• Asian Journal of Business Environment
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• 제10권2호
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• pp.23-31
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• 2020

Purpose: The purpose of this paper is to find out the impact of financial leverage on firm's profitability in the listed textile sector of Bangladesh. Research design, data and methodology: A sample of 22 DSE listed textile firms has been used to conduct the study. In this study, firm profitability is measured by Return on Equity (ROE) and both short term debt and long term debt are used as the as proxies of financial leverage. Pooled Ordinary Least Squares (OLS), Fixed Effect (FE), and Generalized Method of Moments (GMM) models have been used to test the relationship between financial leverage and profitability of firms. Result: This study finds a significant negative relationship between leverage and firm's profitability using the Pooled OLS method. The result is also consistent with the fixed effect and GMM method. This result implies that firm's profitability is negatively affected by the firm's capital structure. Conclusion: The study concludes that maximum textile firms use external debt as a source of finance as they don't have sufficient internally generated funds. This study recommends that firm should give more emphasize on generating fund internally to meet up their financing needs.

• 산경연구논집
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• 제11권5호
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• pp.7-16
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• 2020

Purpose: Prior studies empirically examine how financial flexibility is related to required returns by using realized returns and considering cash holdings as net debts, but they fail to find consistent results. Conjecturing that inappropriate proxy of required returns and aggregation of cash and debts caused the inconsistent results, this study revisits this topic by using a refined proxy of required returns and separating cash holdings from debts. Research design, data and methodology: This study uses a multivariate regression model to investigate the relationship between required returns on cash holdings and financial leverage. The required returns are estimated using the return decomposition method by vector autoregression model. Empirical tests use US stock market data from1968 to 2011. Results: Empirical results reveal that both cash holdings and leverage are positively related to required returns. The positive relation is stronger in economic downturns than in economic upturns. Conclusions: Three major findings are drawn. First, risky firms prefer large cash balance. Second, information shocks in the realized returns caused failure of prior studies to find consistent positive relationship between leverage and realized returns. Third, cash and leverage are related to required returns in the same direction; therefore, cash cannot be considered as negative debts.

• 재무관리연구
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• 제26권4호
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• pp.35-61
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• 2009

본 논문은 재벌기업의 투자가 부채비율과 성장기회 등 재무적 특성에 영향을 받는지를 분석하였다. 주요분석결과를 보면 재벌기업의 투자는 성장기회가 높아질수록 증가하였고 이와 같은 투자의 성장기회민감도는 비재벌기업에 비하여 더 큰 것으로 드러났다. 그러나 부채비율이 높은 재벌기업은 낮은 재벌기업에 비하여 투자의 성장기회에 대한 민감도가 더 낮은 것으로 드러났다. 한편 재벌기업과는 달리 비재벌기업의 경우에는 부채비율이 기업투자에 미치는 영향이 통계적으로 유의하지 않았고 또한 부채비율과 성장기회간의 교차효과 역시 발견할 수 없었다. 본 논문에서의 실증분석결과는 재벌기업의 내부자본시장이 자회사에 대한 규율과 감시를 통해 투자의 효율성을 높일 수는 있지만 과도한 부채로 자회사의 현금흐름이 고갈되면 내부자본시장의 과잉부채효과가 유발될 수 있음을 시사한다.

• 한국정보시스템학회지:정보시스템연구
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• 제16권4호
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• pp.177-194
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• 2007

This study is intended to identify critical success factors(CSF) of real-time enterprises(RTE) by using a policy leverage method of system dynamics. Since RTE is a new theoretical system that unifies existing theories or concepts in business management and information technology, it is not proper to employee a traditional statistical method. To obtain our research goal, causal maps of system dynamics are employed to abstract and arrange RTE information from previous studies. By using the commonness of policy leverage and critical success factors, CSFs for the RTE are deduced by substituting the leverage points on causal maps with necessary success factors to solve the problems. Since this is a new approach to identify success factors. it has some restrictions. Unlike the statistical methods, this approach explains only the directions of causalities and correlations. For the future research, a simulation tool of system dynamics can be employed to discover how each CSF is correlated to the successful implementation of RTE.

