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Target Capital Structure and Speed of Adjustment: A Dynamic Evidence from Shariah Approved Firms in Malaysia

The purpose of this paper is to identify the target capital structure and the speed of adjustment of Shariah approved firms listed on the Bursa Malaysia. The paper also examines the influence of firm, industry and macroeconomic determinants affecting the target capital structure. Shariah approved fi...

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Main Authors:	Nurshamimitul Ezza Ramli, Razali Haron
Format:	Article
Language:	English
Published:	Universiti Sains Islam Malaysia 2019
Subjects:	Capital structure Islamic finance Shariah approved firms GMM
Online Access:	http://ddms.usim.edu.my:80/jspui/handle/123456789/18088
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id	my.usim-18088
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spelling	my.usim-180882019-04-16T04:16:40Z Target Capital Structure and Speed of Adjustment: A Dynamic Evidence from Shariah Approved Firms in Malaysia Nurshamimitul Ezza Ramli Razali Haron Capital structure Islamic finance Shariah approved firms GMM The purpose of this paper is to identify the target capital structure and the speed of adjustment of Shariah approved firms listed on the Bursa Malaysia. The paper also examines the influence of firm, industry and macroeconomic determinants affecting the target capital structure. Shariah approved firms which consistently maintain their Shariah status as per the Securities Commission (SC) of Malaysia requirement, from year 2000 to 2014 are chosen as the sample of analysis. The paper employs a dynamic panel data technique specifically the Generalized Method of Moments (GMM) that is robust to the heterogeneity and endogeneity issue. The study found the existence of target capital structure of Shariah approved firms in Malaysia and in terms of speed of adjustment, Shariah approved firms are under-adjusted. Several factors seemed to have significant impact on the target capital structure ranging from the firm, industry and macroeconomic determinants. The study contributes largely in the sampling selection that focuses only on the Shariah approved firms which consistently maintain their Shariah status from the year 2000 to 2014. 2019-04-16T04:16:40Z 2019-04-16T04:16:40Z 2017-12 Article http://ddms.usim.edu.my:80/jspui/handle/123456789/18088 en Universiti Sains Islam Malaysia
institution	Universiti Sains Islam Malaysia
building	USIM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universit Sains Islam i Malaysia
content_source	USIM Institutional Repository
url_provider	http://ddms.usim.edu.my/
language	English
topic	Capital structure Islamic finance Shariah approved firms GMM
spellingShingle	Capital structure Islamic finance Shariah approved firms GMM Nurshamimitul Ezza Ramli Razali Haron Target Capital Structure and Speed of Adjustment: A Dynamic Evidence from Shariah Approved Firms in Malaysia
description	The purpose of this paper is to identify the target capital structure and the speed of adjustment of Shariah approved firms listed on the Bursa Malaysia. The paper also examines the influence of firm, industry and macroeconomic determinants affecting the target capital structure. Shariah approved firms which consistently maintain their Shariah status as per the Securities Commission (SC) of Malaysia requirement, from year 2000 to 2014 are chosen as the sample of analysis. The paper employs a dynamic panel data technique specifically the Generalized Method of Moments (GMM) that is robust to the heterogeneity and endogeneity issue. The study found the existence of target capital structure of Shariah approved firms in Malaysia and in terms of speed of adjustment, Shariah approved firms are under-adjusted. Several factors seemed to have significant impact on the target capital structure ranging from the firm, industry and macroeconomic determinants. The study contributes largely in the sampling selection that focuses only on the Shariah approved firms which consistently maintain their Shariah status from the year 2000 to 2014.
format	Article
author	Nurshamimitul Ezza Ramli Razali Haron
author_facet	Nurshamimitul Ezza Ramli Razali Haron
author_sort	Nurshamimitul Ezza Ramli
title	Target Capital Structure and Speed of Adjustment: A Dynamic Evidence from Shariah Approved Firms in Malaysia
title_short	Target Capital Structure and Speed of Adjustment: A Dynamic Evidence from Shariah Approved Firms in Malaysia
title_full	Target Capital Structure and Speed of Adjustment: A Dynamic Evidence from Shariah Approved Firms in Malaysia
title_fullStr	Target Capital Structure and Speed of Adjustment: A Dynamic Evidence from Shariah Approved Firms in Malaysia
title_full_unstemmed	Target Capital Structure and Speed of Adjustment: A Dynamic Evidence from Shariah Approved Firms in Malaysia
title_sort	target capital structure and speed of adjustment: a dynamic evidence from shariah approved firms in malaysia
publisher	Universiti Sains Islam Malaysia
publishDate	2019
url	http://ddms.usim.edu.my:80/jspui/handle/123456789/18088
_version_	1645154614825189376
score	13.211869

Target Capital Structure and Speed of Adjustment: A Dynamic Evidence from Shariah Approved Firms in Malaysia

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