Relationship between capital structure and firm's performance "study on GLC companies in Malaysia" / Silma Juli

Malaysia industries must be more competitive to sustain and competitive in globalisation. There are many factor involve in managing the quality and performance of a company. Malaysia GLCs are define as companies that have a primary commercial objective and in which the Malaysia Government has a direct controlling stake. Thus, this study is undertaken to analyse the relationship between capital structure and firm performance of five selected companies listed in Bursa for ten year period from 2006 until 2015. Return on Asset (ROA) is used to measure the firm’s performance. This study also to determine whether the increase or decrease in financial performance tools for example Long Term Debt, Total Debt to Total Asset, Total Debt to Total Equity, will effect towards dependent variables which is Return on Asset (ROA). Another reason is to determine whether the hypothesis significance or not based on the positive and negative correlation to decide whether to accept or reject the hypothesis. DataStream and Osiris are used to collect the data and regression model is used to determine the data. Regression analysis includes any techniques for modelling and analysing several variable, when the focus is on relationship between capital structure and firm performance. In the previous study different researcher found different result on their study about the relationship between capital structure and firm performance.