Determinants of corporate leverage: evidence from Malaysian service sector

This study investigates the determinants of corporate’s leverage in the non-financial service companies as the debt financing becomes an important source of capital nowadays. The main purpose of this thesis is to identify and analyze the relationship between companyspecific factors and company’s lev...

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Main Author:	Amirul Azim, Abdul Hamid
Format:	Thesis
Language:	eng eng
Published:	2020
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/10402/1/depositpermission_s825064.pdf https://etd.uum.edu.my/10402/2/s825064_01.pdf
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id	my-uum-etd.10402
record_format	uketd_dc
spelling	my-uum-etd.104022023-03-09T01:31:11Z Determinants of corporate leverage: evidence from Malaysian service sector 2020 Amirul Azim, Abdul Hamid Ismail, Rusmawati School of Economics, Finance & Banking School of Economics, Finance & Banking HG Finance This study investigates the determinants of corporate’s leverage in the non-financial service companies as the debt financing becomes an important source of capital nowadays. The main purpose of this thesis is to identify and analyze the relationship between companyspecific factors and company’s leverage of public listed service companies in Bursa Malaysia. This research paper covers 231 service sector companies from the year of 2008 to 2018 (11 years) on panel data basis. This research paper applies Dynamic panel regression and System-Generalized Method of Moment (S-GMM) since the result indicate this study is genuinely dynamic. The findings of this study show that company-specific variables such as size (SIZETAi,t), profitability (PROROEi,t), liquidity (LIQRi,t), prior leverage (LagLEVi,t-1) and growth opportunities (GROPi,t) are significantly influence company’s leverage (LEVi,t ). However, variables such as sustainability (SUSAgei,t), profitability (PRONPMi,t) and liquidity (LICashRi,t) are insignificant on company’s leverage. Furthermore, results also indicate SUSAgei,t, PROROEi,t and LIQRi,t support Pecking Order Theory (POT) while the rest (SIZETAi,t, LagLEVi,t-1, GROPi,t, PRONPMi,t and LICashRi,t) support Trade-off Theory (TOT). 2020 Thesis https://etd.uum.edu.my/10402/ https://etd.uum.edu.my/10402/1/depositpermission_s825064.pdf text eng staffonly https://etd.uum.edu.my/10402/2/s825064_01.pdf text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Ismail, Rusmawati
topic	HG Finance
spellingShingle	HG Finance Amirul Azim, Abdul Hamid Determinants of corporate leverage: evidence from Malaysian service sector
description	This study investigates the determinants of corporate’s leverage in the non-financial service companies as the debt financing becomes an important source of capital nowadays. The main purpose of this thesis is to identify and analyze the relationship between companyspecific factors and company’s leverage of public listed service companies in Bursa Malaysia. This research paper covers 231 service sector companies from the year of 2008 to 2018 (11 years) on panel data basis. This research paper applies Dynamic panel regression and System-Generalized Method of Moment (S-GMM) since the result indicate this study is genuinely dynamic. The findings of this study show that company-specific variables such as size (SIZETAi,t), profitability (PROROEi,t), liquidity (LIQRi,t), prior leverage (LagLEVi,t-1) and growth opportunities (GROPi,t) are significantly influence company’s leverage (LEVi,t ). However, variables such as sustainability (SUSAgei,t), profitability (PRONPMi,t) and liquidity (LICashRi,t) are insignificant on company’s leverage. Furthermore, results also indicate SUSAgei,t, PROROEi,t and LIQRi,t support Pecking Order Theory (POT) while the rest (SIZETAi,t, LagLEVi,t-1, GROPi,t, PRONPMi,t and LICashRi,t) support Trade-off Theory (TOT).
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Amirul Azim, Abdul Hamid
author_facet	Amirul Azim, Abdul Hamid
author_sort	Amirul Azim, Abdul Hamid
title	Determinants of corporate leverage: evidence from Malaysian service sector
title_short	Determinants of corporate leverage: evidence from Malaysian service sector
title_full	Determinants of corporate leverage: evidence from Malaysian service sector
title_fullStr	Determinants of corporate leverage: evidence from Malaysian service sector
title_full_unstemmed	Determinants of corporate leverage: evidence from Malaysian service sector
title_sort	determinants of corporate leverage: evidence from malaysian service sector
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2020
url	https://etd.uum.edu.my/10402/1/depositpermission_s825064.pdf https://etd.uum.edu.my/10402/2/s825064_01.pdf
_version_	1776103809120993280

Determinants of corporate leverage: evidence from Malaysian service sector

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