Date of Award
6-2010
Thesis Type
Masters
Document Type
Dissertation
Divisions
Faculty of Business and Economics (formally known as Faculty of Business and Accountancy)
Institution
Universiti Malaya
Abstract
The effect of firm characteristics on capital structure has been tested for thisstudy. Sample is randomly drawn from 60 manufacturing firms listed in theMain Market of Bursa Malaysia for a period from year 2004 to 2008 which totalling 300 data. A regression model is formed amongst one dependentvariable, five independent variables, and one dummy variable to study the relationship and effect between firm characteristics and capital structure. The results reveal that firm size has a positive relation to capital structure whereas interest coverage ratio, profitability, and growth opportunities have an inverse relation to capital structure. While tangibility alone is found to be statistically insignificant correlation with capital structure, it is making a statistically significant positive unique contribution to the prediction of capital structure when combining with other firm characteristics. There is a statistically significant difference in capital structure between firms that maintain more and less than fifty percent of debt ratio. T-test results indicate that there is a statistically significant difference in firm size, interest coverage ratio, profitability, and growth opportunities between firms that use heavy debt capital and those that use less debt capital.
Additional Information
Dissertation (M.A.) – Faculty of Business and Economics, Universiti Malaya, 2010.
Recommended Citation
Chong, Andrew Hon Ming, "The effect of firm characteristics on capital structure : an empirical study." (2010). Student Works (2010-2019). 14.
https://knova.um.edu.my/student_works_2010s/14
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Initial
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