Capital structure of non-financial firms in Malaysia / Siti Noor Amirah Jusoh

This paper identifies a relationship between firm specific characteristics and capital
structure of non-financial firms in Malaysia. Capital structure is one of the most
important effective measures on the valuation and direction of economic enterprises
in the capital markets. This paper purpose is to examine the relationship between
capital structure towards firm size (FS), profitability (ROA), liquidity (CR),
tangibility (TANG) and growth opportunities (GRW). The capital structure will be
measured by total debt ratio. 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 from 2006 to 2015. From
this study, the expected finding of liquidity, profitability, and growth opportunities
were found to have negative relationship on debt ratio, while firm size and tangibility
were found to have positive relationship on debt ratio. However the result show in this
study is different with expected finding which are liquidity, growth opportunities and
tangibility show negative relationship with debt ratio, while firm size and profitability
are positive related towards debt ratio.
Keywords: Panel data, Pecking Order Theory