EN
The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies
Abstract
In this study, we explore how the debt equity choices of Listed Malaysian Government linked Companies (GLCs) are influenced by the firm specific characteristics and macroeconomic variables using a sample of 13 GLCs from 1997 to 2009. Two elements of leverage, book value of total debt ratio (BVTDR) and long term debt ratio (BVLTDR), were used to check for any significant changes in corporate financing and found mixed results. Tangibility and firm size are the most significant variables to determine the corporate financing of GLCs. Liquidity and interest rate are negatively significant with BVTDR and BVLTDR, respectively.The study concluded that profitability is inconsequential in determining corporate financing; inconsistent with the findings of previous Malaysian studies. With the proper design of capital structure and intervention from the government, the study also concludes that GLCs are rely less on leverage to support their investment activities.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
December 1, 2014
Submission Date
December 1, 2014
Acceptance Date
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Published in Issue
Year 2014 Volume: 4 Number: 4
APA
Wahab, S. N. A. A., & Ramli, N. A. (2014). The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies. International Journal of Economics and Financial Issues, 4(4), 930-945. https://izlik.org/JA27KX52ZJ
AMA
1.Wahab SNAA, Ramli NA. The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies. IJEFI. 2014;4(4):930-945. https://izlik.org/JA27KX52ZJ
Chicago
Wahab, Siti Nur Aqilah Ab, and Nur Ainna Ramli. 2014. “The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies”. International Journal of Economics and Financial Issues 4 (4): 930-45. https://izlik.org/JA27KX52ZJ.
EndNote
Wahab SNAA, Ramli NA (December 1, 2014) The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies. International Journal of Economics and Financial Issues 4 4 930–945.
IEEE
[1]S. N. A. A. Wahab and N. A. Ramli, “The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies”, IJEFI, vol. 4, no. 4, pp. 930–945, Dec. 2014, [Online]. Available: https://izlik.org/JA27KX52ZJ
ISNAD
Wahab, Siti Nur Aqilah Ab - Ramli, Nur Ainna. “The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies”. International Journal of Economics and Financial Issues 4/4 (December 1, 2014): 930-945. https://izlik.org/JA27KX52ZJ.
JAMA
1.Wahab SNAA, Ramli NA. The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies. IJEFI. 2014;4:930–945.
MLA
Wahab, Siti Nur Aqilah Ab, and Nur Ainna Ramli. “The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies”. International Journal of Economics and Financial Issues, vol. 4, no. 4, Dec. 2014, pp. 930-45, https://izlik.org/JA27KX52ZJ.
Vancouver
1.Siti Nur Aqilah Ab Wahab, Nur Ainna Ramli. The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies. IJEFI [Internet]. 2014 Dec. 1;4(4):930-45. Available from: https://izlik.org/JA27KX52ZJ