The Determinants of Capital Structure- Electronics Industry in Taiwan

• Main Authors: Shih-Chen Chou, 周士禎
• Other Authors: Yu-Chen Tu
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/2s59j6

碩士 === 銘傳大學 === 財務金融學系碩士在職專班 === 95 === Abstract This study aims to explore factors that influence the capital structures of listed companies in the electronics industry, including upstream, midstream, and downstream entities. The selected independent variables include eight financial variables: mortgage asset value, company size, debt tax shield, non-debt tax shield, sales growth, industry risk, profitability, and solvency. Total debt ratio is a dependent variable in this study. The subjects of this study are listed electronics companies, with sample data collected from 139 companies. Important factors that have an impact on capital structure in the electronics industry are summarized from documented research. SPSS is used to conduct factor analysis and regression on data from 1996 to 2005 for empirical analysis. The results from this study reveal the following: 1. The deciding factors for capital structure for upstream companies in the electronics industry are non-debt tax shields, business risk, and debt tax shields. Of these factors, non-debt tax shield and debt tax shield are positively correlated with debt ratio, while industry risk is negatively correlated. 2. The deciding factors for capital structure for midstream companies in the electronics industry are sales growth, mortgage asset value, and solvency. Of these factors, sales growth and mortgage asset value are positively correlated with debt ratio, while solvency is negatively correlated. 3. The deciding factors for capital structure for downstream companies in the electronic industry are mortgage asset value, industry risk, and company size. Of these factors, company size is positively correlated with debt ratio, while mortgage asset value and industry risk are negatively correlated.