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The Impact Of Leverage On Investment: Evidence From Shariah Listed Firms

This study examines the impact of leverage on the firm's investment decisions using information on Malaysia Shariah listed firms between 2000 and 2007. From the theory, leverage is one mechanism for overcoming the over investment problem, suggesting a negative relationship between debt and inve...

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Main Authors: Abd. Ghafar Ismail, Masturah Ma'in, Nizam Ahmat
Format: Article
Language:English
Published: Universiti Sains Islam Malaysia 2015
Subjects:
Leverage
Investment
Malaysia
Corporate Finance
Online Access:http://ddms.usim.edu.my/handle/123456789/9034
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spelling my.usim-90342015-08-13T04:25:47Z The Impact Of Leverage On Investment: Evidence From Shariah Listed Firms Abd. Ghafar Ismail Masturah Ma'in Nizam Ahmat Leverage Investment Malaysia Corporate Finance This study examines the impact of leverage on the firm's investment decisions using information on Malaysia Shariah listed firms between 2000 and 2007. From the theory, leverage is one mechanism for overcoming the over investment problem, suggesting a negative relationship between debt and investment for firms with low growth opportunities. This paper extends the previous literature by using a panel data methodology. It shows that leverage is negatively related to investment and this impact is significant to different measures of leverage and to alternative empirical models. However, this negative effect is not significant only for firms with low growth opportunities (lower Q) but also refers to firms with high growth opportunities (high Q). 2015-08-12T03:11:59Z 2015-08-12T03:11:59Z 2011 Article 1823075X http://ddms.usim.edu.my/handle/123456789/9034 en JMIFR-Vol.8, No.1, 2011; Universiti Sains Islam Malaysia
institution Universiti Sains Islam Malaysia
building USIM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universit Sains Islam i Malaysia
content_source USIM Institutional Repository
url_provider http://ddms.usim.edu.my/
language English
topic Leverage
Investment
Malaysia
Corporate Finance
spellingShingle Leverage
Investment
Malaysia
Corporate Finance
Abd. Ghafar Ismail
Masturah Ma'in
Nizam Ahmat
The Impact Of Leverage On Investment: Evidence From Shariah Listed Firms
description This study examines the impact of leverage on the firm's investment decisions using information on Malaysia Shariah listed firms between 2000 and 2007. From the theory, leverage is one mechanism for overcoming the over investment problem, suggesting a negative relationship between debt and investment for firms with low growth opportunities. This paper extends the previous literature by using a panel data methodology. It shows that leverage is negatively related to investment and this impact is significant to different measures of leverage and to alternative empirical models. However, this negative effect is not significant only for firms with low growth opportunities (lower Q) but also refers to firms with high growth opportunities (high Q).
format Article
author Abd. Ghafar Ismail
Masturah Ma'in
Nizam Ahmat
author_facet Abd. Ghafar Ismail
Masturah Ma'in
Nizam Ahmat
author_sort Abd. Ghafar Ismail
title The Impact Of Leverage On Investment: Evidence From Shariah Listed Firms
title_short The Impact Of Leverage On Investment: Evidence From Shariah Listed Firms
title_full The Impact Of Leverage On Investment: Evidence From Shariah Listed Firms
title_fullStr The Impact Of Leverage On Investment: Evidence From Shariah Listed Firms
title_full_unstemmed The Impact Of Leverage On Investment: Evidence From Shariah Listed Firms
title_sort impact of leverage on investment: evidence from shariah listed firms
publisher Universiti Sains Islam Malaysia
publishDate 2015
url http://ddms.usim.edu.my/handle/123456789/9034
_version_ 1645152524070551552
score 13.214268

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