Global Financial Crisis and Factors Affecting Capital Structure of Listed Food Service Firms in South Korea

2021 ◽  
Vol 9 (4) ◽  
pp. 21-42
Author(s):  
Yong-Jae Shin ◽  
◽  
Mi-Young Hong
Keyword(s):  
Financial Crisis ◽  
South Korea ◽  
Capital Structure ◽  
Global Financial Crisis ◽  
Food Service ◽  
Service Firms ◽  
Factors Affecting

scholarly journals The International Competitive Relationships of Three Leading Countries in the Global Shipbuilding Industry

2018 ◽  
Vol 33 (3) ◽  
pp. 73-91
Author(s):  
Hwang Inyoung ◽  
Park J. Hun
Keyword(s):  
Financial Crisis ◽  
South Korea ◽  
Competitive Advantage ◽  
Global Financial Crisis ◽  
Three Dimensional ◽  
Volterra Model ◽  
Annual Data ◽  
Competitive System ◽  
Shipbuilding Industry ◽  
Mutualistic Relationship

South Korea, China, and Japan are three dominant countries in the global shipbuilding industry, and the competition between them has become more complex over time. The International Maritime Organization environmental regulations and the wave of Industry 4.0 have made the global shipbuilding industry more technology intensive than before. However, after the financial crisis of 2008, China’s labor-intensive strategy outperformed the technology-intensive competitive strategy adopted by Japan and South Korea, and China was ranked first with the largest market share. This study sets out to explore whether China’s labor-intensive strategy will remain superior to the technology-intensive one of Japan and South Korea. Specifically, we investigate how competitive relationships between the three countries changed after the 2008 global financial crisis. We also forecast how many ships each country will complete in through 2026. To analyze this dynamic competitive system, we use the three-dimensional Lotka-Volterra model, drawing on annual data reporting the number of ships built. The findings suggest that China has gained a competitive advantage over Japan since the 2008 global financial crisis, while South Korea has maintained a mutualistic relationship with both Japan and China. Our forecast suggests that China may lose its competitive advantage in the near future, if China does not embrace a more technology-intensive approach.

scholarly journals Evidence of effective financial crisis management from South Korea: An example for other regions

2020 ◽  
Vol 42 (1) ◽  
pp. 21-38
Author(s):  
Saysi Sayaseng
Keyword(s):  
Financial Crisis ◽  
South Korea ◽  
Global Financial Crisis ◽  
Var Model ◽  
Impulse Response Functions ◽  
Response Functions ◽  
Macroeconomic Variables ◽  
South Korean ◽  
Positive Growth ◽  
The Global Financial Crisis

AbstractEvidence from the global financial crisis (2007–2008) and the Asian financial crisis (1997) have taught policymakers valuable lessons. The contagious effects of these crises have proven unavoidable and have led to negative economic development. However, South Korea, unlike other countries, has recovered remarkably from both episodes of financial turmoil and proved their ability to maintain positive growth throughout the two periods. This study investigates the correlation between the evolution of South Korean banking and corporate sector before, during and after these crises. A VAR model was employed to test the effectiveness of the South Korean government's policies, in response to the financial crisis from 1997 to 2017, using macroeconomic variables as proxies for newly introduced policies, and non-performing loans for controlled risks. The empirical results indicate impulse response functions which suggest that changes in macroeconomic variables as a representation for the policies resulted in a reduction of non-performing loans. This implies successful risk reduction and an overall economic recovery.

scholarly journals The impact of operating leverage on the capital structure of Johannesburg Stock Exchange-listed firms before and after the 2008 global financial crisis

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Matabane T. Mohohlo ◽  
Johan H. Hall
Keyword(s):  
Financial Crisis ◽  
Capital Structure ◽  
South African ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Johannesburg Stock Exchange ◽  
The Global Financial Crisis ◽  
Operating Leverage ◽  
The Impact ◽  
The Capital Structure

The financial leverage-operating leverage trade-off hypothesis states that as financial leverage increases, management of firms will seek to reduce the exposure to operating leverage in an attempt to balance the overall risk profile of a firm. It is the objective of this study to test this hypothesis and ascertain whether operating leverage can indeed be added to the list of factors that determine the capital structure of South African firms. Forty-six firms listed on the Johannesburg Stock Exchange between 1994 and 2015 are analysed and the impact of operating leverage is determined. The results are split into two periods, that is, the period before the global financial crisis (1994–2007) and after the global financial crisis (2008–2015). The impact of operating leverage during these two periods is then compared to determine whether a change in the impact of operating leverage on the capital structure can be observed especially following the crisis. The results show that the conservative nature of South African firms leading up to 2008 persisted even after the global financial crisis. At an industry level, the results reveal that operating leverage does not have a noticeable impact on capital structure with the exception of firms in the industrials sector of the South African economy.

scholarly journals Determining the Factors Affecting Capital Structure Decisions of Real Sector Companies Operating in ISE

2017 ◽  
Vol 9 (8) ◽  
pp. 25 ◽  
Author(s):  
Bengü Vuran ◽  
Nihat Tas ◽  
Burcu Adiloglu
Keyword(s):  
Capital Structure ◽  
Firm Growth ◽  
Positive Impact ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Order Theory ◽  
Service Firms ◽  
Factors Affecting ◽  
Tax Shield ◽  
The Capital Structure

