| Summary: | 博士 === 國立交通大學 === 科技管理研究所 === 100 === Prior empirical studies on capital structure have focused primarily on whether a target capital structure exists. However, relevant empirical studies argued that the determinants are changeable with two or more competing theories. To find out alternative explanations, this study utilizes the dynamic capital structure model under the business life-cycle based assumption and tests hypothesis about the changes in firm-specific determinants of Taiwanese listed firms. The partial adjustment model is first applied for each fitted life-cycle stage. The results indicate that capital structure varies dynamically with the transitions between stages of life-cycle stages, and the effects of the determinants on leverage also differ as a function of life-cycle stage and industry type the firm represents. Besides, adjusting speed and volatility range of capital structure are also examined for life-cycle stage differences in industries. The estimated results for volatility range indicate that firms adjust capital structure by considering accumulated information, and changes of firm-specific attributes with development and policy environment transitions are also concerned. For these reasons, this study finally suggests that firms should measure the implicit operation risks from incentives and adopt proper financing strategies in different life-cycle stages to achieve the goal of maxmizing firm value.
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