Control, Ownership, and Firm Performance: the Case of Korea

Since the Asian economic crisis in 1997, some have argued that the poor corporate governance system was a contributing cause of the crisis. They claim that the weakness of minority shareholders' rights protection and the lack of market discipline for poor performing firms in the region made it easier for controlling shareholders to divert resources and to pursue their private interests rather than firm value maximization. Consequently, the corporate sector suffered from poor performance and weakened the financial system. Despite such claims, few studies have empirically examined the size of these conflicts of interests among shareholders and how they affect firm performance. Using the newly available ownership information and financial statements on 5858 Korean firms in non-financial sectors between 1993-1997, this paper examines how the conflicts among shareholders affect firm profitability. After documenting the ownership patterns, the paper investigates whether firm performance suffers when the disparity between control and ownership increases. When firm size, capital structure, and industry and firm characters are controlled for, the empirical tests show that firms with concentrated ownership by controlling shareholders exhibit a higher profitability than firms with less concentrated ownership. Publicly traded firms show lower performance than privately held firms. These tests also show that business groups of horizontally and vertically distributed firms (chaebols) have lower profitability than independent firms. Moreover, the study also identifies a mechanism through which firm resources are wasted. Firms that divert their assets through financial investment to their affiliated firms show weaker performance. Transfer of resources from publicly traded firms to group affiliated firms show even weaker performance. These results are consistent with the argument that controlling shareholders with small stakes in the firms pursued their private interests at the expenses of other shareholders.

Evaluating the effect of database inflation in proteogenomic search on sensitive and reliable peptide identification

Comparison of novel peptides identified from real proteogenomic databases. (DOCX 68 kb

UTILIZATION OF SPECTRAL VELOCITY OF FLEXURAL WAVES TO DETECT LOOSE SLEEPERS

The identification of a loose sleeper is important for the operation and safety of a railway system because the excessive movement of a loose railway sleeper can cause derailment and passenger discomfort. There are available methods on how to detect a loose sleeper, such as: 1) a method using a conventional approach based on human judgement and experience, which is not advisable if the researcher is a beginner; 2) Fixed Post method, wherein a fixed post with displacement sensor is installed in a ballast, which is not reliable because vibration of a sleeper during train passage might affect the results from this test; and 3) Non-Destructive Testing (NDT) methods, which include the use of Light Falling Weight Deflectometer (LFWD) and line scan camera, both of which are, however, expensive to use for a routine testing technique. In this paper, Finite Element Analysis (FEA) was performed to set the criteria for the loose sleepers. Impulse Response (IR) Method was used on an actual site. The spectral velocity of flexural waves and mobility function from the impulse response test were proposed to investigate the quality of a railway sleeper

Molecular characterization and genogrouping of VP1 of aquatic birnavirus GC1 isolated from rockfish Sebastes schlegeli in Korea

The cDNA nucleotide sequence of genome segment B encoding the VP1 protein was determined for the aquatic birnavirus GC1 isolated from the rockfish Sebastes schlegeli in Korea. The VP1 protein of GC1 contains a 2,538 bp open reading frame, which encodes a protein comprising 846 amino acid residues that has a predicted MW of 94 kDa. The sequence contains 6 potential Asn-X-Ser/Thr motifs. Eight potential Ser phosphorylation sites and 1 potential Tyr phophorylation site were also identified. GC1 contains the Leu-Lys-Asn (LKN) motif instead of the typical Gly-Asp-Asp (GDD) motif found in other aquatic birnaviruses. We also identified the GLPYIGKT motif, the putative GTP-binding site at amino acid position 248. In total, the VP1 regions of 22 birnavirus strains were compared for analyzing the genetic relationship among the family Birnaviridae. Based on the deduced amino acid sequences, GC1 was observed to be more closely related to the infectious pancreatic necrosis virus (IPNV) from the USA, Japan, and Korea than the IPNV from Europe. Further, aquatic birnaviruses containing GC1 and IPNV have genogroups that are distinct from those in the genus Avibirnaviruses and Entomo-birnaviruses. The birnavirusstrains were clustered into 5 genogroups based on their amino acid sequences. The marine aquatic birnaviruses (MABVs) containing GC1 were included in the MABV genogroup; the IPNV strains isolated from Korea, Japan, and the USA were included in genogroup 1 and the IPNV strains isolated primarily from Europe were included in genogroup 2. Avibirnaviruses and entomobirnaviruses were included in genogroup 3 and 4, respectively

