• Management & Information Systems Review
• /
• v.31 no.1
• /
• pp.89-116
• /
• 2012

This paper is an empirical study for the listed manufacturing companies in the Korea Stock Exchange during the sample period(2001-2010). The research is based on the target adjustment model(Shyam-Sunder and Myers(1999)) and the pecking order model(Frank and Goyal(2003)), and is aimed at reflecting the critical viewpoint of Chirinko and Singha(2000). An analysis in the model of Shyam-Sunder and Myers(1999) shows the value is too low to support the pecking order model in view of the following results. A target adjustment coefficient value is between 0 and 1, and is significant variable and explanatory power is very high, while deficit-in-funds coefficients close to 0. In addition, the result of an empirical test following the methodology used by Frank and Goyal(2003) does not support the pecking order theory.

• Journal of Digital Convergence
• /
• v.18 no.9
• /
• pp.103-112
• /
• 2020

The purpose of this study is to examine the current status and components of Korean National Debt and to analyze the effects of each component on National Debt. In the Korean Statistical Information Service (KOSIS), we searched for data such as General Accounting Deficit Conservation, For Foreign Exchange Market Stabilization, For Common Housing Stability, Local Government Net Debt Public Funds, etc that constitute National Debt. The analysis period used a total of 23 annual data from 1997 to 2019. The data collected in this study use the rate of change compared to the previous year for each component. Using this, this study attempted index analysis, numerical analysis, and model analysis. Correlation analysis result, the National Debt has a high relationship with the For Common Housing Stability. For Foreign Exchange Market Stabilization, Public Funds, etc., but has a low relationship with the Local Government Net Debt. Since 1997, National Debt has been increasing similarly to the For Foreign Exchange Market Stabilization, For Common Housing Stability and Public Funds etc. Since 2020, Korea is expected to increase significantly in terms of For Common Housing Stability and Public Funds, etc due to Corona19. At a time when the global economic situation is difficult, Korea's National Debt is expected to increase significantly due to the use of national disaster subsidies. However, if possible, the government expects to operate efficiently for economic growth and financial market stability.

• Journal of Convergence for Information Technology
• /
• v.11 no.4
• /
• pp.203-210
• /
• 2021

This study analyzed the financing ratio by operation fund financing method and their impact on management performance according to the establishment operation management entity of the medical institution. For the analysis method, ANOVA, logistic regression, and regression analysis were conducted using financial information registered with HASPA.The results of the study, The ratio of gross revenue to operating funds differed significantly depending on the establishment operation management entity. In addition, it was found that the financing ratio of each operation fund financing method was significantly related to the management results(deficit, surplus), and the impact of the operation fund financing method on management performance differed according to the establishment operation management entity. As a result, the management of operating funds of medical institutions is deemed appropriate to apply cost management first considering the ratio of revenue to operating funds, and then to utilize internal operating funds.

• The Korean Journal of Financial Management
• /
• v.23 no.2
• /
• pp.109-141
• /
• 2006

The central factor in the pecking order theory of financial structure is the asymmetric distribution of information between managers and less-informed outside investors. Myers and Majluf (1984) show that this asymmetry leads managers to prefer internal funds to external funds. Funds are raised through equity issues only after the capacity to issue debt has been exhausted. In contrast, according to static tradeoff theory, an optimum financial structure exists by the tradeoff between tax saving by debt and bankruptcy costs. This study examines the recent changes of Korean firms' financial structure and financing behavior and the determinants of financial structure. The sample of firms comes from the period of $1996{\sim}2004$, and the number of firms is 32,003. The major findings are as follows. First, in contrast with previous studies using US firms as sample, Korean firms have been using debt financing as their major financing instrument. Especially, the firms in the fund deficit situation relies much more on $long{\sim}term$ and $short{\sim}term$ debts rather than on equity issues. Second, as is the case with previous studies using US firms sample indicates, the financing deficit variable can not explain perfectly the net debt issue. However, compared with net equity issue variable, net debt issue variable is more closely related to the financing deficit variable. Third, when financing deficit variable is added to the current list of explanatory variables of financial structure determinants model, it has a significant and positive explanatory power. In addition, the coefficients of determinants are much improved. Thus, it is concluded that although pecking order theory is not perfect, it appears to be more useful compared to static tradeoff theory, at least in explaining the recent financing behavior of Korean manufacturing firms.

