The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh

This research aims at investigating the effect of capital structure on the profitability performance of PN17 companies that listed in Bursa Malaysia. This study is to explore the impact of three variables, namely short-term debt ratio, long-term debt ratio, and tot...

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Main Author:	Wan Mohd Saleh, Wan Nor Alia
Format:	Student Project
Language:	English
Published:	Faculty of Business Management 2017
Subjects:	Capital budget. Capital investments. Fixed capital
Online Access:	http://ir.uitm.edu.my/id/eprint/23626/ http://ir.uitm.edu.my/id/eprint/23626/1/PPb_WAN%20NOR%20ALIA%20WAN%20MOHD%20SALLEH%20J%20BM17_5.pdf

id	uitm-23626
recordtype	eprints
spelling	uitm-236262019-04-07T07:46:44Z http://ir.uitm.edu.my/id/eprint/23626/ The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh Wan Mohd Saleh, Wan Nor Alia Capital budget. Capital investments. Fixed capital This research aims at investigating the effect of capital structure on the profitability performance of PN17 companies that listed in Bursa Malaysia. This study is to explore the impact of three variables, namely short-term debt ratio, long-term debt ratio, and total debt ratio on the return on equity by using balance panel data set of listed companies between 2010 until 2015. Panel data methodology was employed and White Cross-section regression was used to estimate the coefficient of explanatory variables. The result indicated that the profitability performance are negatively affected by short-term debt ratio and total debt ratio. The result obtained might indicate thatthe firm might funding their activities by using the Pecking order theory, which is based on the idea that the companies will use their internal financing sources first to operate their activities (Ahmed Sheikh andWang, 2011). When a company probably become bankruptcy and distress, an increasedin debt can cause a higher total agency costs that effectingto a negative result on firm profitability (Dawar,2014). The result acquired from this study also shows that only 2.28 percent inReturn on Equity were influencedby short-term debt ratio, long-term debt ratio and total debt ratio.Whereas, the remaining are determine by other factors, such as economic, and sales performance Faculty of Business Management 2017 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/23626/1/PPb_WAN%20NOR%20ALIA%20WAN%20MOHD%20SALLEH%20J%20BM17_5.pdf Wan Mohd Saleh, Wan Nor Alia (2017) The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh. [Student Project] (Submitted)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Capital budget. Capital investments. Fixed capital
spellingShingle	Capital budget. Capital investments. Fixed capital Wan Mohd Saleh, Wan Nor Alia The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh
description	This research aims at investigating the effect of capital structure on the profitability performance of PN17 companies that listed in Bursa Malaysia. This study is to explore the impact of three variables, namely short-term debt ratio, long-term debt ratio, and total debt ratio on the return on equity by using balance panel data set of listed companies between 2010 until 2015. Panel data methodology was employed and White Cross-section regression was used to estimate the coefficient of explanatory variables. The result indicated that the profitability performance are negatively affected by short-term debt ratio and total debt ratio. The result obtained might indicate thatthe firm might funding their activities by using the Pecking order theory, which is based on the idea that the companies will use their internal financing sources first to operate their activities (Ahmed Sheikh andWang, 2011). When a company probably become bankruptcy and distress, an increasedin debt can cause a higher total agency costs that effectingto a negative result on firm profitability (Dawar,2014). The result acquired from this study also shows that only 2.28 percent inReturn on Equity were influencedby short-term debt ratio, long-term debt ratio and total debt ratio.Whereas, the remaining are determine by other factors, such as economic, and sales performance
format	Student Project
author	Wan Mohd Saleh, Wan Nor Alia
author_facet	Wan Mohd Saleh, Wan Nor Alia
author_sort	Wan Mohd Saleh, Wan Nor Alia
title	The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh
title_short	The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh
title_full	The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh
title_fullStr	The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh
title_full_unstemmed	The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh
title_sort	implication of capital structure towards the profitability performance of pn17 companies / wan nor alia wan mohd saleh
publisher	Faculty of Business Management
publishDate	2017
url	http://ir.uitm.edu.my/id/eprint/23626/ http://ir.uitm.edu.my/id/eprint/23626/1/PPb_WAN%20NOR%20ALIA%20WAN%20MOHD%20SALLEH%20J%20BM17_5.pdf
first_indexed	2023-09-18T23:11:04Z
last_indexed	2023-09-18T23:11:04Z
_version_	1777418805644886016

The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh

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