Business, Management and Accounting
4 years ago

Size and liquidity impact debt levels in Malaysian companies, study finds.

MPRA Paper
Capital Structure and Firm Characteristics: Some Evidence from Malaysian Companies
Mat Kila Suhaila, Wan Mansor Wan Mahmood

Paper Summary

Related papers

Business, Management and Accounting
3 years ago

Profitability and growth drive debt ratios for Sri Lankan manufacturing firms

Corporate Governance
Working Capital
Firm Dynamics
2 views
Business, Management and Accounting
3 years ago

Consumer product firms in Malaysia must diversify to boost performance.

Corporate Governance
1 view
Business, Management and Accounting
3 years ago

Debt structure impacts Malaysian firms' performance in consumers and industrials sectors.

Corporate Governance
Islamic Banking

The study looked at what factors influence how companies in Malaysia choose to finance their operations. They analyzed data from 17 companies over six years and found that company size, liquidity, and interest coverage ratio are linked to lower levels of debt. However, the study did not find a significant relationship between a company's growth and its debt levels. The researchers also discovered that companies with more than 30% of their assets financed through debt have different capital structures compared to those with less debt.