此篇論文使用2010 至2020 年間的台灣上市非金融產業公司作為樣本，研究產品市場競
爭對債權資金成本所造成的影響。理論上，市場競爭可能幾種管道而對債權資金成本造成影
響。一方面，激烈的競爭會增加公司之違約風險、盈餘波動、與被敵對公司接管的可能性，
進而使債權人要求更高放款利率；另一方面，激烈競爭會增加公司違約時的清算價值，同時
使經理人行為更有紀律，使得債權人願意接受較低的利率。目前學界有些關於市場競爭與債
權融資成本之研究，大部分仍針對西方國家的先進市場作為研究對象。本研究專注於新興市
場之一的台灣，發現在一些結構性差異下（如產業結構、公司規模、公司家數），台灣上市
公司所面對的產業市場競爭會使其債務融資成本上升。

This study examines the effect of the product market competition on the cost of debt for firms operated in Taiwan from 2010 to 2020. The theoretical arguments suggest that the product market competition affects firms’ cost of debt financing through several channels. First, an intensive market competition increases a firm’s default risk, cash flow volatility, and probability of hostile takeover, and thus creditors charge a higher risk premium (i.e., higher interest rate). On the other hand, a higher degree of market competition also increases a firm’s liquidation value upon default and disciplines its managerial behavior; consequently, creditors charge a lower rate. The extant studies have
documented the impact of product market competition on the corporate costs of debt financing; however, they mainly focus on advanced markets in western countries. My study provides new empirical evidence for Taiwanese companies. Taiwan is one of the emerging countries and it has
distinct features that are different from those in advanced countries (e.g. industrial structure, firm scale, and number of firms). My empirical finding shows that Taiwanese firms in competitive markets,
experience a higher cost of debt, consistent with the notion that creditors view the competition in product markets as the factor that increases a firm’s default risk, cash flow volatility, and the likelihood of hostile takeover.

Contents
Abstract 3
1. Introduction 4
2. Literature Review 6
2.1 Determinants of the cost of debt 6
2.2 Competition and the cost of debt 8
3 Data and Definition of Variables 9
3.1 Data 9
3.2 The measure of the cost of debt (COD) 9
3.3 The measure of the market competition (HHI) 10
3.4 Control variables 10
3.5 Summary statistics 11
4 Empirical evidence 12
4.1 Univariate analysis 12
4.2 Multivariate analysis 14
5 Conclusion 16
References 17
List of Figures
Figure 1. Average Industry Herfindahl-Hirschman Indices (HHIs). 20
List of Tables
Table 1. Summary statistics 21
Table 2. Correlation matrix 22
Table 3. Taiwan Security Exchange (TSE) Main Industry Code 23
Table 4. Industry Herfindahl-Hirschman Indices (HHIs) 24
Table 5. Costs of debt for subsamples based on HHIs 25
Table 6. Regression results 26
Table 7. Expected and empirical signs of variables 27

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