The study of the gap of optimal capital leverage: evidence from the The study of the gap of optimal capital leverage: evidence from the companies of twelve countries
| Autor: | Chi-LIN Wu, 吳季林 |
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| Rok vydání: | 2009 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 98 According to the theory of asymmetric information, investors cannot directly confirm influence of a financing policy on the value of the company. Therefore, for investors, to judge the value of a firm usually depends on the observation of influential factors, such as firm’s financial variables. In this study, we define the difference between leverage ratio and optimal leverage ratio as the gap of optimal capital leverage under the assumption of the tradeoff theory being tenable, and test the influence of the financial variables (e.g., profitability and size) on the capital structure and the gap of optimal capital leverage. For analyzing the characteristics of country and industry, we apply the SIC code to classify data into thirteen specified industries in the twelve countries. The results show that, in most countries, the relations of the profitability, size, and asset structure to the gap of optimal leverage are negative, which mean that financial policy is meant for the leverage ratio being closer to the optimal. The investors can understand the possible situation of reducing the agency problem through observing the three financial variables. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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