• Journal of the Ergonomics Society of Korea
• /
• v.34 no.5
• /
• pp.473-485
• /
• 2015

Objective: This study provides strategies of how to effectively convert an invention, created at universities or government-funded research institutes, into a strong patent with the clear understanding of its unique technological characteristics. Background: Regardless of the amount of research funds available in our country and the decent number of intellectual property rights created using the funds, there was a deficit of more than KRW 6 trillion in the technology trade balance related with intellectual property rights in the year of 2014. One of the reasons was that the vast number of patents that were being produced by universities or by government-funded research institutes were merely performance-based patents, namely, so called "patents for patents". Another reason is that developed technology from research and development could not be transformed into a strong patent right properly due to the lack of related knowledge. Method: After reviewing various references mentioned on the patent strategies, the definition of a strong patent and the strategies of producing a strong patent for an invention drawn out from research performance will be supplied. Results: To produce a strong patent right at universities or government funded research institutes, one should use strategies for strong specifications, strategies of product patents and method patents, strategies of patent portfolios, strategies of know-how, strategies of inventions defined by numerical limitation and strategies of parameter inventions for a more strategic approach. Conclusion: Strong patent rights will be produced with the use of effective patent strategies provided in this study. Application: It is estimated that the results of this study will aid the establishment of strong patents for inventions developed by research performance at universities or government-funded research institutions.

• The Journal of Fisheries Business Administration
• /
• v.13 no.2
• /
• pp.31-48
• /
• 1982

Though modern banking organs were established in Korea with the Kanghwa Treaty as a momentum, the benefit of financing at that time, which was mainly given to merchants and industrialists and traders, was extremely limited to the fishermen. The fishermen who were out of favor with the benefit of financing of modern banking organs were forced to rely on high interest loans, a category of usury capital, issued by the middlemen (the Kaekju) who lent them the deficit of their necessary funds. The fact was that in the field of fisheries the middlemen who issued usury capital played the leading part in fisheries financing of the Late Yi Dynasty. The middlemen, however, sqeezed a part or all of surplus products and on occasion even necessary products out of the fishermen by means of outward compulsion of economy. Moreover they put the fishermen further in trouble by putting-out system. In order to keep on with the production of aquatic products, the fishermen with little capital and no property established the antinomic rotations with the middlemen whose disadvantageous terms they were inevitably to accept. Thus the middlemen who did business with the fishermen exercised their authority over them, securing a strong activity foundation in the field of fisheries. But the traditional form of the Kaekiu was transformed and gradually declined in the field of fisheries according as the market rules were proclaimed in 1914.

• International Journal of Computer Science & Network Security
• /
• v.21 no.9
• /
• pp.239-246
• /
• 2021

This article substantiates the scientific provisions for modelling the level of Ukraine's public financial security taking into account the impact of budget policy, in the process of which identified indicators of budget policy that significantly affect the public financial security and the factors of budget policy based on regression analysis do not interact closely with each other. A seven-factor regression equation is constructed, which is statistically significant, reliable, economically logical, and devoid of autocorrelation. The objective function of maximizing the level of public financial security is constructed and strategic guidelines of budget policy in the context of Ukraine's public financial security are developed, in particular: optimization of the structure of budget revenues through the expansion of the resource base; reduction of the budget deficit while ensuring faster growth rates of state and local budget revenues compared to their expenditures; optimization of debt serviced from the budget through raising funds from the sale of domestic government bonds, mainly on a long-term basis; minimization of budgetary risks and existing threats to the public financial security by ensuring long-term stability of budgets etc.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.12 no.9
• /
• pp.3827-3833
• /
• 2011

This paper performed empirical tests of the validity of the pecking order theory which explains financing behavior of firms under information asymmetry. The results of regression analyses using the data of listed manufacturing companies in the Korean Stock Market from 1981 to 2010 have shown strong evidences supporting the pecking order theory. Especially regression coefficients of change of debt on funds deficit and control variables were found to be almost (+1) with statistically significance, which is interpreted as being consistent with the pecking order theory. Same results were found when I performed regression analyses by dividing the sample period into pre-currency crisis period, currency crisis period and post-currency crisis period and using 2 regression models. Change of tangible asset were found to function as collateral rather than reducing information asymmetry and as the firm size decreased, use of debt increased and as profitability increased use of debt decreased, which are consistent with the pecking order theory.

