Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Determinants of Corporate Debt Financing Strategies

Contents:

Author Info

  • Han-Min Wang

    (Department of Accounting, Feng Chia University, Taiwan)

  • Shiow-Huey Tsaur

    (Department of Accounting and Information Technology, Chung Cheng University, Taiwan)

Registered author(s):

    Abstract

    This paper employs an incremental approach to explore the determinants of corporate debt financing strategies such as the factors of the issuing costs, information asymmetry, growth opportunity, credit quality and managerial ownership. Addition to univariate analysis model, we use multiple logit model to detect the affecting factors of three types of corporate debt financing policy. Empirical results show that (1) the issuing costs are not the main concern while firms choosing their debt financing sources; (2) when firms facing higher information asymmetry problems employ more non-bank private debts, and firms with lower information asymmetry problems use more public debts; (3) firms with higher growth opportunities employ more public debts, while firms with lower growth opportunities use more privately placements; (4) higher credit quality firms use more public debts, lower credit quality firms use more non-bank private debts; (5) firms with higher insider ownership use less non-bank private debts.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.jem.org.tw/content/pdf/Vol.2No.1/03.pdf
    Download Restriction: no

    File URL: http://www.jem.org.tw/content/abstract/Vol.2No.1/English/03.htm
    Download Restriction: no

    Bibliographic Info

    Article provided by College of Business, Feng Chia University, Taiwan in its journal Journal of Economics and Management.

    Volume (Year): 2 (2006)
    Issue (Month): 1 (January)
    Pages: 53-70

    as in new window
    Handle: RePEc:jec:journl:v:2:y:2006:i:1:p:53-70

    Contact details of provider:
    Postal: 100 Wenhwa Road, Seatwen, Taichung
    Web page: http://www.jem.org.tw/
    More information through EDIRC

    Related research

    Keywords: incremental approach; information asymmetry; multiple logit model; privately placements;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:jec:journl:v:2:y:2006:i:1:p:53-70. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yi-Ju Su).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.