Earticle

This study examines how corporate governance (CG) and leverage affect real earnings management (REM) in non-financial firms listed on the Korea Composite Stock Price Index during 2003-2011 by employing corporate governance score (CGS) and total, short-term, and long-term debt ratios (i.e., leverage) as independent variables, and four REM metrics as dependent variables. We find a significant positive relationship between leverage and REM, while there is a negative effect of CG on real manipulations. We also find that firms with a high-level of CG are low-leverage firms, whose managers are less likely to conduct REM activities than those of firms with a low-level of CG. Moreover, our results reveal that CG moderates and weakens the relationship between leverage and REM. These findings are consistent with the controlling hypothesis, alignment of interest between managers and owners, and increase of the firm’s transparency and reliability, which are characteristics of firms with strong CG, whose managers reduce their opportunistic behavior and do not engage frequently in REM activities. Our study complements the literature by detecting the moderating effect of CG, which might be considered an effective mechanism to reduce and avoid REM activities.

레버리지(leverage)와 레버리지도(degree of leverage)는 구별되는 개념임에도 불 구하고 레버리지가 높으면 레버리지도가 높은 것으로 인식하는 경우가 종종 있다 레버리지도는 탄력도 개념으로서 일정조건하에서만 잠재적으로 레버리지와 양(+)의 관계를 갖는다. 본 연구에서는 이들이 어느 정도의 잠재적 관련성을 갖는지를 실증 분석한다. 레버리지는 일반적으로 널리 사용되는 변수(손익계산서 및 재무상태표)의 각 기업별 년 평균치를 이용하여 추정했으며 레버리지도는 각 기업별 년간의 시계열 자료를 이용하여 세 가지 모형으로 추정하였다. 분석결과 영업레버리지와 영업레버리지도가 손실이 발생하지 않았던 기업집단 에서는 유의한 상관관계를 보이지 않았으나 손실이 발생하였던 기업집단에서는 유의한 양(+)의 상관관계를 보이는 것으로 나타났다. 재무레버리지와 재무레버리지도는 손실 발생 여부에 상관없이 유의한 양(+)의 상관관계를 갖는 것으로 나타났다 한편 레버리지 대용변수 중 손익계산서를 이용한 변수가 상대적으로 레버리지도 와 상관관계가 높은 것으로 나타났다.

본 연구에서는 2000년 1월 1일부터 2010년 12월 31일까지 한국거래소의 유가증권시장과 코스닥시장에 상장된 기업을 대상으로 과소투자 문제와 유동성위험의 맥락에서 부채만기가 레버리지에 미치는 영향을 실증분석 하였으며, 주요한 분석 결과는 다음과 같다. 부채만기는 레버리지 비율에 양(+)의 영향을 미친다. 즉, 부채만기를 단축시키면 레버리지가 축소되고, 부채만기를 연장시키면 레버리지가 확대된다. 따라서 부채만기를 단축시켜 단기부채의 비중을 증가시키 면, 유동성위험이 증가하여 파산비용이 증가하고 부채수용력이 약화되어 레버리지가 감소한다. 성장기회 는 레버리지에 음(-)의 영향을 미치며, 성장기회와 부채만기간의 상호작용변수도 레버리지에 음(-)의 영 향을 미치는데, 이는 부채만기 단축이 성장기회가 레버리지 비율에 미치는 음(-)의 영향, 즉 과소투자 문 제를 완화시킴을 의미한다. 부채만기 단축이 레버리지에 미치는 두 가지 상반된 효과, 즉 과소투자 문제 완화효과와 유동성위험 증가효과를 서로 상쇄시킨 순효과는 기업의 신용도에 따라 달라진다. 신용도가 낮은 기업은 부채만기 단 축으로 인한 유동성위험 증가효과가 과소투자 문제 완화효과보다 더 크기 때문에 부채만기 단축이 레버 리지를 감소시킨다. 그러나 신용도가 높은 기업은 과소투자 문제 완화효과가 유동성위험 증가효과보다 더 크기 때문에 부채만기 단축이 레버리지를 증가시킨다. 따라서 신용도가 높은 기업은 유동성위험 증가 를 이유로 레버리지를 축소시키지 않고도 부채만기 단축을 통해 과소투자 문제를 완화시킬 수 있다. 레버리지 비율은 부채만기에 양(+)의 영향을 미친다. 즉, 레버리지를 축소시키면 부채만기가 단축되고, 레버리지를 확대시키면 부채만기가 연장된다. 이러한 결과는 부채만기 단축(연장)과 레버리지 축소(확대) 는 유동성위험에 대한 대체수단으로 사용될 수 있음을 시사한다. 성장기회는 부채만기에 음(-)의 영향을 미치지만, 성장기회와 레버리지 비율간의 상호작용변수는 부채만기에 양(+)의 영향을 미치는데, 이는 레 버리지가 성장기회가 부채만기에 미치는 음(-)의 영향, 즉, 과소투자 문제를 완화시킴을 의미한다. 즉, 성 장기회 그 자체는 부채만기를 직접적으로 단축시키지만, 성장기회와 레버리지 비율간의 상호작용변수는 부채만기를 간접적으로 연장시키므로, 이 두 가지 효과를 합한 총효과는 성장기회의 크기에 관계없이 양 (+)의 값이 된다. 따라서 레버리지 단축을 통하여 과소투자 문제를 충분히 통제할 수 있는 기업은 성장 기회가 부채만기에 미치는 음(-)의 영향을 대부분 제거시킬 수 있다. 결론적으로, 부채만기가 과소투자 문제와 유동성위험의 맥락에서 레버리지에 미치는 영향을 체계적으로 분석할 필요가 있다. 부채만기는 그 자체뿐만 아니라, 성장기회와의 상호작용변수가 과소투자 문제와 유동성위 험에 미치는 상반된 효과를 통하여 레버리지에 영향을 미친다. 또한, 부채만기가 레버리지에 미치는 영향을 기 업의 신용도에 따라 달라진다. 이러한 연구결과는 부채만기와 레버리지 정책에 대한 중요한 시사점을 제시한다.

