| Summary: | 碩士 === 國立臺灣科技大學 === 財務金融研究所 === 106 === Capital is important for companies to develop. It can be divided into internal capital and external capital. Besides, external capital can be divided into debt financing and equity financing. The ratio of debt and equity represents companies’ capital structure. This ratio will not only affect corporate value, but also be relevant to the development of company. Therefore, every company needs to put great emphasis on it. Based on the importance of capital structure, the article aimed to analyze determinants of capital structure for listed companies in Taiwan from 2007 to 2016. According to Dickinson’s research, this study used cash flow pattern to divide the sample into five stages. In order to consider business life cycle, industry factor, and other determinants simultaneously, the research contained three models.
Based on the empirical results, the capital structure of companies in Taiwan have the characteristic of business life cycle. In terms of total debt ratio, the results showed that Introductory Stage > Growth Stage and Decline Stage > Maturity Stage and Shake-out Stage. In addition, we could find that industry factor was not significantly relevant to total debt ratio. However, liquidity ratio, NDTS, profitability, TIE, and dividend payout ratio will be affected by industry factor. Liquidity ratio, NDTS, profitability, R&D, and dividend payout ratio existed significantly negative correlation with total debt ratio. Size and tangible asset ratio existed significantly positive correlation with total debt ratio. The results of growth and TIE closed to significant level.
This study also used long-term debt ratio for sensitivity analysis. The empirical results showed that in terms of empirical results for business life cycle, industry factor, liquidity ratio, profitability, size, tangible asset ratio and dividend payout ratio, there were nearly no difference between total debt ratio and long term debt ratio. However, total debt ratio and long term debt ratio had different empirical results for growth, NDTS, R&D, and TIE, which meant that total debt ratio and long-term debt ratio had different determinants of capital structure.
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