The sustainability of shariah-compliant status: capital structure of Malaysian property Companies / Nurqystina Sofea Rozaimi and Ummi Diyana Ahmad

Shariah-compliant Listed Property Companies (LPCs) perhaps has different preference in making a decision on the company’s capital structure. This is to ensure the companies comply with the screening benchmark stated by Shariah Advisory Council (SAC) of the Securities Commission of Malaysia (SC). T...

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Main Authors:	Rozaimi, Nurqystina Sofea, Ahmad, Ummi Diyana
Format:	Student Project
Language:	English
Published:	Arshad Ayub Graduate Business School 2018
Subjects:	Islam and economics Finance, Islamic
Online Access:	http://ir.uitm.edu.my/id/eprint/26178/ http://ir.uitm.edu.my/id/eprint/26178/1/PPm_NURQYSTINA%20SOFEA%20ROZAIMI%20AAGS%2018_5.pdf

id	uitm-26178
recordtype	eprints
spelling	uitm-261782019-10-15T04:40:54Z http://ir.uitm.edu.my/id/eprint/26178/ The sustainability of shariah-compliant status: capital structure of Malaysian property Companies / Nurqystina Sofea Rozaimi and Ummi Diyana Ahmad Rozaimi, Nurqystina Sofea Ahmad, Ummi Diyana Islam and economics Finance, Islamic Shariah-compliant Listed Property Companies (LPCs) perhaps has different preference in making a decision on the company’s capital structure. This is to ensure the companies comply with the screening benchmark stated by Shariah Advisory Council (SAC) of the Securities Commission of Malaysia (SC). This study uses the regression of random effects models to identify the capital structure determinants and seeks if there are differences in capital structure between sustainable Shariahcompliant LPCs and non-sustainable Shariah-compliant LPCs in Malaysia. The sample consists of twenty-six (26) and forty-six (46) companies for sustainable Shariah-compliant LPCs and non-sustainable Shariah-compliant LPCs respectively. This study uses panel data which focusing on the five (5) year period between 2013 to 2017. There are three (3) models use in this study in order to achieve the research objectives, which are Model A (sustainable Shariah-compliant LPCs), Model B (nonsustainable Shariah-compliant LPCs) and Model C (all Shariah-compliant LPCs). Leverage as a dependent variable of this study while profitability, growth, liquidity, tangibility and size as independent variables. All independent variables significantly influence leverage except for size in the Model A. The findings indicate the Shariahcompliant LPCs must consider profitability, growth, liquidity, and tangibility in managing leverage of their companies to ensure they are not exceeding the thirty-three (33) percent benchmark set by SAC of SC. This study discovers that the result, lean towards the pecking order theory rather than trade-off theory. Surprisingly, this study reveals that there is no significant difference in the capital structure of sustainable and non-sustainable Shariah-compliant LPCs. The study is capable to provide information for property companies, especially Shariah-compliant LPCs in managing their leverage level. This study also gives insight to Shariah-compliant LPCs in Malaysia, especially for those who intend to maintain their Shariah status. Arshad Ayub Graduate Business School 2018 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/26178/1/PPm_NURQYSTINA%20SOFEA%20ROZAIMI%20AAGS%2018_5.pdf Rozaimi, Nurqystina Sofea and Ahmad, Ummi Diyana (2018) The sustainability of shariah-compliant status: capital structure of Malaysian property Companies / Nurqystina Sofea Rozaimi and Ummi Diyana Ahmad. [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	Islam and economics Finance, Islamic
spellingShingle	Islam and economics Finance, Islamic Rozaimi, Nurqystina Sofea Ahmad, Ummi Diyana The sustainability of shariah-compliant status: capital structure of Malaysian property Companies / Nurqystina Sofea Rozaimi and Ummi Diyana Ahmad
description	Shariah-compliant Listed Property Companies (LPCs) perhaps has different preference in making a decision on the company’s capital structure. This is to ensure the companies comply with the screening benchmark stated by Shariah Advisory Council (SAC) of the Securities Commission of Malaysia (SC). This study uses the regression of random effects models to identify the capital structure determinants and seeks if there are differences in capital structure between sustainable Shariahcompliant LPCs and non-sustainable Shariah-compliant LPCs in Malaysia. The sample consists of twenty-six (26) and forty-six (46) companies for sustainable Shariah-compliant LPCs and non-sustainable Shariah-compliant LPCs respectively. This study uses panel data which focusing on the five (5) year period between 2013 to 2017. There are three (3) models use in this study in order to achieve the research objectives, which are Model A (sustainable Shariah-compliant LPCs), Model B (nonsustainable Shariah-compliant LPCs) and Model C (all Shariah-compliant LPCs). Leverage as a dependent variable of this study while profitability, growth, liquidity, tangibility and size as independent variables. All independent variables significantly influence leverage except for size in the Model A. The findings indicate the Shariahcompliant LPCs must consider profitability, growth, liquidity, and tangibility in managing leverage of their companies to ensure they are not exceeding the thirty-three (33) percent benchmark set by SAC of SC. This study discovers that the result, lean towards the pecking order theory rather than trade-off theory. Surprisingly, this study reveals that there is no significant difference in the capital structure of sustainable and non-sustainable Shariah-compliant LPCs. The study is capable to provide information for property companies, especially Shariah-compliant LPCs in managing their leverage level. This study also gives insight to Shariah-compliant LPCs in Malaysia, especially for those who intend to maintain their Shariah status.
format	Student Project
author	Rozaimi, Nurqystina Sofea Ahmad, Ummi Diyana
author_facet	Rozaimi, Nurqystina Sofea Ahmad, Ummi Diyana
author_sort	Rozaimi, Nurqystina Sofea
title	The sustainability of shariah-compliant status: capital structure of Malaysian property Companies / Nurqystina Sofea Rozaimi and Ummi Diyana Ahmad
title_short	The sustainability of shariah-compliant status: capital structure of Malaysian property Companies / Nurqystina Sofea Rozaimi and Ummi Diyana Ahmad
title_full	The sustainability of shariah-compliant status: capital structure of Malaysian property Companies / Nurqystina Sofea Rozaimi and Ummi Diyana Ahmad
title_fullStr	The sustainability of shariah-compliant status: capital structure of Malaysian property Companies / Nurqystina Sofea Rozaimi and Ummi Diyana Ahmad
title_full_unstemmed	The sustainability of shariah-compliant status: capital structure of Malaysian property Companies / Nurqystina Sofea Rozaimi and Ummi Diyana Ahmad
title_sort	sustainability of shariah-compliant status: capital structure of malaysian property companies / nurqystina sofea rozaimi and ummi diyana ahmad
publisher	Arshad Ayub Graduate Business School
publishDate	2018
url	http://ir.uitm.edu.my/id/eprint/26178/ http://ir.uitm.edu.my/id/eprint/26178/1/PPm_NURQYSTINA%20SOFEA%20ROZAIMI%20AAGS%2018_5.pdf
first_indexed	2023-09-18T23:16:20Z
last_indexed	2023-09-18T23:16:20Z
_version_	1777419137447886848

The sustainability of shariah-compliant status: capital structure of Malaysian property Companies / Nurqystina Sofea Rozaimi and Ummi Diyana Ahmad

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