In this paper, we analyze empirically the effects of debt maturity on leverage in the context of underinvestment problems and liquidity risk of firms listed on Korea Exchange. In terms of methodology, we develop the simultaneous equations model that integrates leverage and debt maturity model. The main results of this study can be summarized as follows. Debt maturity has a significant and positive effect on leverage. This result supports the liquidity risk hypothesis that predicts a positive relation between debt maturity and leverage(Diamond, 1991 and 1993). Growth opportunities have a significant and negative effect on leverage. This result provides strong support for the underinvestment hypothesis(Myers, 1977). Interaction variable between debt maturity and growth opportunities has a significant and negative effect on leverage, implying that for high growth firms, the overall positive relation between debt maturity and leverage may become weaker. With respect to the overall effect of debt maturity itself and the interaction between debt maturity and growth opportunities on leverage, debt maturity has a significant and positive effect on leverage. The liquidity risk effects of debt maturity on leverage should be more important for lower credit quality firms and firms that cannot easily lengthen their debt maturity. Low credit quality firms that face greater liquidity risk may demand longer term debt to reduce this risk, but find no lenders willing to supply it at reasonable cost. In contrast, higher credit quality firms likely face lower liquidity risk, and can also borrow longer term debt if liquidity risk concerns do arise. For lower credit quality firms, the relatively large liquidity risk effect outweighs the attenuation effect of underinvestment problems so that the net effect of shortening debt maturity on leverage is negative. Thus, lower credit quality firms can try to attenuate the negative effect of growth opportunities by shortening debt maturity, but on the end this does not increase leverage. On the contrary, the negative direct effect of the increased liquidity risk on leverage more than offsets the positive attenuation effect, producing a net reduction in leverage. These results are consistent with Mauer and Ott's(1998) theoretical model in which firms that shorten debt maturity to reduce underinvestment problems can also reduce leverage to avoid liquidity risk. For higher credit quality firms, the positive effect of reducing underinvestment problems outweighs the effect of increasing liquidity risk so that the net effect of shortening debt maturity on leverage is positive. Thus, higher credit quality firms can shorten debt maturity to reduce underinvestment problems without having to reduce leverage because of liquidity risk. Leverage has a significant and positive effect on debt maturity, which is consistent with the result in the leverage model. It provides further evidence that high liquidity risk caused by high leverage policy can be moderated by longer term debt maturity and that longer term(shorter term) debt maturity and high(low) leverage can be used as supplementary strategies to avoid the threat of suboptimal liquidation. Growth opportunities have a significant and negative effect on debt maturity. This suggests that there is economic relation between growth opportunities and debt maturity. Interaction variable between leverage and growth opportunities has a significant and positive effect on leverage, implying that for high growth firms, the overall positive relation between leverage and debt maturity may become stronger. With respect to the overall effect of leverage itself and the interaction between leverage and growth opportunities on debt maturity, leverage has a significant and positive effect on debt maturity. In conclusion, it is necessary to examine the potential dynamics of debt maturity on leverage in the context of underinvestment problems and liquidity risk. Our results provide a number of fresh insights into the overall effects of debt maturity on leverage and the interactions between debt maturity and growth opportunities on leverage. This paper may have a few limitations because it may be an only early study about the effects of debt maturity on leverage in the context of underinvestment problems and liquidity risk of Korean firms. Therefore, we think that it is necessary to expand sample firms and control variables, and use more elaborate analysis methods in the future studies.

