| Summary: | 碩士 === 國立成功大學 === 國際企業研究所碩博士班 === 97 === The development of the international financial markets followed the trend to globalization and liberalization in recent years. In order to maintain the enterprise’s permanent development and competition, more and more new financing channels were launching. In Taiwan, the government concluded the “Company Law” and “Securities Exchange Act” to amend the relevant provisions in October 2001 and January 2002. Private placement was then officially introduced. It was a new financing channel in Taiwan.
This study discussed the firms’ characteristics influencing the choice of the enterprise’s financing methods. Financing methods were divided into two categories respectively: private placement and public offering. For the issue discussed, the study addressed two hypotheses and five variables, and further tested the hypotheses through logistic regression model.
1. Information Asymmetry:
For the information asymmetry, the study addressed three variables respectively: firm size, firm age and the ratio of liabilities respectively. The results showed that they were significantly negative correlation between the firm size and the private placement. Besides, it showed that the information asymmetries were more severe when the firm size is smaller. And the firms would take private placement easily. However, the empirical results reported that firm age was not a determinant of affecting financing methods. For the ratio of liabilities, there existed significantly positive correlation between the ratio of liabilities and the private placement. It represented that the firm would take private placement in financing easily when the ratio of liabilities were higher.
2. Agency Problem:
For the agency problem, the study addressed two variables respectively: the proportion of the insiders holding shares and the free cash flow. The results showed that they were significantly negative correlation between the proportion of the insiders holding shares and the private placement. On the other words, the enterprises would take the private placement easily when the proportion of the insiders holding shares was lower. There were positive correlation between the free cash flow and the private placement. However, it was conflicting with the expected hypothesis. Therefore, firms did not rely on the private placement to increase the monitoring opportunities in solving the agency problem of free cash flow.
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