• Journal of Korean Society for Quality Management
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• v.50 no.1
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• pp.139-151
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• 2022

Purpose: This study aims to delve into the empirical implications in management efficiency by analyzing the relation between management efficiency and debt ratio in public institutions. Methods: Based on 165 public institutions published in public business information system from 2016 to 2020, Data Envelopment Analysis(DEA) for estimating management efficiency was performed. This study analyzed the relationship between management efficiency and debt ratio using multi-regression analysis. It also examines how the relationship varies depending on the type of public institution. Results: The results of this study are as follows; We find that there is no significant relation between management efficiency and debt ratio. However, we find that this relationship can be different depending on the type of public institution. Management efficiency is negatively associated with debt ratio for quasi-market type public institutions. This negative relation tends to mitigate for market type public institutions, which suggests that management efficiency may convey differential implications depending on the type of business environment represented by the type of institution. Conclusion: The overall results suggest that the government needs to due caution in establishing a policy plan to reduce debt by increasing management efficiency, taking the specific business environment, particularly with regard the type of institution.