The effect on internationalized company toward capital structure: evidence from the manufacturing firms in Malaysia / Fatin Hanany Sani

In state of the business world conditions have caused business competition to become very tight, so many companies are required to internationalize. The purpose of this paper was to study the effect on internationalized manufacturing company that listed in Main Market on Bursa Malaysia toward capital structure. Four independent variables were included in this study namely firm size, profitability, company youth and tangibility. Meanwhile, the dependent variable is leverage measured by debt ratio with the formula total debt divided total assets. This study used the secondary data collected from financial statement of 16 manufacturing firms for a period from 2007 to 2011. Descriptive statistics, correlation analysis and regression analysis were used to analyse the data. The results shows that firm size are positive and have a significant relationship while profitability negatively related and insignificant with the debt ratio. The result also showed that company growth and tangibility are positive but insignificant with debt ratio.