• The Journal of Asian Finance, Economics and Business
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• 제9권8호
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• pp.47-55
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• 2022

The purpose of this study was to determine the relationship between company risk and factors such as business size, ownership structure, and leverage. The study was conducted on 142 manufacturing sector companies listed on the Indonesia Stock Exchange from 2013 to 2018. The purposive sampling method was used to select the research sample. The sample size for this study was 21 different companies. The analytical approach uses Structural Equation Modeling (SEM) with WarpPLS. According to the findings of the investigation, the size of the company has a significant influence on both the amount of leverage the company uses and the amount of risk the company takes. The level of leverage is significantly influenced by the ownership structure. However, the ownership structure does not have a significant impact on the level of risk the company; rather, leverage has a big impact on the level of risk the company faces. The findings of this study are helpful to prospective investors in measuring the risk posed by the company to make judgments regarding investments. The findings of this study are also essential for management to consider while controlling the risk of the organization.

• International Journal of Advanced Culture Technology
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• 제11권1호
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• pp.110-134
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• 2023

North Korea's development and deployment of nuclear weapons increases Pyongyang's diplomatic bargaining leverage. It is a strategic response to counteract the great expansion in US leverage with the collapse of the USSR. Post-Cold War American influence and hegemony is justified partly by claiming victory in successfully containing an allegedly imperialist Soviet Union. The US created and led formal and informal international institutions as part of its decades-long containment grand strategy against the USSR. The US now exploits these institutions to expedite US unilateral global preeminence. Third World regimes perceived as remnants of the Cold War era that resist accommodating to American demands are stereotyped as rogue states. Rogue regimes are criminal offenders who should be brought to justice, i.e. regime change is required. The initiation of summit diplomacy between US President Trump and North Korean leader Kim Jong-un occurred following the January 2018 Hawaiian ballistic missile false alarm. This event and its political consequences illustrate the efficacy of nuclear weapons as bargaining leverage for so-called rogue actors. North Korea is highly unlikely to surrender those weapons that were the instigation for the subsequent summit diplomacy that occurred. A broader, critical trend-focused strategic analysis is necessary to adopt a longer-term view of the on-going Korean nuclear crisis. The aim would be to conceptualize long-term policies that increase the probability that nuclear weapons capability becomes a largely irrelevant issue in interaction between Pyongyang, Seoul, Beijing and Washington.

• 정보학연구
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• 제2권2호
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• pp.163-175
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• 1999

본 연구는 자산구조와 자본구조의 결합이 기업의 체계적위험에 미치는 영향과 관련하여 레버리지 상치관계를 밝히는데 있다. 연구결과, 재무레버리지와 영업레버리지간의 상치관계는 본 연구에서 강하게 발견되었다. 즉, 두레버리지 사이에는 유의적인 상관성이 발견되었다. 이러한 발견은 기업의 레버리지와 관련된 의사결정에 많은 도움을 줄 것이다.

• Communications for Statistical Applications and Methods
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• 제18권6호
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• pp.733-739
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• 2011

The linear absolute shrinkage and selection operator(Lasso) method improves the low prediction accuracy and poor interpretation of the ordinary least squares(OLS) estimate through the use of $L_1$ regularization on the regression coefficients. However, the Lasso is not robust to outliers, because the Lasso method minimizes the sum of squared residual errors. Even though the least absolute deviation(LAD) estimator is an alternative to the OLS estimate, it is sensitive to leverage points. We propose a robust Lasso estimator that is not sensitive to outliers, heavy-tailed errors or leverage points.

• 한국신뢰성학회지:신뢰성응용연구
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• 제3권2호
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• pp.127-136
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• 2003

This paper investigates the effect of individual observations in regression models with MA(1) errors through the 'hat matrix' It shows that the first observation has the largest hat matrix diagonal component for $\theta$＜0 in the regression model with an intercept. This provides additional evidence for retaining the first observation in performing estimation in this setting. When the regression model goes to the origin and the independent variable has a deterministic trend, the last observation has the greatest leverage for │$\theta$│＜1 and may have potentially large impact on parameter estimation.

• KDI Journal of Economic Policy
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• 제38권4호
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• pp.23-44
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• 2016

Household debt in Korea raises concerns about the resilience of the economy due to its size and quality. Against this backdrop, we investigate if household leverage matters for private consumption in adverse economic environments even without severe financial disruptions. We find that the balance sheet positions in terms of the leverage ratio may weaken consumption growth. We also find that the depressive effect of debt on consumption may differ across types of consumer spending and household characteristics. In particular, the effects of indebtedness have been much stronger in relation to durable goods expenditures than in other areas. In addition, debtors in high-income (wealth) groups have also shown downward adjustments in consumption even more so than low-income (wealth) groups. These findings imply that debtors' precautionary behavior may serve as an important channel from leverage to consumer spending.