earticle

영어

The purpose of study is to investigate the relationship between the cost of debt and the financial leverage of hotel companies. It selected 32 out of 45 five star hotels in Korea and presented the following research results. First, while cost of debt are low at 3.09%. Howerver the average DFL was 1.40 and the maximum is 37.5. As a result, some hotel companies have high financial volatility due to the cost of other capital. Second, empirical analysis shows that DFL, debt ratio, return on assets, and the security solvency have a common influence. In other words, it is influenced by measurement variables and affects the future cost of debt. The results showed that the present financial leverage, which is measured by the risk of the company affects the procurement of cost of debt in the future's. Therefore, managers and creditors need to be aware that risk premiums can be reflected by affecting the procurement of cost of debt in the future according to the current financial risk.