• Journal of Family Resource Management and Policy Review
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• v.23 no.2
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• pp.99-115
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• 2019

This study examined the insolvency likelihood of young debtors from the 2018 Household Financial and Welfare Survey. This study used the Household Default Risk Index (HDRI), which considers the ratio of total debt to total assets (DTA), and a total debt service ratio (DSR) to examine the insolvency level of debtors. The descriptive analyses showed no difference in frequency of households with a high probability of insolvency between those less than 35 years of age and those over 35 years of age. However, the median HDRI value for those less than 35 years of age was higher than those over 35 years of age. The multivariate analyses indicated that educational expenses for young Korean debtors was a factor that increased their probability of insolvency, while income was the only variable that decreased their insolvency likelihood.

• Journal of Preventive Medicine and Public Health
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• v.31 no.3 s.62
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• pp.490-502
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• 1998

This study purports to find the predictor of hospital bankruptcy in Korea and to examine the predictive power of the discriminant function model of hospital bankruptcy. Data on 17 financial and 4 non-financial indicators of 31 bankrupt and 31 profitable hospitals of 1, 2, and 3 years before bankruptcy were obtained from the hospital performance databank of Korea Institute of Health Services Management. Significant variables were identified through mean comparison of each indicator between bankrupt and profitable hospitals, and the discriminant function model of hospital bankruptcy was developed. The major findings are as follows 1. As for profitability indicators, net worth to total assets, operating profit to total capital, operating profit ratio to gross revenues, normal profit to total assets, normal profit to gross revenues, net profit to total assets were significantly different in mean comparison test in 1, 2, and 3 years before hospital bankruptcy. With regard to liquidity indicators, current ratio and quick ratio were significant in 1 year before bankruptcy. For activity indicators, patients receivable turnover was significant in 2 and 3 years before bankruptcy and added value per adjusted inpatient days was significant in 3 years before bankruptcy. 2. The discriminant function in 1, 2, and 3 years before bankruptcy were; $Z=-0.0166{\times}quick$ ratio-$0.1356{\times}normal$ profit to total assets-$1.545{\times}total$ assets turnrounds in 1 year before bankruptcy, $Z=-0.0119{\times}quick$ ratio-$0.1433{\times}operating$ profit to total assets-$0.0227{\times}value$ added to total assets in 2 years before bankruptcy, and $Z=-0.3533{\times}net$ profit to total assets-$0.1336{\times}patients$ receivables turn-rounds-$0.04301{\times}added$ value per adjusted $patient+0.00119{\times}average$ daily inpatient census in 3 years before bankruptcy. 3. The discriminant function's discriminant power in 1, 2, and 3 years before bankruptcy was 77.42, 79.03, 82.25% respectively.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.2
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• pp.109-116
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• 2014

In this study, the factors affecting the profitability of the oriental medicine hospitals of University to be analyzed. To do this, profitability indicators and current ratio, liquidity, turnover ratio, cost factors analysis and suggested ways to improve management. The results are as follows, the operating margin(1.17%). the return on assets(3.76%), the net profit to gross revenues(2.37%), and the net profit to total assets(-1.89) were lower than the average of the entire oriental medicine hospitals in Korea(respectively 8.9%, 8.7%, 2.6%, 2.5%). Current ratio(256.76%), quick ratio(231.17%), fixed ratio(121.02%), and total assets turnover(135.69%) were similar to the average of all oriental medicine hospitals in Korea. But growth rate of total assets(-2.21%), and growth rate of patient revenue(1.89%) is low. And salaries(53.39%), materials costs(16.62%), administrative expenses(28.58%) were different to the average of all oriental medicine hospitals in Korea(respectively 35.3%, 10.7%, 45.1%). Meanwhile, the cost ratio of the oriental medicine hospitals of University was 98.59%. It was 7.49% higher than the 91.1% of the average of all oriental medicine hospitals in 2011. Correlation analysis, growth rate of patient revenue and operating margin increased at the same time, and net profit to gross revenues and net profit to total assets with a growth rate of total assets increased. And administrative expenses and profitability indicators showed a negative correlation. It means, in order to improve the profitability of the oriental medicine hospitals of University should focus on reducing administrative expenses. Multiple regression analysis, growth rate of total assets, total assets turnover, administrative expenses, and salaries has affected the profitability. Therefore, in order to improve the profitability of the oriental medicine hospitals of University to increase the total capital and the total capital turnover, and to reduce administrative expenses effort.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.1
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• pp.33-45
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• 2019

