Does corporate diversification induce financing choice?
This paper sets out to examine the effect of business diversification strategy on capital structure in Malaysia. The study segregates the firms into related and unrelated firms based on segmentation of Standard Industry Classification Code. It involes 76 public listed firms in Bursa Malaysia from...
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my-unisza-ir.56652022-02-22T08:00:43Z http://eprints.unisza.edu.my/5665/ Does corporate diversification induce financing choice? Wan Mohd Nazri, Wan Daud Farah Amalina, Md Nawi Rusliza, Yahaya Norlia, Mat Norwan HB Economic Theory HG Finance This paper sets out to examine the effect of business diversification strategy on capital structure in Malaysia. The study segregates the firms into related and unrelated firms based on segmentation of Standard Industry Classification Code. It involes 76 public listed firms in Bursa Malaysia from 1994 to 2012. This research uses static panel data to determine the credible association between diversification strategy and choice of financing. The authors find that period fixed effect with seemingly unrelated regression produce better results to explain the relationship between independent and dependent variables. The results demonstrate that there is insignificant relationship between diversification strategy and capital structure. Robustness check on pre and post crisis data generate similar output. The potential contribution of this work lies in offering empirical evidence to test the previous held assumption that there is a significant relationship between corporate expansion and financing decision done by firms. Future research should explore the possibility by using international firms to investigate the association between those variables. 2017-12 Article PeerReviewed text en http://eprints.unisza.edu.my/5665/1/FH02-FESP-18-12484.pdf Wan Mohd Nazri, Wan Daud and Farah Amalina, Md Nawi and Rusliza, Yahaya and Norlia, Mat Norwan (2017) Does corporate diversification induce financing choice? International Business and Education Journal, 10 (1). pp. 31-42. ISSN 1985 2126 |
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HB Economic Theory HG Finance Wan Mohd Nazri, Wan Daud Farah Amalina, Md Nawi Rusliza, Yahaya Norlia, Mat Norwan Does corporate diversification induce financing choice? |
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This paper sets out to examine the effect of business diversification strategy on capital structure in Malaysia. The
study segregates the firms into related and unrelated firms based on segmentation of Standard Industry
Classification Code. It involes 76 public listed firms in Bursa Malaysia from 1994 to 2012. This research uses
static panel data to determine the credible association between diversification strategy and choice of financing.
The authors find that period fixed effect with seemingly unrelated regression produce better results to explain the
relationship between independent and dependent variables. The results demonstrate that there is insignificant
relationship between diversification strategy and capital structure. Robustness check on pre and post crisis data
generate similar output. The potential contribution of this work lies in offering empirical evidence to test the
previous held assumption that there is a significant relationship between corporate expansion and financing
decision done by firms. Future research should explore the possibility by using international firms to investigate
the association between those variables. |
format |
Article |
author |
Wan Mohd Nazri, Wan Daud Farah Amalina, Md Nawi Rusliza, Yahaya Norlia, Mat Norwan |
author_facet |
Wan Mohd Nazri, Wan Daud Farah Amalina, Md Nawi Rusliza, Yahaya Norlia, Mat Norwan |
author_sort |
Wan Mohd Nazri, Wan Daud |
title |
Does corporate diversification induce financing choice? |
title_short |
Does corporate diversification induce financing choice? |
title_full |
Does corporate diversification induce financing choice? |
title_fullStr |
Does corporate diversification induce financing choice? |
title_full_unstemmed |
Does corporate diversification induce financing choice? |
title_sort |
does corporate diversification induce financing choice? |
publishDate |
2017 |
url |
http://eprints.unisza.edu.my/5665/1/FH02-FESP-18-12484.pdf http://eprints.unisza.edu.my/5665/ |
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1725976979945029632 |
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13.160551 |