• Korea Journal of Hospital Management
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• v.11 no.2
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• pp.61-86
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• 2006

Based on a previous literature about hospital capital structure(Shyam- Sunder & Myers, 1999), this study attempted comparison and analysis on whether the forecast of trade-off and pecking order theory could be validated in hospital's capital structure. First, this study analyzed whether hospitals follow the priority for each capital source as suggested by pecking order theory under lack of capital running in hospital. Next, it analyzed whether debt level is regressed on the average to target debt level so as to verify the validity of trade-off theory. Finally, it also analyzed possible associations between debt level and determinants of capital structure as adopted in static trade-off theory, so as to verify relative advantages of these two theories about hospital capital structure. The analysis over whole period showed that both trade-off theory and pecking order theory isn't supported particularly. This mean that each hospital's financing behaviors is different and that has not dominant financing behaviors. In the midst of separation of dispensary from medical practice, medical institutions in Korea first finances funds required using retained earnings and then use liabilities. however pecking order theory is supported, the preference of long-term liabilities and short-term liabilities is not clear. In addition, considering that debt level is in no average regression to target debt ratio, it is found that hospital capital structure following trade-off theory turns into that subject to pecking order theory via the separation of dispensary from medical practice.

• Korea Journal of Hospital Management
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• v.9 no.1
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• pp.22-45
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• 2004

This study was performed to identify factors affecting the profitability of private hospitals in Korea different and to make informations that could be very helpful to hospitals in improving profitability. Data used in this study were collected from 112 hospitals with complete general data of present conditions as well as financial statements(balance sheets, income statements). They were chosen from hospitals that passed the standardization audit undertaken by the Korean Hospital Association from 1998 to 2001 for the purpose of accrediting training hospitals. The dependent variables were used operating margin to total assets and operating margin to gross revenues as proxy indicators for profitability. The independent variables were ownership type, location, bed size, period of establishment, debt to total assets, current ratio, fixed ratio, total asset turnover, average length of stay, bed occupancy rate, admission ratio of outpatients, personnel costs per adjusted inpatient, and fiscal years. The factors had significantly positive effect on operating margin to total assets and operating margin to gross revenues were bed size, total asset turnover. And the factors had significantly negative effect on operating margin to total assets and operating margin to gross revenues were period of establishment, debt to total assets, average length of stay, personnel costs per adjusted inpatient. The adjusted $R^2$ of multiple regression equation was 25.2%, 21.4% respectively. It is very important for private hospitals to improve profitability by raising total asset turnover, and reducing debt to total assets, average length of stay, and personnel costs per adjusted inpatient using the rational and efficient business strategy.

• Journal of Digital Convergence
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• v.14 no.8
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• pp.105-113
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• 2016

This study analyzed and verified panel data based on CSMAR (China Stock Market & Accounting Research) DB from 2002 to 2014 in order to find out significant differences of conservative accounting before and after Chinese companies adopted international accounting standards. Financial changes in companies can occur at the point of change in accounting standards, and as the difference would affect conservative accounting, it is important to understand conservatism in financial transaction. In this study, earnings per share and price, return on equity, and debt ratio were measured. As a result of analysis, conservative accounting has increased after the introduction of accounting standards, and as the debt ratio was higher, the proportion of conservative accounting was higher. Thus, at a certain point of change in accounting standards, companies apply conservative accounting in order to improve reliability in an unstable future financial environment. Therefore, this study is expected not only to practically influence business practice in changes in GAAP rules but also to provide useful guidance for future studies.

• Journal of Navigation and Port Research
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• v.45 no.6
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• pp.276-283
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• 2021

The capital structure of the shipping business, which is characterized by its capital intensity and extreme market volatility, is closely related to long-term stability. Research in this area has been conducted mostly in the form of deriving the determinants of capital structure from company-wise financial ratios. This research, on the other hand, has a different approach to the topic. It identifies the relationship between actual cash profit and loss and other variables - i.e. actual vessel prices, interest rates and leverage ratio - by employing historical simulation. The result demonstrates that the P anamax cash profit shows 0 (break-even point) when the debt weight reaches 64.38% (debt ratio 180.74%) and the Cape, 73.04% (debt ratio 270.92%). Additionally, the ships of different types show a divided pattern for the pre- and post-'Super Boom'. It indicates that the business area and the market cycle should be considered when a leverage strategy is established. This research benefits shipping companies set a rational leverage strategy as well as delivers a reasonable guideline to government authorities for the development of a sound policy on shipping finance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.441-449
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• 2021

Bankruptcy is indicated by the inability of the company to meet its maturity obligations. The Covid-19 pandemic has had a terrible impact on the economy and businesses. The aim of this study to determine the effect of the ratios of activity, growth, leverage, and profitability in predicting bankruptcy projected by earnings per share (EPS). The sample of this research was non-banking financial sector companies listed on the Indonesia Stock Exchange in 2015-2019 and the purposive sampling technique was used. The data analysis method used was the logistic regression method to test the hypotheses. Company growth shows the company's ability to manage sales and generate high company profits, as such, the probability of the company experiencing bankruptcy will be lower. The results of this study showed that the debt to assets ratio (DAR), debt to equity ratio (DER), and return on assets (ROA) can predict bankruptcy. Meanwhile, this research found that the total assets turnover (TATO) ratio, sales growth, and net profit margin (NPM) cannot be used to predict bankruptcy.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.105-112
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• 2020

