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Financial Performance of Healthcare Firms: The Case of Korea

Year 2017, Volume: 7 Issue: 3, 721 - 728, 01.09.2017

Abstract

The purpose of this study is to analyze the financial performance and financial characteristics of healthcare companies. Healthcare firms are statistically significantly higher than non-healthcare companies in terms of several ratios such as research and development (R and D) cost ratio, selling general and administrative expenses ratio, Tobin’s Q, return on equity, return on sales, total capital growth and sales growth. The cost of sales ratio is statistically lower than that of non-healthcare companies, which implies that healthcare companies spend much R and D costs for technological innovation, and as a result, they increase corporate value by lowering the cost of sales ratio and improving profitability. The profitability, growth, and leverage of healthcare companies were found to influence more on corporate value for the healthcare firms than those of non-healthcare companies. This result can be interpreted as reflecting the expectation that future cash flow will be more influenced by profitability, growth, and leverage of healthcare companies.

Year 2017, Volume: 7 Issue: 3, 721 - 728, 01.09.2017

Abstract

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Details

Other ID JA76GA72SB
Journal Section Research Article
Authors

Jun Woo Park This is me

Seyoung Guahk This is me

Publication Date September 1, 2017
Published in Issue Year 2017 Volume: 7 Issue: 3

Cite

APA Park, J. W., & Guahk, S. (2017). Financial Performance of Healthcare Firms: The Case of Korea. International Journal of Economics and Financial Issues, 7(3), 721-728.
AMA Park JW, Guahk S. Financial Performance of Healthcare Firms: The Case of Korea. IJEFI. September 2017;7(3):721-728.
Chicago Park, Jun Woo, and Seyoung Guahk. “Financial Performance of Healthcare Firms: The Case of Korea”. International Journal of Economics and Financial Issues 7, no. 3 (September 2017): 721-28.
EndNote Park JW, Guahk S (September 1, 2017) Financial Performance of Healthcare Firms: The Case of Korea. International Journal of Economics and Financial Issues 7 3 721–728.
IEEE J. W. Park and S. Guahk, “Financial Performance of Healthcare Firms: The Case of Korea”, IJEFI, vol. 7, no. 3, pp. 721–728, 2017.
ISNAD Park, Jun Woo - Guahk, Seyoung. “Financial Performance of Healthcare Firms: The Case of Korea”. International Journal of Economics and Financial Issues 7/3 (September 2017), 721-728.
JAMA Park JW, Guahk S. Financial Performance of Healthcare Firms: The Case of Korea. IJEFI. 2017;7:721–728.
MLA Park, Jun Woo and Seyoung Guahk. “Financial Performance of Healthcare Firms: The Case of Korea”. International Journal of Economics and Financial Issues, vol. 7, no. 3, 2017, pp. 721-8.
Vancouver Park JW, Guahk S. Financial Performance of Healthcare Firms: The Case of Korea. IJEFI. 2017;7(3):721-8.