[KSCI] Korea Science Citation Index Service

http://dx.doi.org/10.9708/jksci.2020.25.12.333

Determinants of Debt Ratio in Public Institutions

Jang, Ji-Kyung (Division of Business Administration, Dongseo University)

Publication Information

Journal of the Korea Society of Computer and Information / v.25, no.12, 2020 , pp. 333-339 More about this Journal

Abstract

This study investigated the determinants of debt ratio in public institutions. For this purpose, we analyzed the impact of external and internal factors on debt ratio. In this paper, external factors included government grants and deficits compensation, and internal factors included inefficient management. The results of this study are as follows. First, we find that there is a significant positive relation between government grants and debt ratio. This result means that the higher government grants, the higher debt ratio. Second, we also find that there is a significant positive relation between deficits compensation and debt ratio. This implies that the institutions subject to deficits compensation have higher debt ratio. Third, we can not find a significant relation between welfare benefit and debt ratio. This finding implies that inefficient management is not a factor on debt ratio of public institutions. The results documented in this paper provide important policy implications for investigating the determinants of debt ration in public institutions.

Keywords

Public institutions; Debt Ratio; Government grants; Compensation deficits; Inefficient management;

Citations & Related Records

Reference

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