The relationship between debt financing and firms' performance in Malaysia / Farisya Nadia Mohd Yunus

Debt financing is one of the most used methods to raise funds for expansionary or increase the market coverage by going global. In contrast with equity financing, debt financing is easily obtained from bank credit or other financial institutions offering credit plans. However, it is crucial for firm...

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Main Author:	Mohd Yunus, Farisya Nadia
Format:	Thesis
Language:	English
Published:	2017
Subjects:	Credit Debt Loans
Online Access:	https://ir.uitm.edu.my/id/eprint/94069/1/94069.pdf
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id	my-uitm-ir.94069
record_format	uketd_dc
spelling	my-uitm-ir.940692024-06-18T06:43:26Z The relationship between debt financing and firms' performance in Malaysia / Farisya Nadia Mohd Yunus 2017 Mohd Yunus, Farisya Nadia Credit. Debt. Loans Debt financing is one of the most used methods to raise funds for expansionary or increase the market coverage by going global. In contrast with equity financing, debt financing is easily obtained from bank credit or other financial institutions offering credit plans. However, it is crucial for firms to assess the implications of the rise in debt level in relation to its profitability in order to ensure sustainability and growth of these firms. Present study sampled a total of 11 companies within the plantation sector in Malaysia to investigate the relationship between debt financing and firms' performance. Profitability is measured by the gross profit margin (GPM) while the independent variables used were total debt ratio (TDR), debt equity ratio (DER), interest coverage ratio (ICR), interest rate (INT) and inflation rate (INF). Results showed that T DR has an inverse impact on profitability whereas ICR has no role in explaining GPM. However, DER, INT and INF have a positive relationship with GPM. These findings will serve as a guide for firms that are deciding on opting for debt financing as it helps them in constructing the financial plan. 2017 Thesis https://ir.uitm.edu.my/id/eprint/94069/ https://ir.uitm.edu.my/id/eprint/94069/1/94069.pdf text en public degree Universiti Teknologi MARA, Johor Faculty of Business Management Roslan, Shashazrina Md. Lazan, Rohanizan
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Roslan, Shashazrina Md. Lazan, Rohanizan
topic	Credit Debt Loans
spellingShingle	Credit Debt Loans Mohd Yunus, Farisya Nadia The relationship between debt financing and firms' performance in Malaysia / Farisya Nadia Mohd Yunus
description	Debt financing is one of the most used methods to raise funds for expansionary or increase the market coverage by going global. In contrast with equity financing, debt financing is easily obtained from bank credit or other financial institutions offering credit plans. However, it is crucial for firms to assess the implications of the rise in debt level in relation to its profitability in order to ensure sustainability and growth of these firms. Present study sampled a total of 11 companies within the plantation sector in Malaysia to investigate the relationship between debt financing and firms' performance. Profitability is measured by the gross profit margin (GPM) while the independent variables used were total debt ratio (TDR), debt equity ratio (DER), interest coverage ratio (ICR), interest rate (INT) and inflation rate (INF). Results showed that T DR has an inverse impact on profitability whereas ICR has no role in explaining GPM. However, DER, INT and INF have a positive relationship with GPM. These findings will serve as a guide for firms that are deciding on opting for debt financing as it helps them in constructing the financial plan.
format	Thesis
qualification_level	Bachelor degree
author	Mohd Yunus, Farisya Nadia
author_facet	Mohd Yunus, Farisya Nadia
author_sort	Mohd Yunus, Farisya Nadia
title	The relationship between debt financing and firms' performance in Malaysia / Farisya Nadia Mohd Yunus
title_short	The relationship between debt financing and firms' performance in Malaysia / Farisya Nadia Mohd Yunus
title_full	The relationship between debt financing and firms' performance in Malaysia / Farisya Nadia Mohd Yunus
title_fullStr	The relationship between debt financing and firms' performance in Malaysia / Farisya Nadia Mohd Yunus
title_full_unstemmed	The relationship between debt financing and firms' performance in Malaysia / Farisya Nadia Mohd Yunus
title_sort	relationship between debt financing and firms' performance in malaysia / farisya nadia mohd yunus
granting_institution	Universiti Teknologi MARA, Johor
granting_department	Faculty of Business Management
publishDate	2017
url	https://ir.uitm.edu.my/id/eprint/94069/1/94069.pdf
_version_	1804889919029510144

The relationship between debt financing and firms' performance in Malaysia / Farisya Nadia Mohd Yunus

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