This study analyzed the association between IFRS adjustments, measured with the IFRS reconciliations, and the subsequent meeting of target earnings. IFRS adjustments include the amounts to be adjusted intentionally, as well as the differences in accounting standards. This study estimated intentional IFRS adjustments and analyzed their association with meeting target earnings. As the results of our analysis, meeting target earnings was associated positively with intentional IFRS adjustments for the total assets, was negatively associated with them for current assets, and was positively associated with them for non-current assets. Since understatement of current assets can be realized into earnings in a short period of time, it seems that current assets were underestimated intentionally in order to meet target earnings subsequently. In contrast, it is considered that non-current assets were overestimated to make them more likely to meet target earnings either by increasing the firm size or by improving financial solvency. The results of this study imply that IFRS adjustments are useful to manage earnings for meeting target earnings. Since accounting standards may be established and revised constantly, which adjustments for them may occur, the results on IFRS adjustments are expected to have implications for investors, policy-makers, and standards establishment entities.

• Journal of Preventive Medicine and Public Health
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• v.19 no.2 s.20
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• pp.213-223
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• 1986

Ratio analysis allows a hospital to evaluate its own performance over time and to compare its performance with that of other hospitals. For this study, three types of ratio analysis were conducted based on some data on hospitals in Massachusetts. First, Key ratios influencing financial performance were identified using discriminant analysis. Second, the financial structures of the teaching and the non-teaching hospitals were compared using ratios and multiple comparison method. Third, the effects of the prospective reimbursement law of the state on financial performance were examined using ratios and paired t-test. The purpose of the law is to reduce hospital costs by setting the revenue ceiling prior to the effective budget year. The findings of this study were as follows: 1) When hospitals were divided into three groups, according to their operating income, only profitability ratios showed a consistent difference among the groups. 2) In the discriminant analysis, five ratios were selected: current ratio, operating margin, return on assets, fixed assets turnover, and inventory turnover. They are the key ratios to be monitored periodically for the purpose of evaluating the financial performance of hospitals. 3) When teaching hospitals were compared with non-teaching hospitals, acid ratio, days of cash on hand, and inventory turnover were statistically significant before the law went into effect, whereas only fixed assets turnover and inventory turnover were significant afterward. Contrary to previous studies, profitability ratios of teaching hospitals were higher than those of non-teaching hospitals, although the differences were not statistically significant. 4) When the ratios between the two periods (before and after the law) were compared, three profitability ratios (operating margin, return on assets, and return on equity) were significant for teaching hospitals, whereas three activity ratios (total assets turnover, fixed assets turnover, current assets turnover) were significant for non-teaching hospitals. Furthermore, while both total operating revenue and expenses were decreased, net operating income was increased, due to a greater decrease in total operating expenses. This shows that the law can indeed, simultaneously, achieve both a reduction in costs as well as an improvement in the financial situation of hospitals.

• The Korean Journal of Community Living Science
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• v.21 no.1
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• pp.91-103
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• 2010

The purpose of this study was to find the differences of household characteristics between homeowners and renters. The data was drawn from the 2002 Korean Labor and Income Panel Study and conducted by the Korea Labor Institute. 3,743 households were selected. The householder's mean age of homeowners was found to be 8 years older than those of renters, and the households in Seoul showed a higher rent ratio than those in other areas. The levels of household financial elements for homeowners were found to be higher than those of renters. Moreover, the levels of total real estate assets for homeowners were higher than those for renters, and the levels of total debt, and the debt from financial institutes were also higher than those for renters, reflecting that most Korean households may use loans from financial institutes for holding real estate assets. The results of the Chow-test showed that the group of homeowners and renters were significantly different in terms of socio-demographic and financial factors affecting the ratio of real estate assets to total asset.

• Journal of the Korean Home Economics Association
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• v.48 no.4
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• pp.1-12
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• 2010

The purpose of this study was to find the differences of financial structures of real estate and the factors influencing on it between two groups of subjective financial adequacy and non-adequacy for later years among middle & old aged households. The data were drawn from KREIS(Korean Retirement and Income Study) surveyed by National Pension Research Institute in 2007, and 3,889 couple households with householder's age over 50 were selected. Major findings were as following. First, only 19.3% of households answered that they had enough money for later years. And they had lower real estate-to-total assets ratio (.84) and lower residential house value-to-total assets ratio (.52) than the counter part. Second, for the group who answered that they had enough money for later years, the factors influencing on total real estate were found to be income, debt, and liquid assets.

