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A Study on the Financial Structure Effect Factor and Business Analysis of Ocean Shipping Companies

국적외항선사의 경영실태분석과 재무구조 영향요인에 관한 실증연구

Lee, Sung-Yhun;Kim, Young-Dae;Ahn, Ki-Myung
이성윤;김영대;안기명

  • Received : 2019.05.03
  • Accepted : 2019.08.29
  • Published : 2019.08.31

Abstract

In this study, the rate of return on investment used as a proxy variable for the entity's value and financial structure (liability ratio) is related to positive balance. This is consistent with the Static Tradeoff Theory (STT) that the entity's value and financial structure are related to a positive balance because the capital expense of a debt (tax-saving effects) that is less than its equity cost before it is in financial difficulty. Also, operating profitability (EBITDA/Sales), investment safety, total asset growth, net working capital and depreciation expenses are related to negative (-) with financial structure (liability ratio). This is the result of an analysis consistent with the Pecking Order Theory (POT). Fuel costs, borrowing, total asset turnover, financial costs, and tangible asset ratios have a significant positive relationship with the debt ratio. This is consistent with the agency theory and confirms that excessive chartering expenses, such as the bankrupt H company, are the main factors that pressure the financial structure of Korean ocean carriers.

Keywords

Financial Structure;Static Tradeoff Theory;Pecking Order Theory;Agency Theory;Panel Multiple Regression Method