Browse > Article
http://dx.doi.org/10.12811/kshsm.2017.11.1.001

Effects of Cash Flows from Operating Activities on the Changes in Borrowing in General Hospitals and Hospitals  

Ha, Au-Hyun (Choonhae Hospital)
Lee, Young-Hwan (Department of Health & Medical Administration, Dongju College)
Publication Information
The Korean Journal of Health Service Management / v.11, no.1, 2017 , pp. 1-9 More about this Journal
Abstract
Objectives : Cash Flows from operating activities is the most important part of the cash flow statement and it serves as an important financing source. Accordingly, the purpose of this study is to examine the influence of the contents of cash flows from operating activities on the changes in borrowings. Methods : In this study financial data from 2011 to 2014 were used to analyz 36 general hospitals and 85 hospitals according to the index displaying variation against the previous year. Results : For general hospitals, borrowings in cash flow from financing activities increased as net income decreased; while depreciation etc increased in cash flow from operating activities. For hospitals, borrowings in cash flow from financing activities increased as the gain on disposition of tangible assets in cash flow from operating activities decreased. Conclusions : General hospitals need to control the management of borrowings and depreciation at the level of funding management; whereas hospitals need to manage of future cash forecasts for stability of operational funds.
Keywords
Changes in Borrowings; Cash Flows from Operating Activities; General Hospitals; Hospital;
Citations & Related Records
연도 인용수 순위
  • Reference
1 The Bank of Korea(2016), Financial Statement Analysis, pp.506-512.
2 A. Alti(2003), How Sensitive is investment to Cash Flow When Financing is Frictionless?, The Journal of Finance, Vol.13(2);707-722.
3 Y.M. Jung, Y.C. Lee, J.D. Lim(2010), The Relationship of Cash Flow and External Funding in Hospital, The Korean Journal of Health Service Management, Vol.4(1);87-97.
4 W.G. Kim(2004), Information Contents of Cash Flow Components, Keimyung University doctoral thesis, pp.1-51.
5 S.E. Kim(2012), The Effects of Debt Capacity, Cash Flows and Macroeconomic Conditions on Capital structure of Firms, Kyungpook National University doctoral thesis, pp.1-10.
6 M. Faulkender, M.J. Flannery, K.W. Hankins, J.M. Smith(2011), Cash flows and leverage adjustments, Working Paper, University of Maryland, pp.931-962.
7 Y.J. Moon, D.H. Yang(2006), A study on the Predictability of Hospital's Future Cash Flow Information, Korean Journal of Hospital Management, Vol.11(3);19-41.
8 Y.C. Ahn(2006), An Empirical Analysis on the Capital Structure of Hospital Corporation based on Bankruptcy Prediction Model. Kangwon National University doctoral thesis, pp.175-182.
9 Y.J. Moon(2006), An Empirical study on the Predictability of Public Hospital's Cash Flow Model, Inje University doctoral thesis, pp.1-25.
10 J.S. Lee(1996), A Study on the Incremental Information Content of Earings, Tax Accounting Research, Vol.3(1);165-190
11 R.T. Kauer, J.B. Silvers(1991), Hospital Free Cash Flow, Health Care Management Review, Vol.16(4);67-78.   DOI
12 P.S. Calem, J.A. Rizzo(1995), Financing Constraints and Investment: New Evidence from Hospital Industry Data, Journal of Money, Credit and Banking, Vol.27(4);1002-1014.   DOI
13 Y.M. Jung(2013), Raise Capital type and Investment Efficiency of Hospital in Korea, The Korean Journal of Health Service Management, Vol.7(3);161-176.   DOI