• Journal of Navigation and Port Research
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• v.44 no.5
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• pp.414-422
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• 2020

In this study, an empirical analysis of 55 ship finance cases executed by a specific ship finance bank from 2009 to 2016 during the recession period was conducted. The purpose of this study was to find the factors affecting changes in the debt performance of Korean shipping companies. The main factors were the loan nature (investment purpose, loan-to-value (LTV), syndicated loans, loan terms, put-option, balloon, and spread), financial nature (total assets turnover, net profit-to-sales ratio, debt ratio, quick ratio, total borrowing, bonds payable to total assets, interest expenses-to-sales ratio, debt service coverage ratio (DSCR), and total assets), and the company nature (company age, chief executive officer's (CEO's) shares, and listing status). In this study, the factors affecting the debt repayment capability of domestic shipping companies (loan nature, financial nature, and company nature) were verified. The credit rating was used to measure the dependent variable, debt repayment ability. The variables of investment purpose, put-option, balloon, and spread in the loan nature, debt ratio in the financial nature, and the CEO's shares and company age in the company nature were found to be significant.

• Journal of Families and Better Life
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• v.27 no.3
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• pp.129-143
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• 2009

The purpose of this study was to investigate influences on wives' financial management behavior economic instability and coping behavior of urban household. Economic instability was constructed with an objective economic status and perceived economic instability. And, Financial management behaviors were constructed with four dimensions : investment, income/expenditure, risk, and debt management behavior. The subjects of this study were 225 housewives. Factor analysis, Cronbach ${\alpha}$, and multiple regression were performed for data analysis. The results show that, coping behaviors of searching and using information and perceived economic hardship related to debt influenced housewives' investment management behaviors. The coping behaviors of searching and using information, expending in the range of planned budget, using debt, perceived economic hardship related to debt, income insufficiency, and selective expenditure influenced the consumption-expenditure management behaviors. Perceived economic hardship related to essential expenditures and coping behaviors of searching and using information influenced the risk management behaviors. Coping behaviors of searching and using information, using debts and purchasing and using economically, and perceived economic hardship related to essentials influenced debt management behaviors.

• Journal of the Korea Society of Computer and Information
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• v.25 no.12
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• pp.333-339
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• 2020

This study investigated the determinants of debt ratio in public institutions. For this purpose, we analyzed the impact of external and internal factors on debt ratio. In this paper, external factors included government grants and deficits compensation, and internal factors included inefficient management. The results of this study are as follows. First, we find that there is a significant positive relation between government grants and debt ratio. This result means that the higher government grants, the higher debt ratio. Second, we also find that there is a significant positive relation between deficits compensation and debt ratio. This implies that the institutions subject to deficits compensation have higher debt ratio. Third, we can not find a significant relation between welfare benefit and debt ratio. This finding implies that inefficient management is not a factor on debt ratio of public institutions. The results documented in this paper provide important policy implications for investigating the determinants of debt ration in public institutions.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.27-40
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• 2019

The study examines the effects of growth opportunities, debt maturity and liquidity risk on leverage, making use of a large panel of Chinese listed firms. Research on capital structure has broadened its scope from a single capital structure decision (the debt/equity choice) to various attributes of the debt in firms' capital structure. We use the system Generalized Method of Moments estimator to control for unobserved heterogeneity and the potential endogeneity of regressors. We find a negative relationship between growth opportunities and leverage. Further, we find that while the proportion of short-term debt attenuates the negative effect of growth opportunities on leverage, it negatively affects leverage as predicted by the liquidity risk hypothesis. When we distinguish between state owned firms and private controlled firms, we find evidence that these effects are only relevant to private controlled firms. However, our analysis indicates that the economic implication of liquidity risk effect is much lower for Chinese firms than that observed in the literature for US firms. Our study suggests that these differences can be explained by differences in the institutional environment in which firms operate. This finding related to Diamond's (1991) liquidity risk hypothesis extends our understanding of the relationship between liquidity risk and the debt maturity choice.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.1-11
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• 2020

This study aims to investigate whether Corporate Social Responsibility (CSR) performance can help companies gain more bank unsecured loans. Additionally, this study analyzes the moderating effect of firm size and industry characteristics. Data was collected through the case of companies listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange in China between 2009 and 2018 with 5373 firm-year observations. The results of multivariable regression analysis show that good CSR performance exhibits a strong positive impact on unsecured debt, including short-term, long-term, and total unsecured debt, which indicates that corporate with good CSR performance can borrow more unsecured debt. further research shows that this effect is more pronounced for small enterprises and firms operating in heavy-polluting industries. Additionally, research on the impact mechanism finds that good CSR performance can help mitigate information asymmetry between borrower and lender, reduce moral hazard of borrower, and obtain support from key stakeholders, and therefore reduces the risk of default. The findings of this study suggest that firms with good CSR performance exhibit a preference for unsecured debt, but decline to provide collateral for debt. Overall, we emphasize and illustrate the important role of corporate CSR in bank credit financing.

