Non-linear Analysis of the Impact between Capital Structure and Firm Value

• Main Authors: Pin-Mao Chen, 陳品懋
• Other Authors: 聶建中
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/07128239374811821235

碩士 === 淡江大學 === 財務金融學系碩士班 === 103 === The purpose of this study is to investigate the effect of debt ratio on the electronic firm value, which are public listed in United State and Taiwan, by using panel smooth transition regression model which introduced by Gonzalez, Terasvirta and van Dijk (2004, 2005). The samples consist of 181 public listed electronic company in Taiwan and 74 public listed electronic company in United State during the period of 2004 to 2013. Return on Equity, Return on Assets and Earnings per Share are used to measure the firm value. This empirical study will apply debt ratio as transfer variables. Furthermore, it uses asset size and sales growth to estimate how these variables influence the firm value. The empirical result shows that there exists a nonlinear relationship between debt ratio and firm value. Based on the finding of ROE threshold estimation with US listed firm, sales growth have a positive influence on firm value once the debt ratio above the threshold. However, based on ROA and EPS, there is no influence on firm value. Asset size have a negative influence on firm value once the debt ratio above the threshold. By contrast, based on ROA and EPS, asset size have a positive influence on firm value. Based on the finding of ROE, EPS and ROA threshold estimation with Taiwan listed firm, sales growth have positive influence on firm value once the debt ratio below the threshold. ROE and EPS suggested that assets have a positive influence on firm value once the ratio above the threshold. However, ROA suggested that assets have a negative influence on firm value once the ratio above the threshold.