| Summary: | 碩士 === 國立高雄第一科技大學 === 財務管理所 === 97 === This study focuses on the relationship between different stages of competitive strategy and their influences on the ownership capital structure. Corporate strategy becomes competitive when assets are efficiently allocated and resulting capital structure is optimal enough to support critical strategic actions for business success over their competitors. Asset allocation is a dynamic function of competitive strategy under different stages of business life cycle whereas the ownership capital structure involves complicated combination use of debt and equity financing which are essential to support strategic actions.
This study use various characteristics of financial ratios to represent the different types of business strategy (i.e. aggressive or conservative) and the concept of dynamic stages of business life cycles is used as dummy variable to separate corporate strategic influence on ownership capital structures at different life cycle stages. Ownership capital structure is gauged using the ratio of debt over equity to show company’s inclination toward debt or equity financing to acquire and allocate strategic asset for optimal competitiveness. Statistical methods of data sampling and linear regression are performed on those chosen financial ratios to study their strategic influence on dependent ownership capital structure with stages of business life cycle used as dummy variables for isolation and evaluation purposes.
The result of study shows that companies at growth stages should adopt aggressive strategies such as more investment on R&D, operating inventory, scale enlargement, etc., that may result the inclination of more debt over equity financing. Companies at contracting stages of maturity and declining stages, on the other hand, should adopt more conservative strategy to reduce their scale of operation to avoid negative effect of debt burden and revenue shrinkage. The study also shows that company strategic actions need to be counter-cyclical and one step ahead of times to avoid the negative impact of falling in behind and squeezing band wagon effect which may accelerate cost increase of production factors.
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