Testosterone is a steroid hormone that affects male to aggressively take risks to achieve dominant status. We examine whether CEOs with higher testosterone level make the firms riskier. Since the facial width-to-height ratio (fWHR) of a male adult is determined by his pubertal testosterone exposure, we measure the fWHR male CEOs in both Execucomp and BoardEx that had CNBC interviews during 1997~2009. Controlling for sample selection bias, CEO’s preference for risky hobbies, and overconfidence, we find that high testosterone CEOs (1) increase firm risk; (2) maintain high leverage ratio; (3) are more acquisitive; and (4) receive high VEGA compensation.

We analyze the eects of leverage on the timing of real estate developments that involve conversion of land from agricultural to urban use. We assume that a developer who maximizes the equity value obtains a defaultable mortgage loan. At the time the land conversion occurs, furthermore, a lender originates the mortgage loan at fair market value. We show that, under uncertainty, the leveraged developer moves the exercise of the land conversion option forward with the mortgage loan. Seeking to lower the uncertainty premium, the developer who can make a strategic default decision lowers the level of land conversion triggers. In urban growth models with irre- versible development, lower levels of the triggers expand equilibrium city size.

2010년 대법원의 반대급부의 제공없는 담보형 차입매수에 대한 유죄판결 이래 차 입매수를 둘러싼 형사적 제재의 적합성에 대한 많은 논쟁이 있었다. 이는 타인의 자 본을 활용한 차입매수가 한계기업에 대한 효율적 구조조정의 수단인 동시에 회사인 수자의 인수자금을 인수대상회사에 전가시켜 인수자는 기업인수합병과정에서 발생하 는 위험을 전혀 부담하지 않는다는 두 가지 측면 때문이었다. 이에 대해서는 차입매수는 인수자금을 조달하는 하나의 금융기법으로 차입매수 과 정에서 발생하는 위험은 기업활동에 수반되는 통상에 위험에 불과한 것으로 경영자 의 창의적 경영활동의 보장을 위해 형사적 제재를 가하는 것은 바람직하지 않다는 주장이 다수 제기되었다. 그러나 차입매수에 대한 형사제재 핵심은 타인의 자본으로 기업을 인수합병하는 금융기법의 위법성이 아니라, 인수합병 과정에서 그 차입금의 변제를 인수대상회사 로 전가하는 것 자체가 인수대상회사의 자산을 약탈하는 것으로 우리 경제체제에서 용납할 수 없는 위법한 행위인지 여부이다. 이에 대해 군주와 영주의 신임관계를 기초하여 성립된 배임죄를 현대 자본주의 경 제체제 내 경영활동에 적용하는 것은 근대적 발상이며, 그 구성요건의 포괄성으로 경영자에게 명확한 예견가능성을 제시하지 못해 행위규범으로 작동하기 어렵고, 경 제활동의 분야에서 경영진 등의 경영은 다분히 모험적일 수밖에 없는데도 이를 형사 불법으로 처벌하는 것은 타당하지 못하다는 주장도 있다. 그러나 사인 간 거래관계에서 일어나는 배임행위에 대해서는 배임죄를 인정하면서 경영활동에 대해서만 이를 부정하는 것은 평등한 법적용에 반한다는 점에서 타당하 지 않으며, 회사경영에 최소한의 윤리와 가치질서의 존중을 요구한다는 측면에서 배 임죄는 위하력 있는 효율적 수단이며, 배임죄 구성요건을 과도하게 확대적용하지 않 도록 제한하는 기준이 판결을 통해 나름 확립되었다는 점을 고려한다면 차입매수에 대한 배임죄 적용을 부정할 이유는 없다. 판례 또한 배임죄의 성립여부는 차입매수가 이루어지는 과정에서의 행위가 배임죄 의 구성요건에 해당하는지 여부에 따라 개별적으로 판단되어야 한다는 입장을 취하 고 있다. 다만 차입매수의 배임성 판단에 경영진의 임무위배행위나 고의에 대한 구 체적 판단 없이 회사의 손해를 여부를 중심으로 이를 상쇄할 만한 반대급부가 제공 되었는지 여부만을 기준으로 그 가벌성 여부를 판단하고 있는 데 이는 자칫 회사의 손해가 없으면 가벌성이 부정된다고 확대해석 될 수 있는 위험이 있다. 따라서 차입매수에 대한 가벌성은 구체적으로 배임죄의 구성요건 해석과 관련하여 판단하는 것이 바람직하다.

