• Environmental and Resource Economics Review
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• v.32 no.2
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• pp.77-105
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• 2023

This paper investigates the management stability of KOSPI-listed energy public enterprises from the perspective of median voter theory. We analyze the profitability and stability of five energy public enterprises during the period 2011~2022, and conduct an empirical analysis to determine whether they are related to the preferences of median voters who can represent the general public. Our analysis of the profitability and stability of the energy public enterprises shows that the stability of their has been deteriorating in recent years. The results of the empirical analysis also show that the management stability of the energy public enterprises is related to the preference of median voter. Specifically, they indicate that when the median voter's income is smaller than the average income, the profitability of the utility decreases and the debt ratio increases. This paper suggests that from the median voter's point of view, excessive utility and energy bills may strengthen the incentives for governments and politicians to suppress rate increases, leading to lower profitability and higher debt for public enterprises.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.4
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• pp.534-549
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• 2012

This study analyzed the effects of housing wealth on the balance accounts of elderly households with an age of over 60 facing the asset decumulation period, capitalizing upon an ordered logit model for the 2011 household finance survey data. Out of some variables representing personal and social characteristics, the age and waged worker variables had a positive effect, but the number of household, low education level, living in the apartment and capital region variables negatively affected the balance accounts of elderly households. Some variables reflecting economic wealth and financial strategies such as the attitude of risk-taking, ordinary income and the ratio of financial assets had a positive impact, but other variables such as DSR did a negative one on the balance accounts of the elderly households. The ownership of housing wealth variable positively, but the ratio of housing assets variable negatively affected the balance accounts of the elderly households, which could be derived from the duality of housing as both consumption goods and assets. However, the ownership of other real estates and the ratio of them in the total assets variables had a negative impact on the balance accounts of the elderly households. Furthermore, since the financial asset-debt ratio worsened the balance accounts of the elderly households with both housing and other real estates, it is implied that the purchase of real estates with excessive bank loans could make them dangerous.

• The Journal of the Korea Contents Association
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• v.14 no.6
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• pp.367-384
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• 2014

This study addresses an empirical issue which has been received little attention in the contemporary finance literature: To identify any financial determinants of the profitability indices for the firms belonging to the Korean chaebol. Three hypotheses of concern were postulated and tested for the sample firms covering the periods of the pre-and post-financial global crises. Regarding the results on the 1st hypothesis test of characterizing any financial profiles for the firms (belonging to the chaebols) by estimating a legitimate panel data model: the present study found the statistically significant relationships of the explanatory variables (BVLEVl, MVLEVl, MV/BV, RISK, FCFF and FOS) with the book-value based profitability ratio: while the market-valued profitability index was explained only by BVLEV2. Regarding the 2nd hypothesis test for the profitability of the sample firms at the industry level: the chaebol firms in the chemical and the food industries overall positioned themselves into the top ranks in order, which was tested by the ANCOVA and the Tukey multiple comparison procedure. Finally: on the 3rd hypothesis test for the 'adjusted' Dupont system, only two such as the 'operating margin' and the 'asset turnover' showed their significant effects between the chaebol firms and their counterparts in both the (parametric) independent samples t-test and the (nonparametric) Wilcoxon-Mann-Whitney statistics.

• Journal of Family Resource Management and Policy Review
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• v.26 no.3
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• pp.19-34
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• 2022

There are growing concerns about debt insolvency among youth and low-income households. The deterioration in household debt quality among young people is due to a combination of sluggish employment, an increase in student loan burden and an increase in high-interest loans from the secondary financial sector. The purpose of this study was to explore the possibility of household debt default among young borrowers in Korea and to predict the factors affecting this possibility. This study utilized the 2021 Household Finance and Welfare Survey and used random forest algorithm to comprehensively analyze factors related to the possibility of default risk among young adults. This study presented the importance index and partial dependence charts of major determinants. This study found that the ratio of debt to assets(DTA), medical costs, household default risk index (HDRI), communication costs, and housing costs the focal independent variables.

• The Korean Journal of Financial Management
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• v.25 no.3
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• pp.1-32
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• 2008

This study examines the changes and determinants of cash to assets ratios(cash ratios) by analyzing 14,016 Korean manufacturing firms sample for the period of $1999{\sim}2004$. The major findings can be summarized as follows. First, the average cash ratios for Korean manufacturing firms have increased from 4.7 percent of 1999 to 5.2 percent of 2004. In addition, the average cash holdings per firm also have increased from 4.3 billion Won to 8.0 billion Won during the same period. However, the capital expenditures relative to cash ratios or operating cash flow have decreased significantly, confirming the notion that physical investment of Korean manufacturing sector has been shrinking recently. Second, in regression tests with panel data, the coefficients of target adjustment variables show the expected negative signs, but coefficients of the deficit of fund variables show the unexpected positive signs. Thus, the evidence seems to be supportive of static tradeoff model of cash holdings. Third, in regression tests to find the determinants of cash ratios, most of the variables show similar results as the previous studies. However, in terms of adjusted coefficient of determination and F-statistic, the firm-characteristic variables suggested by static trade-off theory have more explanatory power than the variables suggested by pecking order theory.

