The relationship of capital structure on corporate performance / Dayang Nurhazlinie Kennedy

The purpose of this study is to identify the relationship of capital structure on corporate performance. Return on asset (ROA) as a dependent variables, Short Term Debt (STD), Long Term Debt (LTD), Growth and Efficiency are used as the independent variables. It covers companies from two major sectors which are the Government Link Companies (GLC) and Civil Engineering sectors that listed on Bursa Malaysia. 25 companies were selected from Government Link Company and 33 companies were selected from Civil Engineering as the sample for this study. The financial data that were taken from the year 2010 till 2015 are used as survey for this study, resulting in a total number of observations of 348. Thus, these variables were seen to have a relationship to the corporate performance. To reassure that any grow effect of capital structure on firm performance is also examined, lag values for the proxies were used.