An Empirical Study of the Relationship Between Influencing Factors of Capital Structure and Firm Value for Publicly Listed Companies in Taiwan

• Main Authors: Ming-Hui Cheng, 鄭明輝
• Other Authors: Shuang-Shii Juang
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/11593600686451288513

碩士 === 國立成功大學 === 企業管理學系碩博士班 === 92 === 　　The main purpose of this study is to explore (1) the influencing factors on the capital structure of Taiwan listed companies. (2) the relatedness between capital structure and firm value. The period of this study covers ten years from 1993 to 2002, and the samples include 255 companies and 18 Industries of Taiwan listed companies. There are 19 factors chosen as the explanatory variables , including corporate size, assets mortgage debt，non-debt tax shields, uniqueness, operating risk, profitability, operating cash flow, sales growth, total assets growth, cash dividend policy, long investment, fixed assets investment, china investment, the manager ownership, the director ownership, the outside ownership, capital market , foreign exchange market, money market and Industry classification . The proxy variables of capital structure are short-term debt ratio, long-term debt ratio, total debt ratio. The proxy variables of firm value are Tobin’s Q and Market Value Added. The empirical results are stated as belows: 1. Corporate size、assets mortgage debt、fixed assets investment、long investment、china investment、the director ownership and foreign exchange market have positive correlation with the total debt ratio.；uniqueness 、profitability、operating cash flow、the outside ownership and money market have negative correlation with total debt ratio. 2. Corporate size、assets mortgage debt、fixed assets investment、long investment、capital market and foreign exchange market have positive correlation with long-term debt ratio.；profitability、sales growth、total assets growth and money market have negative correlation with long-term debt ratio. 3. Assets mortgage debt、fixed assets investment、long investment、sales growth、total assets growth and the director ownership have positive correlation with short-term debt ratio.；uniqueness profitability、operating cash flow、the outside ownership and foreign exchange market have negative correlation with short-term debt ratio. 4. According to the result of stepwise regression, corporate size and Assets mortgage have better explanatory power. 5. According to the result of ANOVA analysis, industries classification and capital market have a significant variance on the corporate capital structure. 6. According to the result of Polynomial Regression, the Capital structure has negative correlation with firm value on all samples. Capital structure is non-linear correlation with firm value can’t be applied on Taiwan publicly listed companies. But some industries, there are Food ,Textiles, Electric machinery and Appliance cable, have a toward up parabola；the others, Paper pulp, Rubber, and Transportation, have a toward down parabola. 7. According to the result of ANOVA analysis, industries classification have a significant variance about the firm value.