A study on the determinants of capital structure of food and beverages companies in Malaysia / Amni Hawana Helmy and Aqilah Hairudin

The objective of the study is to investigate the determinants of capital structure of food and beverages companies in Malaysia. The investigation is focus on the firm-specific factors such as liquidity (CR), tangibility (PPETA), firm’s growth (GTA), profitability (ROA) and size of firm (TA) that inf...

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Main Authors: Helmy, Amni Hawana, Hairudin, Aqilah
Format: Student Project
Language:English
Published: Faculty of Business and Management 2019
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/23439/
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author Helmy, Amni Hawana
Hairudin, Aqilah
author_facet Helmy, Amni Hawana
Hairudin, Aqilah
author_sort Helmy, Amni Hawana
building UiTM Institutional Repository
collection Online Access
description The objective of the study is to investigate the determinants of capital structure of food and beverages companies in Malaysia. The investigation is focus on the firm-specific factors such as liquidity (CR), tangibility (PPETA), firm’s growth (GTA), profitability (ROA) and size of firm (TA) that influence the capital structure decisions of food and beverages companies. The debt to equity ratio is used as a proxy to measure the capital structure of the company. The analysis of this study performed by using the panel data model; random effects model for 15 companies listed in Bursa Malaysia Berhad under food and beverages sector in Malaysia during the periods of 2010 to 2017. The results of this study indicate the determinants that have positive impact on capital structure are firm’s growth, profitability and size of firm. In contrast, the determinants that give negative impact on the capital structure are liquidity and tangibility. The value of R-square is 0.673589 which indicates that 67.36 percent of capital structure variation can be explained by all the variation of independent variables that include in this study which are liquidity, tangibility, firm’s growth, profitability and size of firm while the remaining of 32.64 percent explained by other factors that are omitted in the model.
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spelling uitm-234392019-03-19T07:53:21Z https://ir.uitm.edu.my/id/eprint/23439/ A study on the determinants of capital structure of food and beverages companies in Malaysia / Amni Hawana Helmy and Aqilah Hairudin Helmy, Amni Hawana Hairudin, Aqilah Food industry and trade. Halal food industry. Certification Financial management. Business finance. Corporation finance Capital budget. Capital investments. Fixed capital The objective of the study is to investigate the determinants of capital structure of food and beverages companies in Malaysia. The investigation is focus on the firm-specific factors such as liquidity (CR), tangibility (PPETA), firm’s growth (GTA), profitability (ROA) and size of firm (TA) that influence the capital structure decisions of food and beverages companies. The debt to equity ratio is used as a proxy to measure the capital structure of the company. The analysis of this study performed by using the panel data model; random effects model for 15 companies listed in Bursa Malaysia Berhad under food and beverages sector in Malaysia during the periods of 2010 to 2017. The results of this study indicate the determinants that have positive impact on capital structure are firm’s growth, profitability and size of firm. In contrast, the determinants that give negative impact on the capital structure are liquidity and tangibility. The value of R-square is 0.673589 which indicates that 67.36 percent of capital structure variation can be explained by all the variation of independent variables that include in this study which are liquidity, tangibility, firm’s growth, profitability and size of firm while the remaining of 32.64 percent explained by other factors that are omitted in the model. Faculty of Business and Management 2019 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/23439/1/PPb_AMNI%20HAWANA%20HELMY%20M%20BM%2019_5.pdf Helmy, Amni Hawana and Hairudin, Aqilah (2019) A study on the determinants of capital structure of food and beverages companies in Malaysia / Amni Hawana Helmy and Aqilah Hairudin. (2019) [Student Project] <http://terminalib.uitm.edu.my/23439.pdf> (Unpublished)
spellingShingle Food industry and trade. Halal food industry. Certification
Financial management. Business finance. Corporation finance
Capital budget. Capital investments. Fixed capital
Helmy, Amni Hawana
Hairudin, Aqilah
A study on the determinants of capital structure of food and beverages companies in Malaysia / Amni Hawana Helmy and Aqilah Hairudin
title A study on the determinants of capital structure of food and beverages companies in Malaysia / Amni Hawana Helmy and Aqilah Hairudin
title_full A study on the determinants of capital structure of food and beverages companies in Malaysia / Amni Hawana Helmy and Aqilah Hairudin
title_fullStr A study on the determinants of capital structure of food and beverages companies in Malaysia / Amni Hawana Helmy and Aqilah Hairudin
title_full_unstemmed A study on the determinants of capital structure of food and beverages companies in Malaysia / Amni Hawana Helmy and Aqilah Hairudin
title_short A study on the determinants of capital structure of food and beverages companies in Malaysia / Amni Hawana Helmy and Aqilah Hairudin
title_sort study on the determinants of capital structure of food and beverages companies in malaysia / amni hawana helmy and aqilah hairudin
topic Food industry and trade. Halal food industry. Certification
Financial management. Business finance. Corporation finance
Capital budget. Capital investments. Fixed capital
url https://ir.uitm.edu.my/id/eprint/23439/