Staff View: Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.]

Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.]

The inconclusiveness of findings on the capital structure has been the main debatable topic and repeatedly discussed to date. This paper is providing new empirical evidence on the relationship between capital structure and firm efficiency by investigating the sample of Syariahcompliant property firm...

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Main Authors:	Sahudin, Zahariah, Abdullah, Hasni, Md Elias, Nura Lina, Ali, Husniyati, Anuar, Annurizal
Format:	Article
Language:	English
Published:	Universiti Teknologi MARA 2020
Subjects:	Management. Industrial Management Planning. Business planning. Strategic planning Capital. Capital investments
Online Access:	http://ir.uitm.edu.my/id/eprint/47453/1/47453.pdf http://ir.uitm.edu.my/id/eprint/47453/ https://doi.org/10.24191/jeeir.v8i3.10856
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id	my.uitm.ir.47453
record_format	eprints
spelling	my.uitm.ir.474532021-06-14T04:09:56Z http://ir.uitm.edu.my/id/eprint/47453/ Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.] Sahudin, Zahariah Abdullah, Hasni Md Elias, Nura Lina Ali, Husniyati Anuar, Annurizal Management. Industrial Management Planning. Business planning. Strategic planning Capital. Capital investments The inconclusiveness of findings on the capital structure has been the main debatable topic and repeatedly discussed to date. This paper is providing new empirical evidence on the relationship between capital structure and firm efficiency by investigating the sample of Syariahcompliant property firms in Malaysia from 2002 to 2011. By employing panel data, this study is examining the factors influencing the firm leverage and analysing the dynamic aspect of the capital structure of the listed Syariah-compliant property firms in Malaysia. The study employs a parametric Stochastic Frontier Analysis (SFA) method as well, to empirically construct the property industry's 'best practice' frontier and measure the firm's efficiency as the distance from that frontier. Using these performance measures, the researchers examine how efficient firms decide debt level in their capital structure. In summary, it is found that the effects of efficiency on capital structure are as stated in the efficiency-risk hypothesis. Based on the Generalised Method of Moment (Differenced GMM), the results indicate that seven determinants are found significantly influencing the capital structure decision of the firms, particularly in the property sector in Malaysia. Those determinants are tangibility, profitability, interest coverage ratio, quick ratio, Z-Score, market-to-book ratio and efficiency. Generally, the findings support both static trade-off theory and pecking order theory for Malaysian Shariah-compliant property firms. Universiti Teknologi MARA 2020-09 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/47453/1/47453.pdf ID47453 Sahudin, Zahariah and Abdullah, Hasni and Md Elias, Nura Lina and Ali, Husniyati and Anuar, Annurizal (2020) Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.]. Journal of Emerging Economies & Islamic Research, 8 (3). pp. 62-73. ISSN (e-ISSN): 2289-2559 https://doi.org/10.24191/jeeir.v8i3.10856
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	Management. Industrial Management Planning. Business planning. Strategic planning Capital. Capital investments
spellingShingle	Management. Industrial Management Planning. Business planning. Strategic planning Capital. Capital investments Sahudin, Zahariah Abdullah, Hasni Md Elias, Nura Lina Ali, Husniyati Anuar, Annurizal Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.]
description	The inconclusiveness of findings on the capital structure has been the main debatable topic and repeatedly discussed to date. This paper is providing new empirical evidence on the relationship between capital structure and firm efficiency by investigating the sample of Syariahcompliant property firms in Malaysia from 2002 to 2011. By employing panel data, this study is examining the factors influencing the firm leverage and analysing the dynamic aspect of the capital structure of the listed Syariah-compliant property firms in Malaysia. The study employs a parametric Stochastic Frontier Analysis (SFA) method as well, to empirically construct the property industry's 'best practice' frontier and measure the firm's efficiency as the distance from that frontier. Using these performance measures, the researchers examine how efficient firms decide debt level in their capital structure. In summary, it is found that the effects of efficiency on capital structure are as stated in the efficiency-risk hypothesis. Based on the Generalised Method of Moment (Differenced GMM), the results indicate that seven determinants are found significantly influencing the capital structure decision of the firms, particularly in the property sector in Malaysia. Those determinants are tangibility, profitability, interest coverage ratio, quick ratio, Z-Score, market-to-book ratio and efficiency. Generally, the findings support both static trade-off theory and pecking order theory for Malaysian Shariah-compliant property firms.
format	Article
author	Sahudin, Zahariah Abdullah, Hasni Md Elias, Nura Lina Ali, Husniyati Anuar, Annurizal
author_facet	Sahudin, Zahariah Abdullah, Hasni Md Elias, Nura Lina Ali, Husniyati Anuar, Annurizal
author_sort	Sahudin, Zahariah
title	Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.]
title_short	Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.]
title_full	Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.]
title_fullStr	Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.]
title_full_unstemmed	Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.]
title_sort	capital structure of property sector in malaysia / zahariah sahudin …[et al.]
publisher	Universiti Teknologi MARA
publishDate	2020
url	http://ir.uitm.edu.my/id/eprint/47453/1/47453.pdf http://ir.uitm.edu.my/id/eprint/47453/ https://doi.org/10.24191/jeeir.v8i3.10856
_version_	1703963440773595136
score	13.211869

Capital structure of property sector in Malaysia / Zahariah Sahudin …[et al.]

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