• Korean small business review
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• v.42 no.2
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• pp.23-42
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• 2020

In this paper, it is analyzed that the financial factors of successful/unsuccessful companies in restructuring among Korean SMEs. For this purpose, the cases of 494 SMEs that had been subjected to workout programs due to financial distress between 2008-2014 were collected from A bank which is a SME financing bank, and had been subjected to logistic regression and t-test. And the sample cases are categorized into two groups, companies subject to external audit and the others, to provide more reliability. The result suggests; First, in all sample cases of SMEs, those are success factors for workout in connection with smaller total assets, lager sales amount, lower ratio of intangible assets, higher ratio of operating profit, lower ratio of short-term debt, higher ratio of long-term debt, and longer corporation history. Secondly, several factors have different influence on companies subject to external audit and the others. Lastly, the success factors for workout in Korean SMEs turned out to be different from those suggested in previous studies that are focused on large company. Some of the financial factors that led financially distressed firm to a successful restructuring showed the same results as large companies, but some of them were not related to them or even had the inverse influence on SMEs. This implies that SMEs have their distinctive success factors.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.1
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• pp.225-236
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• 2023

Policy implications were derived by comparing/analyzing innovative SMEs and general SMEs that obtained innovation certification from 2015 to 2021 in terms of survival period. Work experience, scale (employment, capital and debt size, sales and operating profit) Korean standard industry classification (2 digit) was used to select general SMEs similar to innovative SMEs. Survival period was calculated by defining suspension, closure and overdue equivalent to default as events. As a result of the survival analysis, innovative SMEs showed a 9.8% reduction in the risk of delinquency compared to general SMEs, indicating that the survival period of innovative SMEs was significantly longer. In addition, it was found that the work experience and size (employment, capital) of SMEs had a positive effect on the survival period, but debt had a negative effect on the survival period. This means that the innovation certification system centered on innovation capabilities and future growth potential is a significant indicator in terms of survival period. As a result, it was concluded that the benefits and support policies provided by the innovation certification system need to be more systematic and sophisticated by reflecting the work experience and industry for the actual growth and survival of SMEs.

• Korean Journal of Construction Engineering and Management
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• v.14 no.4
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• pp.46-54
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• 2013

This research outlined the factors influencing the business management success via analyzing a survey of business principles. The research process has been tested in comparison of both financial factors, which come out of objective data and non-financial factors so relevantly prioritized by combining these factors. In order to specify the factors, a check-list and analyzed essential features of category have been done with interviews and surveys. As consequently proceeding, the authors could deduce that non-financial but analytic factors such as business do-able, technician workability, compensation and benefits etc. play major roles in construction sector. The outcomes consider a construction business as fundamental human labor job as opposed to a manufacture business. On reasoning necessarily more objective research works to be done as developing this research's outcome, it is meaningful in suggesting the pivotal factors influencing the construction business management. Therefore, this research is expected to guide the direction to induce the improvement of business management to be done by further exemplary researches.

• Journal of Digital Convergence
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• v.15 no.2
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• pp.121-133
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• 2017

The propose of study is to examine the characteristics of companies with high possibility to form an internal control weakness using forecasting model. This study use the actual listed/unlisted companies' data from K_financial institution. The first conclusion is that discriminant model is more valid than logit model to predict internal control weak companies. A discriminant model for predicting the vulnerability of internal control has high classification accuracy and has low the Type II error that is incorrectly classifying vulnerable companies to normal companies. The second conclusion is that the characteristic of weak internal control companies have a low credit rating, low asset soundness assessment, high delinquency rates, lower operating cash flow, high debt ratios, and minus operating profit to the net sales ratio. As not only a case of listed companies but unlisted companies which did not occur in previous studies are extended in this study, research results including the forecasting model can be used as a predictive tool of financial institutions predicting companies with high potential internal control weakness to prevent asset losses.

• Journal of Korea Foundry Society
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• v.42 no.2
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• pp.83-93
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• 2022

Throughout this research course, we have analyzed the financial situation of more than 2,700 companies using credit evaluation disclosures from 2017 to 2019. The population was gathered based on the certification of Ppuri companies and Ppuri Expertise companies through the Korea National Ppuri Industry Center, accompanied by the NICE credit evaluation index. For the first time in Korea, we wanted to look at growth, profitability, and stability through financial analysis of the Ppuri industry. Through an indepth analysis, we identified operating income (rate), net income (rate), asset size, and debt ratio, along with three years of Ppuri company workers and total sales fluctuations, and looked at the financial structure per capita. In addition, financial status per person was compared by dividing Ppuri companies into six groups by employee size. Groups were 10 or fewer people, 11 to 20 people, 21 to 50 people, 51 to 200 people, 201-300 people, and 300 or more people; single individual companies were excluded for research convenience. Overall, the financial situation of Ppuri companies was judged to be in a very bad downturn, and financial indicators deteriorated over the course of the three years of investigation. In particular, the smaller the number of employees, the greater the financial fluctuations were and the worse the situations were. Among Ppuri companies, the casting industry, which is the technical starting point for the value chain of the industry, was found to also be in a very bad state, with continued workforce declines, total assets and sales reductions at severe levels, and operating income (rate) and net income (rate) also very poor. This is why we need a suitable and feasible policy direction, something that is difficult but must be allowed to develop.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.6
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• pp.11-26
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• 2023

