The effect of capitals structure on firm's performance: evidence from Malaysian construction industry

The effect of capitals structure on firm's performance: evidence from Malaysian construction industry

The main objective of this study is to examine the effect of capital structure on firm’s performance specifically focusing on the Malaysian construction firms. This study also attempted to highlight the theories of capital structure that closely related to the Malaysian construction firms. This stud...

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Main Author: Azira, Husain
Format: Thesis
Language:eng
eng
Published: 2016
Subjects:
HG Finance
TH Building construction
Online Access:https://etd.uum.edu.my/6098/1/s817806_01.pdf
https://etd.uum.edu.my/6098/2/s817806_02.pdf
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id my-uum-etd.6098
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Nordin, Sabariah
topic HG Finance
TH Building construction
spellingShingle HG Finance
TH Building construction
Azira, Husain
The effect of capitals structure on firm's performance: evidence from Malaysian construction industry
description The main objective of this study is to examine the effect of capital structure on firm’s performance specifically focusing on the Malaysian construction firms. This study also attempted to highlight the theories of capital structure that closely related to the Malaysian construction firms. This study uses 21 sample firms listed on the Main Market of Bursa Malaysia with at least 10 years trading experience. The period of study is 7 years (2009-2015). A few series of regressions has been conducted and the final results are reported based on fixed effect model with robust standard error. The findings show that all variables; long term debt, total debt, size and sales growth have an effect on firm’s performance except the short term debt. The long term debt and sales growth have a positive relationship with firm’s performance. The results indicate that an increase in the long term debt and sales growth are associated with an increase in the firm’s profitability. Meanwhile, the total debt and size show a negative and significant relationship with firm’s performance. Therefore, the negative relationship between debt and firm’s performance is fits the trade-off theory. The trade-off theory explains that overleverages firm’s capital structure will cause the difficulties to meet the interest payment obligation which later would jeopardise the firm’s value.
format Thesis
qualification_name masters
qualification_level Master's degree
author Azira, Husain
author_facet Azira, Husain
author_sort Azira, Husain
title The effect of capitals structure on firm's performance: evidence from Malaysian construction industry
title_short The effect of capitals structure on firm's performance: evidence from Malaysian construction industry
title_full The effect of capitals structure on firm's performance: evidence from Malaysian construction industry
title_fullStr The effect of capitals structure on firm's performance: evidence from Malaysian construction industry
title_full_unstemmed The effect of capitals structure on firm's performance: evidence from Malaysian construction industry
title_sort effect of capitals structure on firm's performance: evidence from malaysian construction industry
granting_institution Universiti Utara Malaysia
granting_department School of Economics, Finance & Banking
publishDate 2016
url https://etd.uum.edu.my/6098/1/s817806_01.pdf
https://etd.uum.edu.my/6098/2/s817806_02.pdf
_version_ 1747828021029502976
spelling my-uum-etd.60982021-04-05T01:59:56Z The effect of capitals structure on firm's performance: evidence from Malaysian construction industry 2016 Azira, Husain Nordin, Sabariah School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance TH Building construction The main objective of this study is to examine the effect of capital structure on firm’s performance specifically focusing on the Malaysian construction firms. This study also attempted to highlight the theories of capital structure that closely related to the Malaysian construction firms. This study uses 21 sample firms listed on the Main Market of Bursa Malaysia with at least 10 years trading experience. The period of study is 7 years (2009-2015). A few series of regressions has been conducted and the final results are reported based on fixed effect model with robust standard error. The findings show that all variables; long term debt, total debt, size and sales growth have an effect on firm’s performance except the short term debt. The long term debt and sales growth have a positive relationship with firm’s performance. The results indicate that an increase in the long term debt and sales growth are associated with an increase in the firm’s profitability. Meanwhile, the total debt and size show a negative and significant relationship with firm’s performance. Therefore, the negative relationship between debt and firm’s performance is fits the trade-off theory. The trade-off theory explains that overleverages firm’s capital structure will cause the difficulties to meet the interest payment obligation which later would jeopardise the firm’s value. 2016 Thesis https://etd.uum.edu.my/6098/ https://etd.uum.edu.my/6098/1/s817806_01.pdf text eng public https://etd.uum.edu.my/6098/2/s817806_02.pdf text eng public masters masters Universiti Utara Malaysia Abor, J. (2005). 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