Capital structure inconclusiveness: evidence from Malaysia
The objective of this study is to examine the possible factors contributing to the issue of inconclusiveness in capital structure studies. This study also attempts to provide logical explanations to the unresolved issue of inconsistencies in the relationship between factors identified and leverage i...
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| Format: | Proceeding Paper |
| Language: | English |
| Published: |
2013
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| Online Access: | http://irep.iium.edu.my/31138/1/Capital_Structure_Inconclusiveness._Evidence_from_Malaysia.pdf |
| _version_ | 1796878122908385280 |
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| author | Haron, Razali |
| author_facet | Haron, Razali |
| author_sort | Haron, Razali |
| collection | IIUM |
| description | The objective of this study is to examine the possible factors contributing to the issue of inconclusiveness in capital structure studies. This study also attempts to provide logical explanations to the unresolved issue of inconsistencies in the relationship between factors identified and leverage in capital structure studies. Comparisons are also made between the Malaysia and the developed market to see whether the findings are consistent with both market landscapes. This study employs two models in its methodology which are static and dynamic models to examine the effects of using different models in the study. The Fixed Effect model and Partial Adjustment model represent the static and dynamic models respectively. The dynamic model is estimated using Generalised Method of Moments. This study also uses six definitions of leverage to examine the impact of using different leverage definition in capital structure studies. To test the robustness of the findings comparison were made with past studies done by other researchers on developed markets. This study found that the use of different models (with the same leverage definition) and different leverage definitions (using the same model) give different results including signs. Inconsistencies are more obvious in the different leverage definitions (using the same model) compared to the use of different models (with the same leverage definition). There is also evidence that the findings in Malaysia are consistent with both the emerging and the developed markets as other studies on developed markets also report inconsistent results when using different models and different leverage definitions. |
| first_indexed | 2024-03-05T23:17:02Z |
| format | Proceeding Paper |
| id | oai:generic.eprints.org:31138 |
| institution | International Islamic University Malaysia |
| language | English |
| last_indexed | 2024-03-05T23:17:02Z |
| publishDate | 2013 |
| record_format | dspace |
| spelling | oai:generic.eprints.org:311382013-08-22T06:48:39Z http://irep.iium.edu.my/31138/ Capital structure inconclusiveness: evidence from Malaysia Haron, Razali HG4001 Financial management. Business finance. Corporation finance. The objective of this study is to examine the possible factors contributing to the issue of inconclusiveness in capital structure studies. This study also attempts to provide logical explanations to the unresolved issue of inconsistencies in the relationship between factors identified and leverage in capital structure studies. Comparisons are also made between the Malaysia and the developed market to see whether the findings are consistent with both market landscapes. This study employs two models in its methodology which are static and dynamic models to examine the effects of using different models in the study. The Fixed Effect model and Partial Adjustment model represent the static and dynamic models respectively. The dynamic model is estimated using Generalised Method of Moments. This study also uses six definitions of leverage to examine the impact of using different leverage definition in capital structure studies. To test the robustness of the findings comparison were made with past studies done by other researchers on developed markets. This study found that the use of different models (with the same leverage definition) and different leverage definitions (using the same model) give different results including signs. Inconsistencies are more obvious in the different leverage definitions (using the same model) compared to the use of different models (with the same leverage definition). There is also evidence that the findings in Malaysia are consistent with both the emerging and the developed markets as other studies on developed markets also report inconsistent results when using different models and different leverage definitions. 2013-07-02 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/31138/1/Capital_Structure_Inconclusiveness._Evidence_from_Malaysia.pdf Haron, Razali (2013) Capital structure inconclusiveness: evidence from Malaysia. In: Seminar Hasil Penyelidikan Sektor Pengajian Tinggi Kementerian Pendidikan Malaysia, Ke-3 2013, 2 & 3 July 2013, EDC Hotel, Universiti Utara Malaysia, Kedah. |
| spellingShingle | HG4001 Financial management. Business finance. Corporation finance. Haron, Razali Capital structure inconclusiveness: evidence from Malaysia |
| title | Capital structure inconclusiveness: evidence from Malaysia
|
| title_full | Capital structure inconclusiveness: evidence from Malaysia
|
| title_fullStr | Capital structure inconclusiveness: evidence from Malaysia
|
| title_full_unstemmed | Capital structure inconclusiveness: evidence from Malaysia
|
| title_short | Capital structure inconclusiveness: evidence from Malaysia
|
| title_sort | capital structure inconclusiveness evidence from malaysia |
| topic | HG4001 Financial management. Business finance. Corporation finance. |
| url | http://irep.iium.edu.my/31138/1/Capital_Structure_Inconclusiveness._Evidence_from_Malaysia.pdf |
| work_keys_str_mv | AT haronrazali capitalstructureinconclusivenessevidencefrommalaysia |