The Study of Relations between Enterprises'Life Cycle and Financing Strategy

• Main Authors: FU-CHUAN LI, 李富川
• Other Authors: MENG-FENG LI
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/51815071326777276140

碩士 === 國立臺北大學 === 統計學系 === 101 === Capital structure will affect the cost of capital; thereby changing the enterprise value, a sound capital structure for business success not self-evident. In the process of looking for an optimal capital structure, Static trade-off theory and Pecking Order theory are the two mainstreams. Static tradeoff theory pointed that to raise the debt although generate tax shield interest , but also brings leverage costs, and optimal capital structure formation, that between the process of benefits of using the liability and cost trade-off, to achieve a equilibrium optimal capital structure, namely the so-called static tradeoff theory, also known as the Targeted Adjustment Theory ; pecking order theory is advocated priority to use internal funds, followed by debt, and finally to consider external funding before is consistent with the interests of the largest financing policy. Shyam-Sunder and Myers (1999) argue that the pecking order is an excellent first-order descriptor of corporate financing behavior, the simple target adjustment model, when tested independently, also seems to perform well. When the two models are tested jointly, the coefficients and significance of the pecking order models change hardly at all. Frank and Goyal (2003) the cross-sectional evidence in about American stocks of listed companies the relationship between financing deficit and net equity than net debt issuance closer in 1971-1998 years. The target adjustment and pecking order test at the same time, the financing deficit adds a small amount of extra explanatory power, but the financing deficit does not challenge the role of the conventional leverage factors. the financing deficit smaller additional explanatory power, but financing deficit can not challenge the traditional role of leverage regression factor. Pecking order test power is reduced by 1980s-1990s that due to there are many small companies or poor profit publicly traded in the 1990s, as well as the more important that the equity issue is a major factor. Based on the findings of this study to explore whether the Taiwan stock market the same as the U.S. stock market, In this thesis, the multivariate factor analysis is used to extract latent variables; second, cluster analysis is used with latent variables; third, discriminate analysis discuss the fitness of the model; forth, establish two hypotheses; Finally, regression analysis is used to discuss the financial strategy in each cycle. The conclusions of this study is (1) the enterprises in establish financing policies show mostly follows the target capital structure, in the pecking order, support a hypothesis: the higher growth and larger company, the more will comply pecking order theory of inference. The target adjustment, support hypothesis two: the lower the firm age and tangible assets, the more will comply target capital structure inference. (2) The target adjustment and pecking order at the same time test results, with Shyam-Sunder and Myers (1999) and Frank and Goyal (2003) concluded similar does not robust, but including the traditional lag leverage regression than to including internal funding deficit compared to the traditional regression testing power magnitude, with Shyam-Sunder and Myers (1999) and Frank and Goyal (2003) conclusions are different. In addition, companies in different time, financing strategy will follow the change; the enterprises of various financial indicators imply different financial strategies Key words: Target-adjustment theory, Pecking order theory, Capital structure, Factor analysis, Cluster analysis, Life cycle.