• Title/Summary/Keyword: Debt Repayment Capability

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Influences of Cash Flows from Operating Activities on Debt Repayment Capability in General Hospitals and Hospitals (병원 영업활동으로 인한 현금흐름이 부채상환능력에 미치는 영향)

  • Ha, Au-Hyun
    • The Journal of the Korea Contents Association
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    • v.17 no.6
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    • pp.98-105
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    • 2017
  • The medical institution considers liability management problems as a direct factor in managerial risks, such as bankruptcy. Cash Flow provides useful information to necessary funds and predicting bankruptcy. The study for 24 general hospitals and 23 hospitals, a regression analysis was performed to determine the impact of cash flows on the debt repayment capability, a multivariate discrimination analysis was conducted to find out how to manage cash flow for the risk posed by debt. The analysis results, For general hospitals, the level of debt repayment capability was done to net income, increase of payables from operating activities and decrease of patient receivables and inventories from operating activities. If there is no dept repayment capability, it is necessary to increase the net income, increase the expenses not involving cash outflows, decrease of patient receivables and increase of payables from operating activities. For hospitals, the level of debt repayment capability was done to net income, increase of expenses not involving cash outflows and payables from operating activities, decrease of income not involving cash inflows, decrease of patient receivables and inventories from operating activities. If there is no dept repayment capability, it is necessary to increase of payables from operating activities.

An Empirical Study on the Determinants of the Debt Repayment Capability of Shipping Firms in Recession

  • Lee, Dong-Hae;Lee, Ki-Hwan;Kim, Myoung-Hee
    • Journal of Navigation and Port Research
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    • v.44 no.5
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    • pp.414-422
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    • 2020
  • In this study, an empirical analysis of 55 ship finance cases executed by a specific ship finance bank from 2009 to 2016 during the recession period was conducted. The purpose of this study was to find the factors affecting changes in the debt performance of Korean shipping companies. The main factors were the loan nature (investment purpose, loan-to-value (LTV), syndicated loans, loan terms, put-option, balloon, and spread), financial nature (total assets turnover, net profit-to-sales ratio, debt ratio, quick ratio, total borrowing, bonds payable to total assets, interest expenses-to-sales ratio, debt service coverage ratio (DSCR), and total assets), and the company nature (company age, chief executive officer's (CEO's) shares, and listing status). In this study, the factors affecting the debt repayment capability of domestic shipping companies (loan nature, financial nature, and company nature) were verified. The credit rating was used to measure the dependent variable, debt repayment ability. The variables of investment purpose, put-option, balloon, and spread in the loan nature, debt ratio in the financial nature, and the CEO's shares and company age in the company nature were found to be significant.

The Scale of Households in Negative Housing Equity and Policy Direction (하우스푸어 규모 추정 및 정책 방향에 대한 고찰)

  • Choi, Eun-Hee;Lee, Jong-Kwon;Moon, Hyo-Gon;Kim, Kyeong-Mi
    • Land and Housing Review
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    • v.5 no.4
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    • pp.259-269
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    • 2014
  • After global financial crisis, the ratio of household debt to GDP was decreasing in other advanced countries such as the U.S., and the U.K. and so on. But, in Korea, household debt (of which residential mortgage loan account for a large part) ratio is still increasing. This paper focuses on the scale and characteristics of households in negative housing equity (those are called House-poors in Korea), and also the socio-economic backgrounds of the formation process. In financial perspective, the problem of negative housing equity depends on financial debt repayment capability. We used DSR (Debt Service Ratio) and LTA (Loan to Asset ratio) as financial indicators to evaluate the debt repayment capability. The critical value of DSR is assumed as 40%, and LTA 100%. The socio-economic backgrounds of the House-poors are as follows : increasing households debt dependency, over lending competition of financial institutions and unreasonable loan in household economy, instability of real estate market, week regulation on mortgage loan. Finally, this paper suggests some implications about the range and the target of public intervention.

A Study on the Improving Fiscal Capability of Local Government -Focusing on the case of zeroing debt policy in Yong-in city (지방정부 재정역량 제고에 관한 사례 연구 -용인시 채무제로화 정책을 중심으로)

  • Choi, Seonmi
    • The Journal of the Korea Contents Association
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    • v.18 no.3
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    • pp.472-485
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    • 2018
  • The purpose of this study is to analyze debt zeroing policy process of Yong-in city based on the Kingdon's Multiple Stream Framework in order to contribute to strengthening financial capacity and competitiveness of local governments. This study focused on the Yong-in case because the city had a local debt of about KRW 800 billion as of 2012, but it completed the debt repayment in early 2017. The results are as follows. First, policy problem streams are the perception of Yongin City's debt indicator, the failure of the LRT project, and the failure of sale of buildinglots of Yukbuk district. Second, in the political stream, there have been the election of new governors, cooperation of local administration and citizens like budget cut. Third, policy alternative streams are the reduction of large-scale investment projects, the expansion of revenues through the sale of idle shared properties, the increase of tax revenues, and the activation of light rail. As the each streams flowed independently, the window of policy change opened by the revitalization of the real estate market and the sale of buildinglots of Yukbuk distric and combined with other policy factors such as the activation of the light rail. In this process, the role of the policy entrepreneurs such as negotiation and persuasion of the related institutions influenced achieving tight fiscal policy. As a result of this policy output, Yongin City achieved zero debt. This study suggests that it is necessary not only the importance of the role of policy entrepreneurs but also of the administrative and citizen cooperation and the institutional complement such as a large scale of the investment review system.

Money and Capital Accumulation under Imperfect Information: A General Equilibrium Approach Using Overlapping Generations Model (불완전(不完全)한 정보하(情報下)의 통화(通貨)의 투자증대효과분석(投資增大效果分析): 중복세대모형(重複世代模型)을 이용한 일반균형적(一般均衡的) 접근(接近))

  • Kim, Joon-kyung
    • KDI Journal of Economic Policy
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    • v.14 no.1
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    • pp.191-212
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    • 1992
  • This paper discusses the role of money in the process of capital accumulation where financial markets are impeded by contract enforcement problems in the context of overlapping generations framework. In particular, in less developed countries (LDCs) creditors may know little about the repayment capability of potential debtors due to incomplete information so that financial instruments other than money may not acceptable to them. In this paper the impediments to the operation of the private finanical markets are explicitly modelled. We argue that creditors cannot observe actual investment decisions made by the potential borrowers, and as a result, loan contracts may not be fully enforceable. Therefore, a laissez-faire regime may fail to provide the economy with the appropriate financial instruments. Under these circumstances, we introduce a government operated discount window (DW) that acts as an open market buyer of private debt. This theoretical structure represents the practice of governments of many LDCs to provide loans (typically at subsidized interest rates) to preferred borrowers either directly or indirectly through the commercial banking system. It is shown that the DW can substantially overcome impediments to trade which are caused by the credit market failure. An appropriate supply of the DW loan enables producers to purchase the resources they cannot obtain through direct transactions in the credit market. This result obtains even if the DW is subject to the same enforcement constraint that is responsible for the market failure. Thus, the DW intervention implies higher investment and output. However, the operation of the DW may cause inflation. Furthermore, the provision of cheap loans through the DW results in a worse income distribution. Therefore, there is room for welfare enhancing schemes that utilize the higher output to develop. We demonstrate that adequate lump sum taxes-cum-transfers along with the operation of the DW can support an allocation that is Pareto superior to the laissez-faire equilibrium allocation.

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