Debt Maturity and Stock Returns: An Inter-Sectoral Comparison of Malaysian Firms

Lau, Wei Theng; Law, Siong Hook; Nassir, Annuar

doi:10.21315/aamjaf2016.12.2.3

Cited by 3 publications

(2 citation statements)

References 66 publications

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“…The proportion of the various components of capital is claimed in the finance literature to have a different effect on the financial performance of firms. Lau et al (2016) used the proportionate debt components to determine the relationship between capital structure and firm stock returns in Malaysia. In this study, the total debt ratio was measured as the business's total debt over the business's total capital.…”

Section: Methodsmentioning

confidence: 99%

The Relationship Between Capital Sructure and Financial Performance of Firms in Ghana and Nigeria

Opoku-Asante

Winful

Sharifzadeh

et al. 2022

EJBMR

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This study aimed to investigate, using a sectorial analysis, the relationship between capital structure and financial performance and consider the effect of debt maturity on the relationship. the relationship between capital structure and financial performance, considering the debt maturity, using 425 cross-sectional firm-year samples from firms in Ghana and Nigeria from 2014 to 2019. The empirical findings suggested a significant negative relationship between capital structure and financial performance. Debt maturity did not affect the relationship between capital structure and financial performance. However, the Industry influences the direction of the relationship between capital structure and financial performance. Also, debt maturity influences the capital structure performance relationship in specific sectors but not the market. This paper extends on previous studies on the relationship between capital structure and financial performance by incorporating sectorial and debt maturity on firms in Ghana and Nigeria. The findings of this study will assist finance managers in maximizing performance by considering financially sensible heterogeneities such as the sector and the funding source when making financing decisions.

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Section: Methodsmentioning

confidence: 99%

The Relationship Between Capital Sructure and Financial Performance of Firms in Ghana and Nigeria

Opoku-Asante

Winful

Sharifzadeh

et al. 2022

EJBMR

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“…The majority of capital structure studies are confined to country level or firm level analysis. However, limited studies are done for multi-sectors or multi-industries, particularly in relation to the Malaysian market (e.g., Lau et al, 2016aLau et al, , 2016bRamakrishnan, 2012). This study aims to investigate whether the capital structure determinants are explained by either the trade-off or the pecking order theory.…”

Section: Introductionmentioning

confidence: 99%

Sectoral Analysis of the Determinants of Corporate Capital Structure in Malaysia

Chow

2019

OMEE

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This study investigates the determinants of corporate capital structure of various sectors in the Bursa Malaysia Main Market with the aim to establish whether the determinants of capital structure can be explained by either the trade-off or the pecking order theory. This study also examines whether there are any differences between the regressions for any two sectors or not. This study applies both the ordinary least squares (OLS) and the seemingly unrelated regression (SUR) estimators to estimate the leverage models, and subsequently determines the efficiency of each estimator. The results indicate that profitability, asset tangibility, growth opportunities, and firm size are important determinants of corporate capital structure. However, the signs of the regression coefficients suggest that the trade-off and pecking order theories are complementary. Moreover, the importance of some of these determinants differs across sectors. In most cases of the regression analyses between two sectors, the SUR estimator is found to be more efficient in explaining the determinants of capital structure among the various sectors. Hence, this study concludes that the SUR method could serve as a useful alternative methodology for capital structure research.

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A Study on Effect of Capital Structure on the Financial Distress of Non-Financial Companies Listed in Bursa Malaysia Stock Exchange (KLSE)

Lee¹,

Manual²

2019

IJARBSS

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Debt Maturity and Stock Returns: An Inter-Sectoral Comparison of Malaysian Firms

Abstract: ABSTRACT

Cited by 3 publications

References 66 publications

The Relationship Between Capital Sructure and Financial Performance of Firms in Ghana and Nigeria

The Relationship Between Capital Sructure and Financial Performance of Firms in Ghana and Nigeria

Sectoral Analysis of the Determinants of Corporate Capital Structure in Malaysia

A Study on Effect of Capital Structure on the Financial Distress of Non-Financial Companies Listed in Bursa Malaysia Stock Exchange (KLSE)

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