Is there a realationship between the gearing ratio and the value of a firm (market price of a share): Malaysian context (property sector on the Kuala Lumpur Stock Exchange) / Ahmad Johar Johod

The purpose of this paper is to see whether a relationship exists between the debt-equity ratio (gearing ratio) and the market price per share for the companies listed under the property sector on the Kuala Lumpur Stock Exchange (KLSE). Statistical tests were applied (correlation, regression, degree of coefficient and the students t distribution) to provide numerical evidence on the relationship. The results throw some light to the question of relationship. Based on the numerical testimony, there exists a weak negative relationship between the debt-equity ratio and the market price of shares.