Managerial Overconfidence, Inflation Uncertainty, And Capital Structure Choice: Evidence Of Malaysian Shari'ah-Compliant Firms

Using a unique dataset of 332 manufacturing and non-manufacturing Malaysian Shari'ah public-listed firms over the 2010-2018 period, this thesis explores capital structure choice in the context of managerial overconfidence and inflation uncertainty, focusing on the dynamic interaction between th...

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Main Author: Osman, Khairul Nizam
Format: Thesis
Language:English
Published: 2023
Subjects:
Online Access:http://eprints.usm.my/63017/
http://eprints.usm.my/63017/1/Pages%20from%20KHAIRUL%20NIZAM%20BIN%20OSMAN%20-%20TESIS.pdf
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author Osman, Khairul Nizam
author_facet Osman, Khairul Nizam
author_sort Osman, Khairul Nizam
building USM Institutional Repository
collection Online Access
description Using a unique dataset of 332 manufacturing and non-manufacturing Malaysian Shari'ah public-listed firms over the 2010-2018 period, this thesis explores capital structure choice in the context of managerial overconfidence and inflation uncertainty, focusing on the dynamic interaction between the two. The main empirical findings of a panel robust two-step System GMM show that increased managerial overconfidence, proxied by the Malaysian Institute of Economic Research’s (MIER) Business Condition Index (BCI), increases financial leverage in manufacturing firms of considerable size, aligning with the overconfident-standard pecking order theory proposed by Heaton (2002). The study also revealed that both measures of inflation uncertainty, namely variability and uncertainty, exert a direct negative influence on the capital structure of Shari’ah firms, albeit in distinct ways
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institution Universiti Sains Malaysia
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language English
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spelling usm-630172025-10-21T03:45:03Z http://eprints.usm.my/63017/ Managerial Overconfidence, Inflation Uncertainty, And Capital Structure Choice: Evidence Of Malaysian Shari'ah-Compliant Firms Osman, Khairul Nizam HD28-70 Management. Industrial Management Using a unique dataset of 332 manufacturing and non-manufacturing Malaysian Shari'ah public-listed firms over the 2010-2018 period, this thesis explores capital structure choice in the context of managerial overconfidence and inflation uncertainty, focusing on the dynamic interaction between the two. The main empirical findings of a panel robust two-step System GMM show that increased managerial overconfidence, proxied by the Malaysian Institute of Economic Research’s (MIER) Business Condition Index (BCI), increases financial leverage in manufacturing firms of considerable size, aligning with the overconfident-standard pecking order theory proposed by Heaton (2002). The study also revealed that both measures of inflation uncertainty, namely variability and uncertainty, exert a direct negative influence on the capital structure of Shari’ah firms, albeit in distinct ways 2023-12 Thesis NonPeerReviewed application/pdf en http://eprints.usm.my/63017/1/Pages%20from%20KHAIRUL%20NIZAM%20BIN%20OSMAN%20-%20TESIS.pdf Osman, Khairul Nizam (2023) Managerial Overconfidence, Inflation Uncertainty, And Capital Structure Choice: Evidence Of Malaysian Shari'ah-Compliant Firms. PhD thesis, Universiti Sains Malaysia.
spellingShingle HD28-70 Management. Industrial Management
Osman, Khairul Nizam
Managerial Overconfidence, Inflation Uncertainty, And Capital Structure Choice: Evidence Of Malaysian Shari'ah-Compliant Firms
title Managerial Overconfidence, Inflation Uncertainty, And Capital Structure Choice: Evidence Of Malaysian Shari'ah-Compliant Firms
title_full Managerial Overconfidence, Inflation Uncertainty, And Capital Structure Choice: Evidence Of Malaysian Shari'ah-Compliant Firms
title_fullStr Managerial Overconfidence, Inflation Uncertainty, And Capital Structure Choice: Evidence Of Malaysian Shari'ah-Compliant Firms
title_full_unstemmed Managerial Overconfidence, Inflation Uncertainty, And Capital Structure Choice: Evidence Of Malaysian Shari'ah-Compliant Firms
title_short Managerial Overconfidence, Inflation Uncertainty, And Capital Structure Choice: Evidence Of Malaysian Shari'ah-Compliant Firms
title_sort managerial overconfidence, inflation uncertainty, and capital structure choice: evidence of malaysian shari'ah-compliant firms
topic HD28-70 Management. Industrial Management
url http://eprints.usm.my/63017/
http://eprints.usm.my/63017/1/Pages%20from%20KHAIRUL%20NIZAM%20BIN%20OSMAN%20-%20TESIS.pdf