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http://dx.doi.org/10.5392/JKCA.2013.13.11.829

Financial Profile of Capital Structures for the Firms Listed in the KOSPI Market in South Korea  

Kim, Hanjoon (호서대학교 사회과학대학 경영학과)
Publication Information
The Journal of the Korea Contents Association / v.13, no.11, 2013 , pp. 829-844 More about this Journal
Abstract
This study performed comprehensive tests on the four hypotheses on the capital structures for the firms listed in the KOSPI during the period from 2006 to 2011. It may be of concern to find any financial profiles on firms' leverage across the book- and market-value bases since there was relatively little attention drawn to any financial changing profile of the leverage surrounding the period of the pre-and the post-global financial crises. The findings of this study may also be compared with those of the previous related literature, by which it may be expected to enhance the robustness and consistency of the results across the different classifications on capital markets. It was found that three explanatory variables such as PFT, SIZE, and RISK, were found to be the statistically significant attributes on leverage during the tested period. Moreover, the outcome by the Fisher Exact test showed that a firm belonging to each corresponding industry may possess its reversion tendency towards the industry mean and median leverage ratios.
Keywords
Capital Structure; Global Financial Crisis; Panel Data Analysis; Logistic Regression Model; Fisher Exact Probability Test; KOSPI-listed Firms;
Citations & Related Records
Times Cited By KSCI : 15  (Citation Analysis)
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