Does Financing Decision Influence Corporate Performance in Malaysia?
This paper examined the impact of financing decision on performance among Malaysian public listed firms in Bursa Malaysia. Previous studies did not examine the relationship between selection of capital structure and performance in the perspective of firms that implement industrial diversification s...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2016-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/2332 |
| _version_ | 1828017500434989056 |
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| author | Wan Mohd Nazri Wan Daud Norlia Mat Norwani Anizawati Ahmad Mansor Wan Anisah Endut |
| author_facet | Wan Mohd Nazri Wan Daud Norlia Mat Norwani Anizawati Ahmad Mansor Wan Anisah Endut |
| author_sort | Wan Mohd Nazri Wan Daud |
| collection | DOAJ |
| description |
This paper examined the impact of financing decision on performance among Malaysian public listed firms in Bursa Malaysia. Previous studies did not examine the relationship between selection of capital structure and performance in the perspective of firms that implement industrial diversification strategy. This research comprised of 76 firms and covering balanced panel data series for the period of 1994-2007. The study observed that capitals structure has insignificant relationship with performance. However, it is recommended that firms should wary in using debt financing to finance business operation as it could lead to performance discount. Finding of the research contributed in explaining the capital structure decision made in the firms that implement industrial diversifications. Future research should investigate the option of firms that implement international diversification and its impact on corporate performance.
Keywords: Financing Decision, Performance
JEL Classifications: G30, G32
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| first_indexed | 2024-04-10T10:49:59Z |
| format | Article |
| id | doaj.art-8d6e03e71fc14ff1b7ed9b27aee13a67 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:49:59Z |
| publishDate | 2016-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-8d6e03e71fc14ff1b7ed9b27aee13a672023-02-15T16:20:10ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382016-07-0163Does Financing Decision Influence Corporate Performance in Malaysia?Wan Mohd Nazri Wan Daud0Norlia Mat NorwaniAnizawati Ahmad MansorWan Anisah EndutUniversiti Sultan Zainal Abidin This paper examined the impact of financing decision on performance among Malaysian public listed firms in Bursa Malaysia. Previous studies did not examine the relationship between selection of capital structure and performance in the perspective of firms that implement industrial diversification strategy. This research comprised of 76 firms and covering balanced panel data series for the period of 1994-2007. The study observed that capitals structure has insignificant relationship with performance. However, it is recommended that firms should wary in using debt financing to finance business operation as it could lead to performance discount. Finding of the research contributed in explaining the capital structure decision made in the firms that implement industrial diversifications. Future research should investigate the option of firms that implement international diversification and its impact on corporate performance. Keywords: Financing Decision, Performance JEL Classifications: G30, G32 https://www.econjournals.com/index.php/ijefi/article/view/2332 |
| spellingShingle | Wan Mohd Nazri Wan Daud Norlia Mat Norwani Anizawati Ahmad Mansor Wan Anisah Endut Does Financing Decision Influence Corporate Performance in Malaysia? International Journal of Economics and Financial Issues |
| title | Does Financing Decision Influence Corporate Performance in Malaysia? |
| title_full | Does Financing Decision Influence Corporate Performance in Malaysia? |
| title_fullStr | Does Financing Decision Influence Corporate Performance in Malaysia? |
| title_full_unstemmed | Does Financing Decision Influence Corporate Performance in Malaysia? |
| title_short | Does Financing Decision Influence Corporate Performance in Malaysia? |
| title_sort | does financing decision influence corporate performance in malaysia |
| url | https://www.econjournals.com/index.php/ijefi/article/view/2332 |
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