Target capital structure and speed of adjustment: a dynamic evidence from Shariah approved firms in Malaysia

The purpose of this paper is to identify the target capital structure and the speed of adjustment of Shariah approved firms listed on the Bursa Malaysia. The paper also examines the influence of firm, industry and macroeconomic determinants affecting the target capital structure. Shariah approved f...

Full description

Bibliographic Details
Main Authors:	Ramli, Nurshamimitul Ezza, Haron, Razali
Format:	Article
Language:	English
Published:	Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM) 2017
Subjects:	HB126.4 Islamic Economics HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/63327/ http://irep.iium.edu.my/63327/ http://irep.iium.edu.my/63327/1/63327_TARGET%20CAPITAL%20STRUCTURE.pdf

id	iium-63327
recordtype	eprints
spelling	iium-633272018-04-13T01:24:07Z http://irep.iium.edu.my/63327/ Target capital structure and speed of adjustment: a dynamic evidence from Shariah approved firms in Malaysia Ramli, Nurshamimitul Ezza Haron, Razali HB126.4 Islamic Economics HG4001 Financial management. Business finance. Corporation finance. The purpose of this paper is to identify the target capital structure and the speed of adjustment of Shariah approved firms listed on the Bursa Malaysia. The paper also examines the influence of firm, industry and macroeconomic determinants affecting the target capital structure. Shariah approved firms which consistently maintain their Shariah status as per the Securities Commission (SC) of Malaysia requirement, from year 2000 to 2014 are chosen as the sample of analysis. The paper employs a dynamic panel data technique specifically the Generalized Method of Moments (GMM) that is robust to the heterogeneity and endogeneity issue. The study found the existence of target capital structure of Shariah approved firms in Malaysia and in terms of speed of adjustment, Shariah approved firms are under-adjusted. Several factors seemed to have significant impact on the target capital structure ranging from the firm, industry and macroeconomic determinants. The study contributes largely in the sampling selection that focuses only on the Shariah approved firms which consistently maintain their Shariah status from the year 2000 to 2014. Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM) 2017-12-31 Article PeerReviewed application/pdf en http://irep.iium.edu.my/63327/1/63327_TARGET%20CAPITAL%20STRUCTURE.pdf Ramli, Nurshamimitul Ezza and Haron, Razali (2017) Target capital structure and speed of adjustment: a dynamic evidence from Shariah approved firms in Malaysia. Journal of Muamalat and Islamic Finance Research, 14 (2). pp. 65-91. ISSN 1823-075X E-ISSN 0126-5954 http://jmifr.usim.edu.my/current-issues/jmifr-vol-14-no-1-june-2017/214-target-capital-structure-and-speed-of-adjustment-a-dynamic-evidence-from-shariah-approved-firms-in-malaysia
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB126.4 Islamic Economics HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HB126.4 Islamic Economics HG4001 Financial management. Business finance. Corporation finance. Ramli, Nurshamimitul Ezza Haron, Razali Target capital structure and speed of adjustment: a dynamic evidence from Shariah approved firms in Malaysia
description	The purpose of this paper is to identify the target capital structure and the speed of adjustment of Shariah approved firms listed on the Bursa Malaysia. The paper also examines the influence of firm, industry and macroeconomic determinants affecting the target capital structure. Shariah approved firms which consistently maintain their Shariah status as per the Securities Commission (SC) of Malaysia requirement, from year 2000 to 2014 are chosen as the sample of analysis. The paper employs a dynamic panel data technique specifically the Generalized Method of Moments (GMM) that is robust to the heterogeneity and endogeneity issue. The study found the existence of target capital structure of Shariah approved firms in Malaysia and in terms of speed of adjustment, Shariah approved firms are under-adjusted. Several factors seemed to have significant impact on the target capital structure ranging from the firm, industry and macroeconomic determinants. The study contributes largely in the sampling selection that focuses only on the Shariah approved firms which consistently maintain their Shariah status from the year 2000 to 2014.
format	Article
author	Ramli, Nurshamimitul Ezza Haron, Razali
author_facet	Ramli, Nurshamimitul Ezza Haron, Razali
author_sort	Ramli, Nurshamimitul Ezza
title	Target capital structure and speed of adjustment: a dynamic evidence from Shariah approved firms in Malaysia
title_short	Target capital structure and speed of adjustment: a dynamic evidence from Shariah approved firms in Malaysia
title_full	Target capital structure and speed of adjustment: a dynamic evidence from Shariah approved firms in Malaysia
title_fullStr	Target capital structure and speed of adjustment: a dynamic evidence from Shariah approved firms in Malaysia
title_full_unstemmed	Target capital structure and speed of adjustment: a dynamic evidence from Shariah approved firms in Malaysia
title_sort	target capital structure and speed of adjustment: a dynamic evidence from shariah approved firms in malaysia
publisher	Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM)
publishDate	2017
url	http://irep.iium.edu.my/63327/ http://irep.iium.edu.my/63327/ http://irep.iium.edu.my/63327/1/63327_TARGET%20CAPITAL%20STRUCTURE.pdf
first_indexed	2023-09-18T21:29:49Z
last_indexed	2023-09-18T21:29:49Z
_version_	1777412435478577152

Target capital structure and speed of adjustment: a dynamic evidence from Shariah approved firms in Malaysia

Similar Items