Health Policy and Management (보건행정학회지)

Korean Academy of Health Policy and Management (한국보건행정학회)
권호 표지
DOI QR코드

DOI QR Code

An Empirical Analysis on Trade-off Theory and Pecking Order Theory for Medical Institutions's Capital Structure

의료기관 자본구조에 대한 상충관계이론과 자본조달 순위이론 실증분석

  • Kim, Jai-Myung (College of Business Adminstration, Kangwon National University) ;
  • Ham, U-Sang (The Institute of Management Research, Kangwon National University)
  • 김재명 (강원대학교 경영대학 경영학과) ;
  • 함유상 (강원대학교 경영연구소)
  • Published : 2006.12.30
Download PDF
⟨ Previous Next ⟩

Abstract

Based on the findings of a study focused on medical institutions(Fama & French, 2002), this study determined possible causality between determinants of capital structure and liability level, while estimating targeted debt ratio. Moreover, it also examined hypotheses about the adjustment of targeted debt ratio and the of fundraising patterns, so that it verified the relative priority of trade-off theory and pecking order theory. First, profitability had positive(+) relationships with liability level, while investment opportunities had negative(-) relationships with liability level. This finding supported pecking order theory, and non-liability tax shield effects had negative(-) relationships with liability level as estimated in both trade-off theory and pecking order theory. Next, this study verified trade-off and pecking order theory at once by means of regression analysis about the variation of liability level in associations with disparity from targeted debt ratio and short-term fluctuation of profit and investment. As a result, it was noted that liability level became mean-reversed to targeted liability ratio but slowly, SO it was difficult to assert that such mean reverse may support trade-off theory. However, the finding that most of short-term fluctuations of profit and investment are absorbed into liabilities supported pecking order theory. On the other hand, it was found that the larger scale of medical institutions is more supportive of pecking order theory in the associations between liability level and profitability and the fundraising patterns than trade-off theory.

