• Journal of the Korean Operations Research and Management Science Society
• /
• v.28 no.4
• /
• pp.115-129
• /
• 2003

This paper suggests that the profit sharing contract can be Pareto optimal for both supplier and the purchaser. It is shown that Pareto optimal risk sharing contract can be obtained even though the decisions are made in a decentralized manner. The effect of risk attitude of the members of the supply chain is discussed. We examined various aspects of the risk sharing contract such as risk altitude, bargaining power, and cost of information system. The different risk attitude changes the optimal parameters and decision variables. Especially, we proved that, when both the supplier and the purchaser are risk averse, the purchaser orders less quantity than when the one is risk neutral and the other is risk averse. If the fixed cost for the information system is big enough to satisfy a certain condition, it is Pareto optimal not to share the profit and the purchaser takes all the risk even though he is risk averse.

• International Area Studies Review
• /
• v.13 no.2
• /
• pp.89-115
• /
• 2009

By measuring the consumption risk sharing for the EU regions, we evaluate the performance of various risk sharing channels for the EU. We identify which countries are likely to form the highest risk sharing group among the EU regions by using the DFFITS and DFBETAS diagnostics derived in a statistical regression. Our finding suggests that most western European countries seem to display homogeneous degree of risk sharing. In addition, our result confirms that high risk sharing regions as well as low risk sharing regions are mainly located in many eastern European countries that joined the EU later than western European countries, and implies that the EU members are still dichotomized at large in terms of consumption risk sharing.

• International conference on construction engineering and project management
• /
• 2024.07a
• /
• pp.706-713
• /
• 2024

Public-private partnership (PPP) projects are characterized by the bundling of construction and operation phases and risk sharing, which motivate private sponsors to enhance project efficiency throughout its life-cycle. However, internal conflicts of interest among sponsors can potentially distort these incentives. Building on agency theory, this study presents a game model to examine the effect of internal conflicts among private sponsors on bundling and risk sharing. The results show that the degree of the bundling and risk transfer from the government to private sponsors depend on the sponsors' shareholding and capabilities. This study contributes to the PPP knowledge body by introducing the internal conflicts among sponsors into the incentive mechanism of risk-sharing between the government and private sponsors. The findings also provide support for the government to formulate risk-sharing strategies and shed light on the sponsor selection of PPP projects.

• Knowledge Management Research
• /
• v.15 no.4
• /
• pp.35-56
• /
• 2014

This study examined the effect of perceived risk, an under-explored area in the knowledge sharing literature. We proposed that employee perceptions of risk relate positively with their knowledge sharing behaviors (donating and collecting), and examined the mediating role of impression management strategies in the hypothesized relationships. We also explored the moderating effect of leader-member exchange (LMX) in the relationship between perceived risk and impression management strategies. Valid and reliable self-report and supervisory evaluation measures were collected from a sample of 251 railroad employees in safety-sensitive positions. The results indicate that perceived risk was not significantly associated with knowledge sharing, but rather the risk perception impacts were indirect through impression management strategies such as exemplification and supplication. The study also found that LMX has no moderating effect on the perceived risk and impression management strategies. In discussing these results, we present significant insights in terms of subjective risk judgment as a potential mechanism which can encourage organizational politics.

• East Asian Economic Review
• /
• v.23 no.3
• /
• pp.227-260
• /
• 2019

This paper offers a comprehensive view of international risk sharing and of related policy issues from the perspective of the European Union. The traditional analyses contemplate three risk-sharing channels: the capital markets channel (through cross border portfolio investments), international transfers and the credit markets channel (via savings). Comparative analyses reveal that, on average, about 80% of the shock remains unsmoothed in Europe while only about 18% of the shock is transmitted to consumers within the US. From aggregated figures, there is space for improving, particularly, the cross-border investments channel in Europe. In this sense, the completion of the Banking and Capital Markets Union are expected to boost risk sharing across European member states. We also review new additional issues usually not contemplated by the traditional literature as depreciation, migration and the role of sovereigns and two new additional channels recently considered in the literature: government consumption and the real exchange rate. Finally, we also examine recent analysis related to the geographic distribution of risk sharing.

• Korean Journal of Clinical Pharmacy
• /
• v.23 no.2
• /
• pp.89-96
• /
• 2013

This article aimed to introduce 'risk sharing' schemes for pharmaceuticals between drug manufacturers and healthcare payer. Published literature review was undertaken to summarize risk sharing concepts and collect information on existing scheme examples in other countries focusing on new anticancer drugs. Risk sharing schemes could be categorized into health outcomes-based and non-outcomes (financial) based ones. Outcome-based schemes could be broken down into performance-linked reimbursement and conditional coverage. Performance-linked reimbursement can be further broken into outcomes guarantee and pattern or process of care and conditional coverage included coverage with evidence development and conditional treatment continuation schemes. Non-outcome based schemes included market share and price volume at population level, and utilization caps and manufacturer funded treatment initiation at patient level. We reviewed the fifteen examples for anticancer drugs that risk sharing agreements in response to the inherent uncertainties and increased costs of eleven anticancer drugs. Of them, eight cases were coverage with evidence development schemes. The anticancer drugs except bevacizumab and cetuximab were all listed on the national health insurance formulary in Korea, with reimbursement criteria defined on the basis of approved indications and administrations. Risk sharing approach may be a useful tool to ensure values for drug expenditure, but there are a number of concerns such as high administration costs, lack of transparency and conflicts of interest, especially for performance-based health outcomes reimbursement schemes.

