Contemporary Financial Profile and Its Implications on the Level of Corporate Cash Holdings for Korean Chaebol Firms

Financial Aspects of Korean Chaebol Firms in terms of Trend of Cash Holdings and Type of a Domestic Bourse

“…sub-hypothesis test with employing the five statistically significant IDVs which had been found in the previous studies of [7] and [8] with robustness and consistency, as described. The followings were the results on the sub-hypothesis test, as reported in [Table 4].…”

“…Therefore, this study performed a test by employing alternative financial proxies to discern any elements which may be discriminated between the two polarized periods in the transition of the global financial crisis. The control variables which had been found to be statistically significant ones affecting the level of corporate cash holdings for the chaebol firms in the study of [7] and [8] were utilized as possible discriminating factors in the probit model as reported in [ Table 4 On the amount of EBIT during the fiscal year of 2013, it was also reported that the former business conglomerate accounted for 47.9% of total amount of the EBIT of the top ten chaebols in size, which was then followed by the amounts of Hyundai Motor one, SK Group, and LG which 21.7%, 14.3%, and 8.5% for the total amount, respectively. As a conclusion, more than 90% of the total EBIT was recorded by only few major business conglomerates during the year, 2013.…”

“…sub-hypothesis were further investigations on any changes of the five statically important elements during the post-era of the global financial crisis, which had been found in the previous studies of [7] and [8]. In other words, it was to look into any statistically significant changes between the two polarized time references, thereby preparing for …”

“…The followings were the major principle to select the relevant variables representing for their theoretical or practical implication in the field of finance, whose criteria were also referred in the studies of [7] and [8]. Besides the total eleven explanatory variables representing each rationale in modern finance, the study also employed another interesting IDV to measure for a firm's financial distress risk (FRISK)…”

“…Based on the type of a bourse the chaebol firms were listed on, Kim [3] found that there was a discerned financial factor, (i.e., 'retention ratio'), among the four components comprising the sustainable growth rate which was theorized in modern finance. Therefore, it may be of interest or even concern to further identify any financially The study done by Kim [7] researched one of the contemporary issues in finance to identify any significant financial factors on the cash holdings of the cheabol firms in the Korean capital markets.…”