Factors determining corporate borrowing in Malaysian public listed companies / Suhailah Zainal Abidin

The purpose of this study is to investigate the influence of size of firm, firm’s growth rate, return on assets, tax rate, and gearing towards corporate borrowing at Malaysian companies. There are 94 public listed companies selected randomly from Bursa Malaysia main market. The period of the present study is from year 2011 until 2014. The data has been collected from various sectors such as consumer, construction, industrial, finance, plantation and properties. Corporate borrowing has been chosen as a dependent variable. While size of firm, firm’s growth rate, return on assets, tax rate, and gearing have been chosen as an explanatory variables in this study. Based on the findings, there are only two (2) explanatory variables which are size of the firm and return on assets that are statistically significant towards corporate borrowing. The other three (3) explanatory variables, firm’s growth rate, tax rate, and gearing are insignificant. In short, the study found that corporate borrowing can be explained by size of the firm and return on assets for the period of 2011 until 2014