The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh
This research aims at investigating the effect of capital structure on the profitability performance of PN17 companies that listed in Bursa Malaysia. This study is to explore the impact of three variables, namely short-term debt ratio, long-term debt ratio, and tot...
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| Format: | Student Project |
| Language: | English |
| Published: |
Faculty of Business Management
2017
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| Online Access: | https://ir.uitm.edu.my/id/eprint/23626/ |
| _version_ | 1848805789798498304 |
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| author | Wan Mohd Saleh, Wan Nor Alia |
| author_facet | Wan Mohd Saleh, Wan Nor Alia |
| author_sort | Wan Mohd Saleh, Wan Nor Alia |
| building | UiTM Institutional Repository |
| collection | Online Access |
| description | This research aims at investigating the effect of capital structure on the profitability performance of PN17 companies that listed in Bursa Malaysia. This study is to explore the impact of three variables, namely short-term debt ratio, long-term debt ratio, and total debt ratio on the return on equity by using balance panel data set of listed companies between 2010 until 2015. Panel data methodology was employed and White Cross-section regression was used to estimate the coefficient of explanatory variables. The result indicated that the profitability performance are negatively affected by short-term debt ratio and total debt ratio. The result obtained might indicate thatthe firm might funding their activities by using the Pecking order theory, which is based on the idea that the companies will use their internal financing sources first to operate their activities (Ahmed Sheikh andWang, 2011). When a company probably become bankruptcy and distress, an increasedin debt can cause a higher total agency costs that effectingto a negative result on firm profitability (Dawar,2014). The result acquired from this study also shows that only 2.28 percent inReturn on Equity were influencedby short-term debt ratio, long-term debt ratio and total debt ratio.Whereas, the remaining are determine by other factors, such as economic, and sales performance |
| first_indexed | 2025-11-14T22:16:37Z |
| format | Student Project |
| id | uitm-23626 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T22:16:37Z |
| publishDate | 2017 |
| publisher | Faculty of Business Management |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-236262019-04-07T07:46:44Z https://ir.uitm.edu.my/id/eprint/23626/ The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh Wan Mohd Saleh, Wan Nor Alia Capital budget. Capital investments. Fixed capital This research aims at investigating the effect of capital structure on the profitability performance of PN17 companies that listed in Bursa Malaysia. This study is to explore the impact of three variables, namely short-term debt ratio, long-term debt ratio, and total debt ratio on the return on equity by using balance panel data set of listed companies between 2010 until 2015. Panel data methodology was employed and White Cross-section regression was used to estimate the coefficient of explanatory variables. The result indicated that the profitability performance are negatively affected by short-term debt ratio and total debt ratio. The result obtained might indicate thatthe firm might funding their activities by using the Pecking order theory, which is based on the idea that the companies will use their internal financing sources first to operate their activities (Ahmed Sheikh andWang, 2011). When a company probably become bankruptcy and distress, an increasedin debt can cause a higher total agency costs that effectingto a negative result on firm profitability (Dawar,2014). The result acquired from this study also shows that only 2.28 percent inReturn on Equity were influencedby short-term debt ratio, long-term debt ratio and total debt ratio.Whereas, the remaining are determine by other factors, such as economic, and sales performance Faculty of Business Management 2017 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/23626/1/PPb_WAN%20NOR%20ALIA%20WAN%20MOHD%20SALLEH%20J%20BM17_5.pdf Wan Mohd Saleh, Wan Nor Alia (2017) The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh. (2017) [Student Project] (Submitted) |
| spellingShingle | Capital budget. Capital investments. Fixed capital Wan Mohd Saleh, Wan Nor Alia The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh |
| title | The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh |
| title_full | The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh |
| title_fullStr | The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh |
| title_full_unstemmed | The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh |
| title_short | The implication of capital structure towards the profitability performance of PN17 companies / Wan Nor Alia Wan Mohd Saleh |
| title_sort | implication of capital structure towards the profitability performance of pn17 companies / wan nor alia wan mohd saleh |
| topic | Capital budget. Capital investments. Fixed capital |
| url | https://ir.uitm.edu.my/id/eprint/23626/ |