• Journal of Distribution Science
• /
• v.13 no.9
• /
• pp.47-57
• /
• 2015

Purpose - The aim of this paper is to investigate the explanatory power of the Pecking-order theory (the cost of financing increases with asymmetric information) among Korean retail firms from the perspective of debt capacity. According to the Pecking-order theory, a firm's first preference is to use internal funds for its capital needs, its next preference is the issuance of debt, and its last preference is the issuance of equity; this is due to the information asymmetry problem between existing shareholders and investors. However, prior empirical studies, such as Lemmon and Zender (2010), argue that the entire sample test for the Pecking-order theory could be misleading due to the different levels of debt issuance capability of each of the individual firms; in fact, they confirm that the explanatory power of the Pecking-order theory improves after taking into account the differences in debt capacity of the U.S. firms they examined. This paper implements a case study approach among Korean retail firms to examine the relationship between debt capacity and the explanatory power of the Pecking-order theory in Korea. Research design, data, and methodology - This study uses the sample of public retail firms on the Korea Composite Stock Price Index (KOSPI) from the time period of 1990 to 2013. We gather related financial and accounting statements from the financial information firm WISEfn. Credit rating information is provided by the Korea Investor Service. We employ the models of Lemmon and Zender (2010) and Son and Kim (2013) to measure a firm's debt capacity. Their logit models use the rating dummy variable as a dependent variable and incorporate other firm characteristics as independent variables to estimate debt capacity. To test the Pecking-order theory, we adopt variants of the financing deficit model of Shyam-Sunder and Myers (1999). In the test of the Pecking-order theory, we consider all of the changes in total debt obligations, current debt obligations, and long-term debt obligations. Results - Our main contribution to the literature is our confirmation of the predicted relationship between debt capacity and the explanatory power of the Pecking-order theory among Korean retail firms. The coefficients on financing deficits become greater as a firm's debt capacity improves. This is consistent with the results of Lemmon and Zender (2010). The coefficients on the square of the financing deficits are also negative for the firms in the largest debt capacity group, which is also consistent with the predictions in prior literature. Conclusions - This study takes a case study approach by examining Korean retail firms. We confirm that the Pecking-order theory explains the capital structure of retail firms more appropriately, after taking into account the debt capacity of each firm. This result suggests the importance of debt capacity consideration in the testing of the Pecking-order theory. Our result also implies that there has been a potential underestimation of the explanatory power of the Pecking-order theory in existing studies.

• Journal of Convergence for Information Technology
• /
• v.10 no.9
• /
• pp.206-214
• /
• 2020

This study analyzed the impact of direct and indirect subsidies on profitability in general hospitals in Korea. The data were collected from medical institution accounting information disclosure system of 270 general hospitals from 2016 to 2018. The analysis index used the ratio of net profit to business revenue for profitability, and Subsidies index the ratio of subsidies to business revenue(state subsidies for facility investment purposes, Fund related to essential business, research revenue and contribution revenue). According to the study, the ratio of state subsidies, which are direct subsidies, was very high at 57.30 percent for public institution hospitals. ratio of Fund related to essential business, which is a tax reduction effect with indirect subsidies, had the highest at 6.69 percent for Private University Hospitals. which are Indirect subsidies for deficit or operational assistance, research revenue ratio had the highest 2.8 percent for National University Hospitals, contribution revenue ratio had the highest 36.4 percent for public institutions. As a result of looking at the impact of subsidies on profitability, Nation University Hospitals had the lower the ratio of Fund related to essential business and the ratio of research revenue, the higher the net profit ratio of Business revenue. Medical Corporation Hospitals and Foundation Hospitals had the higher the ratio of Fund related to essential business to business revenues, the higher the net profit ratio of business revenue. These results mean that profitability may fluctuate depending on the utilization of funds related to essential business.