• Title/Summary/Keyword: Financial Distress

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A Study on the Effect of Real Estate Acquisitions and Sales on Firm Value (부동산 취득 및 처분이 기업가치에 미치는 영향에 관한 연구)

  • Lim, Byungkwon;Kim, Chun-Kyu
    • The Journal of the Korea Contents Association
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    • v.18 no.7
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    • pp.49-63
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    • 2018
  • This study examines both the announcement effect of corporate real estate acquisitions and sales and long-term stock performance. Also, we analyze long-term stock returns on the basis of the amount and the purpose (business activities, financial activities, etc.) of real estate acquisitions and sales. The major findings are as follow. First, we find that there is no significant announcement effect on the real estate acquisitions. However, the announcement day of real estate sales shows significantly positive abnormal stock returns. Second, we find that both the real estate acquisitions and sales show negative long-term stock performance. We also find the same results from the case where we classify our sample on the basis of the amount and the purpose of real estate acquisitions and sales. Third, the amount of real estate acquisitions is significantly negatively related to long-term stock returns, whereas the relation between firm value and the amount of real estate sales is positive only under the business activities. Overall, long-term stock performance decreases after the announcement day of the real estate acquisitions and sales. This results can be explained by agency theory. Also, we conclude that a decline in stock performance after the real estate sales explain an information signal on financial distress.

Bank Dividend Policy and Degree of Total Leverage

  • TRAN, Dung Viet
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.2
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    • pp.53-64
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    • 2020
  • We provide one of the first investigation on the impact of the degree of total leverage to the dividend policy of bank. We use a large sample of US bank holding companies from 2000:Q1 to 2017:Q4 to shed light our research question. Our empirical analysis provides consistent evidence that banks with high degree of total leverage (i.e. banks with a relatively high fixed-to-variables costs) are less likely to pay dividends, and they spend a lower fraction of incomes to pay back shareholders, suggesting a higher conservatism in dividend policy of banks subject to high degree of total leverage. The evidence remains unchanged with alternative econometric approaches, alternative measures of dividend policy and degree of total leverage. We further document that this higher conservatism is strengthened for a sample of banks with low franchise value during the financial crises. Our result suggests that the conservatism in dividend policy of banks with high degree of total leverage seems to be related to the precautionary motives aimed at preserving corporate resources under financial distress. Our study contributes to the literature of cost structure and dividend policy by pointing out that the impacts of the degree of fixed-to-variable expenses to dividend policy are extended to the case of banks.

The Prediction of Export Credit Guarantee Accident using Machine Learning (기계학습을 이용한 수출신용보증 사고예측)

