A Review on the Financial Profile of Profitability for the KOSDAQ Listed Firms Headquartered in 'Chungcheong' province in the Republic of Korea

Abstract

From foreign and/or domestic investors' perspectives, it may be interesting to find any financial attributes or profile of the firms headquartered in 'Chungcheong' province concerning profitability, given that this subject so far drew less attention in the previous literature. This study performed three hypothesis tests on the profitability indicator by utilizing the models such as the 'panel data' one and the 'logistic' regression one, applying a modified 'Dupont' system. With respect to the major findings, the results identified that the proxies measuring leverage across the book-value(BVLEV1) and the market-value(MVLEV1) bases, were statistically significant constituents determining profitability. Another explanatory variable, SIZE, with its positive and statistically significant relationship to the indicator, represented that the firms in the province were smaller than their counterparts in the other regional areas in Korea. DRELY applying a modified 'Dupont' system, found to be the only statistically significant discriminating factor between these comparison groups. As one of the primary contributions of this study, the outcomes may be used by the financial institutions operated across the regions including Seoul Metropolitan area, when implementing their lending practices to provide funds for potential borrowers such as the firms belonging to 'Chungcheong' province. 요 약

Investigations on the Financial Determinants of Profitability for Korean Chaebol Firms by applying Conditional Quantile Regression (CQR) Model

“…The following literature was described to chronologically review major theoretical and empirical findings contributed to the relationship between a firm's financial indicators inclusive of profitability and their proposed determinants, which had also been referred to in the previous researches such as in [5] and [6].…”

Financial Factors Influencing Corporate Cash Reserves of Firms in Chungcheong Province in the Korean Capital Markets

“…As presented in [6] on the profitability of the firms headquartered in the region, the outcomes are also expected to be effectively used by the domestic financial institutions located in either the Chungcheong or the other domestic regional areas, when lending capital or replenishing working capital or short-term funds, which may, in turn, affect the level of cash holdings at corporate level.…”