The study looked at how Malaysian companies decide on their capital structure, focusing on whether they adjust slowly or quickly towards their target level of debt. They found that firms tend to adjust their debt levels slowly, but this speed increases when considering timing factors. Overleveraged firms adjust faster than underleveraged ones, as they face higher costs if they deviate from their target debt level. Underleveraged firms have more flexibility to time the market. The study suggests that firms consider both timing and targeting when making financing decisions, rather than just one or the other.