• The Korean Journal of Financial Management
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• v.20 no.1
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• pp.331-339
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• 2003

We investigate long-run relationships between industry relatedness, operating performance, and stock performance after equity carve-outs(ECO). For homo-industry ECOs, 12-month CAR of subsidiary firms is 26.52% and significantly positive at the 5% level and BHAR is 22.19%. For hetero-industry ECOs, subsidiary 12-month CAR and BHAR are 35.14% and 39.64%, respectively, which are significant at the 1% level. On the other hand, long-run performance of parent firms is insignificant for any sub-sample. Excess operating performance of subsidiaries is significantly positive at the first year and insignificant thereafter. The lower the offering ratio is and the better the operating performance is, the better the subsidiary stock performance is. Unlike IPOs and SEOs, shareholders of subsidiaries benefit from ECOs and parent stocks do not underperform. Hetero-industry ECOs improving corporate focus are more effective restructurings than homo-industry ECOs.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.19 no.37
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• pp.195-199
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• 1996

The objectives of this study are to analyze, based upon agency theory, empirically the relevance between ownership structure and corporate performance. In this study, samples are 285 firms listed in Korea stock exchage from 1990 to 1994. The results of this empirical test are summarized as follows : Insider-equity ratio of firm in Korea has been positively correlated with performance of corporate. This study intended to present the desirable implecations for seperation of ownership and management.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.523-530
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• 2020

The efficient market hypothesis explains the random walk hypothesis suggesting that stock prices are independent of each other, hence, it is impossible to earn abnormal profits. The positive effect of a well-functioning and highly efficient stock market on the performance of an economy motivated the Philippine Stock Exchange to pursue massive modernization initiatives. This research provides evidence of the existence of random walk in the Philippine stock market employing the Augmented Dickey-Fuller (1981) and Phillips-Perron (1988) unit root tests, the Lo-MacKinlay's (1988) conventional variance ratio test, and Chow-Denning's (1993) simple multiple variance ratio test. Results of the ADF and PP unit root tests confirm the necessary condition for a random walk. The Chow-Denning (1993) maximum /z/ statistic and the Wald test statistic as in Richardson and Smith (1991) for the joint hypotheses and the Lo and MacKinlay (1988) individual statistics variance ratio test generally accepted the null hypothesis of a random walk. That is, the unit root and variance ratio tests consistently indicate that the null hypothesis of random walk cannot be rejected. The existence of a random walk in weak-form efficiency can be attributed to market liquidity as a result of continuous development and modernization of the Philippine equity market.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.10
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• pp.327-339
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• 2021

This study examines the impact of bank restructuring on the financial performance of commercial banks in Vietnam. The data for this study was obtained from the audited financial statements of 30 Vietnamese commercial banks from 2007 to 2019. Multiple regression analysis was used for investigation. Financial performance, as evaluated by ROAA, ROEA, and NIM, is the dependent variable. Financial restructuring, ownership restructuring, and operational restructuring are the independent variables. Pooled least squares (Pooled OLS), fixed effects model (FEM), random effects model (REM), and system generalized moment regression model (System GMM) are the estimate methods used to increase the accuracy of the regression coefficient. The research results show that the variables of financial restructuring activities such as government intervention and the ratio of equity to total assets; variables of ownership restructuring such as capital adequacy ratio, privatization of state-owned commercial banks, mergers, and acquisitions; variables of operational restructuring such as employees, branches, the cost to total assets; GDP variables and the second restructuring period have a positive impact on financial performance. Variables such as debt-to-capital ratio, bad debt ratio, state ownership ratio, expense-income ratio, and inflation have a negative effect on financial performance.

• Journal of the Korea Society of Computer and Information
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• v.4 no.2
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• pp.155-163
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• 1999

This study is intended to analyze what trend the EVA technique recently actively studied shows according to the financial structure of the firm. As a result of analysis, it was found that the firm with the entire sum of its capitals depleted showed the negative value in both the EVA on the basis of operating profit and the EVA on the basis of cash flow from 5 years before its capitals were depleted. Especially, its EVA showed the negative value more strongly than the cash flow accruing by business activity. In analyzing the EVA of the firm with more than 1,500% of the debt to equity ratio, its EVA also showed the negative value from 5 years ago. But the firm with the good financial structure of the debt to equity of less than 35% showed the positive value in the EVA on the basis of its cash flow from 5 years ago. As can be seen from this result, the fact is that the firm can survive only when it raises its EVA through its structural change(re-engineering) and business innovation. Therefore, firms need to seek to turn their business philosophy or policy into the promotion of business innovation and business management emphasizing technology in order to improve their EVA indicators.

