The influence of capital structure towards company value: Industrial product sector / Mohd Khairunnizom Mahmud

Over a century capital structure had been used in financing both the major and minor player in the industrial sector in Malaysia. Capital structure is basically related to the debt-equity ratio. A company that issue bonds originally will increase their debt-equity ratio but instead if they issue sto...

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Bibliographic Details
Main Author: Mahmud, Mohd Khairunnizom
Format: Student Project
Language:English
Published: 2008
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/34466/
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author Mahmud, Mohd Khairunnizom
author_facet Mahmud, Mohd Khairunnizom
author_sort Mahmud, Mohd Khairunnizom
building UiTM Institutional Repository
collection Online Access
description Over a century capital structure had been used in financing both the major and minor player in the industrial sector in Malaysia. Capital structure is basically related to the debt-equity ratio. A company that issue bonds originally will increase their debt-equity ratio but instead if they issue stock their debt-equity ratio will be lesser. This is why the debt policy and equity ownership structure associated with each other. The study use time- series regression method to see the relationship between dependent and independent variables. The company value is the dependent variable of this study which total asset will be the proxy of the company value, while the independent variable is total debts to assets ratio, pre-tax income margin and total debt. According to the analysis for the year 1998 to 2007, which based on multiple linear regression found that, total debt and total debt to asset ratio are significantly influence the value of a firm while pre-tax profit margin do not significantly influence the value of a firm. This result had showed that only two of the outstanding independent variables can be used to measure the value of a firm.
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spelling uitm-344662020-11-02T03:32:42Z https://ir.uitm.edu.my/id/eprint/34466/ The influence of capital structure towards company value: Industrial product sector / Mohd Khairunnizom Mahmud Mahmud, Mohd Khairunnizom Capital budget. Capital investments. Fixed capital Debt financing (Corporations) Over a century capital structure had been used in financing both the major and minor player in the industrial sector in Malaysia. Capital structure is basically related to the debt-equity ratio. A company that issue bonds originally will increase their debt-equity ratio but instead if they issue stock their debt-equity ratio will be lesser. This is why the debt policy and equity ownership structure associated with each other. The study use time- series regression method to see the relationship between dependent and independent variables. The company value is the dependent variable of this study which total asset will be the proxy of the company value, while the independent variable is total debts to assets ratio, pre-tax income margin and total debt. According to the analysis for the year 1998 to 2007, which based on multiple linear regression found that, total debt and total debt to asset ratio are significantly influence the value of a firm while pre-tax profit margin do not significantly influence the value of a firm. This result had showed that only two of the outstanding independent variables can be used to measure the value of a firm. 2008 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/34466/1/34466.pdf Mahmud, Mohd Khairunnizom (2008) The influence of capital structure towards company value: Industrial product sector / Mohd Khairunnizom Mahmud. (2008) [Student Project] (Unpublished)
spellingShingle Capital budget. Capital investments. Fixed capital
Debt financing (Corporations)
Mahmud, Mohd Khairunnizom
The influence of capital structure towards company value: Industrial product sector / Mohd Khairunnizom Mahmud
title The influence of capital structure towards company value: Industrial product sector / Mohd Khairunnizom Mahmud
title_full The influence of capital structure towards company value: Industrial product sector / Mohd Khairunnizom Mahmud
title_fullStr The influence of capital structure towards company value: Industrial product sector / Mohd Khairunnizom Mahmud
title_full_unstemmed The influence of capital structure towards company value: Industrial product sector / Mohd Khairunnizom Mahmud
title_short The influence of capital structure towards company value: Industrial product sector / Mohd Khairunnizom Mahmud
title_sort influence of capital structure towards company value: industrial product sector / mohd khairunnizom mahmud
topic Capital budget. Capital investments. Fixed capital
Debt financing (Corporations)
url https://ir.uitm.edu.my/id/eprint/34466/