논문제목 An Investigation of the Most Appropriate Capital Structure Theory and Leverage Level Determinants
초록
In this paper, we investigate the most appropriate capital structure theory and leverage level determinants. There are several theories in a capital structure decision area and it is still controversial as to which is the best theory to explain a firm's debt ratio adjusting behaviour. Therefore, we have compared three different capital structure theories, trade-off, pecking order and market timing theories, and find that a firm's size, asset tangibility, profits, cash holding levels, market-to-book ratios and bankruptcy probabilities are generally the most important capital structure determinants. As most of these determinants are closely related to the trade-off theory, although our findings suggest that no one theory dominates the others, the trade-off theory is probably the most appropriate capital structure theory. However, our results are also consistent with the expectations of the pecking order and market timing theories. This implies that all three theories have a certain level of explanation power in understanding a firm's capital structure adjustments. In this paper, we also consider an endogeneity problem when using panel data, therefore, we use a GMM estimator to increase the reliability of our research.
Key words: capital structure, trade-off theory, pecking order theory, market timing theory, GMM
자료실
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자료실
[제29권 4호]An Investigation of the Most Appropriate
작성자 : 관리자
조회수 : 164
게시일 :
2015-04-13
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