재무레버리지도와 타인자본비용과의 관련성

This study provides empirical support for the positive relation between the degree of financial leverage measured by using accounting information in the financial statements in year t and the cost of debt capital in year (t＋1). The sample is composed of companies listed in the KOSPI market from 2007 to 2015 to measure the degree of financial leverage in year t. Financial leverage effects contain the accounting information about cost structures that is useful in forecasting firms' future earnings and prospects. Higher degree of financial leverage with large interest costs increases future net income uncertainty. Consequently, the increased uncertainty enhances the information asymmetry in the capital market. Specifically, if the borrowing firm has the above－median of the degree of financial leverage in a separate subsample for each year and/or industry, its cost of borrowing in the next year (t＋1) is increased. High fixed financial costs such as interest expenses at the same levels of operating income lead to relatively high degree of financial leverage. Firms with high financial leverage can be easily exposed to the drop in income caused by the external shock such as commodity price fluctuations, natural disasters, etc. and may be under the financial distress where firms would be insolvent and have the liquidity risk. Therefore, creditors may have incentives to increase the cost of debt capital in year (t＋1) in order to demand a higher risk premium required for the uncertainty in borrowing firms' net income. While the interest coverage ratio by using operating income is generally accepted by the creditors, the degree of financial leverage is suggested as the information content of the change in net income. Especially, it is noteworthy that an accounting measure of the degree of financial leverage is calculated by using the figures on a firm's financial statements thereby revealing how the cost structure that provides a firm's internal information works in anlaysing the cost of debt capital.