• Journal of Agricultural Extension & Community Development
• /
• v.24 no.1
• /
• pp.63-81
• /
• 2017

The purpose of this study is to analyze the changes of time series, the use by farm type and the causes of farm household debt. First, the mid and long term changes in farm household debt over the past 50 years have increased. Since 2010, the share of non-agricultural debt has exceeded the share of agricultural debt. Second, as a result of the analysis of the farm household debt use by farm type - full time&part time, farming type, land size, age, family members - there was a difference between the agricultural and the non-agricultural debt according to the type of farm household in a significant level of 1%. Finally, as a result of the cause analysis of the farm household debt, the related non-agricultural expenditure variables and the dummy variable of the manager's age, family member and land size has a common influence on the farm household debt increase.

• The Journal of Economics, Marketing and Management
• /
• v.5 no.1
• /
• pp.27-37
• /
• 2017

Domestic government debt securities is one of the steps which is taken by the government of Indonesia as a major source of financial budget, covering for the budget deficit, debt payments and interest debt. The purposes of this research are to know the development of budget deficits, government debt and impact of domestic government debt securities against economic growth in Indonesia. Method of analysis used Ordinary Least Squares (OLS) analyzing the impact of the domestic debt against economic growth in Indonesia. This research uses time series data from 1997 to 2014. Total government debt and domestic government debt securities in Indonesia increased during the last five years. The average of domestic government securities was above 50 percent of the total government debt. Estimated results showed domestic government debt securities has a positive and significant effect to economic growth. Official development assistance (ODA) has a negative effect to economic growth. Other variables such as the gross fixed capital formation and receipt of remittance have positive and significant effect, total imports and government expenditure have negative and significant effect against economic growth.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.18 no.4
• /
• pp.135-142
• /
• 2017

This study employs an analytical mathematical model to estimate the optimal debt ratio of Korean agricultural corporations, more sensitive to the government debt ratio policy compared to other industries, and the estimation of the optimal debt ratio based on objective data. The analytical model utilizes the equation for ROE, with the debt ratio as an independent variable, and related parameters include ROS, TAT, and NFCL. Regarding the NFCL, the optimal debt ratio standard is defined as the debt ratio that maximizes the ROE by analytical procedures such as adding an equation concerning the debt ratio and a linearity relationship to the analytical model, and from these equations, a quadratic equation with the debt ratio as an independent variable describes the ROE. This methodemploys fourteen years of corporate data. Results show that 138% of debt ratio is the optimal debt ratio to increase the ROE of the corporations, which implies that the existing debt ratio of Korean agricultural corporations is higher than optimal. Consequently, it is required for authorities to change future debt ratio policies in view that the purpose of debt ratio management is to maintain safety and increase profitability.Management should emphasize characteristics of the specific industry rather than standardized judgements based on numerical indexes.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.18 no.2
• /
• pp.600-608
• /
• 2017

This study analyzed the management index, debt ratio, and business performance of livestock agricultural farming corporations since the Korea international financial reporting standards (K-IFRS) was introduced in 2011. In addition, this study was based on credible accounting reports by the financial supervisory service's DART (data analysis, retrieval and transfer) system. First, after analyzing the key management index, the results showed that the current ratio, debt ratio, and current liabilities ratio decreased and the ratio of the owners increased on the safety index. Regarding the profitability index, the ROA (return on total assets), ROE (return on equity), and ROS (return on sales) increased slightly in 2014 compared to 2013. The overall growth and external growth on the growth index have not increased. Second, an analysis of the debt ratio and business performance, the debt ratio has a negative effect on the ROA and ROS. These results show that the use of debt of livestock agricultural farming corporations contributes to the external growth but it has a negative effect on business performance. These results show that management should consider solutions for the increase in sales to achieve cost reductions. In addition, the debt ratio should be reduced and solutions for an increase in revenue are needed to reduce management expenses, such as propagation of technical development.

• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.8
• /
• pp.71-80
• /
• 2022

This study aims to investigate the effects of fair value valuation of biological assets and bearer plants measured at historical cost on the cost of third-party capital. The study contributes to the agricultural sector and the International Accounting Standard - IAS 41, which has been modified to remove the requirement to apply fair value for bearer plants, one of the primary biological assets with no active market. For this, 182 companies from 39 countries were studied in the years 2020 and 2021, with information taken from the Thomson Reuters Eikon platform. The methodology involves regression by the ordinary least squares method based on the model of Daly and Skaife (2016). The results show that the biological asset at fair value does not influence the cost of debt and that the measurement of bearer plants at historical cost has no effect on the cost of debt. Fair value did not change the perceived cost of debt of the analyzed companies in the studied period, contrary to Daly and Skaife (2016). Finally, the cost of third-party capital can be influenced by other aspects related to profit quality, which were not examined in this paper, such as profit management.

