| Summary: | 碩士 === 國立交通大學 === 財務金融研究所 === 98 === This paper investigates the impact of de-capitalization on firm value for a large sample of U.S. listed firms over 2003–2007. This paper also uses the variables of financing constraints and growth opportunities to examine the relationship. The key conclusion is that we find firms make de-capitalization has a negative impact on firm value when firm made de-capitalization. Further, firms make up losses by de-capitalization has a negative impact on firm value when firm made de-capitalization. The results are also find that firm value are positively affected by cash ratio and sales growth rate , negatively affected by the growth of total assets when firm made de-capitalization. Further, our analysis provide evidence that firm value after firm made de-capitalization are positive affected by firms continue to make de-capitalization after de-capitalization and firms SEO after de-capitalization in the long-term. The result that we also find the ratio of cash flow to assets has a positive impact and the ratio of net working capital to assets has a negative impact on firm value after firm made de-capitalization in the year whatever in the long-term or short-term. Furthermore, our analysis suggests that a significant positive relationship between growth opportunities and firm value in the long-term after firm made de-capitalization in the year.
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