• Korean Journal of Construction Engineering and Management
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• v.14 no.4
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• pp.46-54
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• 2013

This research outlined the factors influencing the business management success via analyzing a survey of business principles. The research process has been tested in comparison of both financial factors, which come out of objective data and non-financial factors so relevantly prioritized by combining these factors. In order to specify the factors, a check-list and analyzed essential features of category have been done with interviews and surveys. As consequently proceeding, the authors could deduce that non-financial but analytic factors such as business do-able, technician workability, compensation and benefits etc. play major roles in construction sector. The outcomes consider a construction business as fundamental human labor job as opposed to a manufacture business. On reasoning necessarily more objective research works to be done as developing this research's outcome, it is meaningful in suggesting the pivotal factors influencing the construction business management. Therefore, this research is expected to guide the direction to induce the improvement of business management to be done by further exemplary researches.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.4
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• pp.179-190
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• 2019

To alleviate financing difficulties of small and medium sized enterprises (SMEs), the government and municipal governments are providing a variety of SME policy funding programs. This study introduced the policy funding program of Gangwon-do and quantitatively analyzed the financial performance of companies supported by the Gangwon-do SME policy fund in the year 2014. Specifically, we compared the financial ratios for three years, from 2013 to 2015, between funded firms and non-funded firms. In addition, we applied a regression analysis to see if the policy funding program contributed to profitability (the operating profit growth and return on equity), stability (the interest coverage ratio and debt-to-equity ratio), and growth (the asset growth and sales growth) of the funded firms. The empirical results show that the firms that received the policy funds did not show any improvement compared to non-funded firms in terms of profitability, stability, and growth. This suggests that Gangwon-do should improve the policy funding program, that currently provides only an interest amount of 2-4% of the corporate loan principal, without any strategic selection criteria for the target funded firms, and without any follow-up management system, after support.

• The Korean Journal of Financial Management
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• v.27 no.1
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• pp.181-208
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• 2010

In July 2007, Korean government has passed "The Capital Market and Financial Investment Services Act" to further develop the capital markets and the Act was to become effective in February 2009. Using a large sample of Korean firms, we have examined (i) the effect of underwriting activities on the firm value (bond spread) comparing commercial bank and investment bank, and (ii) the determinants of the firm value changes following underwriting activities of bank. To test our goal, we collected a wide range of samples of data for bond issuing activities executed by Korean firms listed on the Korea Stock Exchange (KSE) between 2000 and 2003. Our paper is distinguished from previous studies on this subject in a way that we analyzed the effect of corporate bond underwriting activities with regard to commercial banking and investment banking. Initially, we set up a hypothesis that "Certification View" and "Conflict-of-interest View" are major driving forces behind cross-firm differences in performance following bond issuance. We find that, in general, underwriting by investment bank (securities company) brings a positive effect on the firm value (spread between bench mark rate and bond issuing rate). This result indicates that firm value has been negatively affected by the bank underwriting and provides the evidence for "Conflict-of-interest View" in Korea. Our studies have also revealed that any change in firm value following bond issuance is positively related with the firm size (total asset), operating performance, liquidity (cashflow), and equity ownership by foreign investors. Overall, our results support the view that bank underwriting activities can play an important role in determining firm value and financial strategies under "The Capital Market and Financial Investment Services Act" of 2007.

• The Journal of the Convergence on Culture Technology
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• v.9 no.2
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• pp.119-126
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• 2023

Due to the COVID-19 phenomenon, more than one-third of SMEs in Korea have been working from home. Therefore, we tried to find out the management status of SMEs and find policy support. The survey data was based on the Bank of Korea's corporate management analysis 2021 data. As a result of the study, the debt of SMEs increased from 362 trillion won(2019) to 409 trillion won(2022), while their capital decreased from 489 trillion won(2019) to 336 trillion won(2022). Net profit and loss increased to 14.9 trillion won(2019) and 23.3 trillion won(2021). As a result of the company's financial soundness analysis, First, for stability, the current ratio was high compared to the total industry and the dependence on borrowings was high. Second, profitability improved from 3.20%(2019) to 4.28%(2021), but it was lower than 5.01%(2021) for all industries. Third, the growth rate showed an increase of 12.43%, which is 1.57 times faster than the total asset growth rate of 7.94%(2021) for all industries. As for the growth rate of sales, all industries(2021) showed (-)growth, while SMEs among manufacturing industries showed a growth rate of 14.78%. Fourth, as for activity, the total asset turnover ratio was higher at 0.96% compared to 0.73 for all industries. In conclusion, stability and profitability were low and growth potential was high compared to all industries. In the future, policies that focus on industries with high growth potential are needed.