• The Journal of Asian Finance, Economics and Business
• /
• v.6 no.4
• /
• pp.65-74
• /
• 2019

This study has two main purposes; first, it examines the effect of capital structure on profitability of Islamic and conventional banks; second, it determines that whether the capital structure of Islamic and conventional banks is same or not. A sample of ten banks was taken over the period 2006-2016. Independent samples T-test was used for finding the comparison between the capital structure of Islamic and conventional banks while for assessing the impact of capital structure on profitability, regression analysis (Fixed effects model) was used. Results showed that the capital structure of both types of banks was similar except for bank size which differed significantly. Moreover, ROA was negatively correlated to the capital structure of both conventional and Islamic banks. In contrast, ROE was positively correlated to the capital structure of both conventional and Islamic banks. In addition to that, two explanatory variables were positively correlated while two were negatively correlated to EPS for both Islamic and conventional banks. This study proves the existence of prominent theories of capital structure (pecking order theory and trade-off theory) for both conventional and Islamic banks in Pakistan and also validates the economies of scale.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.5
• /
• pp.1-7
• /
• 2020

This paper investigates the determinants on decision to conduct seasoned equity offerings (SEOs) of listed companies on the Ho Chi Minh Stock Exchange in Vietnam. Seasoned equity offerings (SEOs) are defined as the issue of more stocks by a firm to raise more capital after a primary issue. Using panel data collected from audited financial statements of 99 listed companies on the Ho Chi Minh Stock Exchange during 2014-2018, the study employs a logit regression model by fixed effects method to examine factors that affect the decision to implement seasoned equity offerings of those companies. The findings of this study show that profit, revenue growth and company's size have a positively significant impact on the decision, while dividend pay-out ratio negatively significantly influences the equity issuing decision. Furthermore, these results are robust after controlling for the forms of equity offerings, i.e. bonus stocks, stock dividends and rights to buy shares. These findings are consistent with economic theories such as agency theory, pecking order theory, and growth opportunity theory, and also could be explained by the real situations of the Vietnamese stock exchange. This study has important implications for corporate managers, policy makers and investors.

• The Journal of Fisheries Business Administration
• /
• v.34 no.1
• /
• pp.31-44
• /
• 2003

The purpose of this study is to investigate empirically interaction among the financing decision, investment decision, and profitability by using 41 fisheries corporations in Korea, and to suggest implications of the empirical results for government's financial policy for fisheries corporations. Sample period is 19 years from 1982 till 2000. This analysis method employs the two stage least squares(2SLS) estimation method. From the results of regression analysis by 2SLS estimation method, the adjusted $R^2$ values were high and the overall F values indicated significant. The empirical results of this study are as follows; (1) determinant factors of capital structure model for fisheries are profitability, firm-size, fisheries investment of total asset, and business risk. As pecking order theory explains, the higher is profitability the lower is debt ratio. The larger firm-size, the higher is debt ratio. The higher is fisheries investment of total asset and business risk, the higher is debt ratio. (2) determinant factors of investment model for fisheries are the change of sales, business risk, and debt ratio. These factors have positive relation to fisheries investment of total asset (3) determinant factors of profitability model for fisheries are fisheries investment of total asset and debt ratio. These factors have negative relation to profitability. On the basis of analysis results, on the government's financial policy for fisheries corporations, I suggests that with interest rate reduction, the government should lend more funds to solve the crisis in the financial structure of the fisheries firms

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.10
• /
• pp.1-10
• /
• 2021

This paper attempts to investigate the determinants of capital structure of Vietnamese firms and also shed light on some of the factors of the modern theory of capital structure which is relevant for explaining the capital structure in advanced countries which are also relevant in the context of Vietnam. Using panel data from more than 1000 Vietnamese listed enterprises census 2017-2020, the paper finds that leverage ratio of Vietnamese firms is significantly related to probability. The firms have high level of fixed assets which they use as collateral, resulting in higher debt ratio, which is in line with the pecking order theory. The result also confirm that highly targeted debt ratio is positively correlated with the industry characteristics (using real estate firms as a benchmark), in which firm operates. Furthermore, consistent with the trade-off hypothesis, the leverage ratio is positively affected by non - debt tax shield. The result confirms that a large number of companies are state - owned, will have an insignificant impact of firm's size (as reverse proxy for bankruptcy cost) on leverage ratio. We also find that there is no distinction between state-owned enterprises and private enterprises due to strict adherence to the rules set by the Vietnamese government. Distinct from other countries, corporate income tax has slight impact on capital structure in Vietnamese firms.

