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The relationship between ownership structure, firm specific characteristics and capital structure: evidence from Malaysian middle-capital public listed firms

This study investigates the relationship between ownership structure and firm specific characteristics with capital structure of Malaysian middle-capital pubic listed firms. Although there are many studies conducted on capital structure, very few examine the connection between ownership concentratio...

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Main Authors: Kadir Shahar, Hanita, Abdul Adzis, Azira, Baderi, Nureliana
Format: Article
Language:English
Published: EconJournals 2016
Subjects:
HC Economic History and Conditions
Online Access:http://repo.uum.edu.my/26117/1/IJEF%206%20S3%202016%2036%2043.pdf
http://repo.uum.edu.my/26117/
http://econjournals.com/index.php/ijefi/article/view/2579
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spelling my.uum.repo.261172019-06-18T01:35:46Z http://repo.uum.edu.my/26117/ The relationship between ownership structure, firm specific characteristics and capital structure: evidence from Malaysian middle-capital public listed firms Kadir Shahar, Hanita Abdul Adzis, Azira Baderi, Nureliana HC Economic History and Conditions This study investigates the relationship between ownership structure and firm specific characteristics with capital structure of Malaysian middle-capital pubic listed firms. Although there are many studies conducted on capital structure, very few examine the connection between ownership concentration and ownership dispersion with capital structure particularly in the Malaysian market. By employing a total of 38 middle-capital firms covering period from 2008 to 2012, the results show that debt level in firms with high ownership concentration is significantly different from firms with low concentration level. It is also found that ownership concentration possess a negative relationship with leverage ratio, the measurement for capital structure. This suggests that debt is less likely to be used as monitoring mechanism in highly concentrated firm. This practice could reduce debt related financial distress cost, which in turn lower agency cost although it promotes agency cost related to managerial opportunistic behavior. The findings might help investors to understand more about capital structure and help them to judge corporate governance practice of firms based on the level of ownership concentration and choice of capital structure. EconJournals 2016 Article PeerReviewed application/pdf en http://repo.uum.edu.my/26117/1/IJEF%206%20S3%202016%2036%2043.pdf Kadir Shahar, Hanita and Abdul Adzis, Azira and Baderi, Nureliana (2016) The relationship between ownership structure, firm specific characteristics and capital structure: evidence from Malaysian middle-capital public listed firms. International Journal of Economics and Financial Issues, 6 (S3). pp. 36-43. ISSN 2146-4138 http://econjournals.com/index.php/ijefi/article/view/2579
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Kadir Shahar, Hanita
Abdul Adzis, Azira
Baderi, Nureliana
The relationship between ownership structure, firm specific characteristics and capital structure: evidence from Malaysian middle-capital public listed firms
description This study investigates the relationship between ownership structure and firm specific characteristics with capital structure of Malaysian middle-capital pubic listed firms. Although there are many studies conducted on capital structure, very few examine the connection between ownership concentration and ownership dispersion with capital structure particularly in the Malaysian market. By employing a total of 38 middle-capital firms covering period from 2008 to 2012, the results show that debt level in firms with high ownership concentration is significantly different from firms with low concentration level. It is also found that ownership concentration possess a negative relationship with leverage ratio, the measurement for capital structure. This suggests that debt is less likely to be used as monitoring mechanism in highly concentrated firm. This practice could reduce debt related financial distress cost, which in turn lower agency cost although it promotes agency cost related to managerial opportunistic behavior. The findings might help investors to understand more about capital structure and help them to judge corporate governance practice of firms based on the level of ownership concentration and choice of capital structure.
format Article
author Kadir Shahar, Hanita
Abdul Adzis, Azira
Baderi, Nureliana
author_facet Kadir Shahar, Hanita
Abdul Adzis, Azira
Baderi, Nureliana
author_sort Kadir Shahar, Hanita
title The relationship between ownership structure, firm specific characteristics and capital structure: evidence from Malaysian middle-capital public listed firms
title_short The relationship between ownership structure, firm specific characteristics and capital structure: evidence from Malaysian middle-capital public listed firms
title_full The relationship between ownership structure, firm specific characteristics and capital structure: evidence from Malaysian middle-capital public listed firms
title_fullStr The relationship between ownership structure, firm specific characteristics and capital structure: evidence from Malaysian middle-capital public listed firms
title_full_unstemmed The relationship between ownership structure, firm specific characteristics and capital structure: evidence from Malaysian middle-capital public listed firms
title_sort relationship between ownership structure, firm specific characteristics and capital structure: evidence from malaysian middle-capital public listed firms
publisher EconJournals
publishDate 2016
url http://repo.uum.edu.my/26117/1/IJEF%206%20S3%202016%2036%2043.pdf
http://repo.uum.edu.my/26117/
http://econjournals.com/index.php/ijefi/article/view/2579
_version_ 1644284511840632832
score 13.211869

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