Determinants of capital structure: An empirical analysis of listed non-financial firms in Malaysia / Nur Tiara Edzyan Mohd Kamal

Capital structure explained the mix of securities and financing sources used by
corporations to finance real investment. Capital structure is one of the most important
effective measures on the valuation and direction of economic enterprises in the
capital markets. Capital structure can be influenced by internal and external factors.
The internal factors that affect company capital structure can be controlled by
managers and it is essential for managers to identify the determinants that can affect
capital structure. Finance managers decisions on choosing the best capital structure
are important because it will affect the company performance and shareholders
wealth. This paper purpose is to examine the determinants of capital structure. This
study is conducted to investigate the relationship between the factors of capital
structure which are capital intensity (CI), tangibility (TANG), profitability (PFT), and
firm size (FS) towards capital structure. The capital structure will be measured by
debt ratio, long term debt and short term debt. This study is using secondary data and
panel data analysis. The data is obtained from annual report of listed non-financial
company in Malaysia. The annual report will be obtained from Bursa Malaysia for six
selected listed non-financial firms in Malaysia. The data is collected for five years
from 2008 to 2012.