Since the Supreme Court's conviction on collateral type Leveraged Buy-Out in 2010, There has been much debate about criminal sanctions over borrowing. LBO, a financial method of borrowing money from outside, has two aspects. One is to increase the efficiency of the target company's operation, and the other is that the buyer does not bear the risk arising from M&A process because the acquisition fund of the company's acquirer is transferred to the target company. In response, LBO is a simple financial technique that raises acquisition funds, and it is argued that it is not desirable to impose criminal sanctions to ensure management's creative activities because the risks arising in the process are general risks accompanying corporate activities. However, the core of criminal punishment for LBO is not the illegality of financial techniques that acquire and merge companies with other people's capital, but that it cannot be allowed to transfer loan to Target company in the M&A process. On the other hand, it is not reasonable to apply the crime of breach based on the trust relationship between the modern monarch and the lord to today's management activities. In addition, it is difficult to function as an entrepreneur's norm because the constituent requirements of the crime of breach are unclear. And management is bound to be very adventurous, but it is not reasonable to punish it criminally. However, while the crime of breach is applied to individual transactions, it is not equal to deny the crime of breach only for management activities. Breach is an efficient means in that it requires minimum ethics and order in company management. In addition, there is no reason to deny the application of breach of trust to LBO, considering that standards have been established to limit the constitutional requirements for breach of trust. The precedent also takes the position that whether or not LBO is guilty of breach of trust should be judged individually depending on whether the act meets the constituent requirements of breach of trust in the M&A process. However, in the judgment of LBO's breach of trust, the punishment is determined based on whether the company is damaged or not without a specific judgment on the violation of duty of care by management or intention. In other words, breach of trust is judged based on whether profits to offset losses are provided to the target company. There is a risk that this will not be interpreted as a crime without damage to the company. Therefore, it is desirable to judge the punishment for LBO in detail in connection with the constituent requirements of the crime of breach.

This paper examines the amplifying mechanism of systemic risk propagation within a nonlinear framework. We focus on the hidden leverage-induced asset value dynamics in the financial markets, intertwined with balance-sheet components of the banking system. We propose a systemic leverage index by estimating smooth transition regression models based on the intrinsic element of the financial system, off-balance-sheet transaction, and cross-border activities of the Korean commercial banking system. We find strong evidence that the amplification is more pronounced with the cross-sectional homogeneity in managing systemic leverage as a whole. This observation provides the important policy-oriented implication that an individual bank's systemic importance can be gauged by its marginal contribution to system- wide homogeneity.

