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Determinants of Capital Structure of High Potential Enterprises of Korea

중견기업의 자본구조 결정요인

  • Received : 2017.10.23
  • Accepted : 2017.12.20
  • Published : 2017.12.28

Abstract

Although numerous theoretical and empirical studies on the capital structure have been performed, the studies on the capital structure of the high potential enterprises have not been worked. This paper performed empirical analyses for the first time to find out the determinants of capital structure of the high potential enterprises of Korea using the financial data of the manufacturing high potential enterprises listed on the Korea Exchange and KOSDAQ during 2010~2016. The results of regression analyses with debt ratio as dependent variable and profitability, firm size, asset tangibility and non-debt tax shield as independent variables show that the coefficients were relatively significant. The variables of the profitability and the tangibility were found to have positive relationship with the debt ratio. The non-debt tax shield were found to have in general positive relation with the leverage.

Keywords

High Potential Enterprise;Capital Structure;Financing;Debt Ratio;Leverage

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Acknowledgement

Supported by : 청주대학교