• Journal of Navigation and Port Research
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• v.43 no.4
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• pp.264-272
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• 2019

In this study, the rate of return on investment used as a proxy variable for the entity's value and financial structure (liability ratio) is related to positive balance. This is consistent with the Static Tradeoff Theory (STT) that the entity's value and financial structure are related to a positive balance because the capital expense of a debt (tax-saving effects) that is less than its equity cost before it is in financial difficulty. Also, operating profitability (EBITDA/Sales), investment safety, total asset growth, net working capital and depreciation expenses are related to negative (-) with financial structure (liability ratio). This is the result of an analysis consistent with the Pecking Order Theory (POT). Fuel costs, borrowing, total asset turnover, financial costs, and tangible asset ratios have a significant positive relationship with the debt ratio. This is consistent with the agency theory and confirms that excessive chartering expenses, such as the bankrupt H company, are the main factors that pressure the financial structure of Korean ocean carriers.

• Korean Journal of Construction Engineering and Management
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• v.16 no.6
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• pp.84-91
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• 2015

Project Financing (PF) is a financing method, executed based upon the projected profitability from a project itself instead of relying on the credit rating of project sponsors or any type of collateral. However, most financial institutions of Korea lacks the long term profitability assessment capability, and they prefer to acquire credit reinforcement from the construction companies in the form of the guarantor or debt argument commitments. As a result, PF contingent liabilities as an indirect debt, are burdened to the construction companies. Even though the PF contingent liabilities are not supposed to be part of the financial statements, they became a mandatory disclosure items since 2009. In this study, PF contingent liabilities were studied to indicate how they were correlated with construction firms' financial ratios. Construction firms were grouped by their credit rating and each group was compared in order to analyze PF contingent liabilities' impact on the financial condition of the company in terms of liquidity, liability, and stability.

• Environmental and Resource Economics Review
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• v.32 no.2
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• pp.77-105
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• 2023

This paper investigates the management stability of KOSPI-listed energy public enterprises from the perspective of median voter theory. We analyze the profitability and stability of five energy public enterprises during the period 2011~2022, and conduct an empirical analysis to determine whether they are related to the preferences of median voters who can represent the general public. Our analysis of the profitability and stability of the energy public enterprises shows that the stability of their has been deteriorating in recent years. The results of the empirical analysis also show that the management stability of the energy public enterprises is related to the preference of median voter. Specifically, they indicate that when the median voter's income is smaller than the average income, the profitability of the utility decreases and the debt ratio increases. This paper suggests that from the median voter's point of view, excessive utility and energy bills may strengthen the incentives for governments and politicians to suppress rate increases, leading to lower profitability and higher debt for public enterprises.

• Korean Management Science Review
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• v.32 no.1
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• pp.113-131
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• 2015

We examine the relationship between firms' environmental (E), social (S), and governance (G) factors, with their financial performance in order to provide an empirical rationale for CSV (creating shared value) pursuing both of firms' profitability and CSR (corporate social responsibility). The financial performance is classified into four aspects such as profitability, stability, efficiency, and cash-flow, and each of these aspects is measured by two financial ratios respectively. To measure the firms' ESG performance, we employ the published performance grades by the Korea Corporate Governance Service for a three year span, from 2011 to 2013. Total of eight regression analyses are performed. The results show that firms' non-financial performance in general has statistically significant positive relationships with return on assets, return on net sales, and cash-flow from operating activities ratio, while it has negative relationships with net working capital ratio, asset turnover ratio, and cash-flow from investing activities ratio. It has no significant relationships with debt ratio and equity turnover ratio. The results imply that firms' non-financial performance may have a negative impact on some financial performance such as liquidity and efficiency in a short term, but it would eventually improve the firms' profitability and cash-generating ability, which provides an empirical evidence for the concept of CSV, and motivates the firms to participate in social contribution activities without sacrificing their profitability for their respective sustainablity management.

