Another Researcher called Yu-Shu Cheng

Another Researcher called Yu-Shu Cheng, et al. (2010) analyzed 650 A-shares of listed companies in china from 2001 to 2006 using (Hansen 1999) regression model to examine the threshold impact between Debt Ratio (Total liabilities to Total assets) and company value (ROE). He used company size, sales growth and assets growth as moderating. The outcome showed that triple-threshold impact presence between Debt ratio and company value and optimal capital structure is 70.48%.

Ju-AnnYang, et al. (2010) Studied 37 companies in Taiwan from 1987 to 2007 and evidenced the inverted u shape of the relationship between Firm Value and Debt Ratio. They utilized the ROE as a representative for the firm value and Debt Equity ratio as representative for Debt ratio. The aim was examining the presence of optimal capital structure they applied the nonlinear regression .The regression analysis showed the Capital Structure at which the Firm Value is maximum equals to 34.31%.