Keywords

References

  1. 곽세영. 자본조달순위이론에 관한 연구. 재무관리논총 2004; 10(1):1-22
  2. 선우석호. 한국기업의 재무구조 결정요인과 자본비용. 재무연구 1990;3(1);61-80
  3. 안영창. 도산예측모텔에 기초한 병원기업의 자본구조에 대한 실증분석[박사학위논문]. 강원:강 원대학교 대학원;2006
  4. 윤봉한. 한국 상장기업의 자본구조 결정요인에 대한 장기분석 :정태적 절충모델과 자본조달순위모델간의 비교. 경영학연구 2005:34(4):973-1001
  5. 윤종인, 김병철. 자금조달순위이론과 여유현금흐름가설의 타당성에 관한 실증연구, 증권학회지 1999;25:301-342
  6. 이원흠, 이한득, 박상수. 대기업집단의 부채비율 조정속도에 관한 연구-IMF외환 위기 시점을 전후한 자금조달 형태의 비교 변화. 증권학회지 2001;28:87-112
  7. 전효찬. 우리 나라 기업의 자본조달과 재무구조에 대한 연구[박사학위논문]. 서울:연세대학교 대학원:2003
  8. 최만규, 병원의 재무구조결정요인[박사학위논문]. 서울:서울대학교 대학원;2002
  9. 한국보건산업진흥원. 병원경영분석. 서울:한국보건산업진흥원;2003
  10. 황동섭. 자금조달순위모형과 목표조정모형. 대한경영학회지 2001; 29:3-19
  11. Alexander J, Lewis B. The Financial Characteristics of Hospital Under For- Profit and Non- Profit Contract Management. Inquiry 1984;21(Fall):230-242
  12. Auerbach, A Real determinants of corporate leverage. University of Chicago Press Chicago IL 1985
  13. Bradley M, Jarrell G, Kim E. On the Existence of the Optimal Capital Structure: Theory and Evidence. Journal of Finance 1984;39:857-878 https://doi.org/10.2307/2327950
  14. Chen A, Kim E. Theories of corporate debt financing: A synthesis. Journal of Finance 1979;34(June):371-384 https://doi.org/10.2307/2326975
  15. Cleverley W. Strategic financial planning: A balance sheet perspective. Hospital and Health Services Adminstration 1987;1-20
  16. DeAngelo H, Masulis R. Optimal Capital Structure Under Corporate and personal Taxation. Journal of Finance Economics 1900;8:3-30
  17. Fama E, French K Testing tradeoff and pecking order predictions about dividends and debt. Review of financial studies 2002;15:1-33 https://doi.org/10.1093/rfs/15.1.1
  18. Fazzari S, Hubbard R, Petesen B. Financing constraints and corporate investment : Response to Kaplan and Zingales. Working Paper 1996;(Jan)
  19. Frank M, Goyal V. Testing the pecking order theory of capital structure, 'Working Paper, University of British Columbia, 2000
  20. Gapenski L. HospitaI Capital Structure Decisions: Theory and Practice. Health Services Management Research 1993;6(4):237-247 https://doi.org/10.1177/095148489300600403
  21. Ginn G, Young G, Beekun R. Business Strategy and financial structure: an empirical analysis of acute care Hospital. Hospital and Health Services Administration 1995;40(2):191-209
  22. Graham J. How big are the Tax benefits of debt. Journal of Finance 2000;56:1901-1904
  23. Harris M, Raviv A. Capital structure and the informational role of debt. Journal of Finance 1990;45:297-355
  24. Hoshi T. Kashyap A, Scharfstein D. Corporate structure, Liquidity, and investment evidence from Japanese industrial groups. Quarterly Journal of Economics 1991;56:33-60
  25. Hovakimian A, Opler T. The debt-equity choice. Journal of Financial and Quantitative Analysis 2001;36(May):1-24 https://doi.org/10.2307/2676195
  26. Jalilvand A, Harri R. Corporate behavior in adjusting to capital structure and dividend targets: An economic study. Journal of Finance 1984;39:127-145 https://doi.org/10.2307/2327672
  27. Jensen M. Agency costs of free cash flow, corporate finance and takeovers. American Economics Review 1986;76:323-339
  28. Jensen M and Meckling W. Theory of the Firm: Managerial Behavior, Agency costs, and Capital Structure. Journal of Financial Economics 1976;3:305-360 https://doi.org/10.1016/0304-405X(76)90026-X
  29. Kester W. Capital and Ownership Structure: A Comparison of United States and Japanese Manufacturing Corporations. Financial Management 1986;15:5-16
  30. Kim W, Sorensen E. Evidence on the impact of the agency costs of debt in corporate debt policy. Journal of Financial and Quantitative Analysis 1986;21( une):131-144 https://doi.org/10.2307/2330733
  31. Kim E. A mean-variance theory of optimal structure and corporate debt capacity. Journal of Finance 1978;33(March):45-64 https://doi.org/10.2307/2326349
  32. Kruas A, Litzenberger R. A state-preference model of optimal financial leverage. Journal of Finance 1973;28 (Sep):911-922
  33. Long M, Malitz I. The investment-financing nexus: Some empirical evidence. Medland Corporate Finance Journal 1985;3:53-59
  34. Marsh P. The choice between equity and debt : an empirical study. Journal of Finance 1982;37:121-144 https://doi.org/10.2307/2327121
  35. McCue M. Ozcan Y. Determinants of capital structure. Hospital and Health Services Administration 1992;333-346
  36. Miller M. Debt and Taxes. Journal of Finance 1977;32:261-275 https://doi.org/10.2307/2326758
  37. Modigliani F, Miller M. The Cost of Capital, Corporation Finance, and the Theory of Investment. American Economics Review 1958;48:261-297
  38. Myers S. The capital structure puzzle. Journal of Finance 1984;39:575-592 https://doi.org/10.2307/2327916
  39. Myers S, Majluf N. Corporate Financing and Investment Decisions when Firms have Information that Investors Do not Have. Journal of Financial Economics 1984;13:187-221 https://doi.org/10.1016/0304-405X(84)90023-0
  40. Narayanan M Debt versus Equity under asymmetric information. Journal of Financial Quantitative Analysis 1988:331-356
  41. Opler T, Titman S. The debt-equity choice: an analysis of issuing firms. Unpublished working paper. Boston College
  42. Rajan R, Zingales L. What do we know about capital structure? Some evidence from international data. Journal of Finance 1995;50:1421-1460 https://doi.org/10.2307/2329322
  43. Schwarz E, Aronson R. Some Surrogate Evidence in Support of the Concept of Optimal Capital Structure. Journal of Finance 1967;22:10-18 https://doi.org/10.2307/2977296
  44. Scott J. A theory of optimal capital structure. Bell Journal of Economics 1976;7(Spring):33-54 https://doi.org/10.2307/3003189
  45. Shyam-Sunder L, Myers S. Testing static tradeoff against pecking order models of capital structure. Journal of Finance Economics 1999;51:219-244 https://doi.org/10.1016/S0304-405X(98)00051-8
  46. Smith C, Watts R. The investment opportunity set and corporate financing, dividend, and compensation politics. Journal of Financial Economics. 1992;32:263-292 https://doi.org/10.1016/0304-405X(92)90029-W
  47. Taggart R. A model of corporate financing decision. Journal of Finance 1977;32:1467-1484 https://doi.org/10.2307/2326804
  48. Titman S, Wessels R. The determinants of capital structure choice. Journal of Finance 1988;43:1-19 https://doi.org/10.2307/2328319
  49. Valvona J, Sloan F. Hospital Profitability and Capital Structure: a Comparative Analysis. Health Services Research 1988;23(3):343-357
  50. Wedgi G, Kwon S. Sustainable Asset Growth and the Accounting Rate of Return in Not-for-profit Organizations: Theory and Evidence. International Journal of the Economics of Business. 1995;2(3):367-391 https://doi.org/10.1080/758538012
  51. Wedgi G. Sloan F, Hassan M, Morrises M. Capital Structure, Ownership, and Capital Payment Policy : The Case of Hospitals. Journal of Finance 1988;83(March 1988):21-40
  52. Whited T. Debt, liquidity constraints, and corporate investment: evidence from panel data. Journal of Finance 1992;47:1425-1460 https://doi.org/10.2307/2328946