Journal of Korean Society of Rural Planning (농촌계획)

Korean Society of Rural Planning (한국농촌계획학회)
권호 표지
DOI QR코드

DOI QR Code

Analysis of Factors Influencing Business Performance by Types of Agricultural Corporations

농업회사법인과 영농조합법인 경영성과에 영향을 미치는 요인 분석

  • Jeong, Jae Won (Farm & Agribusiness Management Division, Rural Development Administration) ;
  • Lee, In Kyu (Farm & Agribusiness Management Division, Rural Development Administration) ;
  • Kim, Seongsup (Farm & Agribusiness Management Division, Rural Development Administration)
  • 정재원 (농촌진흥청 농산업경영과) ;
  • 이인규 (농촌진흥청 농산업경영과) ;
  • 김성섭 (농촌진흥청 농산업경영과)
  • Received : 2018.05.04
  • Accepted : 2018.08.09
  • Published : 2018.08.30
Download PDF
⟨ Previous Next ⟩

Abstract

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.

Keywords

References

  1. Angrist, J. D. and Pischke, J.-S., 2009, Mostly Harmless Econometrics: An Empiricist's Companion, Princeton, NJ: Princeton University Press.
  2. Cho, G. O., Song, C. H. and Jang, D. H., 2015, Analysis of Efficiency of Agricultural Corporation Companies Using DEA-Focused on the agricultural products distribution companies-, Journal of Agriculture & Life Sciences, 46(1): 1-6.
  3. Chung, Y. H., Lee, C. S., Moon, J. H. and Choe, Y. C., 2007, Market and Technology Environment Impact on the Balanced Performance of Agribusiness Firms, Journal of the Korean Society of Rural Planning, 13(1): 51-62.
  4. Im, I. S. and Lee, S. L., 2017, The Study on Debt Ratio and Business Performance of Agricultural Farming Corporations since the K-IFRS was Introduced, Journal of the Korea Academia-Industrial cooperation Society, 18(2): 600-608.
  5. Kim, W. S., Seo, B. and Im, I. S., 2017, The Study on the Estimation of Optimal Debt Ratio in Korean Agricultural Corporations, Journal of the Korea Academia-Industrial cooperation Society, 18(4): 135-142. https://doi.org/10.5762/KAIS.2017.18.1.135
  6. Lee, S. H., 2010, An Analysis of the Efficiency of Agricultural Business Corporations Using the DEA Model, Korean Journal of Agricultural Management and Policy, 37(1): 15-29.
  7. Lee, S. H., Kim, C. S. and Kwon, K. S., 2011, An Analysis of the Efficiency of Agricultural Business Corporations Using the Stochastic DEA model, Asia-Pacific Journal of Business Venturing and Entrepreneurship, 6(4): 137-152. https://doi.org/10.16972/apjbve.6.4.201112.137
  8. Park, J. H., Hwang, J. H. and Lee, S. W., 2014, The effect of the 6th industrialization in agriculture on farm and off-farm income, Journal of the Korean Society of Rural Planning, 20(4): 193-208. https://doi.org/10.7851/ksrp.2014.20.4.193
  9. Statistics Korea, Korean Statistical Information Service(KOSIS), www.kosis.kr
  10. The Bank of Korea, 2017, Financial Statement Analysis for 2016.