• Journal of Korea Technology Innovation Society
• /
• v.18 no.4
• /
• pp.621-640
• /
• 2015

The aim of this study is to provide evidence of how a change in the process of calculating the economic valuation of a project can affect the decision regarding national R&D investment. The paper examines a R&D project of cooperative research program of university-industry-research institute for the construction of a woodchip power plant to explore the role of capital expenditure in the economic evaluation of an investment project. The paper finds that the simple introduction of capital expenditure in the profitability analysis affects the perspectives on the construction plan. The results of this study indicate that standardization of the calculation process that takes different characteristics of industries into account is needed in the preliminary feasibility study of national R&D projects.

• KSII Transactions on Internet and Information Systems (TIIS)
• /
• v.11 no.8
• /
• pp.4133-4145
• /
• 2017

Advances in science and technology are driving us to the better life but also forcing us to make more investment at the same time. Therefore, the government has provided the investment to carry on the promising futuristic technology successfully. Indeed, a lot of resources from the government have supported into the science and technology R&D projects for several decades. However, the performance of the public investments remains unclear in many ways, so thus it is required that planning and evaluation about the new investment should be on data driven decision with fact based evidence. In this regard, the government wanted to know the trend and issue of the science and technology with evidences, and has accumulated an amount of database about the science and technology such as research papers, patents, project reports, and R&D information. Nowadays, the database is supporting to various activities such as planning policy, budget allocation, and investment evaluation for the science and technology but the information quality is not reached to the expectation because of limitations of text mining to drill out the information from the unstructured data like the reports and papers. To solve the problem, this study proposes a practical text mining methodology for the science and technology trend analysis, in case of aerospace technology, and conduct text mining methods such as ontology development, topic analysis, network analysis and their visualization.

• Journal of Korea Society of Digital Industry and Information Management
• /
• v.15 no.1
• /
• pp.9-20
• /
• 2019

Korea's R&D investment has significantly increased in recent years. However, the efficiency of R&D investment is still in question. In order to examine the ways to improve the efficiency of R&D investment, this paper presents dynamic analysis on both quantitative and qualitative efficiency of R&D projects. A Data Envelopment Analysis(DEA)/Window method is used to analyze static and dynamic efficiencies of Industrial Material R&D projects in Korea from 2012 to 2016. As a result, statistically significant differences between quantitative and qualitative efficiency have been found. It has been observed that characteristics of Decision Making Units(DMUs) have an impact on both static and dynamic efficiencies. In particular, textile and ceramic projects showed relatively stable qualitative efficiency for a short-term perspective, while steel and chemical projects showed such stability for a long-term perspective. Among the types of project principals, universities showed relatively stable efficiency, compared with private sectors and research institutes. The results of this paper can be used as a guideline to manage the performance and stability of R&D projects' efficiency.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.1
• /
• pp.609-621
• /
• 2021

Faith-based investment instruments, such as sharia-based stocks, have developed rapidly in recent years. When investing in these instruments, investors tend to emphasize materialistic returns as measured with monetary returns and metaphysical returns, such as blessings from God (Allah) because of their observance of Islamic teachings. In this respect, it is important to investigate the role of individuals' religiosity in investment decision making in Sharia-based financial products. An equally crucial research question is whether individuals' religiosity levels affect expected material returns as measured by the tolerable negative returns of sharia-based stocks. This study relies on a survey method that involves university students in Java island who actively invest through the Investment Gallery of their faculties/ universities as the sample. Data is then analysed with the multinomial regression analysis technique. The results show that individuals who are more observant of their religious teachings are more likely to fully invest their funds in Sharia-based stocks and exhibit greater tolerance towards the negative returns of Sharia-based stocks. The findings indicate that Muslim investors who are more observant of Islamic teachings emphasize metaphysical returns from their investment decisions.

• Asian Journal of Business Environment
• /
• v.14 no.1
• /
• pp.1-13
• /
• 2024

Purpose: This study explores the level of relevance of liability of foreignness (LOF) in foreign firms' decision to relocate or to expand their regional headquarters (RHQ) in Singapore. Research design, data and methodology: The research question is: what are the mitigating factors of LOF for RHQs operating in Singapore? This explorative study uses various resources from the government agencies: Singapore Economic Development Board such as annual reports between 2012 and 2022, investment programs and published interviews with RHQ's CEOs, Singapore Department of Statistics such as economic, socio-economic and investment data. Results: My study shows that years of nation-building toward a world-class infrastructure, identifying key-industries and conscientiously enhancing workforce skills and competency, developing and reviewing investment programs to attract and retain RHQs were the mitigating factors of LOF. Conclusion: This implies a low level of relevance of LOF in foreign firms' strategic choice to relocate or to expand their regional headquarters to Singapore. As such, the steady growth of multinational enterprises' (MNEs) RHQs in Singapore presents a challenge to the theoretical postulation of LOF positing that foreign firms are discriminated in host country-environment. As a result, incurring additional costs operating in an unfamiliar environment manifested by varying responses from the local actors. Singapore is a case in point.

• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.9
• /
• pp.351-360
• /
• 2022

This study aims to determine the factors that can influence investors in selecting stocks in the Indonesian capital market to establish an optimal portfolio, and find phenomena that occurred during the COVID-19 pandemic so that buying interest / the number of investors increased in the Indonesian capital market. This study collection technique uses primary data obtained from the survey questionnaire and secondary data which is market data, stock price movement data sourced from the Indonesia Stock Exchange, Indonesian Central Securities Depository, and Bank Indonesia, as well as empirical literature on behavior finance, investment decision, and interest in buying stock. The method used in this research is the survey questionnaire analysis with the SEM (statistical approach). The results of the analysis using SEM show that investor behavior influences the stock-buying interest, investor behavior, and the stock-buying interest influences investor decision-making. However, risk management does not influence investor-decision making. This occurs when the investigator's psychological capacity produces more decision information by decreasing all potential biases, allowing the best stock selection model to be selected. When the investigator's psychological capacity creates more decision information by reducing biases, the optimum stock selection model can be chosen.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.14 no.11
• /
• pp.5465-5475
• /
• 2013

In this study, when to invest in real estate abroad, to present a real option in the way of decision-making. Thus, by using the binomial option model of one of the real thing and DCF, we compared the choice of real estate investment in China and South Korea. Research concerns the real estate market of Shanghai and Seoul, Analyzed the data between 2001-2009. Results were calculated NPV investment period (Net Present Value), Seoul appears in 435.44, Shanghai was 398.26. Investment decision by NPV method will select Seoul. However, as a result of calculating the value using the real option, it was found that for Seoul appear in 615.4, Shanghai has been shown to 626.1, and is suitable for investment in Shanghai. Assuming on the basis of this, that it has invested in practice, and compare the results, Seoul is intended for since 2010, real estate prices fell to 2013 currently, damage has occurred, profit's occurred Shanghai. This ensures that when making decisions in real estate investment and to use the real option than the existing DCF is appropriate.

• Journal of Industrial Convergence
• /
• v.19 no.6
• /
• pp.21-35
• /
• 2021

The purpose of this paper is to examine how demand for labor affects the job seeker's decision on the level of investment in education. In the current paradigm of economic growth in which innovations and technological developments generally weaken the strength demand for labor and increases the uncertainty related to employment, this paper provides a theoretical framework that can be used as a basic framework in understanding the decision of investment in education in varying conditions of demand for labor. The following are the findings of this paper. First, the level of investment in education can generally be regarded to be higher as the demand for labor exacerbates but for the job seekers with a certain characteristic. Second, the Arrow-Pratt absolute risk-aversion measure is the characteristic of the job seeker that determines in what direction the job seeker changes in the level of investment in education, For an arbitrary level of demand for labor there exists a certain threshold which determines the minimum degree of risk-aversion required for the job seeker's Arrow-Pratt should go over to increase the level of education as demand for labor weakens. Third, the job seekers lower the level of education even though the demand condition in labor markets weakens if the compensation function does not depend on the level of education. This is surprising because it turns out that one of the reasons why job seekers invest in education is that they want to be recognized in their compensation for their level of education even when more education still raises the probability of employment.

• Information Systems Review
• /
• v.25 no.4
• /
• pp.27-45
• /
• 2023

The importance of information security has grown alongside the development of information and communication technology. However, companies struggle to select suitable countermeasures within their limited budgets. Sönmez and Kılıç (2021) proposed a model using AHP and mixed integer programming to determine the optimal investment combination for mitigating information security breaches. However, their model had limitations: 1) a lack of objective measurement for countermeasure efficacy against security threats, 2) unrealistic scenarios where risk reduction surpassed pre-investment levels, and 3) cost duplication when using a single countermeasure for multiple threats. This paper enhances the model by objectively quantifying countermeasure efficacy using the beta probability distribution. It also resolves unrealistic scenarios and the issue of duplicating investments for a single countermeasure. An empirical analysis was conducted on domestic SMEs to determine investment budgets and risk levels. The improved model outperformed Sönmez and Kılıç's (2021) optimization model. By employing the proposed effectiveness measurement approach, difficulty to evaluate countermeasures can be quantified. Utilizing the improved optimization model allows for deriving an optimal investment portfolio for each countermeasure within a fixed budget, considering information security costs, quantities, and effectiveness. This aids in securing the information security budget and effectively addressing information security threats.

• The Korean Journal of Financial Management
• /
• v.9 no.1
• /
• pp.223-262
• /
• 1992

This paper develops a theory of the demand for insurance. The present model incorporates insurance demand time value of insurance premium, and demand for listless and risky assets simultaneously within the expected utility framework. For a special case of CARA, an insurance decision can be made separately from other portfolio decisions. However, in general, the interactions of both decisions cannot be ignored even when insurable and speculative risks are stochastically independent. In particular, the role of risky investment in hedging insurable risk is demonstrated and it is shown that this role cannot be duplicated by an insurance contract. When the investment decision is made simultaneously with the insurance decision, some of the classic theory on insurance should be modified. As an example, the authors characterize the sufficient conditions, under which the Bernoulli criteria (without and with premium loadings) hold or are violated in terms of the net gain of risky investment, the net cost of insurance, and the stochastic relationship between insurable and speculative risks. The authors interpret the results using the Rothschild and Stiglitz's (1970) notion of 'increase in riskiness'.