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 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 (APMAJ), 12 (1). pp. 143-158. 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, JaafarUNSPECIFIED
Ismail, Ahmad KasyidiUNSPECIFIED
Subjects: H Social Sciences > HB Economic Theory. Demography > Capital. Capitalism
H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management > Capital. Capital investments
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
Journal: UiTM Journal > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 12
Number: 1
Page Range: pp. 143-158
Item ID: 29942
Uncontrolled Keywords: Modigliani-Miller theory, Trade-off theory, Generalized method of moments
URI: http://ir.uitm.edu.my/id/eprint/29942

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