Financial Profile of Capital Structures for the Firms Listed in the KOSPI Market in South Korea

Kim, Hanjoon

doi:10.5392/jkca.2013.13.11.829

Cited by 4 publications

(3 citation statements)

References 19 publications

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“…Kim [23] respectively. Morever, the study done by Kim [6] presented an empirical subject to identify any …”

Section: Previous Literaturementioning

confidence: 97%

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

Kim¹

2014

The Journal of the Korea Contents Association

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This study investigated one of the contemporary issues in the Korean capital market and two hypotheses of concern were tested on the financial determinants of profitability for the firms belonging to the Korean chaebols during the era of the post-global financial turmoil. The first hypothesis applying conditional quantile regression (CQR) estimation provided the evidence that leverage ratio, fixed asset utilization, and foreign ownership among the nine quantitative explanatory variables, had overall statistical significance relative to the book-valued profitability measure, while additional variables such as a firm's size, fixed and a proxy for the type of exchange market showed their strong impacts on the market-valued profitability indicator. Concerning the formulated 'extended' DuPont system, only two components of EBITDAEBIT and EMULTIPLIER revealed their prominent influence on ROE (Return on Equity) over the two tested periods (the years 2008 and 2012).

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“…Kim [23] respectively. Morever, the study done by Kim [6] presented an empirical subject to identify any …”

Section: Previous Literaturementioning

confidence: 97%

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

Kim¹

2014

The Journal of the Korea Contents Association

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“…First, a book-value based debt ratio defined by total liabilities divided by total assets, was used as a measure for the DV, considering the advantage of this particular ratio (over other major debt ratios), in that it was the only financial ratio with a normal distribution, as tested in [12] and [13]. In association with their theoretical and practical importance as in the previous (finance) literature in variable selection process, this study also reemployed and tested the majority of the independent variables(IDVs), which had been tested in the comparable researches such as in [1] and [6] Therefore, the following table, Table 5, were the results of the regressions obtained for the book-value and market-value based debt ratios, respectively.…”

Section: Dependent Variable(dv)mentioning

confidence: 99%

“…This study addresses one of the contemporary issues Moreover, from academics' and practitioners' points of vies, it may be of concern to look into or reexamine the level of capital structure for a firm belonging to the chaebol headquartered in Korea, whose level may have artificially been lowered than its previous level in the Asian financial crisis, largely due to the active implementation of the domestic policies of the government in cooperation with IMF, as presented in [1].…”

Section: Introductionmentioning

confidence: 99%

A Review on the Contemporary Changes of Capital Structures for the Firms belonging to the Korean Chaebols

Kim¹

2014

Journal of the Korea Academia-Industrial cooperation Society

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This study examined a long-standing issue with its perverse results in the Korean capital markets, such as any variant financial profiles over time, affecting capital structure for the firms belonging to the chaebols. It may be of interest to identify these components from the perspectives of international investors and domestic policy makers to implement their contingent strategies on the target leverage, since the U.S. financial turmoils in the late 2000s. Regarding the evidence from the three hypothesis tests on the firms in the chaebols, this research found that the control variabels measuring profitability, business risk, and non-debt tax shields, showed their statistically significant relationships with the different types of a debt ratio. While FCFF(free cash flow to the firm) showed its significant influence to discriminate between the firms in the chaebols and their counterparts, not belonging to the chaebols, BDRELY as the ratio of liabilities to total assets, comprising the enhanced 'Dupont' system, only showed its statistically significant effect on leverage in the context of the parametric and nonparametric tests. In line with the results obtained from the present research, one may expect that a firm in the Korean chaebol, may control or restructure its present level of capital structure to revert to its target optimal capital structure towards maximizing the shareholders' wealth.

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Myth or Reality: Are the Chaebol Firms Financially Differentiated by the Type of Bourse Their Shares Are Listed on?

Kim¹

2014

thejournalofinternationaltradecommerce

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Financial Profile of Capital Structures for the Firms Listed in the KOSPI Market in South Korea

Cited by 4 publications

References 19 publications

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

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

A Review on the Contemporary Changes of Capital Structures for the Firms belonging to the Korean Chaebols

Myth or Reality: Are the Chaebol Firms Financially Differentiated by the Type of Bourse Their Shares Are Listed on?

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