The impact of leverage on shareholders' return / Muhammad Anwar Ramlan

The use of leverage by the company may give big impact toward shareholders' return either in positive or negative way. The study aims to investigate the impact of leverage on shareholders' return. This research are using five (5) independent variable which are debt ratio (DR), long term debt ratio (LTBR), price to book ratio (PTBR), firm size (F S), and tax rate (TR). While the dependent variable is return on equity (ROE). The sample of 100 listed companies randomly selected from Bursa Malaysia was chosen for this study with the time period about 10 years which from 2007 to 2016. The data that had been used in this research is quantitative secondary data and the data structure is panel data. Moreover, the research are conducted by using panel least squares method to generate result for this study. The finding indicate that two independent variable show the significant result which are price to book ratio (PTBR) and tax rate (TR). While the rest show the insignificant result. The price to book ratio (PTBR) show the positive significant impact toward return on equity (ROE) which mean increase in price to book ratio (PTBR) will cause the increase in return on equity (ROE) and vice versa. In contra, the tax rate (T R) show the negative significant impact toward return on equity (ROE) which mean increase in tax rate (T R) will cause the decrease in return on equity (ROE) and vice versa.