Do Firms Rebalance Their Capital Structure？

• Main Authors: Huang,Wen-Po, 黃文柏
• Other Authors: Yeh,Yin-Hua
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/72045958874309780457

碩士 === 輔仁大學 === 金融研究所 === 95 === Correia(2005), Leary and Roberts(2005) provided some theory that target capital structure did exist. But in practical application, issues about adjustments to the target capital structure are still widely discussed. This research focuses on : (1) Integrate critical factors affecting the capital structure to build target debt ratio model; (2) Analyze listed companies in Taiwan to see if target debt ratio or industry debt ratio is preferred; (3) Compare and analyze how different financing choices would affect capital structure; (4) Demonstrate how the trend of listed companies in Taiwan is shifted. Research period consists of 4 years, ranging from 2002 to 2005, targeting 634 listed companies with 2,536 sample points. This research designs a tow stage financing decision model. For stage one, we refer important factors from former researches, e.g. company sizes, profitabilities, etc., to regress sample company debt ratios on these factors using OLS to estimate optimal debt ratio. For stage two, we use Logistic model to see if financing decisions were toward target debt ratio or industry average. The results show that factors like R&D expenses, asset composition, ROA, ect., have significant influence on debt ratio decision for each 4 years. Also, for stage 2, the Logistic model shows that when actual debt ratios are higher than industry average, companies tend to lower financing leverage and vice versa.