MARKET COMPETITION, ARBITRAGE RISK, AND CAPITAL STRUCTURE: EVIDENCE FROM TAIWAN

被引：7

作者：

Lin, Yu-En ^{[1
]}

Chih, Hsiang-Hsuan ^{[2
]}

Cheng, Chia-Hsin ^{[3
]}

Ku, Yan-Qing ^{[4
]}

机构：

[1] Jilin Univ, Sch Business, Jilin, Jilin, Peoples R China

[2] Natl Dong Hwa Univ, Dept Finance, Hualien, Taiwan

[3] Wenzhou Univ, City Coll, Dept Accounting, Wenzhou, Zhejiang, Peoples R China

[4] Wuyi Univ, Sch Business, Nanping, Fujian, Peoples R China

来源：

ANNALS OF FINANCIAL ECONOMICS | 2016年 / 11卷 / 01期

关键词：

Market competition; arbitrage risk; capital structure; quiet life;

D O I：

10.1142/S2010495216500020

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

The purpose of this paper is to understand how the product market competition and the arbitrage risk affects managers' decisions on capital structure. To find managers' risk preference, we introduce the interaction between market competition and the arbitrage risk of the firm. Sampling from Taiwanese listed companies from 1986 to 2011, we identify both the market competition and the arbitrage risk affects managers' debt decisions. In addition, we find that most managers in monopolistic firms increase debt to decrease the agency costs. However, some hold risk-averse motivation to enjoy their "quiet life". These "quiet life" managers exist in those companies that are in non-competitive markets and that exists large idiosyncratic risk.

引用

页数：11

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