Determinants of Financing Decisions of the KOSDAQ Firms

코스닥 기업의 자본조달 결정요인

  • Guahk, Se-Young (Division of Business Administration, Cheongju University)
  • Received : 2011.10.11
  • Accepted : 2011.12.13
  • Published : 2011.12.31


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.


Capital Structure;Financing;Static Trade-off theory;Information Asymmetry;Pecking Order Theory;KOSDAQ;Small and Medeum Sized Firm


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