The relevance of capital structure theories to consumer product firms at bursa Malaysia / Abdul Razak Abdul Hadi, Jaafar Pyeman and Ahmad Kasyidi Ismail.

Abdul Hadi, Abdul Razak and Pyeman, Jaafar Pyeman and Ismail, Ahmad Kasyidi (2017) The relevance of capital structure theories to consumer product firms at bursa Malaysia / Abdul Razak Abdul Hadi, Jaafar Pyeman and Ahmad Kasyidi Ismail. Asia-Pacific Management Accounting Journal, 12 (1). pp. 1-16. ISSN 2550-1631

Abstract

This paper examines the relevance of Capital Structure Management theories to the value of consumer product firms listed at Bursa Malaysia. Within the framework of Modigliani-Miller and Trade-Off theories, this paper uses Generalized Method of Moments (GMM) as an estimation model employing yearly panel data from the year 2010 to 2014. The test results from GMM indicate that earnings per share (EPS) and debt-equity ratio (D/E) have no significant relation with the firm’s value as represented by the closing price per share (CP). Even though the findings are rather alarming, one must admit that the Modigliani-Miller and Trade-Off theories are irrelevant to those consumer product companies at Bursa Malaysia. Perhaps, this is an indication that the efficient market hypothesis applicable to certain sectors at Bursa Malaysia.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Abdul Hadi, Abdul RazakUNSPECIFIED
Pyeman, Jaafar PyemanUNSPECIFIED
Ismail, Ahmad KasyidiUNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Industry
H Social Sciences > HD Industries. Land use. Labor > Industry > Industrial policy. The state and industrial organization
H Social Sciences > HD Industries. Land use. Labor > Industry > Industrial policy. The state and industrial organization > Malaysia
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus
Journal or Publication Title: Asia-Pacific Management Accounting Journal
Journal: UiTM Journal > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 12
Number: 1
Page Range: pp. 1-16
Official URL: http://arionline.uitm.edu.my/ojs/index.php/APMAJ/a...
Item ID: 29714
Uncontrolled Keywords: Modigliani-Miller theory, trade-off theory, generalized method of moments, panel data analysis, efficient market hypothesis
URI: http://ir.uitm.edu.my/id/eprint/29714

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