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http://dx.doi.org/10.5762/KAIS.2011.12.12.5663

Determinants of Financing Decisions of the KOSDAQ Firms  

Guahk, Se-Young (Division of Business Administration, Cheongju University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.12, no.12, 2011 , pp. 5663-5670 More about this Journal
Abstract
This study performed empirical analyses of the static trade-off theory and the pecking order theory which explain financing behavior of firms. The results of regression analyses using the data of 762 listed non-financing firms on the KOSDAQ market from 2000 to 2010 have shown mixed evidences supporting either the trade-off theory or the pecking order theory. Specifically, as the effective tax rate and the firm size increases, debt ratio increases, which is consistent with the trade-off theory. However as the growth opportunity and the profitability increases, debt ratio decreases, which is consistent with the pecking order theory.
Keywords
Capital Structure; Financing; Static Trade-off theory; Information Asymmetry; Pecking Order Theory; KOSDAQ; Small and Medeum Sized Firm;
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Times Cited By KSCI : 1  (Citation Analysis)
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