A study on the relationship between capital structure and financial performance of insurance companies in Malaysia / Noor Roslina Abu Bakar

• Main Author: Abu Bakar, Noor Roslina
• Format: Thesis
• Language: English
• Published: 2000
• Subjects: Credit. Debt. Loans; Malaysia; Stock exchanges. Insider trading in securities; Insurance business. Insurance management
• Online Access: https://ir.uitm.edu.my/id/eprint/66032/1/66032.pdf; https://ir.uitm.edu.my/id/eprint/66032/

The purpose of this research is to study the relationship between capital structure and financial performance, which is focus on insurance company. Only 3 companies were selected as sample for a year starting from 1995 to 1999, Data regarding capital structure and financial performance of the company in the sample was collected from library in Kuala Lumpur Stock Exchange's (KLSE) and library in University Technology Mara, Terengganu. Capital structure is represented by the financial leverage ratios and measured in term of Debt Ratio, Debt to Equity Ratio and Long-term Debt to Total Assets. Hence financial performance is represented by profitability ratios and measured in term of Return on Investment and Return on Equity. A statistical tool known as Time Series Package (TSP) is used to do regression analysis. The conclusion that can be derived from this research is that financial performance is not effect much by the capital structure. It means there a weak relationship between capital structure and financial performance. There are other factors that may effects the financial performance.