• Journal of Information Technology and Architecture
• /
• v.9 no.4
• /
• pp.365-376
• /
• 2012

We examine the value of information sharing in the context of supplier-buyer relationships after controlling for trading partners' opportunism. Given that trading partners' opportunism is not randomly chosen, we explicitly incorporate their self-selection process into our estimation procedure by employing Heckman's self-selection model. According to our analysis, firms that have built safeguards via mutual trust, commitments and information sharing experience less opportunistic risk in supplier-buyer relationships. Our findings also suggest that information sharing has a positive impact on firm performance after controlling for opportunism. Further, firms that are less exposed to trading partners' opportunistic risk have achieved a higher performance than others that are more exposed. Importantly, higher performance for those firms with less opportunistic risk is driven by safeguards in supplier-buyer relationships as well as information sharing. Our findings can be applied for systems analysts to design information systems of supplier-buyer transactions.

• Journal of Information Technology Services
• /
• v.19 no.5
• /
• pp.65-81
• /
• 2020

This study aims to examine the effects of users' perceptions of COVID-19 risk on their seeking and processing of relevant information as COVID-19 emerges and spreads worldwide in 2019. We apply the risk information seeking and processing model (RISP Model) to verify whether users' COVID-19 related information seeking and processing behaviors have a positive effect on their preventive and information sharing behaviors. To achieve this research goal, an online survey was conducted with about 400 of social media users. The users' perceptions of risk for COVID-19 increased their perceived insufficiency of COVID-19 information. In addition, the perceived insufficiency of users' information formed a positive relationship with seeking and searching of information behaviors. The processing of COVID-19 related information has increased related preventive behaviors and sharing of information through social media. While searching for information related to COVID-19 prompted personal information sharing behaviors, it did not significantly affect preventive behaviors. Accordingly, in order to promote COVID-19 preventive behaviors as well as overall user health-related behaviors it can be inferred that additional measures are needed in addition to pursuing relevant information.

• Journal of Korean Society of Transportation
• /
• v.35 no.4
• /
• pp.360-373
• /
• 2017

The BTO-a projects is the types, which has a demand risk among the type of PPP projects in Korea. When demand risk is realized, private investor encounters financial difficulties due to lower revenue than its expectation and the government may also have a problem in stable infrastructure operation. In this regards, the government has applied various risk sharing policies in response to demand risk. However, the amount of government's risk sharing is the government's contingent liabilities as a result of demand uncertainty, and it fails to be quantified by the conventional NPV method of expressing in the text of the concession agreement. The purpose of this study is to estimate the value of investment risk sharing by the government considering the demand risk in the profit sharing system (BTO-a) introduced in 2015 as one of the demand risk sharing policy. The investment risk sharing will take the form of options in finance. Private investors have the right to claim subsidies from the government when their revenue declines, while the government has the obligation to pay subsidies under certain conditions. In this study, we have established a methodology for estimating the value of investment risk sharing by using the Black - Scholes option pricing model and examined the appropriateness of the results through case studies. As a result of the analysis, the value of investment risk sharing is estimated to be 12 billion won, which is about 4% of the investment cost of the private investment. In other words, it can be seen that the government will invest 12 billion won in financial support by sharing the investment risk. The option value when assuming the traffic volume risk as a random variable from the case studies is derived as an average of 12.2 billion won and a standard deviation of 3.67 billion won. As a result of the cumulative distribution, the option value of the 90% probability interval will be determined within the range of 6.9 to 18.8 billion won. The method proposed in this study is expected to help government and private investors understand the better risk analysis and economic value of better for investment risk sharing under the uncertainty of future demand.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.9
• /
• pp.305-314
• /
• 2020

This paper investigates the impact of profit and loss sharing (PLS) contracts on non-performing financing of Islamic rural banks as Islamic small banks focus on small and medium enterprises at province level across country. Our study employs panel data, consisting of 142 Islamic rural banks and using quarterly data from 2013Q1 to 2018Q4, and splits them based on the bank's size and geographical area. Both static and dynamic panel regressions are then applied. The results obviously indicate that a high proportion of profit and loss sharing contracts leads to high financing risk. The large Islamic banks encounter a higher non-performing financing stemming from profit and loss contracts compared to small Islamic banks. Profit and loss contracts also produce higher financing risk for Islamic banks outside Java, as those areas are less developed areas than Java itself. A more efficient Islamic bank is less financing risk. Income diversification lessens the impaired financing and, more particularly, large Islamic banks and Islamic banks located in Java much benefit by diversifying income and financing to lower financing risk. Our study suggests that Islamic rural banks may consider the optimal level of profit and loss sharing contracts to minimize financing risk.