Debt financing determinants of Sharīʿah approved firms in Malaysia: evidence across industries

Prior literature recorded a number of factors that determine debt level of the firms and these include firm’s specific determinants, industry determinants as well as economic determinants. However, very limited study explores in depth the roles of industry in determining firm’s debt level, especiall...

Full description

Bibliographic Details
Main Authors:	Ramli, Nurshamimitul Ezza, Haron, Razali
Format:	Book Chapter
Language:	English
Published:	IIUM Institute of Islamic Banking and Finance 2019
Subjects:	HG4001 Financial management. Business finance. Corporation finance. HG4501 Stocks, investment, speculation
Online Access:	http://irep.iium.edu.my/73090/ http://irep.iium.edu.my/73090/1/73090_Debt%20financing%20determinants.pdf

id	iium-73090
recordtype	eprints
spelling	iium-730902020-02-28T09:02:32Z http://irep.iium.edu.my/73090/ Debt financing determinants of Sharīʿah approved firms in Malaysia: evidence across industries Ramli, Nurshamimitul Ezza Haron, Razali HG4001 Financial management. Business finance. Corporation finance. HG4501 Stocks, investment, speculation Prior literature recorded a number of factors that determine debt level of the firms and these include firm’s specific determinants, industry determinants as well as economic determinants. However, very limited study explores in depth the roles of industry in determining firm’s debt level, especially in the Malaysian context. This study, therefore, explores further this issue by conducting across industry analysis to determine the effect of industry type in firm’s capital structure decision. Seven industries were selected i.e. construction, consumer, industrial, plantation, property, technology and trading and services. Uniquely, this study extends the analysis to the Sharīʿah approved firms perspective and covers a balanced panel of 239 Sharīʿah approved listed firms on Bursa Malaysia for the period from 2000 to 2014. Using the fixed effect model (FEM), the result shows inconsistency of determinants in determining the debt level of Sharīʿah approved firms in Malaysia across industries. However, strong evidence was found to conclude that size of the firms and bankruptcy risk react similarly to the debt level of all industries. This study provides new insight on the debt determinants of Sharīʿah approved firms in Malaysia as well as the effect of industry type in determining the debt level of the firms. This study also largely contributes in terms of the sampling selection in which a firm must be consistently being Sharīʿah approved during the period of analysis. IIUM Institute of Islamic Banking and Finance Haron, Razali Abdullah, Adam 2019-07-04 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/73090/1/73090_Debt%20financing%20determinants.pdf Ramli, Nurshamimitul Ezza and Haron, Razali (2019) Debt financing determinants of Sharīʿah approved firms in Malaysia: evidence across industries. In: Islamic Fund & Wealth Management. A way forward. IIUM Institute of Islamic Banking and Finance, Kuala Lumpur, pp. 365-381. ISBN 978-983-44568-4-9
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. HG4501 Stocks, investment, speculation
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. HG4501 Stocks, investment, speculation Ramli, Nurshamimitul Ezza Haron, Razali Debt financing determinants of Sharīʿah approved firms in Malaysia: evidence across industries
description	Prior literature recorded a number of factors that determine debt level of the firms and these include firm’s specific determinants, industry determinants as well as economic determinants. However, very limited study explores in depth the roles of industry in determining firm’s debt level, especially in the Malaysian context. This study, therefore, explores further this issue by conducting across industry analysis to determine the effect of industry type in firm’s capital structure decision. Seven industries were selected i.e. construction, consumer, industrial, plantation, property, technology and trading and services. Uniquely, this study extends the analysis to the Sharīʿah approved firms perspective and covers a balanced panel of 239 Sharīʿah approved listed firms on Bursa Malaysia for the period from 2000 to 2014. Using the fixed effect model (FEM), the result shows inconsistency of determinants in determining the debt level of Sharīʿah approved firms in Malaysia across industries. However, strong evidence was found to conclude that size of the firms and bankruptcy risk react similarly to the debt level of all industries. This study provides new insight on the debt determinants of Sharīʿah approved firms in Malaysia as well as the effect of industry type in determining the debt level of the firms. This study also largely contributes in terms of the sampling selection in which a firm must be consistently being Sharīʿah approved during the period of analysis.
author2	Haron, Razali
author_facet	Haron, Razali Ramli, Nurshamimitul Ezza Haron, Razali
format	Book Chapter
author	Ramli, Nurshamimitul Ezza Haron, Razali
author_sort	Ramli, Nurshamimitul Ezza
title	Debt financing determinants of Sharīʿah approved firms in Malaysia: evidence across industries
title_short	Debt financing determinants of Sharīʿah approved firms in Malaysia: evidence across industries
title_full	Debt financing determinants of Sharīʿah approved firms in Malaysia: evidence across industries
title_fullStr	Debt financing determinants of Sharīʿah approved firms in Malaysia: evidence across industries
title_full_unstemmed	Debt financing determinants of Sharīʿah approved firms in Malaysia: evidence across industries
title_sort	debt financing determinants of sharīʿah approved firms in malaysia: evidence across industries
publisher	IIUM Institute of Islamic Banking and Finance
publishDate	2019
url	http://irep.iium.edu.my/73090/ http://irep.iium.edu.my/73090/1/73090_Debt%20financing%20determinants.pdf
first_indexed	2023-09-18T21:43:39Z
last_indexed	2023-09-18T21:43:39Z
_version_	1777413305551290368

Debt financing determinants of Sharīʿah approved firms in Malaysia: evidence across industries

Similar Items