• Asian Journal of Business Environment
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• v.8 no.3
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• pp.23-31
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• 2018

Purpose - The purpose of this study is to analyze the comparative financial performance of outsourcing and vertically integrated corporations from Footwear and Apparel industry. Research design, data, and methodology - Secondary data is collected from the published audited annual reports of the footwear and apparel corporations listed on stock exchanges globally. In the current study, 40 footwear firms have been opted that include 20 vertically integrated and 20 outsourcing firms. The sample is distributed into two groups based on threshold up-to 50 percent respectively outsourcing and vertically integrated companies. Sample independent t-test is applied to compare the financial performance of outsourcing and vertically integrated firms. Results - Based on the investigation of 10 years' data of financial ratio, the results of the study show that there is significant difference between outsourcing and vertical integration strategy on return on assets, return on equity while insignificant difference has found with profit margin. Conclusions - The findings of the current study indicates that there is significant difference between the financial performance of outsourcing and vertically integrated firms in terms of return on asset, return on equity and insignificant difference in terms of profit margin.

• The Journal of the Convergence on Culture Technology
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• v.7 no.4
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• pp.1-7
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• 2021

The purpose of this study was to analyze the effect of household loan share on bank management soundness. The results of the empirical analysis are summarized as follows. First, as a result of estimating coefficient of the mortgage loan ratio shows a significant negative relationship with the BIS equity capital ratio of banks. In addition, it was found that the mortgage loan ratio had a significant positive (+) effect on Eunhae's BIS and equity capital ratio after the financial crisis. Second, as a result of the estimation coefficient of the mortgage ratio showed a significant positive (+) relationship with the NPL of the bank and below. In addition, it is estimated that the bank's secured loan ratio changed significantly before and after the financial crisis in the effect of banks' NPL and substandard-and-below loans. It is expected to make implication to financial policy and banking regulation and supervision. We believe that more efforts should be made to increase the soundness of household loans in preparation for risk factors that may arise from exogenous factors such as changes in the international financial environment and falling property prices.

• Journal of the Korea Convergence Society
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• v.8 no.10
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• pp.215-223
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• 2017

This article has tried to analyse the effect of the corporate earning return tax empirically through analysis on the impact of previous internal reservation on the dividends rate of the current year. In addition to this, this article has tried to the effectiveness of government policies with leverage ratio as a moderating variable. Moreover, DRF and GBM model were used to see the effect again. As a result of the actual proof analysis, OCF, ROE, FOR have a significance level of 99% in model1, model2, model3. However, ADV and MSE has appeared not to be meaningful in all models. In the result of DRF and GBM model for convergence was higher than GBM in depth and leaves. However, when it comes to a model explaining capability, GBM high than DRF. The further study will be required to examine the effect of government policy by time series analysis in the period of enforcement of the reflux tax, from 2015 to 2017.

• Journal of Digital Convergence
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• v.19 no.4
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• pp.39-48
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• 2021

The retirement pension is one of the security systems for retirement income. In Korea, since 2016, companies with 300 or more employees are obligated to introduce retirement pensions, so the rate of introduction of retirement pensions by large companies is high, but the rate of introduction of small and medium-sized enterprise(SME) is very low. This study aims to suggest a direction for the government's policy establishment to introduction of a retirement pension plan by looking at what financial attributes affect the intention to introduction of retirement pension plan. As a result of the analysis, it was found that among the financial attributes, Return on Sales in the positive (+) direction and Equity Capital Ratio in the negative (-) direction were significant factors influencing the intention to introduce a SME retirement pension. Accordingly, the government policy to induce the introduction of the retirement pension for SMEs needs to be implemented in stages with priority to SMEs with large Return on Sales and Equity Capital Ratio.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.469-476
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• 2021

This study aims to examine and measure the impact of capital structure on the profitability of companies in emerging markets. The research sample includes eighteen rubber companies listed on the Vietnam stock exchange from 2015-2019. After collecting the research data, it was imported into excel to calculate the criteria for the research model. By using Stata 16 software, the study selected a data processing model and evaluated the relevance of the regression analysis model. The research results show that the profitability of listed rubber companies in Vietnam (measured by return on equity (ROE) has a positive relationship with the debt-to-asset ratio but has a negative relationship with the long-term debt-to-asset ratio. The results also show a positive impact of firm size and revenue growth on profitability while liquidity and the ratio of tangible fixed assets to total assets do not affect significantly. These results are consistent with most of the previously published studies. However, in contrast to many previous studies, our study shows that the long-term debt-to-assets ratio has a negative effect on profitability while the debt-to-asset ratio has a positive effect. This is entirely consistent with the characteristics of long-term debt use in emerging markets.