Debt structure impacts Malaysian firms' performance in consumers and industrials sectors.
The researchers studied how a company's mix of short-term and long-term debt affects its performance in Malaysia's consumer and industrial sectors. They looked at data from 58 firms over six years and found that short-term debt and total debt have a significant impact on return on assets, while return on equity is affected by overall debt levels. However, using lagged values of debt did not show a significant relationship with performance. In conclusion, the capital structure of Malaysian firms in these sectors does influence their operating performance.