• Journal of Animal Science and Technology
• /
• v.53 no.5
• /
• pp.481-487
• /
• 2011

Rearing density is a major factor in welfare production and health of broiler chicks. An experiment was conducted to investigate the effect of rearing density on the behavioral characteristics of Korean native chicks. In the study, 20, 30, and 40 chicks per pen (3.17 $m^2$) were used in each treatment and randomly allotted to 6.3 bird/$m^2$, 9.5 bird/$m^2$, and 12.6 bird/$m^2$ density, respectively. The broilers' behavior was recorded for 12 hours continuously during 1 to 8 weeks of age. The time budgets (standing, sitting, and walking) and frequencies of certain behaviors (drinking, feeding, preening, scratching, dust bathing, flapping, aggressive pecking, and pecking) in the broilers were checked during the day. The behavioral characteristics in the early period (1 to 4 weeks) were compared to the later period (5 to 8 weeks) to know the changes in each behavior as the chicks matured. It was observed that 40 chicks per pen showed significant decrease in feed intake and body weight. Corticosterone hormone was higher in the order of 12.6 bird/$m^2$ > 9.5 bird/$m^2$ > 6.3 bird/$m^2$ (p<0.05). The behaviors of standing and sitting were the highest in groups of 30 and 40 respectively. The walking behavior was gradually decreased as rearing density increased. The frequencies of the other behaviors also decreased in a high density treatment; especially for feeding, drinking, preening, and pecking. These tendencies widened the gaps of behaviors as time passed. It was concluded that a group of 20 chicks (6.3 bird/$m^2$) was the proper rearing density among these three treatments. Broilers in the lower rearing density showed more activity than that with higher density and therefore this environment may lead to better welfare condition.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.18 no.3
• /
• pp.518-526
• /
• 2017

This study analyzed the impact of family firms and their characteristics on how they use debts to analyze the decision-making process of Korean family firms. For analysis, we classified the characteristics of family firms into three categories, through the influence of the relationship between the lack of funds and net debt issuance, which was confirmed as the 'packing order theory' of family firms. There was a total of 4,503 enterprises in the Korean Exchange (KRX). The period of analysis was 10 years, between 2004 and 2014. To summarize, Shyam-Sunder and Myers (1999) validated the packing order theory by presenting a model of family businesses that showed greater applicable to higher packing order theory than a model of non-family businesses. Moreover, the results also confirmed the application of the packing order theory by the family stronger corporate governance and ownership structure. The ownership and governance characteristics of the ruling family has also shown the applicability of higher packing order theory.

• The Journal of Fisheries Business Administration
• /
• v.28 no.2
• /
• pp.1-18
• /
• 1997

The purpose of this study is to investigate empirically the characteristics of financial structure by using 76 fisheries corporations in Korea, and to suggest implications of the empirical results for government's financial policy for fisheries corporations. For the empirical test, we choose the following factors as the explanatory variables of cross-sectional regression analysis:firm-size(SIZE), collateral value of assets(TFATA), business risk(BRISK), growth(GROWTH), effective tax(ET), profitability(PROFIT). Two different debt ratios are used as dependent variables. One is defined as the ratio of total debt to total assets and the other is as that of long-term debt to total asset in terms of book value. The sample consists of 76 fisheries firms and sample period is 14 years from 1982 till 1995. From the results of cross-sectional regression analysis, the adjusted R$^2$values were high, 16∼79% and the overall F values indicated to be statistically significant. The results of cross sectional regression analysis show that the characteristics of financial structure fur fisheries corporations are as follows ; (1) Firm-size and collateral value of assets are the major factors of financial structure for fisheries corporations. That is, the larger firm-size the higher is debt ratio. This means that financial institutions conventionally lend more collateral loans with fixed assets like land, building rather than management capacities or credits. (2) To be consistent with a pecking-order theory, the higher is profitability the lower is debt ratio in fisheries corporations. (3) Corporations with high effective tax rate have lower financial leverage. Although the empirical results are inconsistent with traditional static trade-off theory, we think it would be attributed to government's various tax shelterings for fisheries which are likely to reduce tax shield effect of interests.

