Abstract

This study analyzed how the value－added intellectual coefficient and its components, human capital efficiency, structural capital efficiency, and capital employed efficiency, affect cost behavior and credit risk for unlisted companies. The empirical analysis was verified through a discrete－time logit model that divides the extended model and dependent variables of Anderson et al.(2013) model into healthy and insolvent firms. In addition, additional analysis was conducted by dividing the types of enterprises (unlisted large enterprises, audit small and medium enterprises, non－audit small and medium enterprises) and industrial groups (manufacturing, service, construction, distribution, etc.). The results of the study are as follows. First, the value－added intellectual coefficient was found to alleviate the downward rigidity of cost. In particular, structural capital efficiency and capital employed efficiency reinforced the downward rigidity of cost, but human capital efficiency was found to be a major factor in alleviating the downward rigidity. Second, it was found that the value－added intellectual coefficient and the three factors have discriminating power for the credit risk of unlisted companies. However, it turns out that components other than capital employed efficiency increase credit risk. This study has the following contributions. First, it is the first study in Korea to analyze the relationship between the value－added intellectual coefficient and cost behavior. Second, by proving that the value－added intellectual coefficient has an explanatory power for credit risk, it presents new implications for credit evaluation and value analysis of unlisted companies.

Keywords

• Value Added Intellectual Coefficient
• VAIC
• Asymmetric Cost Behavior
• Credit Risk
• Unlisted Company

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