The main objective of this proposed research is to develop a new model in explaining the factors affecting firms' decision with respect to its capital structure. Although there is already abundant amount of literature on this topic, there are some limitations in which work to date can be improved. With regards to the existing literature, two issues have been identified for which improvements can be made: (1) the use of new sample and population -financially distressed firms classified as shariah compliant, and (2) the use of variable selection techniques in deciding the most optimal combination of predictors. The findings of this proposed research should be able to provide the answer to these two important questions:(1) what is the best combination of variables to be included in the final model? (2) how would the selected independent variable affect the firm capital structure decision? The answer to these questions is important as it will enable the management of a firms to design the appropriate capital structure policy and construct a package of financial instruments that need to be sold to investors. This proposed research expected to provide a better understanding of factors affecting capital structure and serve as a guide for future research, policy makers and the regulators in formulating the best policies, rules, and regulations to support the firms, especially financially distressed and shariah complaints firms with regards to their capital structure.
This paper examines the impact of firm-specific factors on the size of indirect financial distress costs for Malaysia's financially distressed firms. The results provide an insight into the magnitude of the indirect financial distress costs and its determinants and perhaps are one of the first to provide empirical evidence on the determinants of indirect financial distress costs for Malaysia's financially distressed firms. The results show that the average indirect financial distress cost measured by capital discount is 0.56 % and varies considerably among firms. It also suggests that only two variables, assets intangibility and size, are statistically significant at the .01 significance level.
The aim of this paper is to provide a quantitative estimate of the indirect financial distress costs. This paper focuses on the Malaysian trading and services sector and concentrates only on measuring the financial distress costs in terms of changes in operating performance and changes in capital values. This study will contribute to the existing literature by providing an alternative proxy for indirect financial distress costs and perhaps the first paper to provide the quantitative estimate of the costs for Malaysia's financially distressed firms. Findings from our study suggest that indirect costs exist and are found to be between 3.1 and 21.39 %. In addition to that, this paper also provides an empirical support that the indirect financial distress costs increase and become apparent as the firms near financial distress.
Chronic diseases are defined broadly as conditions that last 1 year or more and require ongoing medical attention or limit activities of daily living or both. The treatment for this disease is a costly procedure that requires specific resources. This is especially true for Malaysia, where many patients with chronic disease belong to the elderly group, who do not have any source of income and therefore cannot afford the treatment costs, hence, increase the risk of financial distress. It is important to note that, monetary costs are not the only driver of financial distress. Other factors such as patients' experiences and feelings about financial conditions arising from the treatment can negatively affect patient's outcomes, quality of life, financial well-being, psycho-social health, and ultimately the patient's ability to deal with the challenges associated with the treatment. The above-mentioned economic and social changes caused by the treatments of disease and disease itself to patients are known as Financial Toxicity. Knowing the data on financial toxicity will enable us to integrate the financial discussions into treatment plans that will allow for selection of cheaper but equally effective interventions and gives patients time to seek resources that can help them better finance care and avoid catastrophic health spending. However, despite the importance of this topic, little is known about the financial toxicity especially on those with chronic kidney disease. Using primary data (interview and questionnaires), this proposed research expected to come out with a model to assess the degree of financial toxicity for chronic kidney disease patients in Malaysia.
Objective - Despite much previous research on the issue, dividend policy remains an unsolved conundrum in corporate finance. By considering this, the goal of this research is to use the Generalized Method of Moments to examine dividend behaviour by identifying the key determinants of dividend policy in three different countries with different market microstructures: Singapore (developed market), Malaysia (developing market), and Saudi Arabia (emerging market). Methodology/Technique –. The study uses data from each country's top 100 listed firms from 2007 until 2016. The results suggest that different determinants influence firms’ dividend policies for the three countries. Findings - For Singapore as a developed market, profitability, and size are shown to be significantly and positively related to the dividend payout ratio, whereas leverage, business risk, and growth opportunities exert a significant negative effect. Meanwhile, for Malaysia (a developing market), only firm size is a significant and positive determinant. However, leverage and business risk are negatively and significantly associated with the dividend payout ratio. Conversely, for Saudi Arabia as an emerging market, firm size and leverage positively and negatively influence the dividend payout ratio. Novelty - Therefore, this study employed the generalized method of moments (GMM) to uncover novel discoveries. The findings should motivate analysts, policymakers, institutional investors, and investors to investigate the dividend policy conundrum, mainly for three different market segmentations. Type of Paper: Empirical JEL Classification: G32, M14. Keywords: Dividend behaviour, market microstructure, and Generalized Method of Moments. Reference to this paper should be referred to as follows: Shafai, N.A; Yusuf, N.H.M; Shah, N.S.B; Bulot, N. (2023). Different Market Segmentations of Dividend Policies: A Dynamic Panel Data Analysis, Acc. Fin. Review, 7(4), 01 – 11. https://doi.org/10.35609/afr.2023.7.4(1)
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