Malaysia listed technology companies: examining the optimal capital structure, financial ratios trend and financial health from 2012 to 2016

Malaysia listed technology companies: examining the optimal capital structure, financial ratios trend and financial health from 2012 to 2016

Capital structure of the firm plays an important role to help firm achieves better performance and sustainability in its business. As such, this study was conducted to investigate the optimal capital structure, to observe financial ratio trends and to examine the financial health in the context of t...

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Main Author: Adilah Irdahwani, Abdul Rahim
Format: Thesis
Language:eng
eng
Published: 2018
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/7646/1/s816298_01.pdf
https://etd.uum.edu.my/7646/2/s816298_02.pdf
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id my-uum-etd.7646
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Zainuddin, Zaemah
topic HG Finance
spellingShingle HG Finance
Adilah Irdahwani, Abdul Rahim
Malaysia listed technology companies: examining the optimal capital structure, financial ratios trend and financial health from 2012 to 2016
description Capital structure of the firm plays an important role to help firm achieves better performance and sustainability in its business. As such, this study was conducted to investigate the optimal capital structure, to observe financial ratio trends and to examine the financial health in the context of technology companies listed on KLTEC Index in Malaysia. The financial data of 30 technology companies listed on KLTEC Index were extracted from Bloomberg database for 5 years, which is from 2012 to 2016. The financial data were analyzed using Descriptive Analysis, Financial Ratio Analysis and Altman’s Z-Score. Descriptive analysis was used to investigate the optimal capital structure, the financial ratio analysis was used to see the profitability, tangibility and liquidity trends and Altman’s Z-Score Model was used to examine the financial health of the listed technology companies. The descriptive analysis summarized that most of the technology companies have acquired 71.3 per cent debt financing to finance its assets. The profitability ratio showed a declining trend for three (3) consecutive years from 2014 to 2016, the tangibility ratio showed moderate-tohealthy trend which ranged between 0.40 and 0.38 in 2012 and 2016 respectively, and the liquidity ratio indicated a stable trend which ranged between 3.15x to 3.04x from 2012 to 2016. The Altman’s Z-Score presented that the Green Packet Bhd, Omesti Bhd and HeiTech Padu Bhd have recorded the lowest Z-Score which portrayed high risk of bankruptcy.
format Thesis
qualification_name masters
qualification_level Master's degree
author Adilah Irdahwani, Abdul Rahim
author_facet Adilah Irdahwani, Abdul Rahim
author_sort Adilah Irdahwani, Abdul Rahim
title Malaysia listed technology companies: examining the optimal capital structure, financial ratios trend and financial health from 2012 to 2016
title_short Malaysia listed technology companies: examining the optimal capital structure, financial ratios trend and financial health from 2012 to 2016
title_full Malaysia listed technology companies: examining the optimal capital structure, financial ratios trend and financial health from 2012 to 2016
title_fullStr Malaysia listed technology companies: examining the optimal capital structure, financial ratios trend and financial health from 2012 to 2016
title_full_unstemmed Malaysia listed technology companies: examining the optimal capital structure, financial ratios trend and financial health from 2012 to 2016
title_sort malaysia listed technology companies: examining the optimal capital structure, financial ratios trend and financial health from 2012 to 2016
granting_institution Universiti Utara Malaysia
granting_department School of Economics, Finance & Banking
publishDate 2018
url https://etd.uum.edu.my/7646/1/s816298_01.pdf
https://etd.uum.edu.my/7646/2/s816298_02.pdf
_version_ 1747828247950786560
spelling my-uum-etd.76462021-08-09T03:30:27Z Malaysia listed technology companies: examining the optimal capital structure, financial ratios trend and financial health from 2012 to 2016 2018 Adilah Irdahwani, Abdul Rahim Zainuddin, Zaemah School of Economics, Finance & Banking School of Economics, Finance & Banking HG Finance Capital structure of the firm plays an important role to help firm achieves better performance and sustainability in its business. As such, this study was conducted to investigate the optimal capital structure, to observe financial ratio trends and to examine the financial health in the context of technology companies listed on KLTEC Index in Malaysia. The financial data of 30 technology companies listed on KLTEC Index were extracted from Bloomberg database for 5 years, which is from 2012 to 2016. The financial data were analyzed using Descriptive Analysis, Financial Ratio Analysis and Altman’s Z-Score. Descriptive analysis was used to investigate the optimal capital structure, the financial ratio analysis was used to see the profitability, tangibility and liquidity trends and Altman’s Z-Score Model was used to examine the financial health of the listed technology companies. The descriptive analysis summarized that most of the technology companies have acquired 71.3 per cent debt financing to finance its assets. The profitability ratio showed a declining trend for three (3) consecutive years from 2014 to 2016, the tangibility ratio showed moderate-tohealthy trend which ranged between 0.40 and 0.38 in 2012 and 2016 respectively, and the liquidity ratio indicated a stable trend which ranged between 3.15x to 3.04x from 2012 to 2016. The Altman’s Z-Score presented that the Green Packet Bhd, Omesti Bhd and HeiTech Padu Bhd have recorded the lowest Z-Score which portrayed high risk of bankruptcy. 2018 Thesis https://etd.uum.edu.my/7646/ https://etd.uum.edu.my/7646/1/s816298_01.pdf text eng public https://etd.uum.edu.my/7646/2/s816298_02.pdf text eng public masters masters Universiti Utara Malaysia Abdullah, M. (2015). An Empirical Analysis of Liquidity, Profitability and Solvency of Bangladeshi Banks. Journal of Business & Financial Affairs. Vol. 4(3) pp. 157 Abhishek, B. (2015). An Exploratory Study of Telecommunication Sector for Selected Countries. Indian Journal of Science and Technology, Vol. 8(34) Abor, J. (2007). Debt policy and performance of SMEs: Evidence from Ghanaian and South African firms. Journal of Risk Finance, 8(4), 364-379. Alareeni, B. A., & Branson, J. (2012). Predicting listed companies’ failure in Jordan using Altman models: A case study. 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