The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies

Siti Nur Aqilah Ab Wahab; Nur Ainna Ramli

The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies

Year 2014, Volume: 4 Issue: 4, 930 - 945, 01.12.2014

Siti Nur Aqilah Ab Wahab Nur Ainna Ramli

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

Capital structure, Pecking Order Theory, Trade-Off Theory

Year 2014, Volume: 4 Issue: 4, 930 - 945, 01.12.2014

Siti Nur Aqilah Ab Wahab Nur Ainna Ramli

Abstract

There are 0 citations in total.

Details

Other ID	JA66HU47RU
Journal Section	Research Article
Authors	Siti Nur Aqilah Ab Wahab This is me Nur Ainna Ramli This is me
Publication Date	December 1, 2014
Published in Issue	Year 2014 Volume: 4 Issue: 4

Cite

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.
AMA	Wahab SNAA, Ramli NA. The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies. IJEFI. December 2014;4(4):930-945.
Chicago	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 4, no. 4 (December 2014): 930-45.
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	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, 2014.
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 2014), 930-945.
JAMA	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, 2014, pp. 930-45.
Vancouver	Wahab SNAA, Ramli NA. The Determinants of Capital Structure: An Empirical Investigation of Malaysian Listed Government Linked Companies. IJEFI. 2014;4(4):930-45.