| Summary: | 碩士 === 國立交通大學 === 財務金融研究所 === 107 === In the past, many literatures explored the impact of Organization Capital on
corporate value. Lev and Radhakrishnan (2005) argued that although there are many
factors affecting resource use efficiency, the most important and significant factor is
organizational capital, showing the cumulative organizational capital will significantly
affect business performance, stock price return and credit risk. Organizational capital
is the investment of technology and talent for enterprises. Increasing the accumulation
of organizational capital can benefit the company's operation and improve information
asymmetry. Chen (2008) proved that excellent corporate governance can improve the
transparency of information and reduce agency costs. In turn, reduce the company's
default risk. And Tingwei Huang (2017) found that when the company increased
organizational capital input, it will effectively reduce corporate credit risk.
Therefore, this study will test the results of the robustness, evaluating the
non-linear relationship between organizational capital, default risk by Polynomial
Model. Besides, we also consider firm efficiency, managerial ability and CEO power
effects to explore whether there is still a nonlinear relationship between credit risk and
organizational capital after adding the above corporate governance variables to the
models. In addition to analyzing all samples, this study also performs Out-of-Sample
Prediction to evaluate the predictive power of polynomial models, and infer the
nonlinear relationship between organizational capital and default risk. We analyze
whether the cumulative organizational capital affects the degree of decline in default
risk. We also confirm that the nonlinear relationship between the two variables is an
Increasing or Decreasing polynomial model.
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