Determinants of Capital Structure in Taiwan 50: A Structure Equation Modeling Approach

[[abstract]]本文最主要目的為結合權衡理論與融資順位理論，探討資訊對稱條件下台灣50資本結構之決定因素。過去數十年來，融資順位理論以權衡理論研究中迴歸分析的結果解釋力不高，質疑靜態權衡理論之正確性與最適資本結構之存在性，但企業融資決策似乎也與融資順位理論所述不合。因此，本文基於現有資本結構理論提出一個涵蓋融合權衡理論與融資順位理論的簡約模型：訊號因素假說。此模型解釋了公司融資決策在不同資訊不對稱程度下之運作情形，並提供這兩個彼此競爭的理論互相合作及一起運行的機會。此假說同時合理化融資順位行為、最適資本結構以及目標資本結構之追求。最後，並以線性結構方程式對2003年至2007年台灣50中37家非金融產業公司進行實証。首先，根據以往資本結構之文獻，將資本結構決定因素分為實質因素及訊號因素，其中實質因素包含獲利能力；訊號因素包括成長性、公司規模及產業別。理論與實証之結果證明：實質因素也就是獲利能力為台灣50資本結構最重要之決定因素。[[abstract]]This paper aims to enable a better understanding of the determinants of capital structure in Taiwan 50 under the information symmetry condition by using a combination of trade-off and pecking order theories. Pecking order theory has previously demonstrated the failure of trade-off theory in capturing the optimal capital structure within the context of regression methodology. However, financing decisions seem to violate the central prediction of the pecking order model regarding financing behavior. Based on the capital structure theories, a comprehensive theoretical and parsimony model called the signal factor hypothesis model, which combines the trade-off and pecking order theories, is hereby proposed. In the signal factor hypothesis model, firms identify target leverage by weighing the benefits between additional dollar of debt and equity. The signal factor hypothesis serves as an opportunity to combine the two competing models. This paper provides evidence of how asymmetric information conditions affect capital structure choice. It also rationalizes other aspects of corporate borrowing behavior, for example the pecking order, optimal capital structure, and adjustment of capital structure toward target. An empirical study is tested by using the structural equation modeling (SEM) technique in the 37 nonfinancial industries of Taiwan 50 from 2003 to 2007. In the first stage, in accordance with the literature review of the capital structure, we identified four determinants and then divided these into two categories: "real factors," including profitability, and "signal factors," including growth, firm size, and industry. With the capital structure measured by the book ratio of total debt to market total asset, our results show that the profitability of real factors is the most dominant determinant of capital structure choice in Taiwan 50