Capital structure on firm's performance: information and technology industry / Syahmin Nadiah Hassim

This research paper mainly focuses on firm performance in information and technology sector as the technology able to thrive the economic growth. This investigation has been performed on a sample of 13 companies of information and technology sector for period of 5 years starting from 2012 to 2016, r...

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Bibliographic Details
Main Author: Hassim, Syahmin Nadiah
Format: Thesis
Language:English
Published: 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/93804/2/93804.pdf
https://ir.uitm.edu.my/id/eprint/93804/
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Summary:This research paper mainly focuses on firm performance in information and technology sector as the technology able to thrive the economic growth. This investigation has been performed on a sample of 13 companies of information and technology sector for period of 5 years starting from 2012 to 2016, resulting total numbers of observations of 61. Firm's performance was measured by using return on asset as dependent variable that mostly supported and applied by previous researchers. However, the factors used to test on the firm performance are long term debt to total assets, short term debt to total assets, debt to equity ratio and tax which act as independent variables. The data is gathered from annual report of Wall Street Journal and a multiple linear regression is used in this study. In addition, econometric tests are employed to observed the relationship between factors of capital structure on firm's financial performance. Interactive software package E-views9.5 would be used for testing and analyzing the data collected. Using pooling panel data regression method, the expected findings of long term debt to total assets, short term debt to total assets, debt to equity ratio and tax has negative relationship with firm's performance.