The Determinants of the Capital Structure : An Empirical Study of Manufacturing Industry in Taiwan

• Main Authors: Chang, Li-Yann, 張麗燕
• Other Authors: Ho, Hsien-Chan
• Format: Others
• Language: zh-TW
• Published: 1994
• Online Access: http://ndltd.ncl.edu.tw/handle/58608545483822184153

碩士 === 文化大學 === 國際企業管理研究所 === 82 === 　　The main purpose of this research is to probe the determinants of capital strcture in Taiwan manufacturing industry and whether the capital structure among industries differs significantly in different period stock market prosperity and depression. 　　The samples of this research include 88 listed companies of manufacturing industry in Taiwan Stock Exchange from 1987 to 1992. The sampling period was divided into three subperiods, whole period (1987-1992), prosperity period (1987-1989) and depression period (1990-1992). We use regression models to examine the determinants of the capital structure. 　　Based on the empirical results, we reached our conclusions as follows: 　　1.The main determinants of the capital structure are profitability, company scale and non-debt tax shields, in which profitability and company scale have better explanatory power to the company''s debt ratio. 　　2.We foud positive correlation between company scale and debt ratio. 　　3.The negative correlation was found between profitability and debt ratio. The more profitable the company is, the less the company''s debt ratio is. 　　4.The significant correlation was found between non-debt tax shields and debt ratio. 　　5.Whether the dividend payout ratio and growth rate have and impact on capital structure depends on the stock market prosperity and depression. In prosperity period, the negative correlation exists between dividend payout ratio and debt ratio. 　　6.The company''s uniqueness, operating risk and the value of mortgage have no significant impact on the debt ratio. 　　7.In different stock market cycle, industry classification has different impact on capital structure.