| Summary: | 碩士 === 國立中興大學 === 高階經理人碩士在職專班 === 99 === This study aims to investigate determinants of capital structure in 27 Taiwan’s plastic companies. The quarterly data of financial statements of the companies come from Taiwan Economic Journal (TEJ) Database, which runs from year 2000 to 2010. By using panel data regression, we find the results as follows. First, the financial tsunami has a significant impact on the capital structure of the Taiwan’s plastic industry, which indicates that the long-term debt ratio declines significantly after the financial tsunami. Second, in the industry level, firm size, assets collateral value and liquidity are positively related to and the dividend payout ratio is negatively related to long-term debt ratio, thus supporting the trade-off theory. Also, the profitability is negatively related to long-term debt ratio, but positively for the sales growth. These results are in line with the pecking order theory. Finally, the management’s shareholding ratio is negatively related to long-term debt ratio. However, other factors such as tax shields, non-debt tax shields, uniqueness and earning volatility do not significantly influence the capital structure of the Taiwan’s plastic industry in this study. Both pecking order theory and the trade-off theory are supported by the signs of the determinants; nevertheless the former is properly better in this study.
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