This study investigates empirical issues that have received little attention in the previous research in the Korean capital market. It is to find any financial determinants on the capital structure for the firms listed in the KOSDAQ (Korea Securities Dealers Automated Quotation). Coupled with one of the hypotheses to test for any financial attributes or characteristics on the capital structure, another test is performed to find any possible discriminating factors by utilizing a robust methodology, which may distinguish between the firms belonging the 'prime section' and the 'venture section' in terms of their financial aspects. Moreover, the null hypothesis that the changing trend or movement of a firm's capital structure with respect to its industry mean (or median) may be random, is also tested for the sample firms listed in the KOSDAQ stock market. For the book-value based debt ratios, size(INSIZE), growth(GROWTH), Market to book value of equity(MVBV), volatility(VOLATILITY), market value of equity (MVE) and section dummy (SECTION) showed their statistically significant effects on the book-value based leverage ratios, respectively. On the other hand, size(INSIZE), growth(GROWTH), market value of equity(MVE), beta(BETA) and section dummy (SECTION) showed their statistically significant effects on the market-value based leverage ratios, respectively. Moreover, this study found an interesting result that a firm belonging to each corresponding industry has a tendency for reversion toward its mean and median leverage ratios over the five-year tested period.

In this paper, I examine the relationship between employee pay and firm leverage using novel data that links worker characteristics and matched firms’ accounting data. Even after controlling for worker-level characteristics, I find a significant negative relationship between employee pay and leverage, a finding that aligns with recent studies showing negative relationships between firms’ average employee pay and leverage. This supports the notion that higher leverage plays a significant role in the renegotiation of senior claims rather than serving as a compensating differential ingredient. The negative effect of leverage on wages is more pronounced among the middle managers, high tenure workers, and non-union member workers. Firms expected to have low surpluses to share with their employees and strong union bargaining power also experience more pronouncedly negative wage-leverage relationships.

The study tests the hypothesis that there are country and industry effects on the capital structure of large corporations headquartered in the United States and Korea. So far, very few studies have focused systematically on these issues between developed and less developed countries. For book value based leverage ratios, Korean firms had higher debt ratios than their U.S. counterparts, while there were no or few significant country effects in the construction and the chemical industries at market value based leverage ratios. Moreover, there were statistically significant industry differences on the leverage ratios using both book value and market value measures across the two countries.

