The relationship between capital structure and firm performance of Malaysian technology sector listed in Bursa Malaysia / Nurul Ashiqin Kahar
Capital structure refers to the firm's financial structure that consists of debt in the forms of bond issues or long-term notes payables and equity in the forms of common stock, preferred stock and retained earnings that are used to finance the firms operations. The value of the firm and the ab...
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| Main Author: | |
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| Format: | Student Project |
| Language: | English |
| Published: |
2016
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/83155/1/83155.pdf https://ir.uitm.edu.my/id/eprint/83155/ |
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| Summary: | Capital structure refers to the firm's financial structure that consists of debt in the forms of bond issues or long-term notes payables and equity in the forms of common stock, preferred stock and retained earnings that are used to finance the firms operations. The value of the firm and the ability of the companies to meets their stakeholders need are related to capital structure. This study is conduct in order to investigate the relationship between capital structures with corporate performance of firms. The aim is to know how firm mix financing will affect the firm value. This study focuses on five technology base companies which are listed in main board of Bursa Malaysia. Data is collected from DataStream and firms annual report. The data of the companies is select from the year 2005 until year of 2014. In this study, Return on Asset (ROA) is used to represents firm's corporate performance. Meanwhile, Short-term debt, Long-term debt, Total debt and firm youth act as independent variables that will affect the firm's corporate performance. This study is mainly a quantitative study which is panel data. The quantitative study uses a multiple linear regression model and run through a few statistical tests in order to illustrate the relationship between capital structure and firm's performance. The study reveals that STD and TD are negatively correlated with firm's performance. Meanwhile, LTD has positive effects towards firm's performance. The study also shows that, FG is positive significantly related to firm's performance. |
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