| Summary: | 碩士 === 東吳大學 === 企業管理學系 === 98 === Companies need capital to run their business, to do investments and to grow larger.These actions are combined with high costs where both internal and external financing mightbe appropriate. Capital structure is the relationship between debt and equity.
We forcus the samples to the Taiwan Stock Market electronic industrial corporate sector.Our data periods are 2004 to 2008, and include observations for 292 unique firms. The goal ofthis empirical analysis is to explore whether significant patterns between of financial variables
and corporate governance with firms' debt to equity ratios.In analysis of financial variables, our research evidence was found that the profitability
were negatively correlated with the capital structure, and 1% significant level; growth waspositively correlated with the capital structure, and 1% significant level; operational risk and capital structure, a negative correlation , and 10% significant level, other variables are not significant.
The corporate governance variables and capital structure of the relationship is not significant, we infer that in Taiwan electronics industry, investors are highly concerned about company’s operating, and the government and regulatory agencies strictly regulate, transparent public information, there is the situation of information asymmetry is relatively
small. Ownership structure on capital structure does not significantly affect the explanatory power.
|
|---|
