The Internal Growth Rate and Sustainable Growth Rate of Korean Hotel Company: Focused on Babcock Model and Higgins Model

Kitae Kim

We analyze the internal growth rate and sustainable growth rate in Korean Hotel Corporation Through. Building on Babcock(1970) model and Higgins(1977) model, we use financial ratio data from 2000 to 2005 and employ paired-samples T test, Pearson correlation test and multi-variate regressions. As a result, we can get a negative sustainable growth rate based on Babcock model. The main factor of a negative sustainable growth rate is probably the low margin of profit on sales. And the main factor of the sustainable growth rate in Higgins model is unlikely to be a debt to equity ratio but a margin of profit on sales, a turnover ratio of sales to total capital and dividend payout ratio.핵심용어(Key words):호텔기업(Hotel corporation), 내부성장률(Internal growth rate),지속가능성장률(Sustainable growth rate), Babcock 모형(Babcock model),Higgins 모형(Higgins model)

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* 2022년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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