The Choice of Debt Financing Instruments

[[abstract]]企業在追求公司價值極大化，不管是營運活動、投資計畫、擴充產能及改善公司財 務結構，都需要大量的資金。因此融資決策為公司經營重要的三大決策之一，重點在追 求最佳資本結構，與資金成本的極小化。在目前金融市場運作相當發達下，企業可以選 擇融資渠道非常多，可以選擇權益資金或是舉債來融資。而在融資決策的選擇上，亦有 許多不同的考量因素。本研究主要針對負債融資管道，作一深入探討，為何有些企業的 主要資金來源是選擇向銀行貸款，而有些企業卻選擇發行公司債來融資。 相對於國內散戶投資人而言，機構投資人持股比例已日益升高，成為資金提供市場 的主流，因此機構投資人是否影響公司當局的融資決策，為本研究首先要探討之第一個 議題。此外，現在企業因所有權及控制權的分離，產生管理者與股東間之代理問題。由 於銀行有較好的監控能力，能有效降低企業融資的道德危機，企業是否會為了規避銀行 監控而選擇發行公司債?因此，本研究將一併探討股權結構是否影響公司負債融資決策 的選擇。最後，經理人權力指的是操縱公司整體運作的權限，若經理人權力愈大，愈有 可能假借一己之私來進行自利的行為，而傷害了公司的價值。然經理人權力大小，對企 業長期負債融資工具之選擇有何影響? 近年來，台灣債券市場正不斷蓬勃發展，利用長短期負債工具來融資，已成為國內 企業取得所需資金之重要管道，因此本研究探討影響公司負債融資選擇之關鍵因素研究 之成果，除了可提供國內外上市櫃公司選擇負債融資工具之運用準則外，同時也提供投 資人對不同負債融資決策後之公司長期投資績效，有進一步之了解。[[abstract]]The goal of the firm is to maximize the wealth of the owners. It needs lots of funds in firm’s daily operation, project investment, capacity expansion, and improving firm’s capital structure. Thus, financing decision is aiming to minimize the total cost of capital and obtain the optimum capital structure for the firm. Nowadays, the real world financial markets can provide an important financing channel by allowing the firm to issue corporate debt and equity securities. There may have different considerations for the firms in determining their financing policies. In this paper, we focus on the issue of debt financing and investigate the topic why some firms prefer to use bank loans and others prefer to issue corporate debt as their main source of long-term financing. In contrast to the domestic individual investors, the institutional investors have already played a rather important role in Taiwan capital market and served as the major fund providers for local firms. Thus, the first purpose of this project is to investigate whether institutional investors will affect firm’s financing decisions. In addition, the divergence between control rights and ownership of modern firms leads to the agency conflicts between managers and shareholders. Because banks can get access to firm’s private information as insiders, this enables bank monitoring reduces moral hazard problems in firm’s financing decisions. Are controlling shareholders unlikely to use bank debts and prefer to issue public debt? Thus, the topic examining corporate ownership structure and the choice between bank debt and public debt is our second research issue. Finally, the scope of CEO power in public corporations is vast. The powerful CEO can use their power to extract private benefits and affect the quality of corporate financing decisions. Since CEO power plays a key role in choosing corporate financing decisions, thus we intend to investigate the impact of CEO power on firm’s debt financing decisions. In recent years, the domestic bond market becomes increasingly important. It has become a very important channel for domestic firms to obtain their needed funds by short and long term debts. Research topic related to the choice of corporate debt financing instruments is a definitely critical issue and captures both the academic and practical interests. The results of this project can be helpful for the domestic listed companies to effectively choose their debt financing decision. Also it will be beneficial for the investors to learn that, the firms choosing the corporate debts or bank loans, which one will have a better long term investment performance?[[note]]NSC102-2410-H327-00