• The Journal of the Korea Contents Association
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• v.17 no.11
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• pp.515-524
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• 2017

This study is focused on finding out how Mers affects tourism industry. To achieve the study purpose we analyzed the differences of management performance of hotels, travel agencies and airlines before and after Mers occurrence. As the result of analysis, there were significant differences in the variables of profit margin ratio before income taxes and operating profit ratio as a profit index before and after Mers occurrence in the hotel firms. And in case of travel agencies, there were significant differences in the variables of debt to equity ratio and borrowings dependence ratio as a stability index before and after Mers occurrence. Lastly there were significant differences in the variables of operating profit ratio as a profit index and total assets turnover ratio as an activity index before and after Mers occurrence in the airlines. Therefore the managers should find an way to reduce the negative image of plague through the effective marketing strategy.

• Journal of Korean Society for Quality Management
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• v.40 no.4
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• pp.615-630
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• 2012

Purpose: The purpose of this research is to identify the factors effecting on the software firm performance through RBV(Resource-Based View) perspective. Methods: The data have been analyzed via the multiple regressions between 3 performance indexes, which are revenue, operational income rate and employment, and 7 independent variables. Results: The results show that company age, capital intensity, training expense, marketing expense, and export revenue effect on the firm performance, whereas R&D expense and debt ratio do not so. Conclusion: This study can contribute the decision process of the investment priority of resources and competencies at the software firms to maximize the return on investment.

• The Korean Journal of Health Service Management
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• v.10 no.3
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• pp.13-25
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• 2016

Objectives : The purposes of this study was to analyze business performance of university hospitals for the past 10 years. Methods : Management and finance data from 2005 to 2014 were collected from balance sheets, income statements and annual reports from 27 university hospitals. The dependant variable used was profitability which included return on assets, operating margin and net profit to gross revenues 1. The independent variables were general characteristics, liquidity, stability, activity and financial ratios. Results : University hospitals over the last 10 years had achieved good management performance. Using financial leverage, patient revenues, operating profit, nonpatient revenues, total assets and total debt, the total amount had increased by more than double. The ratio of fixed liability and fixed assets turnover was found to have a significant positive (+) effect on management performance in the years 2012-2014. Conclusions : Based on these results, this study suggests a more in-depth analysis using fixed liabilities and fixed assets.

• Journal of the Korean Home Economics Association
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• v.42 no.10 s.200
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• pp.11-22
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• 2004

The purpose of this study was to examine the structure of financial risk components of households. The financial risk of households was assumed to be composed of risk knowledge, risk attitude and risk management behavior. For this study, a questionnaire was developed and distributed to 700 households in Seoul and Kwangju, and there were 495 responses with usable data. The findings showed that income stability had a positive relationship with the level of risk knowledge and risk attitude. Income stability, household debt, age of the youngest child and risk knowledge were found to have direct effects on risky vs. non-risky asset ratio. Income stability, savings, age of the youngest child and risk knowledge also had significant effects on the number of risky assets owned by households. Risk knowledge was the most important determinant of risk management behavior.

• Journal of the Korean Operations Research and Management Science Society
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• v.15 no.2
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• pp.45-61
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• 1990

This study examines shareholder wealth effects in tender offers and attempts to explain abnormal return variations of bidding and target firms at announcement of takeovers using the free cash flow hypothesis of Jensen. On average, bidders with large free cash flows pay higher premia (apparently more than fair market value) to targets than do other bidders with no free cash flows. Thereby, these bidders experience negative wealth effects on announcement of tender offers. Cross-sectional regression analysis suggests that for the subsample of takeover bids where bidders have large free cash flows, the increase in the debt ratio resulting from takeover has a significant positive wealth effect for bidding firm shareholders, while it has no effect in other subsamples. The evidence is consistent with the free cash flow hypothesis.

• The Korean Journal of Community Living Science
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• v.14 no.1
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• pp.55-71
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• 2003

The purpose of this study was to evaluate the financial status of single mother households by financial ratios. Data was drawn from Labor Panel Survey Data in 1999, and 198 single mother households were selected. Major findings were as follows: 1) The levels of after-tax income, income per person, expenditure, expenditure per person, asset, pure asset, and debt of single mother households were lower than their counter-parts. 2) All financial ratios showed that both financial security and financial growth of single mother households were lower than their counter-parts. Especially, 22% of single mother households had the lower level of income that the lowest cost of living.