  • Cho, Jaeyoung;Joo, Jihwan;Han, Ingoo
    • Journal of Intelligence and Information Systems
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    • v.27 no.1
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    • pp.83-102
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    • 2021
  • The government recently announced various policies for developing big-data and artificial intelligence fields to provide a great opportunity to the public with respect to disclosure of high-quality data within public institutions. KSURE(Korea Trade Insurance Corporation) is a major public institution for financial policy in Korea, and thus the company is strongly committed to backing export companies with various systems. Nevertheless, there are still fewer cases of realized business model based on big-data analyses. In this situation, this paper aims to develop a new business model which can be applied to an ex-ante prediction for the likelihood of the insurance accident of credit guarantee. We utilize internal data from KSURE which supports export companies in Korea and apply machine learning models. Then, we conduct performance comparison among the predictive models including Logistic Regression, Random Forest, XGBoost, LightGBM, and DNN(Deep Neural Network). For decades, many researchers have tried to find better models which can help to predict bankruptcy since the ex-ante prediction is crucial for corporate managers, investors, creditors, and other stakeholders. The development of the prediction for financial distress or bankruptcy was originated from Smith(1930), Fitzpatrick(1932), or Merwin(1942). One of the most famous models is the Altman's Z-score model(Altman, 1968) which was based on the multiple discriminant analysis. This model is widely used in both research and practice by this time. The author suggests the score model that utilizes five key financial ratios to predict the probability of bankruptcy in the next two years. Ohlson(1980) introduces logit model to complement some limitations of previous models. Furthermore, Elmer and Borowski(1988) develop and examine a rule-based, automated system which conducts the financial analysis of savings and loans. Since the 1980s, researchers in Korea have started to examine analyses on the prediction of financial distress or bankruptcy. Kim(1987) analyzes financial ratios and develops the prediction model. Also, Han et al.(1995, 1996, 1997, 2003, 2005, 2006) construct the prediction model using various techniques including artificial neural network. Yang(1996) introduces multiple discriminant analysis and logit model. Besides, Kim and Kim(2001) utilize artificial neural network techniques for ex-ante prediction of insolvent enterprises. After that, many scholars have been trying to predict financial distress or bankruptcy more precisely based on diverse models such as Random Forest or SVM. One major distinction of our research from the previous research is that we focus on examining the predicted probability of default for each sample case, not only on investigating the classification accuracy of each model for the entire sample. Most predictive models in this paper show that the level of the accuracy of classification is about 70% based on the entire sample. To be specific, LightGBM model shows the highest accuracy of 71.1% and Logit model indicates the lowest accuracy of 69%. However, we confirm that there are open to multiple interpretations. In the context of the business, we have to put more emphasis on efforts to minimize type 2 error which causes more harmful operating losses for the guaranty company. Thus, we also compare the classification accuracy by splitting predicted probability of the default into ten equal intervals. When we examine the classification accuracy for each interval, Logit model has the highest accuracy of 100% for 0~10% of the predicted probability of the default, however, Logit model has a relatively lower accuracy of 61.5% for 90~100% of the predicted probability of the default. On the other hand, Random Forest, XGBoost, LightGBM, and DNN indicate more desirable results since they indicate a higher level of accuracy for both 0~10% and 90~100% of the predicted probability of the default but have a lower level of accuracy around 50% of the predicted probability of the default. When it comes to the distribution of samples for each predicted probability of the default, both LightGBM and XGBoost models have a relatively large number of samples for both 0~10% and 90~100% of the predicted probability of the default. Although Random Forest model has an advantage with regard to the perspective of classification accuracy with small number of cases, LightGBM or XGBoost could become a more desirable model since they classify large number of cases into the two extreme intervals of the predicted probability of the default, even allowing for their relatively low classification accuracy. Considering the importance of type 2 error and total prediction accuracy, XGBoost and DNN show superior performance. Next, Random Forest and LightGBM show good results, but logistic regression shows the worst performance. However, each predictive model has a comparative advantage in terms of various evaluation standards. For instance, Random Forest model shows almost 100% accuracy for samples which are expected to have a high level of the probability of default. Collectively, we can construct more comprehensive ensemble models which contain multiple classification machine learning models and conduct majority voting for maximizing its overall performance.

Phenomenological Study on Experience of Preterm Labor (임부의 조기진통 경험에 대한 현상학적 연구)

  • Ryu, Khyung-Hee;Shin, Hye-Sook
    • Women's Health Nursing
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    • v.15 no.2
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    • pp.140-149
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    • 2009
  • Purpose: The purposes of this phenomenological study were to explore the experience of preterm labor. Methods: The participants were 7 women admitted to two obstetric hospitals in Kyunggi-do Province with preterm labor. Data was collected with MP3 records through individual in-depth interviews and participated observation. The data was analyzed by Giorgi(1985) method. Results: The results were divided into six categories as follows: 1) Inappropriate coping: unexpected event, overwork, lack of insight of preterm labor, 2) Burn out: multiple role, burden, role conflict. 3) Restrictions of lifestyle: uncomfortable hospital environment, wearisomeness, limitations of personal hygiene, 4) Physical discomfort: headache, flush, tremor, palpitations, 5) Psychological distress : concerns about fetus health status, fear of possible preterm delivery, lack of information, financial worries, 6) A transition to new lifestyle: share of household chores, communication with self-help group, careful lifestyle. Conclusion: The findings of this study will offer a better understanding of women's preterm labor experiences and suggest clues to nurses on how to improve the care they provide.