Corporate capital structure remains a controversial issue in modern corporate finance. Since the seminal work by Modigliani and Miller (1958), a plethora of research has been undertaken in attempting to identify the determinants of capital structure. This paper analyzes the capital structure determinants of manufacturing, merchandising and service firms operating in Istanbul Stock Exchange (ISE) during the period from 2010 to 2013 comprising of 218 companies. This study addresses the following questions: Are the capital structure determinants of three types of firms in ISE driven by different factors? To answer this question, panel data methodology is applied to the sample of firms for the period from 2010 to 2013. The results show that the manufacturing and merchandising firms exhibit similarities in their capital structure choices. For those firms, size and firm growth are positively related to leverage, whereas profitability have a negative relationship with their debt to assets ratio. For service firms, size and non-debt tax shield have significant positive impact on leverage but profitability negatively related to leverage. These findings provide evidence in favour of trade off theory and pecking order theory.

scholarly journals The Determinants of Capital Structure: Empirical Analysis of Oil and Gas Firms during 2000-2015

2017 ◽  
Vol 9 (1) ◽  
pp. 1 ◽  
Author(s):  
Aws Yousef Shambor
Keyword(s):  
Financial Crisis ◽  
Capital Structure ◽  
Oil And Gas ◽  
Global Financial Crisis ◽  
Agency Cost ◽  
Tax Shield ◽  
Debt Tax Shield ◽  
The Global Financial Crisis ◽  
Oil And Gas Firms ◽  
The Capital Structure

This study investigates the capital structure determinants of 346 oil and gas firms that are the constituents of the Global Oil and Gas Index (OILGSWD) over the period of 2000 – 2015, taking into account the effect of the Global Financial Crisis of2007-2009 on the determinants of the capital structure. Thus, six firm level explanatory variables (namely: liquidity, profitability, growth, non-debt tax shield, tangibility and size) are selected and regressed against the appropriate capital structure measure, leverage, the ratio of total debt to book value of total assets. The data is collected from secondary sources depending on the data from the DataStream database. The major findings of the study indicate that tangibility, profitability, size, liquidity and non-debt tax shield are the significant determinants of capital structure of oil and gas firms, while growth is considered insignificant. The capital structure is analyzed in terms of the three main theories of capital structure: Trade-off theory, Pecking order theory, and Agency cost theory. Finally, the global financial crisis has to some extent a significant impact on the capital structure determinants of oil and gas firms and has no significant impact on liquidity, as indicated by the OLS regression analysis results.

FACTORS RELATED TO THE RISK OF A SUBSTANTIAL INCOME DECREASE BETWEEN 2006 AND 2008 IN SOUTH KOREA

2019 ◽  
Vol 64 (01) ◽  
pp. 157-173
Author(s):  
EUNICE JIHYUN HONG ◽  
SHERMAN D. HANNA
Keyword(s):  
Logistic Regression ◽  
Financial Crisis ◽  
South Korea ◽  
Global Financial Crisis ◽  
College Education ◽  
Substantial Decrease ◽  
The Global Financial Crisis ◽  
The U.S

Between 2006 and 2008, 9% of Korean households had an income decrease of 50% or more, a rate almost identical to the U.S. despite the much lower impact of the global financial crisis on Korea. We ran a logistic regression to determine factors related to the likelihood of a substantial income decrease between 2006 and 2008 for Korean households. The likelihood of a substantial decrease was low for households below the 75th percentile of 2006 income, probably due to differences in composition of income. Households with college education were less likely than those without college to have a substantial decrease.

The effects of the global financial crisis on the capital structure of EPRA/NAREIT Europe index companies

2015 ◽  
Vol 8 (1) ◽  
pp. 3-23 ◽  
Author(s):  
Giacomo Morri ◽  
Andrea Artegiani
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Capital Structure ◽  
Global Financial Crisis ◽  
Pecking Order ◽  
Trade Off ◽  
Content Type ◽  
The Global Financial Crisis ◽  
The Impact ◽  
The Capital Structure

Purpose – The purpose of this paper is to test whether the financial crisis has affected the capital structure of real estate companies in Europe and whether these impacts can be studied utilizing the variables traditionally used by the trade-off and pecking-order theories to explain the capital structure of companies. Design/methodology/approach – The study uses a fixed-effect panel regression analysis and a sample composed of companies included in the EPRA/NAREIT Europe Index. The effect of the financial crisis has been accounted for within the model by means of a dummy variable. Findings – The global financial crisis did have an impact on the capital structure of companies and the main variables traditionally used by the trade-off and pecking order theories proved to be suitable in explaining the capital structure of real estate companies. Real estate investment trusts are, on average, more leveraged than traditional real estate companies due to their special regulatory status. Research limitations/implications – The study is limited to the European market and UK companies in particular account for a large part of the sample. In addition, major regulatory differences between the various European countries are not taken into account in the model. Originality/value – Similar studies have been performed for the US and Australian market. However, the impact of the global financial crisis has not been traditionally considered in these studies.

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