Determinants of capital structure of government-linked companies in Malaysia / Nur Khasrina Aiman Affandi

Government-linked companies (GLC) play an important role in the development of the Malaysian economy. However, overall public perception of GLCs in Malaysia has been tainted by the poor performance of key players, namely Malaysia Airline System (MAS) and Proton Holdings Berhad. The capital structure...

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Main Author:	Aiman Affandi, Nur Khasrina
Format:	Student Project
Language:	English
Published:	Faculty of Business Management, University Teknologi MARA 2018
Subjects:	Capital. Capitalism Consumption. Demand (Economic theory)
Online Access:	http://ir.uitm.edu.my/id/eprint/25938/ http://ir.uitm.edu.my/id/eprint/25938/2/PPb_NUR%20KHASRINA%20AIMAN%20AFFANDI%20BM%20J%2018_5.pdf

id	uitm-25938
recordtype	eprints
spelling	uitm-259382019-12-04T08:33:59Z http://ir.uitm.edu.my/id/eprint/25938/ Determinants of capital structure of government-linked companies in Malaysia / Nur Khasrina Aiman Affandi Aiman Affandi, Nur Khasrina Capital. Capitalism Consumption. Demand (Economic theory) Government-linked companies (GLC) play an important role in the development of the Malaysian economy. However, overall public perception of GLCs in Malaysia has been tainted by the poor performance of key players, namely Malaysia Airline System (MAS) and Proton Holdings Berhad. The capital structure of a firm describes the way in which a firm raised capital needed to establish and expand its business activities. An appropriate capital structure is a critical decision for any business organization including GLCs. The decision is important not only because of the need to maximize returns to various organizational constituencies, but also because of the impact of such decision have on a GLC's ability to deal with its competitive environment. Determining optimal capital structure often being a challenge faced by finance managers. An incorrect financing decision may lead to financial distress and eventually face the bankruptcy if do not managed well. The issue of capital structure has been a subject of major concern for researchers and scholars in recent years. Such concern has brought about a lot of arguments on the subject which led to numerous studies on it in the area of firms finance over the years. Thus, the major focus of this study is to investigate the determinants of capital structure of GLCs in Malaysia. It would help financial managers to improve their financing decisions regarding their financial mix. The data for this study will be collected using secondary data. The dependent variable for this study is Debt Ratio and the independent variables are Firm size, liquidity, profitability and tangibility. This sample of study will consists of 1 1 GLCs listed on Bursa Malaysia Stock Exchange from 2010 to 2016. The firm's capital structure will be analyzed through data gathered from the firms' annual report and Thompson Reuters. Panel Ordinary Least Square (OLS) approach will be applied to test the relationship. The finding of this study indicates that only liquidity and profitability can be used to explain capital structure of GLCs in Malaysia. Liquidity and profitability are significant towards the study at 1% level of significance. Other combinations of independent variables appear to be insignificant in explaining capital structure of GLCs in Malaysia. Faculty of Business Management, University Teknologi MARA 2018 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/25938/2/PPb_NUR%20KHASRINA%20AIMAN%20AFFANDI%20BM%20J%2018_5.pdf Aiman Affandi, Nur Khasrina (2018) Determinants of capital structure of government-linked companies in Malaysia / Nur Khasrina Aiman Affandi. [Student Project] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Capital. Capitalism Consumption. Demand (Economic theory)
spellingShingle	Capital. Capitalism Consumption. Demand (Economic theory) Aiman Affandi, Nur Khasrina Determinants of capital structure of government-linked companies in Malaysia / Nur Khasrina Aiman Affandi
description	Government-linked companies (GLC) play an important role in the development of the Malaysian economy. However, overall public perception of GLCs in Malaysia has been tainted by the poor performance of key players, namely Malaysia Airline System (MAS) and Proton Holdings Berhad. The capital structure of a firm describes the way in which a firm raised capital needed to establish and expand its business activities. An appropriate capital structure is a critical decision for any business organization including GLCs. The decision is important not only because of the need to maximize returns to various organizational constituencies, but also because of the impact of such decision have on a GLC's ability to deal with its competitive environment. Determining optimal capital structure often being a challenge faced by finance managers. An incorrect financing decision may lead to financial distress and eventually face the bankruptcy if do not managed well. The issue of capital structure has been a subject of major concern for researchers and scholars in recent years. Such concern has brought about a lot of arguments on the subject which led to numerous studies on it in the area of firms finance over the years. Thus, the major focus of this study is to investigate the determinants of capital structure of GLCs in Malaysia. It would help financial managers to improve their financing decisions regarding their financial mix. The data for this study will be collected using secondary data. The dependent variable for this study is Debt Ratio and the independent variables are Firm size, liquidity, profitability and tangibility. This sample of study will consists of 1 1 GLCs listed on Bursa Malaysia Stock Exchange from 2010 to 2016. The firm's capital structure will be analyzed through data gathered from the firms' annual report and Thompson Reuters. Panel Ordinary Least Square (OLS) approach will be applied to test the relationship. The finding of this study indicates that only liquidity and profitability can be used to explain capital structure of GLCs in Malaysia. Liquidity and profitability are significant towards the study at 1% level of significance. Other combinations of independent variables appear to be insignificant in explaining capital structure of GLCs in Malaysia.
format	Student Project
author	Aiman Affandi, Nur Khasrina
author_facet	Aiman Affandi, Nur Khasrina
author_sort	Aiman Affandi, Nur Khasrina
title	Determinants of capital structure of government-linked companies in Malaysia / Nur Khasrina Aiman Affandi
title_short	Determinants of capital structure of government-linked companies in Malaysia / Nur Khasrina Aiman Affandi
title_full	Determinants of capital structure of government-linked companies in Malaysia / Nur Khasrina Aiman Affandi
title_fullStr	Determinants of capital structure of government-linked companies in Malaysia / Nur Khasrina Aiman Affandi
title_full_unstemmed	Determinants of capital structure of government-linked companies in Malaysia / Nur Khasrina Aiman Affandi
title_sort	determinants of capital structure of government-linked companies in malaysia / nur khasrina aiman affandi
publisher	Faculty of Business Management, University Teknologi MARA
publishDate	2018
url	http://ir.uitm.edu.my/id/eprint/25938/ http://ir.uitm.edu.my/id/eprint/25938/2/PPb_NUR%20KHASRINA%20AIMAN%20AFFANDI%20BM%20J%2018_5.pdf
first_indexed	2023-09-18T23:15:48Z
last_indexed	2023-09-18T23:15:48Z
_version_	1777419103423692800

Determinants of capital structure of government-linked companies in Malaysia / Nur Khasrina Aiman Affandi

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