Pecking order theory: evidence from construction companies in Malaysia (2010-2014) / Mazniah Ahmad

Capital structure decision is very important for every companies and firms to ensure credit is not a threat to them, instead act as a boosting factor for the company growth and survival. Companies commonly refer to the two-competing theory, the pecking order theory and the trade-off theory in determ...

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Main Author:	Ahmad, Mazniah
Format:	Thesis
Language:	English
Published:	2016
Subjects:	Dissertations, Academic Preparation of theses
Online Access:	https://ir.uitm.edu.my/id/eprint/95389/1/95389.PDF
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id	my-uitm-ir.95389
record_format	uketd_dc
spelling	my-uitm-ir.953892024-05-17T07:59:20Z Pecking order theory: evidence from construction companies in Malaysia (2010-2014) / Mazniah Ahmad 2016 Ahmad, Mazniah Dissertations, Academic. Preparation of theses Capital structure decision is very important for every companies and firms to ensure credit is not a threat to them, instead act as a boosting factor for the company growth and survival. Companies commonly refer to the two-competing theory, the pecking order theory and the trade-off theory in determining their optimal capital structure. The comparative study is to find evidence of the application of the pecking order theory in construction companies in Malaysia listed in Bursa Saham Kuala Lumpur Malaysia (BSKL). This study examines the Pecking Order Theory: Construction companies in Malaysia listed in the Bursa Malaysia market during a five years period from 2010 to 2014. It is to compare whether constructions company in Malaysia apply a pecking order theory or not. The data was collected from OSIRIS and income statement and balance sheet taken from annual reports with total numbers of 35 companies for observation. The dependent variable used is debt ratio and expressed by total debt divided by total assets while independent variables are (1) profitability, (2) asset tangibility, (3) size and (4) growth. Using Data Analysis and Statistical Software (STATA), the results show that the profitability, asset tangibility and growth opportunity of the construction companies Malaysia is significant negatively relations to debt ratio while firm size positively significant in relations to total debt. The result of the study suggest that there are two variables which is profitability and asset tangibility align with pecking order theory while the rest of two variables is not align with pecking order theory and more to trade off theory. 2016 Thesis https://ir.uitm.edu.my/id/eprint/95389/ https://ir.uitm.edu.my/id/eprint/95389/1/95389.PDF text en public degree Universiti Teknologi MARA, Negeri Sembilan Faculty of Business Management
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
topic	Dissertations, Academic Preparation of theses
spellingShingle	Dissertations, Academic Preparation of theses Ahmad, Mazniah Pecking order theory: evidence from construction companies in Malaysia (2010-2014) / Mazniah Ahmad
description	Capital structure decision is very important for every companies and firms to ensure credit is not a threat to them, instead act as a boosting factor for the company growth and survival. Companies commonly refer to the two-competing theory, the pecking order theory and the trade-off theory in determining their optimal capital structure. The comparative study is to find evidence of the application of the pecking order theory in construction companies in Malaysia listed in Bursa Saham Kuala Lumpur Malaysia (BSKL). This study examines the Pecking Order Theory: Construction companies in Malaysia listed in the Bursa Malaysia market during a five years period from 2010 to 2014. It is to compare whether constructions company in Malaysia apply a pecking order theory or not. The data was collected from OSIRIS and income statement and balance sheet taken from annual reports with total numbers of 35 companies for observation. The dependent variable used is debt ratio and expressed by total debt divided by total assets while independent variables are (1) profitability, (2) asset tangibility, (3) size and (4) growth. Using Data Analysis and Statistical Software (STATA), the results show that the profitability, asset tangibility and growth opportunity of the construction companies Malaysia is significant negatively relations to debt ratio while firm size positively significant in relations to total debt. The result of the study suggest that there are two variables which is profitability and asset tangibility align with pecking order theory while the rest of two variables is not align with pecking order theory and more to trade off theory.
format	Thesis
qualification_level	Bachelor degree
author	Ahmad, Mazniah
author_facet	Ahmad, Mazniah
author_sort	Ahmad, Mazniah
title	Pecking order theory: evidence from construction companies in Malaysia (2010-2014) / Mazniah Ahmad
title_short	Pecking order theory: evidence from construction companies in Malaysia (2010-2014) / Mazniah Ahmad
title_full	Pecking order theory: evidence from construction companies in Malaysia (2010-2014) / Mazniah Ahmad
title_fullStr	Pecking order theory: evidence from construction companies in Malaysia (2010-2014) / Mazniah Ahmad
title_full_unstemmed	Pecking order theory: evidence from construction companies in Malaysia (2010-2014) / Mazniah Ahmad
title_sort	pecking order theory: evidence from construction companies in malaysia (2010-2014) / mazniah ahmad
granting_institution	Universiti Teknologi MARA, Negeri Sembilan
granting_department	Faculty of Business Management
publishDate	2016
url	https://ir.uitm.edu.my/id/eprint/95389/1/95389.PDF
_version_	1804889956183703552

Pecking order theory: evidence from construction companies in Malaysia (2010-2014) / Mazniah Ahmad

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