Ownership concentration and capital structure: Malaysian evidence

This dissertation investigates the relationship between ownership concentration and capital structure. This dissertation also examines the relationship between firm’s financial characteristics (profitability, firm size, asset tangibility liquidity) and capital structure. Both objectives are explored...

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Main Author:	Nureliana, Baderi
Format:	Thesis
Language:	eng eng
Published:	2014
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/4174/1/s813365.pdf https://etd.uum.edu.my/4174/2/s813365_abstract.pdf
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id	my-uum-etd.4174
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abdul Adzis, Azira
topic	HG Finance
spellingShingle	HG Finance Nureliana, Baderi Ownership concentration and capital structure: Malaysian evidence
description	This dissertation investigates the relationship between ownership concentration and capital structure. This dissertation also examines the relationship between firm’s financial characteristics (profitability, firm size, asset tangibility liquidity) and capital structure. Both objectives are explored by employing 48 Malaysian public listed firms for the period of 5 financial years, spanning from 2008 to 2012. There are two proxies used to measure ownership concentration; the natural log of total number of shareholders and the fraction of shares hold by the top five largest shareholders. The regression result shows a significantly negative relationship between the fractions of top five shareholdings and leverage ratio, which means that concentrated firms hold lesser debt than dispersed ownership firms. Contradict to agency theory, this finding indicates that MCCG 2012 is still lacking in the area of shareholder’s protection as stated by the World Bank in their recent assessment on MCCG 2012. By looking at the relationship between ownership concentration and capital structure, this dissertation contributes to literature by investigating the effectiveness of MCCG 2012 in addressing and executing shareholder’s right and protection in Malaysia. In addition, this dissertation also finds that profitability, firm size, asset tangibility, and liquidity are the significant determinants of capital structure for Malaysian firms.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Nureliana, Baderi
author_facet	Nureliana, Baderi
author_sort	Nureliana, Baderi
title	Ownership concentration and capital structure: Malaysian evidence
title_short	Ownership concentration and capital structure: Malaysian evidence
title_full	Ownership concentration and capital structure: Malaysian evidence
title_fullStr	Ownership concentration and capital structure: Malaysian evidence
title_full_unstemmed	Ownership concentration and capital structure: Malaysian evidence
title_sort	ownership concentration and capital structure: malaysian evidence
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2014
url	https://etd.uum.edu.my/4174/1/s813365.pdf https://etd.uum.edu.my/4174/2/s813365_abstract.pdf
_version_	1747827693499449344
spelling	my-uum-etd.41742016-04-17T07:00:12Z Ownership concentration and capital structure: Malaysian evidence 2014-07 Nureliana, Baderi Abdul Adzis, Azira Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance This dissertation investigates the relationship between ownership concentration and capital structure. This dissertation also examines the relationship between firm’s financial characteristics (profitability, firm size, asset tangibility liquidity) and capital structure. Both objectives are explored by employing 48 Malaysian public listed firms for the period of 5 financial years, spanning from 2008 to 2012. There are two proxies used to measure ownership concentration; the natural log of total number of shareholders and the fraction of shares hold by the top five largest shareholders. The regression result shows a significantly negative relationship between the fractions of top five shareholdings and leverage ratio, which means that concentrated firms hold lesser debt than dispersed ownership firms. Contradict to agency theory, this finding indicates that MCCG 2012 is still lacking in the area of shareholder’s protection as stated by the World Bank in their recent assessment on MCCG 2012. By looking at the relationship between ownership concentration and capital structure, this dissertation contributes to literature by investigating the effectiveness of MCCG 2012 in addressing and executing shareholder’s right and protection in Malaysia. In addition, this dissertation also finds that profitability, firm size, asset tangibility, and liquidity are the significant determinants of capital structure for Malaysian firms. 2014-07 Thesis https://etd.uum.edu.my/4174/ https://etd.uum.edu.my/4174/1/s813365.pdf text eng validuser https://etd.uum.edu.my/4174/2/s813365_abstract.pdf text eng public masters masters Universiti Utara Malaysia Abdullah, S.N. (2006). Board structure and ownership in Malaysia: The case of distressed listed companies. Corporate Governance, 6(5), 582-594. Agrawal, S. & Mohtadi, H. (2004). Financial markets and the financing choice of firms: Evidence from developing countries. Global Finance Journal, 15, 57-70. Antoniou, A., Guney, Y., & Paudyal, K. (2008). The determinants of capital structure: Capital market oriented versus bank-oriented institutions. Journal of Financial and Quantitative Analysis, 43(1), 59-92. Arslan, O., Flockaris, C. & Ozkan A. (2006). 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Ownership concentration and capital structure: Malaysian evidence

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