CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia
This study conducted to investigate the CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia by employing 472 observations and 50 listed companies (non-financial firms) for 11 years period, 2008-2018. This study pays attention to the dynamic aspect of capital structure w...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Academic Inspired Network
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/88108/ http://psasir.upm.edu.my/id/eprint/88108/1/ABSTRACT.pdf |
| _version_ | 1848860556347310080 |
|---|---|
| author | Shafie, Shazlin Ab Razak, Nazrul Hisyam Chua, Mei Shan Lau, Wei Theng |
| author_facet | Shafie, Shazlin Ab Razak, Nazrul Hisyam Chua, Mei Shan Lau, Wei Theng |
| author_sort | Shafie, Shazlin |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study conducted to investigate the CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia by employing 472 observations and 50 listed companies (non-financial firms) for 11 years period, 2008-2018. This study pays attention to the dynamic aspect of capital structure which is a relatively new area in the finance literature. The objective of this study is to investigate managerial (CEOs) characteristics and firm’s factors in optimal leverage by applying dynamic model consistent with dynamic capital structure nature. By employing dynamic panel data, this study analyses the data through twostep system GMM introduced by Blundell & Bond (1998) consistent with past empirical studies. This finding shows that CEOs characteristics and the firm’s specific factors significantly impact optimal leverage in Malaysia’ companies. Hence, we accept alternate hypotheses in this study. This study would contribute to actual practise on identifying determinants of optimal leverage in proper forecasting and take action on controlling/managing all the significant variables to meet the optimal leverage in their practice. Meanwhile, the future researcher will gain more understanding of dynamic model and allow them to apply this finding as a comparison with their future study by supporting their literature review. |
| first_indexed | 2025-11-15T12:47:07Z |
| format | Article |
| id | upm-88108 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:47:07Z |
| publishDate | 2020 |
| publisher | Academic Inspired Network |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-881082022-05-18T07:05:50Z http://psasir.upm.edu.my/id/eprint/88108/ CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia Shafie, Shazlin Ab Razak, Nazrul Hisyam Chua, Mei Shan Lau, Wei Theng This study conducted to investigate the CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia by employing 472 observations and 50 listed companies (non-financial firms) for 11 years period, 2008-2018. This study pays attention to the dynamic aspect of capital structure which is a relatively new area in the finance literature. The objective of this study is to investigate managerial (CEOs) characteristics and firm’s factors in optimal leverage by applying dynamic model consistent with dynamic capital structure nature. By employing dynamic panel data, this study analyses the data through twostep system GMM introduced by Blundell & Bond (1998) consistent with past empirical studies. This finding shows that CEOs characteristics and the firm’s specific factors significantly impact optimal leverage in Malaysia’ companies. Hence, we accept alternate hypotheses in this study. This study would contribute to actual practise on identifying determinants of optimal leverage in proper forecasting and take action on controlling/managing all the significant variables to meet the optimal leverage in their practice. Meanwhile, the future researcher will gain more understanding of dynamic model and allow them to apply this finding as a comparison with their future study by supporting their literature review. Academic Inspired Network 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/88108/1/ABSTRACT.pdf Shafie, Shazlin and Ab Razak, Nazrul Hisyam and Chua, Mei Shan and Lau, Wei Theng (2020) CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia. International Journal of Accounting, Finance and Business, 5 (26). 91 - 106. ISSN 0128-1844 http://www.ijafb.com/archived.asm?dataid=263&iDisplayStart=0&aaSorting=&isSearchDetail=1&dataidExtend=2194&iDisplayStartExtend=0&aaSortingExtend=&isSearchDetailExtend=1 |
| spellingShingle | Shafie, Shazlin Ab Razak, Nazrul Hisyam Chua, Mei Shan Lau, Wei Theng CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia |
| title | CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia |
| title_full | CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia |
| title_fullStr | CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia |
| title_full_unstemmed | CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia |
| title_short | CEO’s characteristics and firms’ specific factors on optimal leverage in Malaysia |
| title_sort | ceo’s characteristics and firms’ specific factors on optimal leverage in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/88108/ http://psasir.upm.edu.my/id/eprint/88108/ http://psasir.upm.edu.my/id/eprint/88108/1/ABSTRACT.pdf |