How and When Do Firms Adjust Their Capital Structures toward Targets?- Manager Debt Tendency

• Main Authors: Che-Wei Lin, 林哲瑋
• Other Authors: Ma-Ju Wang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/26569189925853977214

碩士 === 國立高雄第一科技大學 === 財務管理所 === 98 === This study explores the existence of target capital structure. First, the study used the traditional target capital structure validation method. This method is used financing behavior of managers whether having convergence characteristics toward target capital structure,to obtain the support evidence of the existence of target capital structure. But we can obtain the support evidence of the existence of target capital structure. So this study design the new validation method, the method is to use ordinary least squares estimated target debt curve and target debt curve having “similar parallel” relations, to obtain supporting the evidence of the existence of target capital structure. We found that ordinary least squares estimated target debt curve and target debt curve having “similar parallel” relations, we obtained to support the evidence of existence of target capital structure. “Debt tendency coefficient” comparable to relative position of a manager''s target debt ratio and population mean of target debt ratio. In the verification of similar parallel relations, we found that “debt tendency coefficient” is a stable "quasi-constant." So we propose “debt preference stability hypothesis” to explain this phenomenon. “Debt preference stability hypothesis” is regardless of objective conditions have changed, relative position of a manager’s target debt ratio and population mean of target debt ratio. is quite stable. That is, high (low) debt tendency manger , no matter how objective conditions change in the company, the managers set target debt levels are high (low) on average a lot.. After we ordered past scholars’ capital structure theory and inference, we propose “adjustment energy theory” and verify that it is to meet the financing behavior of managers. So-called “adjustment energy theory” is, if there is adverse selection costs, adjustment speed with the forward adjustment energy is bigger than adjustment speed with the reverse adjustment energy, adjustment speed with the enough forward adjustment energy is bigger than adjustment speed with the not enough forward adjustment energy. Empirical findings, “adjustment energy theory” to meet the financing behavior of manager.