Financial Crisis, Capital Structure and Corporate Operations – A Case Study of Steel Industry in Taiwan

• Main Authors: Chiao-Lin Hsieh, 謝巧琳
• Other Authors: Chao-Nan Chia
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/8u85yv

碩士 === 淡江大學 === 國際企業學系碩士在職專班 === 102 === This thesis empirically examines the effectiveness of various capital structures in coping with the adverse effects of the U.S. subprime financial crises on the steel industry in Taiwan. The quarterly sales of the 15 selected sample firms are examined. The event study method which uses the autoregressive model as the foundation for creating a forecasting model, are adopted to calculate the abnormal sales level to represent performances of the sample firms. Comparisons of the performances of the sample firms during the 8 seasons before and after the 2nd season of 2008 are conducted. The panel data analysis of the effects of 4 capital structures, namely the ratios of equity, long term liabilities, bank finance and accounts/ notes payables to total assets on the abnormal sales are then conducted using data covering the 15 seasons beginning from 2008Q1 to 2010Q2 and regression coefficients estimated. The empirical studies have shown that the performances of the sample firms varies and firms that those relied heavily on banks loan as major financing source performed well during the crisis, implying that a good relationship with banks is important in running business. The other three leverage ratios were negatively related to the performance, but the influences were insignificant.