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The Impact of Communication on the Overall Quality of Life in Elderly Koreans

  • Kang, Ji Sook;Park, Sung Ji
    • International Journal of Advanced Culture Technology
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    • v.7 no.3
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    • pp.58-64
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    • 2019
  • Background: Communication is important for the elderly to maintain existing social relationships while creating new relationships based on good communication skills to lessen psychological and emotional distress and lead a healthy life in advanced age. Aims: This study identifies the difference between the social network-based quality of communication life and the overall quality of life in the elderly and how much the quality of communication life affects the overall quality of life. Methods: This research includes a survey of the elderly aged 65 and over living in small cities of South Korea. Data sets of 201 elderly were analyzed. Results: This study found a significant correlation between the quality of communication life and the overall quality of life. Religion also influences the elderly's quality of communication life. The elderly's quality of communication life has 40% explanatory power of the overall quality of life. Conclusion: Consequently, senior citizens' quality of life will be improved through the enhanced quality of communication in addition to financial and health conditions by participating in various community activities similar to those provided by religion to increase opportunities for communication.

Incentives to Manage Operating Cash Flows Among Listed Companies in Korea (한국 상장기업의 영업현금흐름 조정 동기)

  • Choi, Jong-Seo
    • Management & Information Systems Review
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    • v.34 no.5
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    • pp.213-231
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    • 2015
  • In this paper, I examine whether the listed companies in Korea tend to manage operating cash flows upward via classification shifting after the adoption of K-IFRS. As proxies for cash flow management, I derive a measure of abnormal operating cash flows borrowing from Lee(2012). Alternative proxies include a series of categorical variables designed to identify the types of classification shifting of interest and dividend payments among others, in the statement of cash flows. Higher level of estimated abnormal operating cash flows, and the classification of interest/dividend payments in non-operating activity sections are considered to indicate the managerial intention to maximize reported operating cash flows. I consider several potential incentives to manage operating cash flows, which include financial distress, the credit rating proximity to investment/non-investment cutoff threshold, avoidance of negative or decreasing operating cash flows relative to previous period and so forth. In a series of empirical analyses, I do not find evidence in support of the opportunistic classification shifting explanation, inconsistent with several previous literature in Korea. In contrast, I observe negative associations between the CFO management proxies and selected incentives, which suggest that the classification is likely to represent above average cash flow performance rather than opportunistic motives exercised to maximize reported operating cash flows. I reckon that this observation is, in part, driven by the K-IFRS requirement to maintain temporal consistency in classifying interest and dividend receipts/payments in cash flow statement.

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Total Pain of Patient with Terminal Cancer (말기 암환자의 총체적 고통)

  • Lee, Won-Hee
    • Journal of Hospice and Palliative Care
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    • v.3 no.1
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    • pp.60-73
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    • 2000
  • Purpose : The purpose of this study was to describe a total pain model in patients with terminal cancer and to identify factors relating to total pain using the Twycross Pain Management Model, which included physical, psycho-social and spiritual pain. Method : The study was a retrospective descriptive study. The first stage included 87 patients who received hospice service at Y hospital in 1997. The second stage included five model patients who suffer severe pain as selected by the four hospice nurses. Data collection was from 1) chart analysis and 2) in-depth interviews with the hospice nurses about their selected patients. Data analysis was performed using SPSS-WIN and content analysis. Result : 1) The main problems of 3 patient with terminal cancer were pain(77%), constipation (25.3%), family coping(35.6%), psycho-spiritual distress(17.2%)and other symptoms. 2. The Twycross model was a useful model. However, new items were added; loneliness, depression, and no improvement in condition as depression factors. In anger, new items were anger due to family neglect, at God and in relationships. The case studies identified the followsing; 1) Patient suffer from physical pain as well as multiple other symptoms when cancer is advanced. 2) Body concept, role change, threat to self concept, fear of pain, fear of death, anxiety, family conflict, financial burden, spiritual distress, hope for a cure, are all affected. Conclusion : 1) It is believed that the Twycross model is useful but further tests and revisions are necessary for deciding priorities in the care plan. 2) Pain management must improve culturally appropriate and family support, psychological, spiritual care are imperative for patient with terminal cancer. 3) Further study is recommended to test correlations of depression, anxiety, spiritual distress and family coping using valid instruments. A qualitative study on the spiritual journey of the patient with terminal cancer is also recommended.

