Staff View: The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman

The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman

The theory of capital structure and its impact on the value of a firm is perhaps one of the most influential yet controversial, in finance. Since its introduction in 1958 by Modiglianni and Miller, which assumed that in a perfect capital market, capital structure decisions are irrelevant to the valu...

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Main Author:	Ab Rahman, Ahmad Mizani
Format:	Student Project
Language:	English
Published:	2000
Subjects:	Banking Debt financing (Corporations) Dividends. Stock dividends. Dividend reinvestment Financial leverage Malaysia Investment companies. Investment trusts. Mutual funds Stock exchanges. Insider trading in securities
Online Access:	http://ir.uitm.edu.my/id/eprint/45505/1/45505.pdf http://ir.uitm.edu.my/id/eprint/45505/
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id	my.uitm.ir.45505
record_format	eprints
spelling	my.uitm.ir.455052021-07-27T01:39:30Z http://ir.uitm.edu.my/id/eprint/45505/ The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman Ab Rahman, Ahmad Mizani Banking Debt financing (Corporations) Dividends. Stock dividends. Dividend reinvestment Financial leverage Malaysia Investment companies. Investment trusts. Mutual funds Stock exchanges. Insider trading in securities The theory of capital structure and its impact on the value of a firm is perhaps one of the most influential yet controversial, in finance. Since its introduction in 1958 by Modiglianni and Miller, which assumed that in a perfect capital market, capital structure decisions are irrelevant to the value of firm, there had been various pros and cons views put forward by other researcher, especially in the practical use of the theory. The purpose of this study is to see whether there is a relationship between financial leverage and the value of a firm of Industrial companies of the Kuala Lumpur Stock Exchange (KLSE), before the Financial and Economic crisis. The samples of this study are taken from 106 public companies, listed on the Industrial Product of the Main board of the KLSE. The Simple Regression analysis is used to analyze the published, audited, accounting data of the firms between 1993-1997. The result of this study indicates that to some extent, there are relationship between capital structure and the value of a firm. In summary, it can be said that even though the utilization of debt financing is high for the sample under study, financial leverage on its own can not increase the value of Malaysia public listed companies. 2000-04-27 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/45505/1/45505.pdf ID45505 Ab Rahman, Ahmad Mizani (2000) The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman. [Student Project] (Unpublished)
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	Banking Debt financing (Corporations) Dividends. Stock dividends. Dividend reinvestment Financial leverage Malaysia Investment companies. Investment trusts. Mutual funds Stock exchanges. Insider trading in securities
spellingShingle	Banking Debt financing (Corporations) Dividends. Stock dividends. Dividend reinvestment Financial leverage Malaysia Investment companies. Investment trusts. Mutual funds Stock exchanges. Insider trading in securities Ab Rahman, Ahmad Mizani The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman
description	The theory of capital structure and its impact on the value of a firm is perhaps one of the most influential yet controversial, in finance. Since its introduction in 1958 by Modiglianni and Miller, which assumed that in a perfect capital market, capital structure decisions are irrelevant to the value of firm, there had been various pros and cons views put forward by other researcher, especially in the practical use of the theory. The purpose of this study is to see whether there is a relationship between financial leverage and the value of a firm of Industrial companies of the Kuala Lumpur Stock Exchange (KLSE), before the Financial and Economic crisis. The samples of this study are taken from 106 public companies, listed on the Industrial Product of the Main board of the KLSE. The Simple Regression analysis is used to analyze the published, audited, accounting data of the firms between 1993-1997. The result of this study indicates that to some extent, there are relationship between capital structure and the value of a firm. In summary, it can be said that even though the utilization of debt financing is high for the sample under study, financial leverage on its own can not increase the value of Malaysia public listed companies.
format	Student Project
author	Ab Rahman, Ahmad Mizani
author_facet	Ab Rahman, Ahmad Mizani
author_sort	Ab Rahman, Ahmad Mizani
title	The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman
title_short	The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman
title_full	The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman
title_fullStr	The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman
title_full_unstemmed	The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman
title_sort	relationship between financial leverage and the value of a firm for industrial companies listed on the klse mainboard / ahmad mizani ab rahman
publishDate	2000
url	http://ir.uitm.edu.my/id/eprint/45505/1/45505.pdf http://ir.uitm.edu.my/id/eprint/45505/
_version_	1706960397365411840
score	13.211869

The relationship between financial leverage and the value of a firm for industrial companies listed on the KLSE mainboard / Ahmad Mizani Ab Rahman

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