• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.45-52
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• 2021

The capital structure is one of the hot financial topics among researchers and scholars. Its importance comes from the fact that capital structure is closely related to companies' ability to meet different stakeholders' needs. A suitable capital structure will boost the business and create a competitive advantage in the context of fierce competition. Many companies choose an optimal debt level based on the trade-off between interest and debt costs. This study aimed to test the existence of trade-off theory in capital structure, the case of Vietnam's real estate companies, which are growing very fast recently. Instead of considering constant optimal leverage to test the trade-off model, we take advantage of the dynamic capital structure determined by growth opportunities, profitability, tax incentives, tangibility, liquidity, and firm size. The dynamic panel data regression was estimated by the system Generalized Method of Moment (Sys-GMM). The empirical evidence showed that real estate companies listed in the Vietnamese stock market might change their leverage toward a target capital structure determined by influential factors in a long-term perspective. In particular, the debt-to-asset ratio will change by approximately 14 percent, positively, in response to the difference between the current debt-to-asset ratio and the dynamic target debt-to-asset ratio.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.41-53
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• 2019

Building a target capital structure is one of the most important decisions in corporate financial management. The purpose of this article is to identify the determinants of capital structure and adjustment mechanism toward the target leverage. The partial adjustment model was applied on a sample of 306 non-financial companies listed on Vietnam stock exchange market during the period of 2008-2017. By the fixed effect model estimation method, the research results have discovered the factors of growth opportunities, firm size, tangible fixed assets and firm's unique characteristics have a positive effect on the target capital structure of enterprises. Besides, profitability and dividend payment have a negative effect on the target capital structure of enterprises. Accordingly, the research results show that the average adjustment speed toward target leverage of the firms is 90.03%. Research results also demonstrate firms have higher or lower debt ratio than the target debt ratio, capital surplus or capital deficit also have an impact on the adjustment rate toward the target capital structure. The research results are consistent with the Dynamic Trade-off Theory. From this result, this article has provided policy implications for non-financial companies listed on Vietnam's stock market in building a reasonable target capital structure according to operating timeline to maximize enterprise value.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.9-20
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• 2020

The study investigates a recent surge of cash literature by using a sample of hospitality firms to gain a new understanding of corporate cash holdings. Past literature states that there is a substantial variation of liquidity across industry groups. Existing literature predominantly refers to US-listed firms and focus on either hotels or restaurants and not the hospitality industry as a whole. Therefore, we provide a comparative study of cash holdings behaviour between hospitality and non-hospitality firms from an emerging market context. Using a sample of public listed hospitality firms from 2002 to 2013, dynamic panel regression techniques are used to study the relationships between firm characteristics and cash levels. Also, the non-parametric Wilcoxon-Mann-Whitney test was carried out to examine the time and sectoral differences in cash holdings. In addition, the panel regression techniques are used to investigate the relationships between firm characteristics and level of corporate cash holdings. The results reveal that firm characteristics do matter in hospitality firms. We find that firm size, capital expenditures, and liquid assets substitutes are negatively related to cash level. The results support trade-off theory and the pecking order theory. This study incrementally explains the cash holdings behaviour of hospitality firms in emerging market.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.133-140
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• 2013

The purpose of this study is identifying the relationship among the business strategy, order receiving capability and leverage variables of a construction company using industry characteristic variables, in addition to the explanation variables used in the previous studies. The samples of this study were limited to the construction companies listed in Korean stock market. This study built multiple regression analysis models, which have been frequently used in traditional previous studies, in the explanation of company capital structure. Empirical analysis on Static Trade-off Theory and Pecking Order Theory was done by the built model. The study results suggested that the capital structure determination behavior of a construction company generally follows Static Trade-off Theory; however, profitability was found to follow Pecking Order Theory. The explanation variables used in the previous capital structure studies mostly produced significant results; however, the variables, which this study experimentally used, did not produce significant results. It is believed that it implies that additional studies are required in the selection of variables and study methodology. Consequently, a case that unconditionally supports a particular theory is scarce. It has been also found that a case can support both theories at the same time. Therefore, it is believed that development study methodology or introduction of new study methodology that can identify the dynamic characteristic of construction company capital structure formation is required.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.71-79
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• 2021

This study investigates the capital structure policy among Indonesian public companies. Previous studies suggest that capital structure policy could follow either static or dynamic behavior. The sample data used in this study was companies in the manufacturing sector, divided into three sub-sectors: the basic and chemical industry, miscellaneous industry, and the consumer goods industry. This study uses panel data from 2010 to 2018, with the Generalized Least Square (GLS) method and compared whether the fixed effect model is better than the common effect model. The results show that the dynamic and non-linear model tests can explain the capital structure determinants than the static and linear models. The dynamic model shows that the capital structure of a certain year is influenced by the capital structure of the previous year. The findings indicate that the company performs some adjustments in its capital structure policy by referring to the previous debt ratio, which implies support to the trade-off theory (TOT). The study also shows that profitability, tangible assets, size, and age explain the variation of capital structure policy. The patterns on the dynamic and non-linear confirm that capital structure runs in a nonlinear pattern, based on the sector, company condition, and the dynamic environment.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1996.10a
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• pp.49-52
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• 1996

In this article, we develop a 'dynamic' approach to manufacturing improvement, based on perspectives of manufacturing learning and decision theory. First, we present an alternative definition of production system consistent with a decision-theoretic perspective: the system consists of structural, infra-structural, and decision making constructs. A primary proposition is that learning capability possessed by a manufacturing system be prerequisite for the system to improve its manufacturing performance through optimal controlling of the three constructs. To support the proposition, we elaborate on a mathematical representation of "learning" as defined in an applied setting. We show how the learning capability acts as an integrating force ameliorating the trade-off between two key manufacturing capabilities, i.e., process controllability and process flexibility.exibility.

