Practices of capital structure decisions: Malaysia survey evidence

How firms make their corporate financing decisions has been one of the most extensively researched areas in corporate finance. Yet there is little consensus on how firms choose their capital structure. This study examines the capital structure practices of the Malaysian CFOs by employing a survey an...

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Main Authors:	Mat Nor, Fauzias, Ibrahim, Khairunisah, Haron, Razali, Ibrahim , Izani, Alias, Mohd Adnan
Format:	Article
Language:	English
Published:	World Business Institute 2012
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/10192/ http://irep.iium.edu.my/10192/1/Practices_of_Capital_Structure_Decisions_Malaysia_Survey_Evidence.pdf

id	iium-10192
recordtype	eprints
spelling	iium-101922011-12-14T03:16:18Z http://irep.iium.edu.my/10192/ Practices of capital structure decisions: Malaysia survey evidence Mat Nor, Fauzias Ibrahim, Khairunisah Haron, Razali Ibrahim , Izani Alias, Mohd Adnan HG4001 Financial management. Business finance. Corporation finance. How firms make their corporate financing decisions has been one of the most extensively researched areas in corporate finance. Yet there is little consensus on how firms choose their capital structure. This study examines the capital structure practices of the Malaysian CFOs by employing a survey analysis on the non-financial listed firms in Malaysia, conducted from November 2010 to March 2011. 203 usable responses from the Malaysian CFOs were obtained, thus representing a response rate of 25%. This study is to analytically identify how the capital structure choices are influenced by those who make the decisions in practice. The survey result provides mixed support for the notion that firms does trade-off costs and benefits to derive an optimal debt ratio. From the financing hierarchy point of view, this study finds that Malaysian managers regard the use of internal funds for financing projects as the most important source of financing. This study enriches the literature by discovering the extent to which the capital structure theories are able to explain the corporate financing behavior and practices of Malaysian managers. World Business Institute 2012-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/10192/1/Practices_of_Capital_Structure_Decisions_Malaysia_Survey_Evidence.pdf Mat Nor, Fauzias and Ibrahim, Khairunisah and Haron, Razali and Ibrahim , Izani and Alias, Mohd Adnan (2012) Practices of capital structure decisions: Malaysia survey evidence. International Review of Business Research Papers. ISSN 1837-5685 ( P), 1832-9543 (O) (In Press)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Mat Nor, Fauzias Ibrahim, Khairunisah Haron, Razali Ibrahim , Izani Alias, Mohd Adnan Practices of capital structure decisions: Malaysia survey evidence
description	How firms make their corporate financing decisions has been one of the most extensively researched areas in corporate finance. Yet there is little consensus on how firms choose their capital structure. This study examines the capital structure practices of the Malaysian CFOs by employing a survey analysis on the non-financial listed firms in Malaysia, conducted from November 2010 to March 2011. 203 usable responses from the Malaysian CFOs were obtained, thus representing a response rate of 25%. This study is to analytically identify how the capital structure choices are influenced by those who make the decisions in practice. The survey result provides mixed support for the notion that firms does trade-off costs and benefits to derive an optimal debt ratio. From the financing hierarchy point of view, this study finds that Malaysian managers regard the use of internal funds for financing projects as the most important source of financing. This study enriches the literature by discovering the extent to which the capital structure theories are able to explain the corporate financing behavior and practices of Malaysian managers.
format	Article
author	Mat Nor, Fauzias Ibrahim, Khairunisah Haron, Razali Ibrahim , Izani Alias, Mohd Adnan
author_facet	Mat Nor, Fauzias Ibrahim, Khairunisah Haron, Razali Ibrahim , Izani Alias, Mohd Adnan
author_sort	Mat Nor, Fauzias
title	Practices of capital structure decisions: Malaysia survey evidence
title_short	Practices of capital structure decisions: Malaysia survey evidence
title_full	Practices of capital structure decisions: Malaysia survey evidence
title_fullStr	Practices of capital structure decisions: Malaysia survey evidence
title_full_unstemmed	Practices of capital structure decisions: Malaysia survey evidence
title_sort	practices of capital structure decisions: malaysia survey evidence
publisher	World Business Institute
publishDate	2012
url	http://irep.iium.edu.my/10192/ http://irep.iium.edu.my/10192/1/Practices_of_Capital_Structure_Decisions_Malaysia_Survey_Evidence.pdf
first_indexed	2023-09-18T20:19:37Z
last_indexed	2023-09-18T20:19:37Z
_version_	1777408019367198720

Practices of capital structure decisions: Malaysia survey evidence

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