• The Journal of the Korea Contents Association
• /
• v.21 no.10
• /
• pp.368-377
• /
• 2021

This study analyzed the determinants of capital structure based on the financial statements of agricultural corporations disclosed on the DART(data analysis, retrieval and transfer system) of the Financial Supervisory Service since 2011, when the Korea international financial reporting standards (K-IFRS) was introduced. There have been many empirical studies on the capital structure so far, but there are no studies targeting agricultural corporations. The sample period of agricultural corporations was from 2015 to 2019, with the debt ratio as the dependent variable, and among the variables suggested as meaningful in existing empirical studies, ROA(profitability), SIZE(corporate size), LIQ(liquidity), TA(tangible asset ratio), FA(fixed long-term suitability ratio), and GROWTH(growth potential) were selected as independent variables and panel data analysis was performed. As a result of the analysis, it was found that the debt ratio decreased as the ROA and SIZE of agricultural corporations increased. This can be interpreted as supporting the pecking order theory rather than the static trade-off theory in the relationship between the ROA and SIZE of Korean agricultural corporations with the capital structure. In addition, it was found that the debt ratio increased as the FA increased. These results suggest that Korean agricultural corporations need to establish a financing policy in consideration of ROA, SIZE, and FA.

• Korean Journal of Organic Agriculture
• /
• v.30 no.4
• /
• pp.471-483
• /
• 2022

This study analyzed management situations of two organizations that have produced environment-friendly agricultural and processed meat products. 'A' farming corporation sells environment-friendly agricultural products like as grains, vegetables, fruits and processing foods. 'B' agricultural corporation processes and sells environment-friendly processed meat products, specially organic and antibiotic-free beef products. Recently, members and production areas of 'A' farming corporation have decreased because of their aging and labor shortage. And Indices for the management analysis are stability ratio, activity ratio and profitability ratio. Stability ratio indices are debt ratio, net worth ratio, fixed ratio and current ratio. Activity ratio ones include fixed assets turnover and net worth turnover. And profitability ratio is showed through return on investment, net return on sales and return on equity.

• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.7
• /
• pp.197-203
• /
• 2022

The agricultural sector has an important contribution to the economic development of Vietnam in particular and other countries in general. The growth of enterprises in the industry is an important bridge in promoting the economic development of the country. Currently, the policies of the Government of Vietnam always create favorable conditions for enterprises to conduct business, especially enterprises in the agricultural sector. The study aims to assess factors influencing the profitability of listed firms in Vietnam's stock market. Using 40 enterprises in the agricultural industry listed on the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange and using advanced econometric modeling, dealing with defects in the regression model, the research results show that large-scale firm has higher economic efficiency than small-scale firm. In addition, a firm with higher use of loan capital is associated with a more efficient firm, reflected in the relatively good debt management ability of enterprises in the agricultural sector. Adversely, growth and age do not have any impact on firm performance. Macroeconomic factors do not impact profitability. Finally, the study has some policy implications for developing agricultural businesses in the case of Vietnam.

• Korean Journal of Organic Agriculture
• /
• v.26 no.4
• /
• pp.599-607
• /
• 2018

This study analyzed the management situation of two organizations that have produced environmentally friendly agricultural and livestock products. One organization sells and processes environmentally friendly agricultural products like as grains, vegetables, fruits and processing foods. Another organization processes and sells environmentally friendly livestock products, specially beef products. Indices of management analysis are stability ratio, activity ratio and profitability ratio. Stability ratio indices are debt ratio, net worth ratio, fixed ratio and current ratio. Activity ratio ones include fixed assets turnover and net worth turnover. And profitability ratio is showed through return on investment, net return on sales and return on equity.

• Journal of Korean Society of Rural Planning
• /
• v.24 no.3
• /
• pp.55-62
• /
• 2018

This study analyze factors influencing business performance by types of agricultural corporation for improving performance. The number of agricultural corporations have been increasing but their profitability has been decreasing. In this situation, it is important to analyze factors influencing business performance for improving their profitability. We estimate a model including financial indexes and corporation's characters using ordinary least square. We use agricultural corporations survey data for 10years(2005~2014) of Statistics Korea. This study analyze bookkeeping recorded agricultural corporations for the same period. As a result, we find factors to influence Return on Assets(ROA). Additionally, we calculate optimized current ratio and debt ratio for ROA maximization. Operation period and the number of full-time workers also have a positive effect on ROA. Agricultural production, processing and distribution variables by business types have a positive effect on ROA, but some of their interaction terms have a negative effect on ROA. We expect that this result will help for improving corporation's business performance.