The study investigates and measures the impact of capital structure, profitability and financial performance on the success of the business organization. Capital structure of the business organization refers to the proportion of external funds and internal funds, i.e., debt and equity. In Saudi Arabia, petrochemicals companies are working on equity, but financial performance reflects negative trend for the period 2004 to 2016. The research is based upon secondary data available on the websites of petrochemicals companies of Saudi Arabia. Financial Ratio variability analysis and Trend Indices of financial ratios (TI_CBI) measure and compare the financial variability and sensitivity of financial ratios of the business organization. Correlation between Trend Indices (TI_CBI) of independent variable and dependent variables are to be calculated to know the impact of changes in debt equity on other dependent variables. The results reveal the unexpected performance of petrochemicals companies due to under-utilization of the resources caused by low demand and lower prices of the products governed by some internal and external factors. The study finds that size, demand, cost of production, profitable streams of products, and low cost capital in external funds are the factors responsible for overall growth development of the petrochemicals industry of Saudi Arabia.

• Journal of Families and Better Life
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• v.34 no.3
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• pp.113-128
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• 2016

The Purpose of this study is to find the levels of keeping financial records among Korean households and to reveal the effect of keeping financial records on financial soundness of households. The 2014 Consumer Empowerment Index of the Korean consumer agency, which includes the surveyed results of 1,000 individuals, was analyzed as a secondary dataset. As a result, the following findings emerged during the study. First, 25.9% of consumers replied that they were keeping financial records. Factors associated with keeping financial records were gender and income. Women were more likely to keep financial records than men. Also, income had significant effects on keeping financial records. Second, levels of meeting percentages of financial ratios were highest in the debt to income ratio, which was 81.5%, and lowest in the investment ratio, which was 14.5%. Furthermore, 52.6% met the savings ratio, 40.6% met the emergency funds ratio, 24.6% met the retirement savings ratio. Meeting a percentage of the savings ratio did not fluctuated for 16 years, although the debt to income ratio has decreased around 15% since 1998. Third, keeping a household account book had signigicant influences on meeting percentages of financial ratios. Magnitudes of effects ranged between 1.4-1.8 odds, which were as much as the income effects. In summary, effects of keeping financial records were evidenced in this study. It is suggested that the importance of keeping financial records should be stressed in financial education and counseling programs.

• Journal of Digital Convergence
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• v.17 no.3
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• pp.79-92
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• 2019

This study analyzes the effects of freight transportation income, capital, asset, non-operating expenses, and debt ratio on the debts of inner port freight transportation businesses through the GLS of panel regression analysis and the estimation of fixed effects model. The factors and hypotheses were established through a theoretical background review, and the financial statement and profit and loss data of inner port freight transportation businesses for 10 years from 2006 to 2015 were analyzed. The results showed that assets had positive effects on debts, and negative effects on capital, non-operating expenses, and debt ratio, but no effect on freight transportation income. This result empirically demonstrates the tendency of inner port freight transportation businesses to secure assets by increasing debts, creation of debt reduction leverage effect using non-operating expenses such as interest expenses through bank borrowing, and the adoption of management characteristics and financial operation method to lower the debt ratio by reducing capital more than debts. In future studies, it is necessary to analyze coastal port freight transportation business by industry (oil tankers, cargo ships, and barge ships), and regions such as East, West and South sea.

• Journal of Korea Entertainment Industry Association
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• v.15 no.2
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• pp.21-34
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• 2021

One of the important issues in finance literature is how the capital structure influences firm performance. This paper aims to investigate this relationship by focusing specifically on the entertainment industry. Taking into account the growing importance of research and development (R&D) activities in the industrial revolution 4.0 era, an additional goal of this paper is to examine how the R&D intensity moderates the relationship between the capital structure and firm performance, particularly in the entertainment industry. We find that the relationship between the capital structure measured by debt ratio and the firm performance in the entertainment industry shows distinctive features from those obtained from entire industries. While the negative influence of the increase of debt ratio is strong and consistent with various proxies when using a sample with entire industries, we cannot find this distinctive influence among entertainment enterprises. The moderating effect of R&D investments on the negative influence of debt ratio on the firm value, observed in the sample with entire industries, is not found in the sample composed of entertainment companies. These findings suggest that the influence of the debt level on firm performance and the role of R&D investments in this relationship in the entertainment industry are perceived and evaluated differently by financial market participants.

• Journal of Family Resource Management and Policy Review
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• v.26 no.3
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• pp.19-34
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• 2022

There are growing concerns about debt insolvency among youth and low-income households. The deterioration in household debt quality among young people is due to a combination of sluggish employment, an increase in student loan burden and an increase in high-interest loans from the secondary financial sector. The purpose of this study was to explore the possibility of household debt default among young borrowers in Korea and to predict the factors affecting this possibility. This study utilized the 2021 Household Finance and Welfare Survey and used random forest algorithm to comprehensively analyze factors related to the possibility of default risk among young adults. This study presented the importance index and partial dependence charts of major determinants. This study found that the ratio of debt to assets(DTA), medical costs, household default risk index (HDRI), communication costs, and housing costs the focal independent variables.