A study on the influence of changes in credit rating on capital structure

• Main Authors: Chia-Hua, Lin, 林佳樺
• Other Authors: Kuei-Yen, Wu
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/73227607329532895378

碩士 === 輔仁大學 === 管理學研究所 === 98 === 　　The purpose of this study is to examine the effects of the changes of credit ratings on capital structure. The research samples are from domestic TSE listed firms, and the research period spans from 2000 to 2008. The changes of firms’ credit ratings are based on the ratings of TCRI. The aim of the study is to examine whether the changes of credit ratings affect firm’s capital structure decision and depart from the static trade-off theory. 　　Two major conclusions are induced: first, firms with better credit ratings issue more debt relative to equity, and firms with worse credit ratings issue less debt relative to equity. Second, adjustment in firms’ capital structure decisions is supported by the static trade-off theory. After considering firms’ credit ratings, the changes of credit ratings result in the changes of the firm’s long term debt, and therefore depart from the static trade-off theory.