• Korean Journal of Rural Living Science
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• v.6 no.2
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• pp.137-149
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• 1995

The first objective of this study is to examine the finanacial management practices of rural housewives. The second objective is to determine the effects of sociodemographic characteristics on financial management practices. The Deacon & Firebaugh's model of family resource management framework and previous studies were used to determine the effects, regarding a9e, income, number of family, education level, and farming/nonfarming as independent/input variables, and monthly saving and managerial behavior index as dependent/throughput variables. A sample of 179 rural housewives aged less than 60 was selected from Shihung-Si Gyonggi-Do Province. Results showed that rural housewives more frequently did keeping bills, making purchase-list and verifying purchase need than recording where money spent making financial plan, and evaluating spending. With regard to household debt use, 60% of the sample had debt the most borrower used debt for farming, 73% of borrowers paid for their debt behind the schedule, and the main source of borrowing was NACF (NongHyup). Using installment credit, the rural housewives mainly bought cosmetics. 25% of the sample had credit cards. Average debt was 6, 070, 000 won, and 81% of annual income. In terms of saving, 85% of the sample saved, and 23% of the sample lived with the money after save. The main reasons of saving were for education and marriage of children and emergency. The main saving institutions were NACF and NLCF (ChukHyup). The regression showed that income was negatively associated with monthly saving, and age was identified as the positive determinants of managerial behavior index.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.403-411
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• 2021

This paper discusses the relationship between debt literacy, peer-to-peer lending, and over-indebtedness in Indonesia. It is essential because the number of loans on this platform continues to increase, both legal and illegal. Data was collected online in collaboration with commercial market research firms, JajakPendapat.net. Debt literacy and over-indebtedness were measured by self-assessment with questions from Lusardi and Tufano (2009a). Questions for debt literacy are about interest compounding, debt interest, and the application of time value of money in payment options. The question for over-indebtedness is about the amount of debt and the conditions resulting from that debt. By using descriptive methods, it is clear that the majority of respondents, both borrowers and non-peer-to-peer lending borrowers are debt illiterate, and those who have poor debt literacy have huge debt. Overall, only 1.85% of the respondents were debt literate. Those who live on the island of Java have better literacy because they are the center of economic growth in Indonesia. Debt from peer-to-peer (P2P) lending also has the potential to create problems, namely over-indebtedness. P2P lending borrowers also have very poor debt literacy. However, there is no difference in debt literacy between P2P lending borrowers and non-P2P lending borrowers.

• Journal of Navigation and Port Research
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• v.41 no.4
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• pp.235-242
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• 2017

Earnings management is defined as an intentional act during the financial reporting process or a manager's choice of accounting policies to avoid earnings decreases or obtain some private gains. Shipping firms have a highly debt-intensive capital structure and a significant motivation in earnings management to avoid failure of a Debt Covenant. From this point of views, this paper tries to determine the relationship between the capital structure and discretionary accruals estimated using the re-modified Jones model (1995). The sample used to test the research models is made up of 87 Korean shipping firms during the period from 2007 to 2015. A histogram analysis, t-test and FGLS confirm the possibility of using earnings management, and it proved that Korean shipping firms manage their earnings to avoid financial loss. An analysis of the relationship between the capital structure and earning managements, shows it is difficult to support the Debt Covenant, shown as a negative relationship between the debt ratio and debt maturity as shipping firms' capital structure and discretionary accruals as earning management variable. An additional analysis presents a negative relationship between previous debt maturity and discretionary accruals, and the possibility of earning management in a highly increased debt ration group.

• Korean Journal of Human Ecology
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• v.9 no.1
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• pp.21-32
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• 2000

This study investigated the effect of householder's occupation on the debt structures of households. Household debts were categorized into six types according to borrowing sources: debts from banks, other financial institutes, employers, private sources, Gye, and retailers. Householder's occupations were classified into four groups: full-time employees, employers, farmers & fishermen, and part-time employees. The data came from the 1996 Korean Household Panel Study. It was found that the rates of holding each types of debt and the debt amounts were different according to householder's occupation. The human and economic resources to overcome the possible household debt problems were also different by the householder's occupation.

• Asia-Pacific Journal of Business
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• v.14 no.4
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• pp.275-287
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• 2023

Purpose - The purpose of this study is to analyze the relationship between the issuance amount of subordinated bonds and firm value, aiming to determine how subordinated bonds are evaluated in the capital market. Design/methodology/approach - To achieve the research objective, this study empirically analyzes all samples of domestic listed insurers that have issued subordinated bonds. Through such empirical analysis, the study aims to confirm the value relevance of the recognized debt and examine how subordinated bonds are reflected in the firm valuation of insurers. Findings - The research finding indicates that subordinated bonds issued by insurers, despite being recognized as debt, did not show a significant relation with firm value. This result suggests a divergence from the typical characteristics of debt, reflecting the distinct evaluation of debt recognized through the issuance of subordinated bonds(subordinated debt) and general debt in the capital market. In this regard, additional investigation into the value relevance by categorizing debt into general debt and subordinated debt revealed a significant difference in the value relevance of the two types of debt. Research implications or Originality - These research findings indicate that the market evaluation of subordinated debt takes into consideration the economic attributes of the subordinated debt. Furthermore, this evaluation is interpreted to account for the regulatory consideration that recognizes subordinated debt as available capital for supervisory purpose.