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The impact of financial crisis on the determinants of capital structure among Shariah constructions firms / Mohamad Nizam Jaafar … [et al.]

The aim of this empirical study is to explore the factors that affect the capital structure of construction firms and to investigate whether the capital structure models derived from Western settings provide convincing explanations for capital structure decisions of the Malaysia firms. This study fo...

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Main Authors: Jaafar, Mohamad Nizam, Muhamat, Amirul Afif, Abdul Karim, Norzitah, Syed Alwi, Sharifah Faigah, Peie, Noraini
Format: Article
Language:English
Published: Universiti Teknologi Mara, Selangor: Puncak Alam Campus: Faculty of Business and Management 2019
Subjects:
Finance, Islamic
Online Access:http://ir.uitm.edu.my/id/eprint/28912/1/28912.pdf
http://ir.uitm.edu.my/id/eprint/28912/
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spelling my.uitm.ir.289122020-03-26T02:41:34Z http://ir.uitm.edu.my/id/eprint/28912/ The impact of financial crisis on the determinants of capital structure among Shariah constructions firms / Mohamad Nizam Jaafar … [et al.] Jaafar, Mohamad Nizam Muhamat, Amirul Afif Abdul Karim, Norzitah Syed Alwi, Sharifah Faigah Peie, Noraini Finance, Islamic The aim of this empirical study is to explore the factors that affect the capital structure of construction firms and to investigate whether the capital structure models derived from Western settings provide convincing explanations for capital structure decisions of the Malaysia firms. This study focuses on Shariah compliant construction companies since this industry has been contributing significantly towards Malaysia economic growth. In addition, this study also includes the impact of financial crisis towards firms’ capital structure decision. Panel data from 11 Shariah compliant construction companies in Malaysia were analyzed for duration of 17 years (2001-2017). Different conditional theories of capital structure are reviewed i.e. trade‐off theory, pecking order theory, agency theory, and theory of free cash flow, in order to formulate testable propositions concerning the determinants of capital structure of the construction firms. The dependent variable that being used is debt ratio, while independent variables are firm size, profitability, tangible asset, growth opportunity, liquidity, and crisis respectively. Finding indicates that firm size, profitability and tangible asset are significant towards debt ratio. However, other variables including financial crisis did not have any significant impact on capital structure decision. The results of this study provide important implication to investors and manager of firms in making best decision on capital structure. This study also adds values to the existing knowledge regarding determinants of capital structure and financial crisis. Universiti Teknologi Mara, Selangor: Puncak Alam Campus: Faculty of Business and Management 2019 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/28912/1/28912.pdf Jaafar, Mohamad Nizam and Muhamat, Amirul Afif and Abdul Karim, Norzitah and Syed Alwi, Sharifah Faigah and Peie, Noraini (2019) The impact of financial crisis on the determinants of capital structure among Shariah constructions firms / Mohamad Nizam Jaafar … [et al.]. Journal of International Business, Economics and Entrepreneurship (JIBE), 4 (2). pp. 46-54. ISSN 2550-1429
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Finance, Islamic
spellingShingle Finance, Islamic
Jaafar, Mohamad Nizam
Muhamat, Amirul Afif
Abdul Karim, Norzitah
Syed Alwi, Sharifah Faigah
Peie, Noraini
The impact of financial crisis on the determinants of capital structure among Shariah constructions firms / Mohamad Nizam Jaafar … [et al.]
description The aim of this empirical study is to explore the factors that affect the capital structure of construction firms and to investigate whether the capital structure models derived from Western settings provide convincing explanations for capital structure decisions of the Malaysia firms. This study focuses on Shariah compliant construction companies since this industry has been contributing significantly towards Malaysia economic growth. In addition, this study also includes the impact of financial crisis towards firms’ capital structure decision. Panel data from 11 Shariah compliant construction companies in Malaysia were analyzed for duration of 17 years (2001-2017). Different conditional theories of capital structure are reviewed i.e. trade‐off theory, pecking order theory, agency theory, and theory of free cash flow, in order to formulate testable propositions concerning the determinants of capital structure of the construction firms. The dependent variable that being used is debt ratio, while independent variables are firm size, profitability, tangible asset, growth opportunity, liquidity, and crisis respectively. Finding indicates that firm size, profitability and tangible asset are significant towards debt ratio. However, other variables including financial crisis did not have any significant impact on capital structure decision. The results of this study provide important implication to investors and manager of firms in making best decision on capital structure. This study also adds values to the existing knowledge regarding determinants of capital structure and financial crisis.
format Article
author Jaafar, Mohamad Nizam
Muhamat, Amirul Afif
Abdul Karim, Norzitah
Syed Alwi, Sharifah Faigah
Peie, Noraini
author_facet Jaafar, Mohamad Nizam
Muhamat, Amirul Afif
Abdul Karim, Norzitah
Syed Alwi, Sharifah Faigah
Peie, Noraini
author_sort Jaafar, Mohamad Nizam
title The impact of financial crisis on the determinants of capital structure among Shariah constructions firms / Mohamad Nizam Jaafar … [et al.]
title_short The impact of financial crisis on the determinants of capital structure among Shariah constructions firms / Mohamad Nizam Jaafar … [et al.]
title_full The impact of financial crisis on the determinants of capital structure among Shariah constructions firms / Mohamad Nizam Jaafar … [et al.]
title_fullStr The impact of financial crisis on the determinants of capital structure among Shariah constructions firms / Mohamad Nizam Jaafar … [et al.]
title_full_unstemmed The impact of financial crisis on the determinants of capital structure among Shariah constructions firms / Mohamad Nizam Jaafar … [et al.]
title_sort impact of financial crisis on the determinants of capital structure among shariah constructions firms / mohamad nizam jaafar … [et al.]
publisher Universiti Teknologi Mara, Selangor: Puncak Alam Campus: Faculty of Business and Management
publishDate 2019
url http://ir.uitm.edu.my/id/eprint/28912/1/28912.pdf
http://ir.uitm.edu.my/id/eprint/28912/
_version_ 1685650473882746880
score 13.211869

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