Drivers of capital structure in Malaysia Real Estate Investment Trust Funds (M-REITs) / Norhuda Abdul Rahim, Nor Aishah Mohd Shawal and Muhammad Hafiz Ali
This study investigates drivers of capital structure decisions of Malaysian Real Estate Investment Trust Funds (M-REITs) using 121 observations from 15 REITs companies listed in the Bursa Malaysia during 8 years study period of 2011 to 2018. Employing the panel data regression model, the result indi...
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| Format: | Article |
| Language: | en |
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Universiti Teknologi MARA, Negeri Sembilan
2021
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| Online Access: | https://ir.uitm.edu.my/id/eprint/53855/1/53855.pdf https://ir.uitm.edu.my/id/eprint/53855/ https://journal.uitm.edu.my/ojs/index.php/JOA |
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| _version_ | 1837051527394492416 |
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| author | Abdul Rahim, Norhuda Mohd Shawal, Nor Aishah Ali, Muhammad Hafiz |
| author_facet | Abdul Rahim, Norhuda Mohd Shawal, Nor Aishah Ali, Muhammad Hafiz |
| author_sort | Abdul Rahim, Norhuda |
| building | Tun Abdul Razak Library |
| collection | Institutional Repository |
| content_provider | Universiti Teknologi Mara |
| content_source | UiTM Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | This study investigates drivers of capital structure decisions of Malaysian Real Estate Investment Trust Funds (M-REITs) using 121 observations from 15 REITs companies listed in the Bursa Malaysia during 8 years study period of 2011 to 2018. Employing the panel data regression model, the result indicates that operating risk is significantly negatively related to leverage suggesting that M-REIT firms with higher uncertainty of earnings opt for low leverage as it reduces their risk of bankruptcy. Consistent with pecking order theory, profitability is reported to have significantly negatively related to leverage implying that M-REITs with higher (lower) profits have lower (larger) debt albeit this industry is expected to have low retained earnings. Contrary to the trade-off theory, the asset tangibility is significantly negatively related to leverage indicating that M-REITs with higher fixed assets opt for lower debt. The uniqueness of M-REIT regulation could be the justification for this result. |
| format | Article |
| id | my.uitm.ir-53855 |
| institution | Universiti Teknologi Mara |
| language | en |
| publishDate | 2021 |
| publisher | Universiti Teknologi MARA, Negeri Sembilan |
| record_format | eprints |
| spelling | my.uitm.ir-538552025-07-07T05:48:29Z https://ir.uitm.edu.my/id/eprint/53855/ Drivers of capital structure in Malaysia Real Estate Investment Trust Funds (M-REITs) / Norhuda Abdul Rahim, Nor Aishah Mohd Shawal and Muhammad Hafiz Ali joa Abdul Rahim, Norhuda Mohd Shawal, Nor Aishah Ali, Muhammad Hafiz Capital costs Trust services. Trust companies Investment, capital formation, speculation Investment companies. Investment trusts. Mutual funds This study investigates drivers of capital structure decisions of Malaysian Real Estate Investment Trust Funds (M-REITs) using 121 observations from 15 REITs companies listed in the Bursa Malaysia during 8 years study period of 2011 to 2018. Employing the panel data regression model, the result indicates that operating risk is significantly negatively related to leverage suggesting that M-REIT firms with higher uncertainty of earnings opt for low leverage as it reduces their risk of bankruptcy. Consistent with pecking order theory, profitability is reported to have significantly negatively related to leverage implying that M-REITs with higher (lower) profits have lower (larger) debt albeit this industry is expected to have low retained earnings. Contrary to the trade-off theory, the asset tangibility is significantly negatively related to leverage indicating that M-REITs with higher fixed assets opt for lower debt. The uniqueness of M-REIT regulation could be the justification for this result. Universiti Teknologi MARA, Negeri Sembilan 2021-10 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/53855/1/53855.pdf Drivers of capital structure in Malaysia Real Estate Investment Trust Funds (M-REITs) / Norhuda Abdul Rahim, Nor Aishah Mohd Shawal and Muhammad Hafiz Ali. (2021) Journal of Academia <https://ir.uitm.edu.my/view/publication/Journal_of_Academia.html>, 9 (2): 12. pp. 112-120. ISSN 2289-6368 https://journal.uitm.edu.my/ojs/index.php/JOA |
| spellingShingle | Capital costs Trust services. Trust companies Investment, capital formation, speculation Investment companies. Investment trusts. Mutual funds Abdul Rahim, Norhuda Mohd Shawal, Nor Aishah Ali, Muhammad Hafiz Drivers of capital structure in Malaysia Real Estate Investment Trust Funds (M-REITs) / Norhuda Abdul Rahim, Nor Aishah Mohd Shawal and Muhammad Hafiz Ali |
| title | Drivers of capital structure in Malaysia Real Estate Investment Trust Funds (M-REITs) / Norhuda Abdul Rahim, Nor Aishah Mohd Shawal and Muhammad Hafiz Ali |
| title_full | Drivers of capital structure in Malaysia Real Estate Investment Trust Funds (M-REITs) / Norhuda Abdul Rahim, Nor Aishah Mohd Shawal and Muhammad Hafiz Ali |
| title_fullStr | Drivers of capital structure in Malaysia Real Estate Investment Trust Funds (M-REITs) / Norhuda Abdul Rahim, Nor Aishah Mohd Shawal and Muhammad Hafiz Ali |
| title_full_unstemmed | Drivers of capital structure in Malaysia Real Estate Investment Trust Funds (M-REITs) / Norhuda Abdul Rahim, Nor Aishah Mohd Shawal and Muhammad Hafiz Ali |
| title_short | Drivers of capital structure in Malaysia Real Estate Investment Trust Funds (M-REITs) / Norhuda Abdul Rahim, Nor Aishah Mohd Shawal and Muhammad Hafiz Ali |
| title_sort | drivers of capital structure in malaysia real estate investment trust funds (m-reits) / norhuda abdul rahim, nor aishah mohd shawal and muhammad hafiz ali |
| topic | Capital costs Trust services. Trust companies Investment, capital formation, speculation Investment companies. Investment trusts. Mutual funds |
| url | https://ir.uitm.edu.my/id/eprint/53855/1/53855.pdf https://ir.uitm.edu.my/id/eprint/53855/ https://journal.uitm.edu.my/ojs/index.php/JOA |
| url_provider | http://ir.uitm.edu.my/ |