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The capital structure: Government-Linked and Non- Government-Linked Companies in the trading and services industry in Malaysia / Wahida Ahmad, Noor Sharida Badri Shah and Noor Hafizha Muhamad Yusuf

Government-Linked Companies perhaps differ from other companies in terms of their capability to absorb socio- political benefit from the government interest. This allows the companies to take greater risk with respect to their capital structure decision. The paper seeks to identify if there are diff...

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Main Authors: Ahmad, Wahida, Badri Shah, Noor Sharida, Muhamad Yusuf, Noor Hafizha
Format: Article
Language:English
Published: Universiti Teknologi MARA, Perlis 2017
Subjects:
Financial management. Business finance. Corporation finance
Financial leverage
Investment companies. Investment trusts. Mutual funds
Online Access:http://ir.uitm.edu.my/id/eprint/40744/1/40744.pdf
http://ir.uitm.edu.my/id/eprint/40744/
https://jurnalintelek.uitm.edu.my/index.php/main
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spelling my.uitm.ir.407442021-02-02T05:12:23Z http://ir.uitm.edu.my/id/eprint/40744/ The capital structure: Government-Linked and Non- Government-Linked Companies in the trading and services industry in Malaysia / Wahida Ahmad, Noor Sharida Badri Shah and Noor Hafizha Muhamad Yusuf Ahmad, Wahida Badri Shah, Noor Sharida Muhamad Yusuf, Noor Hafizha Financial management. Business finance. Corporation finance Financial leverage Investment companies. Investment trusts. Mutual funds Government-Linked Companies perhaps differ from other companies in terms of their capability to absorb socio- political benefit from the government interest. This allows the companies to take greater risk with respect to their capital structure decision. The paper seeks to identify if there are differences in capital structure between Malaysian Government-Linked Companies (GLCs) and Non-Government-Linked Companies (NGLCs). The sample consists of six companies each of the GLCs and the NGLCs, all from trading and services industry. The study uses 21 years of unbalanced panel data from 1993 to 2013. Leverage acts as dependent variable, while profitability, asset tangibility, firm size, and growth are the independent variables. The model uses group dummy to distinguish the sample of GLCs and NGLCs. Within the scope of the study, the paper is unable to proof any differences in capital structure between the two groups of companies. The random effects estimation identify profitability as negatively significant with capital structure decision for GLCs and NGLCs. In contrast, asset tangibility and firm size are positively related to leverage. The interaction effect discloses company growth have a different impact on leverage for GLCs and NGLCs for trading and services companies in Malaysia. Universiti Teknologi MARA, Perlis 2017-06 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/40744/1/40744.pdf Ahmad, Wahida and Badri Shah, Noor Sharida and Muhamad Yusuf, Noor Hafizha (2017) The capital structure: Government-Linked and Non- Government-Linked Companies in the trading and services industry in Malaysia / Wahida Ahmad, Noor Sharida Badri Shah and Noor Hafizha Muhamad Yusuf. Jurnal Intelek, 12 (1). pp. 92-98. ISSN 2682-9223 https://jurnalintelek.uitm.edu.my/index.php/main
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 Financial management. Business finance. Corporation finance
Financial leverage
Investment companies. Investment trusts. Mutual funds
spellingShingle Financial management. Business finance. Corporation finance
Financial leverage
Investment companies. Investment trusts. Mutual funds
Ahmad, Wahida
Badri Shah, Noor Sharida
Muhamad Yusuf, Noor Hafizha
The capital structure: Government-Linked and Non- Government-Linked Companies in the trading and services industry in Malaysia / Wahida Ahmad, Noor Sharida Badri Shah and Noor Hafizha Muhamad Yusuf
description Government-Linked Companies perhaps differ from other companies in terms of their capability to absorb socio- political benefit from the government interest. This allows the companies to take greater risk with respect to their capital structure decision. The paper seeks to identify if there are differences in capital structure between Malaysian Government-Linked Companies (GLCs) and Non-Government-Linked Companies (NGLCs). The sample consists of six companies each of the GLCs and the NGLCs, all from trading and services industry. The study uses 21 years of unbalanced panel data from 1993 to 2013. Leverage acts as dependent variable, while profitability, asset tangibility, firm size, and growth are the independent variables. The model uses group dummy to distinguish the sample of GLCs and NGLCs. Within the scope of the study, the paper is unable to proof any differences in capital structure between the two groups of companies. The random effects estimation identify profitability as negatively significant with capital structure decision for GLCs and NGLCs. In contrast, asset tangibility and firm size are positively related to leverage. The interaction effect discloses company growth have a different impact on leverage for GLCs and NGLCs for trading and services companies in Malaysia.
format Article
author Ahmad, Wahida
Badri Shah, Noor Sharida
Muhamad Yusuf, Noor Hafizha
author_facet Ahmad, Wahida
Badri Shah, Noor Sharida
Muhamad Yusuf, Noor Hafizha
author_sort Ahmad, Wahida
title The capital structure: Government-Linked and Non- Government-Linked Companies in the trading and services industry in Malaysia / Wahida Ahmad, Noor Sharida Badri Shah and Noor Hafizha Muhamad Yusuf
title_short The capital structure: Government-Linked and Non- Government-Linked Companies in the trading and services industry in Malaysia / Wahida Ahmad, Noor Sharida Badri Shah and Noor Hafizha Muhamad Yusuf
title_full The capital structure: Government-Linked and Non- Government-Linked Companies in the trading and services industry in Malaysia / Wahida Ahmad, Noor Sharida Badri Shah and Noor Hafizha Muhamad Yusuf
title_fullStr The capital structure: Government-Linked and Non- Government-Linked Companies in the trading and services industry in Malaysia / Wahida Ahmad, Noor Sharida Badri Shah and Noor Hafizha Muhamad Yusuf
title_full_unstemmed The capital structure: Government-Linked and Non- Government-Linked Companies in the trading and services industry in Malaysia / Wahida Ahmad, Noor Sharida Badri Shah and Noor Hafizha Muhamad Yusuf
title_sort capital structure: government-linked and non- government-linked companies in the trading and services industry in malaysia / wahida ahmad, noor sharida badri shah and noor hafizha muhamad yusuf
publisher Universiti Teknologi MARA, Perlis
publishDate 2017
url http://ir.uitm.edu.my/id/eprint/40744/1/40744.pdf
http://ir.uitm.edu.my/id/eprint/40744/
https://jurnalintelek.uitm.edu.my/index.php/main
_version_ 1691735753665544192
score 13.211869

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