Determinant impact of capital structure on firm's performance / Nurul Azra Abdul Razak

Capital Structure decision plays an important role in any firm’s performance. Therefore, there are many studies inspecting the relationship of capital structure with performance of firm, although the finding of these studies is inconclusive. There is a relative deficiency of empirical studies which examining the link between capital structure and the performance of firms in Malaysia. Using panel data of 32 firms, this study empirically examined the impact of capital structure on the performance of firms in Malaysia assessed by return on assets for the period of 2007-2016. In this study, this independent variable which is total debt to the total asset (TDTA), long term debt to total assets (LTDTA), and short term debt to total asset (STDTA) is used as measure of capital structure where is to facilitate the comprehensive impact on return on assets (ROA) as firm performance indicators. The results imply that there is a positive impact of capital structure on firm’s performance.