Unlocking the Secrets of Corporate Finance: How Firms Shape Their Destiny
The article examines what factors influence how companies choose to finance their investments, known as capital structure. The study looks at the impact of factors like capital intensity, tangibility, profitability, and firm size on a company's debt levels. The researchers analyzed data from annual reports of six non-financial companies in Malaysia over five years. They found that these factors do indeed affect how companies structure their finances, which can impact their performance and shareholder wealth.