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Determinants of Debt Ratio in Public Institutions

  • Journal of The Korea Society of Computer and Information
  • Abbr : JKSCI
  • 2020, 25(12), pp.333-339
  • DOI : 10.9708/jksci.2020.25.12.333
  • Publisher : The Korean Society Of Computer And Information
  • Research Area : Engineering > Computer Science
  • Received : November 30, 2020
  • Accepted : December 15, 2020
  • Published : December 31, 2020

JANG JI KYUNG 1

1동서대학교

Accredited

ABSTRACT

This study investigated the determinants of debt ratio in public institutions. For this purpose, we analyzed the impact of external and internal factors on debt ratio. In this paper, external factors included government grants and deficits compensation, and internal factors included inefficient management. The results of this study are as follows. First, we find that there is a significant positive relation between government grants and debt ratio. This result means that the higher government grants, the higher debt ratio. Second, we also find that there is a significant positive relation between deficits compensation and debt ratio. This implies that the institutions subject to deficits compensation have higher debt ratio. Third, we can not find a significant relation between welfare benefit and debt ratio. This finding implies that inefficient management is not a factor on debt ratio of public institutions. The results documented in this paper provide important policy implications for investigating the determinants of debt ration in public institutions.

Citation status

* References for papers published after 2023 are currently being built.

This paper was written with support from the National Research Foundation of Korea.