Corporate debt structures: A study of Malaysian publicly listed firms

Over the past fifty years, most financial literatures have revolved around different theories that try to explain exactly what does matter in determining capital structure (Ryen et al., 1997). Precisely, how Malaysian companies make decisions on capital structure have not been explored? It will be i...

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Main Author:	Chan, Kok Thim
Format:	Thesis
Published:	2011
Subjects:	HG4001-4285 Finance management Business finance.
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id	my-mmu-ep.6288
record_format	uketd_dc
spelling	my-mmu-ep.62882016-01-26T03:18:19Z Corporate debt structures: A study of Malaysian publicly listed firms 2011-07 Chan, Kok Thim HG4001-4285 Finance management. Business finance. Over the past fifty years, most financial literatures have revolved around different theories that try to explain exactly what does matter in determining capital structure (Ryen et al., 1997). Precisely, how Malaysian companies make decisions on capital structure have not been explored? It will be important to identify the factors for Malaysian companies to choose an appropriate capital structure to maximise their firm value as well as their stockholders’ wealth. How firms choose debt, equity and hybrid securities in their financial decisions are an intriguing decision. The fundamental question is whether the choice of capital structure in a firm will affect its value and how the proportions will increase shareholders’ wealth. The objective of this study is to investigate the determinants of corporate debt structures in the Malaysian publicly listed firms. It hopes to understand the Static Trade-off Theory, Pecking Order Theory as well as the Signalling Theory affecting the formation of capital structure in Malaysian companies. A randomly selected sample of 154 firms from Bursa Malaysia are analysed using a panel regression approach. The balance data of 1232 observations is studied during the period 2002-2009. Total debt is the dependent variable which is regressed by 8 other independent variables: growth opportunities, effective tax rate, interest coverage ratio, profitability, firm size, tangibility of assets, non-debt tax shield and volatility. These variables are selected based on capital studies throughout the world. Fixed effects and random effects are tested using Hausman Test to confirm the appropriate model for the Malaysian companies. 2011-07 Thesis http://shdl.mmu.edu.my/6288/ http://library.mmu.edu.my/diglib/onlinedb/dig_lib.php phd doctoral Multimedia University Faculty of Management
institution	Multimedia University
collection	MMU Institutional Repository
topic	HG4001-4285 Finance management Business finance.
spellingShingle	HG4001-4285 Finance management Business finance. Chan, Kok Thim Corporate debt structures: A study of Malaysian publicly listed firms
description	Over the past fifty years, most financial literatures have revolved around different theories that try to explain exactly what does matter in determining capital structure (Ryen et al., 1997). Precisely, how Malaysian companies make decisions on capital structure have not been explored? It will be important to identify the factors for Malaysian companies to choose an appropriate capital structure to maximise their firm value as well as their stockholders’ wealth. How firms choose debt, equity and hybrid securities in their financial decisions are an intriguing decision. The fundamental question is whether the choice of capital structure in a firm will affect its value and how the proportions will increase shareholders’ wealth. The objective of this study is to investigate the determinants of corporate debt structures in the Malaysian publicly listed firms. It hopes to understand the Static Trade-off Theory, Pecking Order Theory as well as the Signalling Theory affecting the formation of capital structure in Malaysian companies. A randomly selected sample of 154 firms from Bursa Malaysia are analysed using a panel regression approach. The balance data of 1232 observations is studied during the period 2002-2009. Total debt is the dependent variable which is regressed by 8 other independent variables: growth opportunities, effective tax rate, interest coverage ratio, profitability, firm size, tangibility of assets, non-debt tax shield and volatility. These variables are selected based on capital studies throughout the world. Fixed effects and random effects are tested using Hausman Test to confirm the appropriate model for the Malaysian companies.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Chan, Kok Thim
author_facet	Chan, Kok Thim
author_sort	Chan, Kok Thim
title	Corporate debt structures: A study of Malaysian publicly listed firms
title_short	Corporate debt structures: A study of Malaysian publicly listed firms
title_full	Corporate debt structures: A study of Malaysian publicly listed firms
title_fullStr	Corporate debt structures: A study of Malaysian publicly listed firms
title_full_unstemmed	Corporate debt structures: A study of Malaysian publicly listed firms
title_sort	corporate debt structures: a study of malaysian publicly listed firms
granting_institution	Multimedia University
granting_department	Faculty of Management
publishDate	2011
_version_	1747829622166257664

Corporate debt structures: A study of Malaysian publicly listed firms

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