재무분야에서 기업의 자본구조를 설명하는 이론으로는 절충이론(trade-off theory)와 자본조달 순위이 론(pecking order theory)이 대표적이다. 하지만 미국 기업을 대상으로 시행된 Chen and Zhao(2007) 및 Chang and Dasgupta(2009)의 실증분석 연구에 따르면, 기업이 목표자본구조를 설정하는지 여부와 상관 없이 부채비율은 기계적으로 평균회귀하는 특징이 있다고 밝힘으로써 기존의 절충이론을 지지하던 실증 연구들에 대해 근본적인 재검토가 필요함이 제기되었다. 본 연구에서는 이와 같은 부채비율의 기계적 평 균회귀 특성이 한국에서도 나타나는지 분석하였으며, 그 결과 미국 기업의 자료에서 처럼 한국 기업의 자료에서도 부채비율의 기계적 평균회귀 현상이 있음을 확인하였다. 특히, 목표자본구조를 설정하지 않 은 기업을 상정하여 무작위 자본조달(random financing) 시뮬레이션 실험을 한 경우에도 부채비율이 평 균으로 회귀하는 듯 보이는 현상(즉, 기계적 평균 회귀)가 나타남을 확인하였다. 본 논문의 실증분석은 한국거래소 및 코스닥에 상장된 비금융기업을 대상으로 하였으며, 주가 및 회계 정보는 FnGuide의 Data Guide 데이터베이스에서 채집하였다. 자료 기간은 2000년부터 2015년까지 총 16년이며, 물가상승률 및 산업군 효과가 나타나지 않도록 통제하고, 자본잠식 기업은 분석에서 제외하였 다. 추가적으로, 최소 5년동안의 연속적인 주가 및 회계정보 자료가 확보되는 기업만을 분석 대상으로 하였다. 이는 무작위 추출 실험에서 부채비율의 충분한 시계열 값이 생성될 수 있도록 하기 위함이다. 이러한 자료 정제작업 후 본 연구에서는 총 1,689개 기업의 20,102개의 기업-연도 관찰치를 이용할 수 있 었다. 실증분석에서는 전술한 한국기업들의 패널자료를 기반으로 각기 다른 자본조달 방식을 가정하여 세 가지 다른 부채비율의 시뮬레이션을 시행하였다. 첫 번째 시뮬레이션에서는 각 기업에서 실제 자본부족 (또는 잉여)가 나타날 때 50%의 확률로 부채발행 또는 주식발행 (잉여가 나타날 때는 부채상환 또는 주식재매입)을 하도록 했다. 두 번째 시뮬레이션에서는 50%의 확률 대신에, 실제 각 기업들의 부채 및 주식 발행의 비율을 이용하여 자본조달 시뮬레이션을 시행하였다. 세 번째 시뮬레이션에서는 발생 가능 한 내생성(endogeneity) 효과를 제거하기 위해 실제 자본부족(또는 잉여)가 발생하는 시점이 아닌 무작 위로 추출된 임의의 시점에서 자본조달 결정이 이뤄지도록 하였으며, 이 때 자본조달은 첫 번 시뮬레이 션 경우에서 처럼 50%의 확률로 부채발행 및 주식 발행(잉여의 경우에는, 50%의 확률로 부채상환 도는 주식재매입)이 이뤄지도록 했다. 우선, 실제 기업들의 부채비율을 과거 부채비율 및 기업 고유변수들에 회귀분석한 결과 회귀계수들의 부호는, 절충이론을 지지하는 기존 연구에서처럼, 과거 부채비율 및 기업규모는 양의 값을, 그리고 수익성 및 시장가 대 장부가 비율은 음의 값을 보였다. 또한 추정된 회귀계수들은 통계적으로도 유의하여 한 국 기업들의 부채비율은 독립변수에 사용된 기업 고유변수들과 연관되어 있음을 확인할 수 있었다. 하지 만 이와 같은 회귀분석의 결과는 목표 자본구조를 설정하지 않고 시행된 시뮬레이션에서도 질적으로 같 은 양상으로 나타났다. 이는 한국 기업들의 부채비율에서도 기계적으로 평균회귀하는 특성이 나타남을 의미한다. 이와 같은 본 연구에서의 결과는 한국에서 절충이론이 성립하지 않음을 말하는 것은 아니다. 다만, 기존의 절충이론을 지지하는 연구들에서 사용한 분석방법(즉, 과거 부채비율의 회귀계수 유의성 여부로 절충이론 성립 여부를 판단하던 방법)은 기계적 평균회의의 특성으로 인해 적절하지 않을 수 있 음을 밝힌 것에 본 논문의 의의가 있다고 하겠다.

The traditional view that firms have target leverage ratios has been challenged given that a firm’s leverage ratio could mechanically mean revert whether or not a target leverage level actually exists. Evidence of leverage ratio mechanical mean reversion for U.S. firms has been well documented by Chang and Dasgupta (2009). A replication of the analysis using data on South Korean firms highlight the potential that the mechanical mean reversion of the leverage ratio also exists for South Korean firms, challenging the interpretation of prior research that infers target behavior of firms based on tests using target adjustment models. Although one might be tempted to deduce that South Korean firms follow target behavior based on the fact that the mean reversion parameter obtained from the regression analysis yields statistically significant parameter values, our analysis shows that similar statistically significant values for the mean reversion parameter can also be obtained when simulation samples with non-target random financing is used. The stock and financial accounting data for South Korean firms was obtained from FnGuide’s Data Guide database for all firms listed on the Korea Composite Stock Price Index (KOSPI) and the Korean Securities Dealers Automated Quotations (KOSDAQ) over a period of 16 years starting from 2000 to 2015. All values were converted into 2010 constant values in order to eliminate the effects of inflation with industry effects being controlled for within the regression analysis using the KSIC (Korea Standard Industrial Classification) codes at the twenty-one single alphabet level. Following the exclusion of non- financial firms, as well as firms with missing book value of assets, an additional requirement that firms have at least five years of continuous and non-missing accounting and stock price information for inclusion was imposed. This particular requirement was imposed to ensure that the leverage ratios in the simulation samples are given an acceptable length of time to evolve differently from the actual leverage ratio when random financing is assumed. Finally, firm-year observations with negative or greater than one book leverage or that have incomplete data were dropped to produce a final unbalanced panel data set that has 20,102 firm-year observations for 1,689 firms. Using the obtained panel data, three different simulation samples were generated by assuming different financing behavior and using data from the actual sample. The first simulation sample, denoted by S(p = 0.5, actual deficit), assumes an equal probability of debt issuance and repurchase, that is p is assumed to be 0.50. The second simulation sample obtains p using the actual financing deficit and newly retained earnings in the actual data and is denoted by S(p=empirical frequency, actual deficit). The third simulation sample, denoted by S(p=0.5, random deficit), was generated to remove any potential effects of endogeneity in the actual financing deficit as endogeneity could cause the simulated sample to produce results that are consistent with target behavior. Panel regression of these simulation samples, along with the actual sample, was conducted using a modified version of the leverage model that has leverage ratio as the dependent variable and the lagged leverage ratio as well as various firm-specific variables as the independent variables. The parameter coefficient estimates for the simulation samples were obtained by taking the average of 500 replications of the particular simulation. The signs for the coefficients on the lagged leverage ratio and firm-specific variables obtained from the leverage regressions were in the expected directions with respect to the leverage ratio. The significance of the coefficients can be viewed as verification that the leverage ratio for South Korean firms is related to the firm-specific variables selected for the leverage regression analysis. Similarly, the regressions of the simulation samples, also produced statistically significant coefficients for the firm-specific variables that have similar signs as those obtained for the actual sample. The significance of the firm-specific variable coefficients for the simulation samples highlights the fact that the chosen firm characteristics can impact the leverage ratio even when no target behavior is assumed and provides evidence that mechanical mean reversion of leverage ratios is also exhibited by South Korean firms.

