기업의 초기성장성이 자본구조에 미치는 영향

Lemmon et al.(2006) shows that the capital structure of firms reveals a persistent crosssectional pattern, and that observed high or low leverage ratios are initially determined. Because this persistent pattern may mean existence of target leverage, this cast further doubts on the market timing theory. Leary and Roberts(2005) find a quick rebalance by new debt after equity issues, consistent with a target range argument under dynamic adjustment costs. Alti(2005) shows a surprisingly quick rebalance of leverage in early IPO years. Graham and Harvey(2001) surveyed that managers accept a soft target concept for leverage. Hovakimian(2005) complains that market timing variable in Baker and Wurgler(2002) actually contains strong information and growth opportunities. Kayhan and Titman(2006) further point out that it is not the short-term market timing component that drives the Baker and Wurgler results. Korajczyk et al.(2007) argue that the initial growth status of firms inevitably captures the IPO market timing, and that leverage persistence is determined by initial growth status instead of market timing. Korajczyk et al.(2007) conclude that initial growth status completely overtakes the Baker and Wurgler(2002) market timing variable in determining long run capital structure at the firm level. In this paper, we study empirically the effects of initial growth status on the capital structure of firms listed on Korea Securities Market. Initial growth status concept is two dimensional. Low growth status means low market-to-book ratios and high tangibility, and high growth status means high market-to-book ratios and low tangibility. This initial growth status concept is rooted in both trade-off theory and the generalized Myers and Majluf model. Initial average of market-to-book ratios and tangibility ratios is an average over the initial three years following the definition of Lemmon et al.(2006). Initial average reduces noise in proxies in early years. The main results of this study can be summarized as follows. Initial growth status of firms determines long-term capital structure after IPO periods. This evidence demonstrates that initial growth status explains the persistence of capital structure. We find that initial growth status have a consistent cross-sectional explanatory power to future leverage ratios for post-IPO periods as long as 7 years. Also, it is consistent with findings of Lemmon et al.(2006). Initial growth status of firms has significant effects on the adjustment speed of leverage. Adjustment speed of low growth firms is faster than that of high growth firms. Further more, we find that adjustment speed of market leverage is faster than that of book leverage. Initial growth status of firms has significant effects on new debt and equity issues of firms, new debt and equity issues have a strong gravity effect on the changes in leverage ratios. Low growth firms which are often big, more tangible, high profitable, and more dividend-paying tend to issue more new debt. But, high growth firms which are small, more intangible, unprofitable, and non-dividend-paying tend to rely on new equity issues for external finance. And, we find significant trade-off forces in year-by-year debt and equity issues, and that initial growth status interacts with them. Conclusively, initial growth status of firms may be recognized as a new determinant factor which has a long run effect on capital structure in Korea Securities Market. This evidence is consistent with both tradeoff theory and the generalized Myers-Majluf model. Therefore, in order to choose to persistence of leverage, speed of adjustment, new debt and equity issues, managers must have to consider not only capital structure variables of tradeoff theory but also initial growth status of firms. This paper is only early study of impacts of initial growth status on the capital structure of korean firms, It is necessary to expand sample firms and use more elaborate analysis methods.