Capitalization and corporate performance of public listed shipping company: a study of Malaysia International Shipping Corporation Berhad (MISC Berhad) / Nur Amalia Mohd Yusof

The study was aimed to investigate the relationship between capitalization and firm's performance. The capital structure is measured by using leverage ratio and its indicate only four different selected leverage ratio, which represents the capital structure as an independent variable for this study, which are short term debt ratio, long term debt ratio, total debt ratio and the account payable ratio while performance is represented the capital structure by return on asset. The study was conducted using quarterly basis data from January 2005 until December 2014 from public listed Shipping Company named Malaysia International Shipping Corporation Berhad as the largest market capitalization company among all Public Listed Shipping Company in Malaysia. The data are then analyses using Econometric Views (Eviews). From this study, it was realized that two factors of capital structure which are Short Term Debt Ratio, Total Debt Ratio and Account Payable Ratio can give effect towards Return on Assets while the other factor which is Long Term Debt Ratio does not give any effect towards Return on Assets. Lastly, Short Term Debt Ratio and Account Payable Ratio which has a significant negative relationship with Return on Assets and another two factors Long Term Debt Ratio and Total Debt Ratio have insignificant negative and significant positive relationship with Return on Assets respectively.