• Korea Trade Review
• /
• v.43 no.2
• /
• pp.181-204
• /
• 2018

This study examines the existence of a target leverage and determinants of book and market leverage. A data set of shipping firms from 2009 to 2016 was used to conduct an empirical study. The target leverage which cannot be observed in the market is estimated using a partial-adjustment model of firm capital structure. This study found that factors affecting the capital structure differ with respect to firm size, book value leverage and market value leverage. Shipping firms have a target leverage, adjust the actual leverage toward that target leverage, and consider the target leverage as an optimum leverage. The deviation of the leverage from the target leverage plays an important role to explain changes of leverage level. The greater the deviation results in greater adjustment of shipping firms toward targets. A high level of initial debt reduces leverage changes.

• Korean Journal of Environmental Agriculture
• /
• v.20 no.2
• /
• pp.86-92
• /
• 2001

The current study was conducted to elucidate the optimum density of free-ranging ducks in a rice-duck farming system in terms of effects on duck behavior, and growth and yield of rice plants. Four paddy fields were used for this experiment, with 6, 9, 12 and 15 birds per plot, respectively. Ducklings at eight days of age were free ranged in experimental paddy plots (4.0 a each) on the 9th day after the transplantation of rice plants. Ducks were kept in the plot for seventy days, at which point rice plants reached the earing stage. Foraging, moving, working, resting, diving and pecking behaviors of the ducks were observed two times during the experimental period. Also, rice plant growth and yield according to the density of ducks per plot were examined. The foraging and moving behavior of free-ranging ducks in paddy fields for 12 hours during the daytime tended to be longer in the 12-bird plot, and working behavior was significantly (P<0.01) longer in the 12-bird plot than in the other three plots. The resting behavior was significantly (P<0.01) higher in the 9- and 15-bird plots than in the 12-bird plot. The frequency of moving behavior for 6 hours during the daytime in the 15-bird plot tended to be lower than that in the other three plots, but this difference was not significant. The amount of diving and pecking behavior in the 9-bird plot was significantly (P<0.05) higher than that in the other three plots, and the number of hills pecked tended to be higher with increasing of duck density. From thirty days after ducks were introduced to the paddy fields, the length of rice plants tended to be significantly (P<0.05) shorter in high free-ranging density plots as compared to low free-ranging density plots. The number of tillers per hill was not affected by the free-ranging density. The culm length of rice plants was significantly (P<0.05) shorter in the 12- and 15-bird plots than in the other two plots, however, the duck free-ranging density did not affect panicle length. The dry weight of the root of rice plants was increased with high free-ranging density, but there was no such increase in the top parts of the rice plants. The percent of rice plants badly damaged by free-ranging density tended to be lower in the order of 12-, 9-, 6- and 15-bird plots. The number of ears, ripening grains and crop yield per hill of rice plants in the 12-bird plot were significantly (P<0.05) higher than those of the other three plots. Therefore, the yield of each rice plant per 10 a was significantly increased in the 12-bird plot.

• Journal of Navigation and Port Research
• /
• v.40 no.6
• /
• pp.451-458
• /
• 2016

Since Modigliani and Miller developed their theory of capital structure in 1958, it has become one of the most debated issues in corporate management. This is because the capital structure decision necessarily affects financial risk and the firm's value. Throughout the research, one of the most concerning problems is determining what factors influence the firm's capital structure. Since Korean shipping firms have been suffering from a long term economic recession, an optimal capital structure has become increasingly critical to survive in the shipping industry. This paper studies panel data on 46 Korean shipping companies since 2000 to find the factors that affect capital structure. The results suggest that a negative relationship arises between firm size, tangible assets, profitability and non-debt tax shields against leverage. Otherwise, it proved that growth opportunity has a positive relationship with the firm's leverage. In the research model during a booming shipping economy, growth opportunity and non-debt tax shield are not associated with firm's capital structure.