The effects of capital structure on companies’ profitability: a study on industrial product companies listed on the main board of Bursa Malaysia / Saidatul Asha Zainal Abidin

The study aims to investigate effects of capital structure on profitability of the industrial product companies listed on the Main Board of Bursa Malaysia within six- year period. Data is collected on yearly basis for six consecutive years for 30 companies listed from secondary sources. Simple linea...

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Main Author: Zainal Abidin, Saidatul Asha
Format: Student Project
Language:English
Published: Faculty of Business and Management 2007
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/27392/2/27392.pdf
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author Zainal Abidin, Saidatul Asha
author_facet Zainal Abidin, Saidatul Asha
author_sort Zainal Abidin, Saidatul Asha
collection UITM
description The study aims to investigate effects of capital structure on profitability of the industrial product companies listed on the Main Board of Bursa Malaysia within six- year period. Data is collected on yearly basis for six consecutive years for 30 companies listed from secondary sources. Simple linear regression analysis is used in the estimation of functions relating the independent variable of debt equity ratio as the measures of capital structure and the dependent variables which are ROE, ROA and EPS. The results reveal that there are significant negative relationships between DER and ROE, ROA and EPS. From the results, all the dependent variables which are ROE, ROA and EPS show a significant relationship with DER. The study suggests that profitable companies should not depend on debt as their main financing option.
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spelling uitm.eprints-73922024-05-16T02:36:48Z https://ir.uitm.edu.my/id/eprint/27392/ The effects of capital structure on companies’ profitability: a study on industrial product companies listed on the main board of Bursa Malaysia / Saidatul Asha Zainal Abidin Zainal Abidin, Saidatul Asha Infrastructure (Economics). Capital. Capital productivity The study aims to investigate effects of capital structure on profitability of the industrial product companies listed on the Main Board of Bursa Malaysia within six- year period. Data is collected on yearly basis for six consecutive years for 30 companies listed from secondary sources. Simple linear regression analysis is used in the estimation of functions relating the independent variable of debt equity ratio as the measures of capital structure and the dependent variables which are ROE, ROA and EPS. The results reveal that there are significant negative relationships between DER and ROE, ROA and EPS. From the results, all the dependent variables which are ROE, ROA and EPS show a significant relationship with DER. The study suggests that profitable companies should not depend on debt as their main financing option. Faculty of Business and Management 2007 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/27392/2/27392.pdf The effects of capital structure on companies’ profitability: a study on industrial product companies listed on the main board of Bursa Malaysia / Saidatul Asha Zainal Abidin. (2007) [Student Project] <http://terminalib.uitm.edu.my/27392.pdf> (Unpublished)
spellingShingle Infrastructure (Economics). Capital. Capital productivity
Zainal Abidin, Saidatul Asha
The effects of capital structure on companies’ profitability: a study on industrial product companies listed on the main board of Bursa Malaysia / Saidatul Asha Zainal Abidin
title The effects of capital structure on companies’ profitability: a study on industrial product companies listed on the main board of Bursa Malaysia / Saidatul Asha Zainal Abidin
title_full The effects of capital structure on companies’ profitability: a study on industrial product companies listed on the main board of Bursa Malaysia / Saidatul Asha Zainal Abidin
title_fullStr The effects of capital structure on companies’ profitability: a study on industrial product companies listed on the main board of Bursa Malaysia / Saidatul Asha Zainal Abidin
title_full_unstemmed The effects of capital structure on companies’ profitability: a study on industrial product companies listed on the main board of Bursa Malaysia / Saidatul Asha Zainal Abidin
title_short The effects of capital structure on companies’ profitability: a study on industrial product companies listed on the main board of Bursa Malaysia / Saidatul Asha Zainal Abidin
title_sort effects of capital structure on companies profitability a study on industrial product companies listed on the main board of bursa malaysia saidatul asha zainal abidin
topic Infrastructure (Economics). Capital. Capital productivity
url https://ir.uitm.edu.my/id/eprint/27392/2/27392.pdf
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