• Journal of Digital Convergence
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• v.11 no.4
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• pp.177-188
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• 2013

This study examines how managerial ownership structure affects the borrower's choice of private versus public debt using 2,608 firm-year data for 2006-2008. This paper investigates the relationship between managerial ownership structure and debt choice. Managerial ownership is measured using number of stocks and unexercised stock-options and debt is classified public and private debt. The results find that there is a positive association between managerial ownership and the private debt dependence and also find that when firms finance additional funds, higher managerial ownership leads managers to choose private debt not public debt. Since private debt can be classified into bank debt and non bank debt, this paper examines the relationship between managerial ownership and a choice of bank debt. The results indicate that managers with higher ownership are more likely to use bank debt over public debt and non bank debt. By examining the relation between managerial ownership and a debt choice, this paper has following contributions. First, this study shows that managerial ownership affects the choice of the source of financing using three different proxies of managerial ownership. Second, this study classified private debt into bank debt and non-bank debt and provide the evidence of preference toward private debt especially bank debt among other financing sources. Finally, there are extensive studies related to capital structure and managerial ownership, but there is little empirical research on the debt choice and managerial ownership. Thus, this paper adds to literature by exploring the effects of managerial ownership on a debt choice.

• Korean Journal of Rural Living Science
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• v.10 no.2
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• pp.1-14
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• 1999

The purposes of this study are to identify the factors affecting asset and debt choice behavior of rural households as well as to examine the differences in asset and debt choice behavior between rural and urban households. The data are taken from Korean Household Panel Study conducted in 1996 by Daewoo Economic Research Institute. Among 2,833, a final sample of 2,625 -537 rural and 2,088 urban sample- is used in this study. The results show that, the asset and debt choice behavior of rural households is totally different from that of urban households. The ratio of rural households holding all types of financial assets and sales credit is less than that of urban households while the ratio of holding real asset and loan is greater in rural than urban households. The most influential variable on the ownership of asset and debt is the age of household head. And there exist interrelationships between ownership of different assets and debts.

• Journal of the Korea Convergence Society
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• v.6 no.1
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• pp.71-76
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• 2015

Using a sample of publicly-traded Chinese firms, this study examines a relationship between managerial ownership and corporate debt maturity decisions. China has transformed dramatically into a market capitalist economy over the past decades. However, so far, little attention has been paid to the role of professional managers. In this situation, this study explores the effect of stock grants to managers as incentive system by providing evidence that managerial ownership affects corporate debt maturity decisions. The findings are as follows: First, I find that like US firms, managerial ownership is negatively related to the proportion of long-term debt. Second, I divide the entire sample into two subsamples of state-owned and privately owned firms. For the privately owned firms, I find that there is a negative relationship between managerial ownership and the proportion of long-term debt. In contrast, for the state-owned firms, the relationship is positive and insignificant.

• Journal of Families and Better Life
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• v.14 no.2
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• pp.157-170
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• 1996

Even if holding debt may be a rational means for household to maximize utility under any circumstance and any time through the family life cycle most households have some difficulty to determin and keep the moderate debt amount. The purpose of this study is to identify the characteristics of household's debt and the factor associated with debt. Data used in this study consisted of 4,009 households. The results of this study were as follows; Among 4,009 households 1,400 housholds?(34.9%) owed. Age education and occupation of household header liquid and real asset and housing ownership had significant effects on whether household having debt. The real and liquid asset had significantly positive relation with the liabilities of financial agency whereas the occupation of household header liquid asset and unearned income with private liabilities. Finally age education and occupation of household header home ownership and liquid asset had significantly negative effect on the total a ount of debt while earned and unearned income and real asset had positive one.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.4
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• pp.563-569
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• 2021

This is a study on the relationships between foreign ownership and the firm value of Korean-listed ICT companies in the KOSDAQ market. The data based on 752 firm-year observations during the sample period from 2001 to 2018 was utilized to analyze the impact of foreign ownership in terms of the firm value. As a result of this analysis, more foreign ownership has positive effects on the firm value. An analysis of the effects of the interaction between foreign ownership and the debt ratio on the firm's value found that the interaction between foreign ownership and debt ratio had a positive effect on the firm's value. On the other hand, this interaction effect was less significant than the relationship between foreign ownership and the firm value. This is because foreign investors are already performing the role of monitoring and disciplining the use of debt to some extent. Therefore, the interaction effect was relatively small.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.2
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• pp.363-370
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• 2022

