The determinants of capital structure of financial companies in Malaysia

The purpose of this study is to determine the factors that influence capital structure in top 10 publicly listed financial companies in Malaysia. This study adopt panel data with four independent variables such as profitability, growth of total asset, size of firm and effective tax rate were used to analyse the important determinants of capital structure of top 10 publicly listed financial companies in Malaysia. The period of all data are selected from 2007 until 2017 total up to 11 years. The final result of this study shows that profitability are negative but significant relationship with capital structure. And the rest independent variables such as growth of total asset, size of firm and effective tax rate are positive relationship with capital structure.