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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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 |