The study aims to probe the impact of foreign ownership on Vietnamese listed firms' capital structure. This study employs panel data of 288 non-financial firms listed on the Ho Chi Minh City stock exchange (HOSE) and Ha Noi stock exchange (HNX) in 2015-2019. In this research, we applied a Bayesian linear regression method to provide probabilistic explanations of the model uncertainty and effect of foreign ownership on the capital structure of non-financial listed enterprises in Vietnam. The findings of experimental analysis by Bayesian linear regression method through Markov chain Monte Carlo (MCMC) technique combined with Gibbs sampler suggest that foreign ownership has substantial adverse effects on the firms' capital structure. Our findings also indicate that a firm's size, age, and growth opportunities all have a strong positive and significant effect on its debt ratio. We found that the firms' profitability, tangible assets, and liquidity negatively and strongly affect firms' capital structure. Meanwhile, there is a low negative impact of dividends and inflation on the debt ratio. This research has ramifications for business managers since it improves a company's financial resources by developing a strong capital structure and considering foreign investment as a source of funding.

• Journal of the Korean Home Economics Association
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• v.38 no.2
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• pp.65-77
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• 2000

This study investigated the effect of socio-demographic variables and the ownership of asset and the other types of debts on the use of a specific type of household debt. Household debts were categorized into six types according to borrowing sources: debts from banks, other financial institutes, employers, private sources, Gye, and retailers. The 1996 Korean Household Panel Study were analyzed using logistic model. It was found that socio-demographic factors influenced differently on the probabilities of debt holdings according to the types of debt. There were interrelationships among the ownerships of a specific type of debt and other types of debt and asset.

• The Journal of Industrial Distribution & Business
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• v.12 no.2
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• pp.41-52
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• 2021

Purpose: This study aims to provide implications for the government's housing supply policy by analyzing the factors that determine the type of real estate holding and household debt. This study started from the awareness that the determinants of household debt differ depending on the type of real estate holding. Research design, data and methodology: Real estate ownership type was classified and analyzed into 4 models: model 1 (1 household 1 house and self-resident), model 2 (1 household multiple real estate ownership and self-resident), model 3 (1 household 1 house and rent residence), model 4 (1 household holds a large number of real estate and rent residence). The analysis method used multiple regression analysis. The dependent variable was household total debt. As independent variables, household debt, annual gross household income, financial assets, real estate net assets, annual repayment, demographic & residential characteristics were used. Results: 1) Model 4 has the highest household debt and the highest gross income, Model 2 has the most real estate mortgage loans and real estate net asset, and Model 1 has the highest real estate mortgage payments. 2) The positive factor of common household debt determinants is real estate net assets, and the negative factor is financial assets. 3) It was the net assets of real estate that acted as a positive factor in common for the four models. In other words, the more financial assets, the less household debt. It was analyzed that the more net assets of real estate, the more household debt. The annual repayment of financial liabilities had no influence on household debt, while the annual repayment of loan liabilities and household debt had a positive relationship. Conclusions: 1) It is necessary to introduce benefits and systems that can increase the proportion of household financial asset. Specific alternatives include tax benefits and reduced fees for financial asset investment. 2) In the case where a homeless person prepares one house for one household, it is necessary to prepare various support measures according to the income level. The specific alternative is to give additional points for pre-sale or apply an interest rate cut incentive for mortgage loans.

• The Journal of Asian Finance, Economics and Business
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• v.3 no.3
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• pp.5-15
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• 2016

This study examines whether Korean rating agencies such as Korea Investors Service (KIS), National Information & Credit Evaluation (NICE), and Korea Ratings Corporation (KR), incorporate corporate governance into their corporate bond ratings in Korea. We find that the Korean rating agencies assign higher ratings to the bonds issued by Chaebol (Korean business group) affiliated firms. Our results also indicate that those rating agencies give higher ratings to the bonds with greater foreign investor share ownership. Moreover, if the rating agencies value corporate governance, higher rated firms should issue bonds at lower yield to maturity. We discover that Chaebol affiliation is counted favorably by the rating agencies. We find that investors are willing to pay lower risk premium for bonds with higher institutional ownership, but higher risk premium to bonds with greater equity ownership in the form of depository receipts. Therefore, even if the rating agencies and investors in Korea consider corporate governance (Chaebol affiliation and ownership structure) an important determinant in bond ratings and the yields to maturity, they have opposite views on institutional ownership and share ownership in the form of depository receipts.

• The Korean Journal of Financial Management
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• v.25 no.3
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• pp.155-173
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• 2008

Controlling for the impacts of main strands of debt maturity theories, we highlight the relationship between syndicated loan maturity and ownership structure of Korean borrowers. We find that as the ownership of large shareholders increases, the maturity of syndicated loans also increases. Additionally, we identify a negative relation between foreigners' ownership and loan maturity, indicating that foreign institutional investors serve valuable monitoring functions; as their equity shares increase, they fully take advantage of frequent renewals through the short maturity of syndicated loan. We also show that the predicted value of leverage is more systematically and positively related to the maturity of syndicated loan.