One of the notable phenomena during China’s spectacular reappearance in the international community during the period of its rapid growth is that the country dramatically built close ties with countries in the African region. After introducing the reform and opening-up policy, the so-called “world’s factory” started distributing its products worldwide, eventually strengthening its influence in terms of trade in Africa just as it did in other parts of the world. However, the said changes have been made apace in a relatively short period of time, and when comprehensively reviewing some other economic indicators (e.g. foreign direct investment, foreign aid, government-guaranteed financing etc.), phenomena are found that cannot be explained without excluding China’s national political and diplomatic goals. Considering the reality of South Korea, where the economy is almost absolutely based on the contribution from the trade sector, what can South Korea learn from China’s expansion of its strategic approach to Africa? South Korea’s approach to Africa has been characterized by a lack of clear diplomatic strategies and economic cooperation. The absence of mid- to long-term strategies and the failure to properly assess the African continent’s potential mean that South Korea will be in a relatively inferior position in future competition with other countries. A more serious problem than this is the absence of diplomatic strategies. Despite the continent’s geopolitical importance for and geographical distance from South Korea, it is undoubtedly a problem to be insufficiently aware of the importance of the vast region with a population of 1.3 billion people. South Korea has only looked at Africa as an object of aid and support, but has failed to recognize it as an object of economic/diplomatic cooperation. From now on, it is necessary to change perception and strategically utilize assistance to Africa as a means to lay the cornerstone for economic cooperation.

Research has acknowledged Mobile-assisted language learning (MALL) as one efficacious method for leveraging language proficiency across skills and components, leaving the investigation on language learners’ motivation and emotional intelligence of peripheral focus, albeit being essential drives for academic success. This study seeks to fill the gaping void by investigating the impact of team-based mobile learning (TBML) as an instructional framework to leverage EFL learners’ online learning engagement (OLE), trait emotional intelligence (TEI), and EFL learning motivation. This instructional framework involves a mobile instant messenger (MIM), Telegram, to support collaborative learning both within and beyond class hours. Employing a quasi-experimental approach, the study involved 475 undergraduate students at an Indonesian state university across majors, including nursing, management, science education, and non-formal education, with ages ranging from 18 to 22 years. The findings corroborate significant increment in the abovementioned dimensions resulting from TBML, as opposed to the unworthy increase associated with computer-based LMS. Moderate positive correlations also exist among three pertinent variables. Implications suggest how TBML accords English learners with the authentic learning community armed with myriads discourse resources to empower their multidimensional engagement in meaningful literacy practices.

