An Empirical Study of the Relation Between Capital Structure and Agency Costs and their Determinants
| Autor: | Jia-Jye Yu, 游家杰 |
|---|---|
| Rok vydání: | 2001 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 89 This study tests an integrated framework of determinants of capital structure choice and agency costs in terms of multiple indicators and multiple causes (MIMIC) model. To examine the relation between capital structure and agency costs, focusing on whether agency costs affects capital structure. It also further integrated the two determinants MIMIC model to develop MIMIC models under a non-recursive system. In MIMIC model, two proposed cause variables of capital structure and two proposed cause variables of agency costs have significant effect on capital structure and agency costs. In addition, the results of integrative MIMIC models show that capital structure affects agency costs, and vice versa. The significant cause variables include the coefficient of the ratio of operating income to total assets, the ratio of non-debt tax shields to total assets, the ratio of capital expenditure to total assets, and natural logarithm of total assets. Three significant indicators of capital structure are long-term debt and convertible debt denominated by either market value or book value of equity. Two significant indicators of agency costs are the number of securities analyst following and the number of segment reported by management. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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