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Caregivers' Burden in patients with a cute stroke (급성기 뇌졸중 환자를 돌보는 가족 돌봄제공자의 부담감 관련요인)

  • Kang, Sue-Jin;Lee, Hee-Joo;ChoiKwon, S-Mi
    • The Korean Journal of Rehabilitation Nursing
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    • v.5 no.1
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    • pp.27-37
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    • 2002
  • During acute stages of hospitalized stroke patients, family caregivers face many challenges. They often experience emotional distress, social isolation, and financial constraints. However, the burden of caregiving of stroke patients in acute stages has never been studied properly. The purpose of this study was to investigate the factors related to the caregivers' burden with acute stroke. The subjects were 123 acute stroke patients and their caregivers who were admitted to neurology and neurosurgery units at Dan Kook University Hospital in Chung-Nam area. An interview was performed with the use of standardized questionnaire which included data pertaining to the patients/caregivers characteristics, caregiver burden (Modified Zarit's Burden Scale), and social support (Personal Resource Questionnaire). Our results showed that the mean burden score was 3.11, indicating high level of burden. Among the sub-domain scores, financial burden was the highest. In univariate analysis, the factors related to caregiver burdens were: inability to communicate between patients and caregiver(p<.001); low cognitive function of the patients(p<.001); low level of ADL(p<.001); the gender of caregiver(p<.001); the current employment status of caregivers(p<.01); the presence of social support for caregiver(p<.001); and the availability of alternative caregivers(p<.001). In multiple regression analysis, social support for family caregivers (87%), low level of patient's cognition (2%), availability of 2nd caregiver (1%), and gender of caregiver (female, 0.4%) were significant explanatory factors of overall burden. The caregivers' burden in acute stages during hospitalization following stroke was high. Recognition of high levels of caregivers' burden and those relating factors affecting caregiver burden may allow us to develop different nursing strategies to unload the level of burden for caregivers in acute stages of stroke.

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Psychosocial Adjustment after Kidney Transplantation (신장이식술 후의 사회심리적 적응)

  • 이명선
    • Journal of Korean Academy of Nursing
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    • v.28 no.2
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    • pp.291-302
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    • 1998
  • The purpose of this phenomenological study was to understand and describe the essence and the structure of lived experience of people with kidney transplantation. Initially, nine individual interviews were conducted to gather data regarding their subjective experiences. And two focus group interviews were utilized to validate or discard the themes that were emerged from the analysis using Colaizzi's method. Among 17 participants, 13 had living related kidney donations, one living unrelated, and the remaining two cadavor donations. About 130 significant statements were extracted and these were clustered into 11 themes. All participants felt anxiety and fear toward the rejection of transplantation and the complication of immunosuppressive drugs. Although they were initially satisfied with their life after kidney transplantation, most of them lost a self-confidence and experienced loneliness, depression, and despair. Most of the participants also felt guilty for not being able to accomplish their appropriate roles in the family, They also had financial difficulties and social restrictions. However, they overcame these psychosocial distress by exercising, working and sharing love with others. They also could overcome it by living a religious life and by working to help others with kidney transplantations. Most of them felt gratitude toward the donor and did not have a psychological rejection toward the kidney transplanted. The results of the study might help nurses who work with people with kidney transplantations in establishing and implementing an effective nursing intervention by understanding their lived experience.

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Family Strengths and Program Needs of Seoul Local Healthy Family Support Center Participants (서울시 자치구 건강가정지원센터 이용자의 가족건강성 및 프로그램 요구도)

  • Son, Seohee;Kye, Sun Ja
    • Journal of Families and Better Life
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    • v.32 no.6
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    • pp.19-30
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    • 2014
  • The purpose of this study was to identify the relationships between Healthy Family Support Center (HFSC) program participation and family strengths and program needs based on HFSC participants' individual, family, and community characteristics. A total of 695 HFSC participants who were married and had participated in HFSC programs were recruited through 25 local HFSCs in Seoul. A multiple regression method was conducted for data analysis. The major findings are as follows. Family strengths was related to the variables of age, education, monthly household income, and participation in family counseling and sharing family care programs. In terms of program needs, the variables of marital conflict, difficulty in care, financial distress, family strengths, and family-friendly community were associated with HFSC program needs while participants' socio-demographic characteristics were not related to program needs. This study highlights that HFSC programs have different target populations considering that the level of family strengths was different among the various programs' participants. In addition, program needs are different depending upon the HFSC participants' experiences in the family and community. These findings suggest that it is important to consider participants' family and community characteristics as well as participants' socio-demographic characteristics to provide appropriate programs for all HFSC participants.