This study aimed to empirically analyze the effect of Korean companies' FDI(Foreign Direct Investment) on their financial performances, particularly divided into profitability, stability, growth and activity, while comparing distinct financial performances between SMEs(small and medium-sized enterprises) and large enterprises whose corporate attributes are different from each other. As research subjects, this study selected FDI Korean companies from the directory of oversea-expanded companies of KOTRA(Korea Trade-Investment Promotion Agency) and used financial data from a total of 409 companies(136 SMEs and 273 large enterprises) with complete financial data for the first five years after the initial investment out of all the financial data from 1990 to 2021. The analysis results can be summarized as follows; In the profitability sector, FDI had positive effects on ROA(Return on Assets) and ROS(Return on Sales) of SMEs, while having negative effects on those of large enterprises to the contrary. In the stability sector, FDI had no statistical significance for SMEs, while having significantly negative effect on LEV(Debt to Equity Ratio) of large enterprises. In the growth sector, FDI had significantly negative effect on AGR(Asset Growth) of SMEs, but showed no significant results for large enterprises. In the activity sector, FDI showed no statistical significance for SMEs, while having positive effects on ATR(Asset Turnover Ratio) and FATA(Fixed Asset Turnover Ratio) of large enterprises. In conclusion, it was found that when having made FDI, SMEs and large enterprises showed different financial performances from each other in terms of profitability, stability, growth and activity.

• Journal of the Korea Society of Computer and Information
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• v.17 no.5
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• pp.157-167
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• 2012

The purpose of this paper is to develop an OLAP (online analytical processing) database system that supports the SMBA (Small and medium Business Administration) policy funding. A heterogeneous dimension schema will be central in staged support of policy funds. In this paper, therefore, we designed the FREQUENCY dimension table which has a heterogeneous dimension schema structure. In this paper, we made a model of measuring SME (small and medium-sized enterprise) size first. The model is composed of six determinants of firm growth such as sales, employment, own technology, the operating profit to sales ratio, the debt ratio, and the current ratio. We developed the OLAP database system by using three dimensions including the FREQUENCY dimension, and using the model of measuring SME size. Also we assessed past decisions on policy funding in the Small Business Policy Funds Support Project (2004-2007) by using the OLAP database system.

• The Korean Journal of Financial Management
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• v.26 no.3
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• pp.31-64
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• 2009

This article investigates the short-term cash flow exposures to Korea's major trading partners' currencies based on the kospi and kosdaq firm data from 2000 to 2008. The cash flow approach allows us to analyze the influence on operational performances of individual firm's hedging strategies. Taken all three foreign exchange rates together, more than 30% of the sample firms exhibit significant exposure. Given that the short-term cash flow is rather easy to hedge, the result proves a poor exchange rate risk management practices of Korean firms. Kosdaq firms are more exposed than Kospi firms. On the contrary to the previous researches using stock prices, the operational cash flows show a positive relationship with the value of foreign currencies. The exchange rate-firm sample further shows that the size and leverage affect the level of exposure.

• Korean Journal of Construction Engineering and Management
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• v.19 no.1
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• pp.90-102
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• 2018

In preparation of the increase in the domestic debts and the rise in the US interest rate, the Korean government has started to strengthen the regulation on the property market since 2017. So, it is likely that the sales in the domestic construction market would be decreased. Even in the overseas plant projects market, as there has been the continuous increase in the cost and the resulting increase in the losses, it looks hard for the large construction companies to keep their credit ratings as they are now. This study is designed to check Korean government's property policy and any possible problems caused by the overseas and domestic economic environment, which include the property market policy, interest rate, rise in the property price and lackluster sales in housing market. It showed the change in the credit ratings by finding out the sales, work capability, sales in non-governmental projects, operating profits and PF contingency liabilities. For this study, the questionnaires were sent to 30 practical experts to analyze the effect of the risk factor on the outside credit rating of large construction companies.

• International Area Studies Review
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• v.14 no.3
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• pp.312-338
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• 2010

This paper investigates the value relevance of advertising activity over the period from 2001 to 2009 in the listed Korean stock markets(KOSPI and KOSDAQ). In addition, this paper divide all sample firm into several subsample, based on R&D intensity and export ratio in total sales. The empirical result of this paper shows following two evidence; First, advertising intensity, which proxies for advertising activity, is significantly related to firm value at the 1% level of significance. Second, advertising activity of high R&D intensity and high export ratio sample firms has more significant value relevance than for firms with low R&D intensity and low export ratio. The empirical results suggest that moderation effect of R&D intensity and export ratio are very important factor in determining the value relevance of advertising activity.