• Journal of KIISE:Computer Systems and Theory
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• v.26 no.10
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• pp.1217-1224
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• 1999

이동 호스트들의 위치 정보를 관리하는 것은 이동 컴퓨터 시스템에서 중요한 문제이다. 이동 호스트가 이동할 때 위치 수정과 위치 탐색간에는 상반관계가 존재한다. 본 논문에서는 위치 서버를 이용한 간단한 quorum 기반 분산 동적 위치 관리 방법을 제안한다. 이 방법에서는 이동 호스트들의 위치 정보가 모든 위치 레지스터가 아닌 위치 레지스터들의 부분집합에서 효율적으로 관리되기 때문에 위치 수정 비용과 위치 탐색 비용이 감소된다. 그리고 위치 레지스터들의 부분집합은 동적으로 변하고, 각 위치 서버의 부하는 이동 호스트에 대한 질의율을 고려하므로 균등해진다. 제안된 알고리즘의 성능은 위치 수정비용과 위치 탐색비용의 전체비용으로 평가되었고, Prakash의 알고리즘과 비교되었다.Abstract Managing location information of mobile hosts is an important issue in mobile computing systems. There is a trade-off between location update and search, when a mobile host moves. This paper proposes a simple quorum-based distributed dynamic location management method using location registers. The cost of location updates and searches is reduced by our method because the location information of mobile hosts is managed efficiently in a subset of location registers instead of in all location registers. In our method, the subset of location registers is dynamically changed, and the load of each location register is balanced by considering query rate for mobile hosts. The performance of proposed algorithm is evaluated in terms of the total cost of a location update and a location search, and is compared with Prakash's algorithm.

• The Korean Journal of Financial Management
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• v.24 no.1
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• pp.109-147
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• 2007

According to the perspective of capital structure theory, we analyzed the dynamism of the capital structure determinants by using panel data of 244 KOSDAQ firms based on two-step GMM system methodology suggested by Blundell Bond(1998). This dynamic methodology had not been used to analyse capital structure determinants in Korea. In the dynamic model of capital structure, profit had negative effect on the book leverage and market leverage, which meant supporting pecking order theory. Growth opportunity (MBR) affected negatively to the market leverage. For the determinants of leverage, earnings volatility had significantly positive effect on KOSDAQ 50 firms. KOSDAQ and KOSDAQ 50 firms had the target leverage. The adjustment speed in KOSDAQ firms was 0.4958 on the book leverage, it was faster than in KOSDAQ 50 firm's 0.2863 on the book leverage and the adjustment speeds for the market leverage were 0.7651 for KOSDAQ firms and 0.5643 for KOSDAQ 50 firms. There was difference in adjustment cost between KOSDAQ firms and KOSDAQ 50 firms.

• Journal of KIISE:Computer Systems and Theory
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• v.27 no.3
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• pp.287-299
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• 2000

In this paper, we classify multicast methods into three categories, i.e., tree-based, path-based, and hybrid-based multicasts, for a multicomputer employing the bidirectional torus network and wormhole routing. We propose the dynamic partition multicast routing (DPMR) as a path-based algorithm. As a hybrid-based algorithm, we suggest the hybrid multicast routing (HMR), which employs the tree-based approach in the first phase of routing and the path-based approach in the second phase. Performance is measured in terms of the average latency for various message length to compare three multicast routing algorithms. We also compare the performance of wormhole routing having variable buffer size with virtual cut-through switching. The message latency for each switching method is compared using the DPMR algorithm to evaluate the buffer size trade-off on the performance.

• Journal of KIISE:Computer Systems and Theory
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• v.35 no.12
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• pp.540-551
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• 2008

Today's microprocessor designs are not free from temperature as well as power consumption. As processor technology scales down, an on-chip circuitry increases power density, which incurs excessive temperature (hotspot) problem. To tackle thermal problems cost-effectively, Dynamic Thermal Management (DTM) has been suggested: DTM techniques have benefits of thermal reliability and cooling cost. However, they require trade-off between thermal control and performance loss. This paper proposes a dual integer register file structure to minimize the performance degradation due to DTM invocations. In on-chip thermal control, the most important functional unit is an integer register file. It is the hotspot unit because of frequent read and write data accesses. The proposed dual integer register file migrates read data accesses by adding an extra register file, thus reduces per-unit dynamic power dissipation. As a result, the proposed structure completely eliminates localized hotspots in the integer register file, resulting in much less performance degradation by average 13.35% (maximum 18%) improvement compared to the conventional DTM architecture.