Abstract
This study examined the Korean manufacturing companies listed in the Korea Exchange (KRX) market to see if managerial traits can be one of the determinants of financial structure. This study used the prospect theory definition of risk traits by classifying companies into two groups: risk-averse and risk-seeker. A statistical analysis of the financial structure with several determinants proved that managerial traits play a significant role in determining debt; however, two risk groups did not show different features in determining financial structure. Overall, companies in Korea, except the variable related to size, supported the pecking order theory.
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