This paper reveals the characteristics of companies that participated in the
ICT support project in Gyeongnam and analyzes the effect on corporate
growth. Financial data of 231 companies that participated in the ICT corporate
support project, along wi...
This paper reveals the characteristics of companies that participated in the
ICT support project in Gyeongnam and analyzes the effect on corporate
growth. Financial data of 231 companies that participated in the ICT corporate
support project, along with 231 matching companies, from 2020 to 2022 are
analyzed. The main analysis results are as follows:
First, support projects for ICT companies have the effect of improving the
growth and profitability of participating companies. Second, profitability, debt
ratio, total asset turnover ratio, and net working capital ratio have a
significant positive effect on participation in corporate support projects. Firm
size and age have a negative effect on participation in corporate support
projects. Third, the ICT corporate support project has a significant positive
effect on the asset growth rate of participating companies, but the scale of
support doesn’t have a significant effect on the asset growth rate. Fourth, the
impact of detailed ICT corporate support projects on the company's asset
growth rate varies by project type. Finally, the ICT corporate support project
appears to have a significant impact on corporate growth, measured by the
growth rate of sales. This confirms that the main analysis results of this
study are robust, even when different measures of a corporate growth are
used.