The determinants of capital structure of industrial product sector in Malaysia / Shahamirul Irwan Saidin

This study was attempted to identify the determinants capital structure of Industrial Product Sector in Malaysia. The dependent variable in this study is debt ratio while profitability, size of firm, tangibility and liquidity represent the independent variable for this study. All data is collected from DataStream version 5.0 and it’s contain data from 104 companies for 10years (2002 - 2011). All the data also recorded based on yearly basis. Other than that, this study was being tested using Ordinary Least Square Regression (OLS), Random Effect (Breusch Pagan Test), Fixed Effect (Hausman Fixed Test) and Random Effect Generalized Lease Square Regression (GLS) to analyze all the data. The finding shows that profitability is not significant with debt ratio but other variable which is size of firm, tangibility and liquidity is show a significant with debt ratio.