The relationship between leverage factors and firm profitability - a study on 10 public listed firms in Malaysia/ Nur Atiqah Abdul Ghafar

The purpose of this is to investigate the relationship between leverage factors and firm profitability for selected public listed firms in Malaysia. 10 public listed firms from various industries were picked randomly from year 2012 to 2016. Selected proxies have been chosen to represent both depende...

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Main Author:	Abdul Ghafar, Nur Atiqah
Format:	Thesis
Language:	English
Published:	2017
Subjects:	Profits Corporate profits Financial leverage
Online Access:	https://ir.uitm.edu.my/id/eprint/57509/1/57509.pdf
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id	my-uitm-ir.57509
record_format	uketd_dc
spelling	my-uitm-ir.575092022-05-04T13:18:12Z The relationship between leverage factors and firm profitability - a study on 10 public listed firms in Malaysia/ Nur Atiqah Abdul Ghafar 2017 Abdul Ghafar, Nur Atiqah Profits. Corporate profits Financial leverage The purpose of this is to investigate the relationship between leverage factors and firm profitability for selected public listed firms in Malaysia. 10 public listed firms from various industries were picked randomly from year 2012 to 2016. Selected proxies have been chosen to represent both dependent and independent variables. As for profitability the dependent variable, it used ROE (return on equity) as proxy. Besides, for leverage factors or the independent variables it used STD (short-term debt), LTD (long-term debt), TD (total debt) and DER (debt equity ratio). This research is carried out by using Balanced Panel Data method to capture heterogeneity across samples and due to the need to have bigger sample size. Besides, this study was using multiple regression analysis since there were many independent variables included such as STD, LTD, TD and DER. Assumption tests also included such as Descriptive Statistic, Regression Analysis, Correlation Analysis, Normality test (Jarque Bera), Multicollinearity, The White test and Breusch-Pagan-Godfrey test. There were positive relationships between all the variables except for STD where it has negative relationship. LTD (long- term debt) has positive significant relationship with ROE (return on equity). However, TD (total debt) and DER (debt equity ratio) were having positive insignificant relationship with ROE (return on equity). As for STD (short-term debt), it has negative insignificant relationship with ROE (return on equity). Besides, for the assumption tests, the error term not normally distributed, no multicollinearity problem exits, no serial correlation in error term and no heteroscadasticity (variance of observation is constant). 2017 Thesis https://ir.uitm.edu.my/id/eprint/57509/ https://ir.uitm.edu.my/id/eprint/57509/1/57509.pdf text en public degree UiTM Cawangan Johor Faculty of Business Administrations Md Isa, Mohammad Azwan Ahmad, Zuraidah
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Md Isa, Mohammad Azwan Ahmad, Zuraidah
topic	Profits Corporate profits Financial leverage
spellingShingle	Profits Corporate profits Financial leverage Abdul Ghafar, Nur Atiqah The relationship between leverage factors and firm profitability - a study on 10 public listed firms in Malaysia/ Nur Atiqah Abdul Ghafar
description	The purpose of this is to investigate the relationship between leverage factors and firm profitability for selected public listed firms in Malaysia. 10 public listed firms from various industries were picked randomly from year 2012 to 2016. Selected proxies have been chosen to represent both dependent and independent variables. As for profitability the dependent variable, it used ROE (return on equity) as proxy. Besides, for leverage factors or the independent variables it used STD (short-term debt), LTD (long-term debt), TD (total debt) and DER (debt equity ratio). This research is carried out by using Balanced Panel Data method to capture heterogeneity across samples and due to the need to have bigger sample size. Besides, this study was using multiple regression analysis since there were many independent variables included such as STD, LTD, TD and DER. Assumption tests also included such as Descriptive Statistic, Regression Analysis, Correlation Analysis, Normality test (Jarque Bera), Multicollinearity, The White test and Breusch-Pagan-Godfrey test. There were positive relationships between all the variables except for STD where it has negative relationship. LTD (long- term debt) has positive significant relationship with ROE (return on equity). However, TD (total debt) and DER (debt equity ratio) were having positive insignificant relationship with ROE (return on equity). As for STD (short-term debt), it has negative insignificant relationship with ROE (return on equity). Besides, for the assumption tests, the error term not normally distributed, no multicollinearity problem exits, no serial correlation in error term and no heteroscadasticity (variance of observation is constant).
format	Thesis
qualification_level	Bachelor degree
author	Abdul Ghafar, Nur Atiqah
author_facet	Abdul Ghafar, Nur Atiqah
author_sort	Abdul Ghafar, Nur Atiqah
title	The relationship between leverage factors and firm profitability - a study on 10 public listed firms in Malaysia/ Nur Atiqah Abdul Ghafar
title_short	The relationship between leverage factors and firm profitability - a study on 10 public listed firms in Malaysia/ Nur Atiqah Abdul Ghafar
title_full	The relationship between leverage factors and firm profitability - a study on 10 public listed firms in Malaysia/ Nur Atiqah Abdul Ghafar
title_fullStr	The relationship between leverage factors and firm profitability - a study on 10 public listed firms in Malaysia/ Nur Atiqah Abdul Ghafar
title_full_unstemmed	The relationship between leverage factors and firm profitability - a study on 10 public listed firms in Malaysia/ Nur Atiqah Abdul Ghafar
title_sort	relationship between leverage factors and firm profitability - a study on 10 public listed firms in malaysia/ nur atiqah abdul ghafar
granting_institution	UiTM Cawangan Johor
granting_department	Faculty of Business Administrations
publishDate	2017
url	https://ir.uitm.edu.my/id/eprint/57509/1/57509.pdf
_version_	1783734980692672512

The relationship between leverage factors and firm profitability - a study on 10 public listed firms in Malaysia/ Nur Atiqah Abdul Ghafar

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