The Power of CEO on the Impact of the Choice of Corporate Financing Tool

[[abstract]]過去文獻在解釋公司績效方面，往往忽視企業管理者的權力大小對於公司績效的影響。本研究將探討高階經理人權力與長短期融資決策的關係，進而探討企業負債融資決策對於債權人之影響。實證結果發現，高階經理人權力對於長短期融資工具的選擇，在不同權力變數下，有著不同的正反面顯著影響，這與Liu and Jiraporn (2010)所提出，高階經理人可能因會基於風險趨避假說、聲譽假說自我利益假說、獨裁性假說等考量下，對負債融資決策造成不同的影響，進而改變企業價值。 而在高階經理人及長短期融資工具的選擇，對於企業信用評等與資金成本的影響，由本研究實證中得知，高階經理人對信用評等有顯著影響，而企業使用公司債作為長期融資工具時，會降低企業之信用評等；高階經理人權力中，僅有所有權權力對資金成本有顯著負相關；不同之長期融資工具選擇對資金成本也無顯著之影響。短期融資工具方面，高階經理人權力變數對於信用評等有顯著之影響，而企業短期融資工具若採用交易信用的方式，則會降低該企業的信用評等；高階經理人權力愈大，愈傾向降低資金成本；而在使用不同短期負債融資工具下，對利息支出比率的影響皆無影響。[[abstract]]In past literatures it is often ignored that using the factor of CEO power in explaining a firm’s performance In this study we will examine the relationship between the CEO power and firm’s financing decision and to explore the impact of debt financing decisions on creditor interests Empirical results show that by different definition of CEO power we find there may have positive and negative effects on the choice of short and long term debt financing decisions It is consistent with Liu and Jiraporn (2010) i e debt financing decision made by CEO can be influenced by four hypothesis and thus change its firm’s value As the topic of how CEO power and choice of financing tools influence firm’s credit rating and cost of capital the results show that the CEO power has a significant effect on firm’s credit ratings It will obtain a lower the credit rating if the firm issues corporate bond as a long term financing tool Meanwhile only the variable of power of ownership has a negative impact on firm’s cost of capital Also we find there have no significant impact on the cost of capital by the choice of long term financing tools As the short term financing tools CEO power has a significant impact on credit rating The use of trade credit will lower the credit rating and when the strength of CEO power becomes greater there is a tendency that it could reduce firm’s cost of capital Finally it has no influence on interest expense ratio when different short term financing tools are use