2An Empirical Study on Capital Structure and Financing Decisions

Financial decision is an important issue for managers how to minimize financial costs and maximize shareholders ’ equity.There are the Modigliani-Miller theorem, the trade-off theory, the pecking order theory and the market timing theory. Data of previous studies are from the United States, G7 or Dutch firms. According to those findings, firms rebalance their leverage and results are more in line with the dynamic trade-off theory rather than the equity market timing hypothesis of capital structure. In our study, we tend to examine financing behaviors in Asian countries. We selec