The influence of financial leverages on profitability: case study of the companies in technology sector in Malaysia / Thaqif Umair Saifuzzaman

• Main Author: Saifuzzaman, Thaqif Umair
• Format: Thesis
• Language: English
• Published: 2022
• Subjects: Financial management. Business finance. Corporation finance
• Online Access: https://ir.uitm.edu.my/id/eprint/107615/1/107615.pdf; https://ir.uitm.edu.my/id/eprint/107615/

This research is an attempt to initiate a theoretical relationship between financial leverage and profitability using four companies of the technology sector in Malaysia over the period 2011-2020. The research is performed using the Net Profit Margin (NPM) to examine the relationship between the financial leverages ratios. Previous research results shows that some of the independent variables have a significant relationship and some of the independent variables have insignificant relationship with the dependent variables which is profitability of the technology sector. This study uses secondary data from the four companies of the technology sector listed in Bursa Malaysia. This study uses panel data to examine the collected data. Result shows that only one insignificant result towards profitability and other 3 independent variables are significant. Other than that, the correlation analysis shows that ER and DCR have a positive relationship to the dependent variable which is profitability of technology sector. Meanwhile, DR and DER showing that it has a negative relationship to the profitability of technology sector. Based on the results for this study, it shows that financial leverage has an influence towards the profitability of technology sector in Malaysia. For the recommendation for this study, it should be adding more variables for this study. Other than that, replicating and expanding the study to the other sectors.