Design of exceptionally strong and conductive Cu alloys beyond the conventional speculation via the interfacial energy-controlled dispersion of gamma-Al2O3 nanoparticles

The development of Cu-based alloys with high-mechanical properties (strength, ductility) and electrical conductivity plays a key role over a wide range of industrial applications. Successful design of the materials, however, has been rare due to the improvement of mutually exclusive properties as conventionally speculated. In this paper, we demonstrate that these contradictory material properties can be improved simultaneously if the interfacial energies of heterogeneous interfaces are carefully controlled. We uniformly disperse γ-Al2O3 nanoparticles over Cu matrix, and then we controlled atomic level morphology of the interface γ-Al2O3 //Cu by adding Ti solutes. It is shown that the Ti dramatically drives the interfacial phase transformation from very irregular to homogeneous spherical morphologies resulting in substantial enhancement of the mechanical property of Cu matrix. Furthermore, the Ti removes impurities (O and Al) in the Cu matrix by forming oxides leading to recovery of the electrical conductivity of pure Cu. We validate experimental results using TEM and EDX combined with first-principles density functional theory (DFT) calculations, which all consistently poise that our materials are suitable for industrial applications.1

Spatial Analysis of Subway Ridership: Rainfall and Ridership

In-vehicle congestion of the urban railway system is the most important indicator to reflect the operation state of the urban railway. To provide the good service quality of urban railway, the crowdedness of the urban railway should be managed appropriately. The weather is one of the critical factors for the crowdedness. That is because even though the crowdedness of the urban railway is the same, passengers feel more uncomfortable in rainy weather condition. Indeed if specific sections and stations suddenly are concentrated excessive demand, it will lead far more serious problem. Therefore, this study analysis the relationship between the number of urban railway passenger and rainfall intensity in Seoul metropolitan subway system and then conducts the spatial analysis to deduct passenger demand patterns. This study is expected to be useful base study in order to manage the congestion at the urban railway station effectively by considering the different rainfall intensity

Indications for open hepatectomy in the era of laparoscopic liver resection: a high volume single institutional study

Background/Aim Since the introduction of laparoscopy for liver resection in the 1990s, the performance of laparoscopic liver resection (LLR) has been steadily increasing. However, there is currently no data on the extent to which laparoscopy is used for liver resection. Herein, we investigated the extent to which laparoscopy is performed in liver resection and sought to determine whether surgeons prefer laparoscopy or laparotomy in the posterosuperior (PS) segment. Methods For this retrospective observational study, we enrolled patients who had undergone liver resection at the Samsung Medical Center between January 2020 and December 2021. The proportion of LLR in liver resection was calculated, and the incidence and causes of open conversion were investigated. Results A total of 1,095 patients were included in this study. LLR accounted for 79% of the total liver resections. The percentage of previous hepatectomy (16.2% vs. 5.9%, P<0.001) and maximum tumor size (median 4.8 vs. 2.8, P<0.001) were higher in the open liver resection (OLR) group. Subgroup analysis revealed that tumor size (median 6.3 vs. 2.9, P<0.001) and surgical extent (P<0.001) in the OLR group were larger than those in the LLR group. The most common cause of open conversion (OC) was adhesion (57%), and all OC patients had tumors in the PS. Conclusions We investigated the recent preference of practical surgeons in liver resection, and found that surgeons preferred OLR to LLR when treating a large tumor located in the PS

The Influence of Mycophenolate Mofetil and Azathioprine on the Same Cadaveric Donor Renal Transplantation

In order to evaluate whether immunosuppressive agents such as mycophenolate mofetil (MMF) and azathioprine would differently influence the outcome of the renal transplants, we prospectively analyzed the incidence of acute rejection episodes, cytomegalovirus infection within the first 6 months following renal transplantation and 5 yr graft survival rate after minimizing influences of donor factors by grafting the same cadaveric donor kidney. There was no significant difference in sex, HLA mismatch, cold ischemic time, and patients' weight between the two groups. Contrary to the previous studies which demonstrated that MMF could lower the incidence of acute rejection episodes and improved graft survival rate, the two groups showed no significant difference in the incidence of acute rejection episodes and 5-yr graft survival rate as well. This discrepancy in these results might explain that donor factors could be important to cadaveric renal transplantation. Thus, we suggest that the influences of donor factors should be considered in further clinical studies of cadaveric renal transplantation