Liquidity and leverage: The Role of Bills Company, Securities Company and Investment Banks

• Main Authors: Chi-Yang Chen, 陳奇揚
• Other Authors: Chih-Liang Liu
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/69666926276012824609

碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 101 === Using the publicly listed bills companies, securities companies and Investment Banks (BSIB) as sample, this study answer the research question of whether the BSIBs engage in leveraging management by exploring the relationship between their liquidity and leverage. In addition, the paper extends the leveraging management by understanding whether it is because of satisfying external financing needs. The findings are the following. Firstly, there is a positive relationship between liquidity and leverage, consistent with the past researches. It suggests that the BSIBs in Taiwan adopt leveraging managements similar to the one by foreign investment banks. Secondly, such leveraging management is due to the influences of authority regulations on capital requirement.