This paper examines the mechanism of systemic risk propagation through system- wide latent leverage channel. We focus on the hidden leverage-induced asset value dynamics in the financial markets, intertwined with balance-sheet components of the banking system. We propose a latent leverage index by estimating smooth transition regression models based on the intrinsic element of the financial system, off-balance-sheet transaction, and cross-border activities of the Korean commercial banking system. We find that a shock to the latent leverage index impacts the macroeconomy with the lag of three quarters. This finding provides an important policy-oriented implication for macroprudential supervision of banking system.

Recent structural models have considered new factors to enhance their exploratory power over credit spreads. According to the empirical studies on capital structure, one of factors is to consider the stationary leverage ratio of the firm. On the other hand, some studies show that jump risks allow us to obtain more realistic credit spreads. This paper develops a simple structural model to incorporate both jump risks and stationary leverage ratio. Compared to the existing jump-diffusion structural model, this model generates a larger credit spread especially for investment-grade bonds, which is more consistent with data. This paper also shows that the jump size may be a significant factor which determines credit spreads for firms.

This study aims to answer the question, “How could a small and weak country like North Korea achieve its diplomatic goal in its relations with China, a powerful country?” Amid the US-China competition, Pyongyang carried through its diplomatic goal of obtaining continued support from Beijing while possessing nuclear weapons. It was different from the usual circumstance where world powers attain their demands from small countries. My argument in this study is that the geopolitical discourse that emerged during China’s hegemonic competition brought about the elevated geopolitical value of North Korea for Beijing, which eventually led to Pyongyang’s strengthened diplomatic leverage. The geopolitical value of North Korea is not fixed but varies depending on the diplomatic discourses formed in the relations between powerful countries. Due to the US-China strategic competition, Beijing recognized North Korea’s geopolitical value, incurring the escalated diplomatic leverage of Pyongyang.

Equity method (EM) reporting of off-balance sheet investments offers managers discretion to manipulate earnings and keep the debt of their investments off their own balance sheet. Consistent with these concerns, our results suggest that the use of EM reporting negatively affects the quality of earnings information. The evidence also suggests that managers of U.S. firms take advantage of the discretion provided by the EM to conceal debt. These results are especially relevant when the investment is a joint venture. The analysis shows that financial markets incorporate into prices any expected loss of informativeness derived from the reporting of off-balance investments.

본 논평은 ‘SNS를 통한 영어 쓰기 활동에 초급자의 참여와 교육적 성과를 유도 하기 위한 학습 전략’에 대한 학술논문을 비평한 글이다. 해당 학술논문에서 교사 는 초급 학생들의 글쓰기 참여도를 향상시키기 위해 수업 모형을 만들어 제시하였 다. 교사는 다양한 시각적 자료를 제시해 학생들의 배경지식 및 영어쓰기에 필요한 전략을 학습시키고 카카오톡을 이용한 글쓰기 연습을 통해 그에 대한 인식 및 성 과 활동을 분석하였으며, 분석 도구로 설문조사 후 리커트 척도를 이용하였다. 그 러나 논문의 이론적 배경에 대한 설명이 모호하여 교사가 제시하는 전략을 뒷받침 하고 학습활동에 대한 결과를 분석하기에 부족한 점이 있다. 따라서 본 논평에서는 이론적 배경의 미흡한 부분을 밝히고, 해당 연구에 적합한 이론적 틀을 제시할 것 이다. 적절한 분석 도구로서 비고츠키(Vygostky)의 ‘활동이론(Activity Theory)’ 을 제안한다. ‘활동이론’은 학습활동을 주제로 하는 모든 연구의 유용한 분석 도구 로, 본 논평에서는 ‘활동이론’의 ‘활동체계(Activity System)’를 적용한 예시를 보 여줌으로써 해당 논문의 개선 방향을 제시할 것이다.

The purpose of this paper is twofold; first, to review the research paper entitled “A Strategy for SNS-based Writing Practice to Leverage Less Proficient Students’ Participation and Pedagogical Performance” written by Lee Kwang-Soon and Kim Bong-Gyu in 2014 and second, to suggest an appropriate theoretical framework for the research paper. In this paper, I start with reviewing the research by presenting the implications and limitations. The second part criticizes the theoretical background of the research and proposes to use Activity Theory as a suitable framework. With the application of the activity system to the research, the current critical review shows how useful Activity Theory in explaining the students’ mobile activities and analyzing the research findings.