristics such as AET participation and cognitive abilities. It is also found that Korea's AET participation is skewed toward non-job-related AET, relative to the situations in other countries. These findings imply that the link between a worker's productivity and wage should be strengthened in order to incentivize workers to invest in AET relevant to the labor market.

• Journal of Digital Convergence
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• v.14 no.10
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• pp.107-117
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• 2016

This study examines information efficiency of financial information on the firm value for the listed manufacturing companies in Korea stock market in terms of timing pattern of information. We set 3 different test periods based on the financial statement released years - the current year, 90 days before financial statement announcement and the next year. We introduce using the stepwise regression method to examine the effect of financial variables on the stock returns. The financial variables include profitability ratio, growth ratio, stability ratio, activity ratio and market valuation ratio. The results of the study showed that both growth and profitability ratio affected the current year stock returns, while stability and activity ratio affected the next year stock returns. Growth rate of total asset affects both current year and next year stock returns. Our findings imply that the period in which financial information is reflected in the firm value, could vary with the characteristics of financial information.

• KDI Journal of Economic Policy
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• v.36 no.3
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• pp.25-60
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• 2014

We examine whether the observed negative relations between stock returns and inflation and between housing returns and inflation can be explained by the inflation illusion hypothesis. We identify the mispricing component in asset prices (i.e., stock prices and housing prices) based on present value models, linear and loglinear models, and we then investigate whether inflation can explain the mispricing component using the data from three countries (the U.S., the U.K., and Korea). When we take into account the potential asymmetric effect of positive and negative inflation on the mispricing components in asset prices, which is an important implication of the inflation illusion hypothesis, we find little evidence for the inflation illusion hypothesis in that both positive and negative inflation rates do not have a negative effect on the mispricing components. Instead, we find that behavioral factors such as consumer sentiments contribute to the mispricing of asset prices.