Abstract
This study observes the determinants of the capital
structure of Malaysian firms. It is
based on a sample of 342 firms selected from the main board of the Malaysian
Stock Exchange from the period of 1994 to 2004.
Based on the panel data estimations, the study evaluates the agency cost
of debt, the bankruptcy cost, the age, the growth rate, the non-debt tax
shield, the profitability, size, the tangibility and the volatility of the
firms. Except for AGCY, PROF and TA all
of the variables are positively correlated with the firms’ leverage, LEV.
Therefore, the determinants are discovered to be consistent with the capital
structure theory.
By:
ASSOC. PROF. DR. ISMAIL AHMAD
WAN HASNAH WAN ABD KADIR
KHARUDIN MOHD SALI @ SALLEH
Finance Lecturers
Universiti Teknologi MARA Johor
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