• Journal of Environmental Policy
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• v.9 no.4
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• pp.29-52
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• 2010

This paper analyzes the firm's financial characteristics, influence over the adoption of the ISO 14001 adoption in our analyses. We used the T-test, a logistic regression analysis. We chose 112 Steel Enterprises from Korea Accreditation Board. The independent variables are current ratio, debt ratio, fixed assets to net worth and fixed liabilities, gross margin on sales, total assets turnover, net sales growth rate. This study tests three hypotheses on management performance of adoption of ISO 14001. The main findings are as follows. The first hypothesis is supported in terms of debt ratio, fixed assets to net worth and fixed liabilities, net sales growth rate at the 1%, 5%, 5% significance level. The second one is supported in terms of current ratio, debt ratio, fixed assets to net worth and fixed liabilities at the 10%, 1%, 1% significance level. The third one is supported in terms of gross margin on sales, total assets turnover at the 1%, 10% significance level. These findings have important implications

• The Journal of Fisheries Business Administration
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• v.28 no.2
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• pp.1-18
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• 1997

The purpose of this study is to investigate empirically the characteristics of financial structure by using 76 fisheries corporations in Korea, and to suggest implications of the empirical results for government's financial policy for fisheries corporations. For the empirical test, we choose the following factors as the explanatory variables of cross-sectional regression analysis:firm-size(SIZE), collateral value of assets(TFATA), business risk(BRISK), growth(GROWTH), effective tax(ET), profitability(PROFIT). Two different debt ratios are used as dependent variables. One is defined as the ratio of total debt to total assets and the other is as that of long-term debt to total asset in terms of book value. The sample consists of 76 fisheries firms and sample period is 14 years from 1982 till 1995. From the results of cross-sectional regression analysis, the adjusted R$^2$values were high, 16∼79% and the overall F values indicated to be statistically significant. The results of cross sectional regression analysis show that the characteristics of financial structure fur fisheries corporations are as follows ; (1) Firm-size and collateral value of assets are the major factors of financial structure for fisheries corporations. That is, the larger firm-size the higher is debt ratio. This means that financial institutions conventionally lend more collateral loans with fixed assets like land, building rather than management capacities or credits. (2) To be consistent with a pecking-order theory, the higher is profitability the lower is debt ratio in fisheries corporations. (3) Corporations with high effective tax rate have lower financial leverage. Although the empirical results are inconsistent with traditional static trade-off theory, we think it would be attributed to government's various tax shelterings for fisheries which are likely to reduce tax shield effect of interests.

• Health Policy and Management
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• v.18 no.2
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• pp.19-38
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• 2008

Financial ratios are key indicators of an organization's financial and business conditions. Among various financial indicators, profitability, financial structure, financial activity and liquidity ratios are frequently used and analyzed. Using the structural equation modeling(SEM) technique, this study examines the structural causal relationships among key financial indicators. Data for this study are taken from complete financial statements from 142 hospitals that passed the standardization audit undertaken by the Korean Hospital Association from 1998 to 2001 for the purpose of accrediting teaching hospitals. In order to improve comparability, ratio values are standardized using the Blom's normal distribution. The final model of the SEM has four latent constructs: financial activity(total asset turnover, fixed asset turnover), liquidity(current ratio, quick ratio, collection period), financial structure(total debt to equity, long-term debt to equity, fixed assets to fund balance), and profitability(return on assets, normal profit to total assets, operating margin to gross revenue, normal profit to gross revenue). While examining several model fit indices(Chi-square (df) = 178.661 (40), likelihood ratio=4.467, RMR=.11, GFI=.849, RMSEA=.157), the final SEM we employed shows a relatively good fit. After examining the path coefficient of the constructs, the financial structure of the hospital affects the hospital's profitability in a statistically significant way. A hospital which utilizes its liabilities, more specifically fixed liabilities, and makes a stable investment decision for fixed assets was found to have a higher profitability than other hospitals. Then, the standard path coefficients were examined to directly compare the influence of variables. It was found that there were no statistically significant path coefficients among constructs. When it comes to variables, however, statistically significant relationships were found. between. financial activity and. fixed. asset turnover, and between profitability and normal profit to gross revenue. These results show that the observed variables of fixed asset turnover and normal profit to gross revenue can be used as indicators representing financial activity and profitability.