• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.3
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• pp.1-15
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• 2016

This study has analyzed predication capabilities leveraging multi-variate model, logistic regression model, and artificial neural network model based on financial information of medium-small sized companies list in KOSDAQ. 83 delisted companies from 2009 to 2012 and 83 normal companies, i.e. 166 firms in total were sampled for the analysis. Modelling with training data was mobilized for 100 companies inlcuding 50 delisted ones and 50 normal ones at random out of the 166 companies. The rest of samples, 66 companies, were used to verify accuracies of the models. Each model was designed by carrying out T-test with 79 financial ratios for the last 5 years and identifying 9 significant variables. T-test has shown that financial profitability variables were major variables to predict a financial risk at an early stage, and financial stability variables and financial cashflow variables were identified as additional significant variables at a later stage of insolvency. When predication capabilities of the models were compared, for training data, a logistic regression model exhibited the highest accuracy while for test data, the artificial neural networks model provided the most accurate results. There are differences between the previous researches and this study as follows. Firstly, this study considered a time-series aspect in light of the fact that failure proceeds gradually. Secondly, while previous studies constructed a multivariate discriminant model ignoring normality, this study has reviewed the regularity of the independent variables, and performed comparisons with the other models. Policy implications of this study is that the reliability for the disclosure documents is important because the simptoms of firm's fail woule be shown on financial statements according to this paper. Therefore institutional arragements for restraing moral laxity from accounting firms or its workers should be strengthened.

• Journal of Digital Convergence
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• v.11 no.5
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• pp.159-168
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• 2013

This study analyze the business efficiency of securities company based on the 2011 performance of 29 securities firms which engage in domestic investment brokerage by applying a combination model of BSC and DEA. And we evaluate business state focused on efficiency which is based on logical system of BSC as business innovation method. The analysis of result is that companies with high customer efficiency index appeared that business efficiency composite index tended to be higher and we identified that customer perspective have an important factor to calculate business efficiency composite index of korea security company. In addition, based on the results of the efficiency analysis we analyze correlation analysis between traditional financial ratio and business efficiency composite index. We confirmed that company of high business efficiency level in terms of BSC have a good record in terms of profitability. BSC-DEA combination model expect to be utilized in security industry sector as well as other industrial sectors as good business indicator to determine the business efficiency and to be used a model can be evaluated the integrated firm valuation of tangible and intangible assets.

• The Journal of the Convergence on Culture Technology
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• v.6 no.4
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• pp.379-384
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• 2020

The purpose of this study is to analyze the impact of individual savings banks' financial conditions on their loan portfolio after savings bank restructuring. The analysis results are as follows. First, it was estimated that the relationship between the rate of change in the NPL Ratio and the ratio of household loans has a significant positive value. Second, it was estimated that the interaction effect between the rate of change in the ratio of fixed and below loans and the spread of the deposit-to-deposit rate has a significant negative (-) value with the household loan weight. Third, the relationship between the asset size and the proportion of household loans was estimated to have a significant positive (+) value. In other words, it was analyzed that the financial situation of the savings bank affects the loan portfolio, and it should provide important implications for establishing policies for each financial situation of the savings bank. Depending on the financial situation in the future, there is a need to avoid excessive asset expansion of specific loans and preemptive soundness management.

• Korean small business review
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• v.42 no.2
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• pp.93-115
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• 2020

Government funded research institutes (GFRIs) maintain a cooperative relationship with companies and stably provide their resources through the family company system. They are thereby implementing a demand-oriented support system that responds to the needs of the company. This study analyzed the changes in corporate financial performance depending on the participation in family company system and customized support. For this purpose, 2,229 companies registered with the KITECH during 2015-2017 composed the "Family company group", and 80 companies that participated in the customized support were selected as the "customized support group". The effect of participation on the corporate financial performance was analyzed using the PSM-DID model. The analysis verified that companies in a cooperative relationship with GFRIs had a higher sales growth rate than others. Furthermore, when these companies received additional customized support, their OI and ROE were significantly improved. The value of this study lies in that it quantitatively analyzed the cooperation performance of partner companies following a sustainable SME-GRI relationship. In addition, it provides insight into the strategic support system for SMEs by confirming the necessity of a customized support based on the relationship.

• KDI Journal of Economic Policy
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• v.26 no.2
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• pp.179-208
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• 2004

With the outbreak of the financial crisis in mid-1997, the Korean government has removed a majority of M&A-related regulations in order to facilitate M&A transactions. This was based upon the belief that M&As are one of the most efficient ways to restructure financially distressed firms compared to other government-driven restructuring programs. In this paper, we try to empirically assess the role of M&A in restructuring distressed firms in Korea following the financial crisis. In doing so, three empirical analyses have been conducted. The first analysis attempts to identify financial characteristics of the insolvent M&A targets. The second exercise directly tests the change in performance of insolvent M&A targets before and after such M&A transactions. The third analysis is a more general assessment on the role of M&A transactions to determine if being involved in an M&A transaction (regardless of its motivate) has reduced the probability of becoming insolvent in the future. Overall, we find some evidence supporting that M&A activities after the financial crisis have played a positive role in restructuring financially distressed firms in Korea.

• The Journal of Small Business Innovation
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• v.20 no.2
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• pp.35-50
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• 2017

The aims of this study is to analyze the effectiveness of firms financial status quo and the scale of financial support on SMEs overall performance. We have gathered the financial guarantee data from 1998 to 2013, provided by Korea Credit Guarantee Fund (KODIT), to analyze the effectiveness of Financial policy. To classify both financial status quo and scale of financial support, we utilized the following variables; Interest Coverage Ratio (ICR) and newly guaranteed amount ratio. To take the measurement of the overall performance, we employed profitability, growth ratio and activity index. To minimize the effect of repeated financial support (redundancy benefits), firms were selected based on the following criteria: firms that receive no financial support prior to implementing such policy over the last 3 years and no new financial support over the last 2 years. Results suggest that firms with higher ICR and large newly guaranteed amount influence on financial performance in terms of profitability index. Firms with lower ICR and large scale financial support showed a better performance compare to firms with small-scale financial support. Firms with large-scale financial support, irrespective of ICR inclined to have better performance to those of small-scale financial support in terms of growth index. For activity index, however, firms with large scale support led to higher performance in the short term. In turn, our analysis presents objective perspective with respect to the effectiveness of financial policy through credit guarantee on overall performance of SMEs. This study, therefore, implies that well-balanced SMEs supporting policy may lead to better directions.