An Empirical Analysis of Capital Structure and Financing Behaviors across Asian Countries
| Autor: | Ya-Wei Chang, 張亞瑋 |
|---|---|
| Rok vydání: | 2007 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 95 The optimal capital structure has been discussing for more than four decades since it is offered by Modigliani and Miller (1958). Pecking order theory and trade off theory have been widely discussed in this field. Pecking order theory was first referred by Myers and Majluf (1984) based on the theory of asymmetric information and adverse selection. It states that firms prefer internal financing to external financing. When financing from outside are necessary, firms would prefer to issue debt due to information asymmetry in stock market. Trade off theory is another important theory of capital structure, which implies the existence of optimal leverage. The static trade off theory stated that firms would equate benefit and cost at the margin to achieve the goal of value-maximizing. However, it is inconsistent in previous empirical studies, because capital structure may be still driven by many factors. It is not only a simple scenario. Various industries, cultures, and laws in different countries might play an important role in the leverage of firms. This study re-examines the models of previous studies in both pecking order and trade off theory, and compares the leverage in different size in asset and industries. Furthermore, the study nets how law factors have the influences on firms’ leverage as well as financing behavior of pecking order in Asian countries. The evidence have shown that trade off theory is more tenable in Asian countries. Firms in Asian countries seem not to support the pecking order theory at all since the highly developing financial instruments. Firms have alternative choices to finance from the capital market. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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