The Joint Determination of Leverage and Maturity: Empirical Evidence from Malaysia

The Joint Determination of Leverage and Maturity: Empirical Evidence from Malaysia

This study empirically investigates the simultaneity between leverage and debt maturity policies and the factors that influence them by using a simultaneous equations framework in which leverage and debt maturity are endogenous variables. Based on a panel data of 788 non-financial firms listed on Bu...

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Main Author: Aprilia, Rini
Format: Thesis
Language:eng
eng
Published: 2012
Subjects:
HF5001-6182 Business
Online Access:https://etd.uum.edu.my/3006/1/Rini_Aprilia.pdf
https://etd.uum.edu.my/3006/2/Rini_Aprilia.pdf
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record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Rozali, Mohammad Badri
topic HF5001-6182 Business
spellingShingle HF5001-6182 Business
Aprilia, Rini
The Joint Determination of Leverage and Maturity: Empirical Evidence from Malaysia
description This study empirically investigates the simultaneity between leverage and debt maturity policies and the factors that influence them by using a simultaneous equations framework in which leverage and debt maturity are endogenous variables. Based on a panel data of 788 non-financial firms listed on Bursa Malaysia from 1999 until 2010, this study estimates a single equation model on leverage and debt maturity using an Estimated Generalized Least Squares (EGLS) approach. The simultaneity between leverage and debt maturity is tested by utilizing a two-stage least squares(2SLS) regression model. The results of this study show that leverage and debt maturity policies have a negative simultaneous relationship which indicates that there are strategic complementarities between leverage and maturity. This study also documents different results among the exogenous variables in both equations, in which growth opportunities, regulation, firm size, profitability and tangibility lend considerable support to the proposed hypotheses on the leverage equation. Meanwhile, firm size, regulation, abnormal earnings and tangibility are found to have significant effects on the debt maturity equation.
format Thesis
qualification_name masters
qualification_level Master's degree
author Aprilia, Rini
author_facet Aprilia, Rini
author_sort Aprilia, Rini
title The Joint Determination of Leverage and Maturity: Empirical Evidence from Malaysia
title_short The Joint Determination of Leverage and Maturity: Empirical Evidence from Malaysia
title_full The Joint Determination of Leverage and Maturity: Empirical Evidence from Malaysia
title_fullStr The Joint Determination of Leverage and Maturity: Empirical Evidence from Malaysia
title_full_unstemmed The Joint Determination of Leverage and Maturity: Empirical Evidence from Malaysia
title_sort joint determination of leverage and maturity: empirical evidence from malaysia
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2012
url https://etd.uum.edu.my/3006/1/Rini_Aprilia.pdf
https://etd.uum.edu.my/3006/2/Rini_Aprilia.pdf
_version_ 1747827478381985792
spelling my-uum-etd.30062022-04-10T06:26:21Z The Joint Determination of Leverage and Maturity: Empirical Evidence from Malaysia 2012-01 Aprilia, Rini Rozali, Mohammad Badri Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5001-6182 Business This study empirically investigates the simultaneity between leverage and debt maturity policies and the factors that influence them by using a simultaneous equations framework in which leverage and debt maturity are endogenous variables. Based on a panel data of 788 non-financial firms listed on Bursa Malaysia from 1999 until 2010, this study estimates a single equation model on leverage and debt maturity using an Estimated Generalized Least Squares (EGLS) approach. The simultaneity between leverage and debt maturity is tested by utilizing a two-stage least squares(2SLS) regression model. The results of this study show that leverage and debt maturity policies have a negative simultaneous relationship which indicates that there are strategic complementarities between leverage and maturity. This study also documents different results among the exogenous variables in both equations, in which growth opportunities, regulation, firm size, profitability and tangibility lend considerable support to the proposed hypotheses on the leverage equation. Meanwhile, firm size, regulation, abnormal earnings and tangibility are found to have significant effects on the debt maturity equation. 2012-01 Thesis https://etd.uum.edu.my/3006/ https://etd.uum.edu.my/3006/1/Rini_Aprilia.pdf text eng public https://etd.uum.edu.my/3006/2/Rini_Aprilia.pdf text eng public masters masters Universiti Utara Malaysia Ahmed , H. J., & Hisham, N. (2009). Revisiting capital structure theory: A test of pecking order theory and statistic order trade-of model from Malaysian capital market. 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