The effects of capital structure and profitability in plantation sector: evidence in Malaysia / Noorfazila Eyam

Factor affecting profitability become an issue among the researcher. This study aims to determine the effects of capital structure on profitability in Malaysian plantation sector. The duration period of this research is seven years that have been taking starting from year 2012 to the year 2018. The sample of companies used is 30 companies listed on Bursa Malaysia which were 210 total number of observations in this study. This study used three independent variables which are short-term debt, long-term debt and a total debt ratio. Meanwhile, the dependent variable is a profitability (ROA). The result of this study shows two variables have a significant relationship towards profitability which are long-term debt and a total debt ratio. However, only long-term debt have positive relationship, while short-term debt and total debt have a negative relationship towards profitability (ROA).