| Summary: | 碩士 === 佛光人文社會學院 === 管理學研究所 === 92 === Sound financial policy is the key foundation for corporations to survive and prosper. Improper capital structure is always the main cause to the corporation’s failure. So, capital structure decision becomes one of important topics for corporate financial managers, whether in multinational corporations or in domestic corporations. Due to complicated international environment factors such as political risk, exchange rate risk, culture discrepancies…etc., it maybe incomplete to decide the capital structure of multinational corporations only by the means, which decide that of general corporations. Therefore the goal of this paper is to analyze the systematic differences in the traditional capital structure determinants between multinational corporations and domestic corporations, then to find the capital structure determinants of multinational corporations, if international environment factors are considered; and to find whether the capital structure decision of multinational corporations varies with industry, asset size, the number of countries in which the firm operates.
From the Taiwan Economic Journal database, the researcher constructs a panel data set of 209 listed manufacturing companies in Taiwan during 1999 to 2003. Hypothesis Test, Analysis of Variance, and Cross Section Regression Analysis were employed to further analysis.
For the empirical results, the main findings are as follows:
1.The following determinants of multinational corporations are apparently higher than those of domestic corporations, including debit agency cost, monitoring cost, profit, growth, size and political risk. Two determinants of multinational corporations are apparently lower than those of domestic corporations, including asset collateral and none debit shield. There are no differences between multinational corporations and domestic corporations in both business risk and dividend policy.
2.The main determinants of capital structure are debit agency cost, profit and size for multinational corporations, profit and size for domestic corporations.
3.International environment factors do have a certain effect upon multinational corporate capital structure. It is necessary to separate international environment factors from business risk while studying the determinants of multinational corporate capital structure.
|
|---|
