Capital structure of Malaysian shariah-compliant firms
This study examines the capital structure of choices in Sharīʿah-compliant markets in view of the numerous attempts made to address the issue of capital structure choice since 1958. None of these attempts studied the capital structure of Sharīʿah-compliant markets. This study applies the model propo...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
King Abdulaziz University Scientific Publishing Center
2017
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/61042/1/Capital%20structure%20of%20Malaysian%20shariah-compliant%20firms.pdf |
| _version_ | 1796977402445824000 |
|---|---|
| author | Thabet, Omer Shawtari, Fekri Ali Mohammed Ayedh, Abdullah Ali, Fazlin |
| author_facet | Thabet, Omer Shawtari, Fekri Ali Mohammed Ayedh, Abdullah Ali, Fazlin |
| author_sort | Thabet, Omer |
| collection | UPM |
| description | This study examines the capital structure of choices in Sharīʿah-compliant markets in view of the numerous attempts made to address the issue of capital structure choice since 1958. None of these attempts studied the capital structure of Sharīʿah-compliant markets. This study applies the model proposed by Huang and Song (2006) to test the determinants of capital structure as suggested by capital structure theories. It uses the regression of fixed effect model to examine the relationship between capital structure and its determinants for 263 Sharīʿah-compliant firms listed on the Bursa Malaysia over the 2006-2011 period. The paper found
evidence suggesting that the capital structure choice of Sharīʿah-compliant firms is influenced by factors such as non-debt tax shields (NDTS), profitability, and risks.
However, there is no evidence of the influence of tax and tangibility on capital structure choice of Sharīʿah-compliant firms. |
| first_indexed | 2024-03-06T09:39:32Z |
| format | Article |
| id | upm.eprints-61042 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:39:32Z |
| publishDate | 2017 |
| publisher | King Abdulaziz University Scientific Publishing Center |
| record_format | dspace |
| spelling | upm.eprints-610422019-01-28T03:20:46Z http://psasir.upm.edu.my/id/eprint/61042/ Capital structure of Malaysian shariah-compliant firms Thabet, Omer Shawtari, Fekri Ali Mohammed Ayedh, Abdullah Ali, Fazlin This study examines the capital structure of choices in Sharīʿah-compliant markets in view of the numerous attempts made to address the issue of capital structure choice since 1958. None of these attempts studied the capital structure of Sharīʿah-compliant markets. This study applies the model proposed by Huang and Song (2006) to test the determinants of capital structure as suggested by capital structure theories. It uses the regression of fixed effect model to examine the relationship between capital structure and its determinants for 263 Sharīʿah-compliant firms listed on the Bursa Malaysia over the 2006-2011 period. The paper found evidence suggesting that the capital structure choice of Sharīʿah-compliant firms is influenced by factors such as non-debt tax shields (NDTS), profitability, and risks. However, there is no evidence of the influence of tax and tangibility on capital structure choice of Sharīʿah-compliant firms. King Abdulaziz University Scientific Publishing Center 2017-01 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/61042/1/Capital%20structure%20of%20Malaysian%20shariah-compliant%20firms.pdf Thabet, Omer and Shawtari, Fekri Ali and Mohammed Ayedh, Abdullah and Ali, Fazlin (2017) Capital structure of Malaysian shariah-compliant firms. Journal of King Abdulaziz University-Islamic Economics, 30 (1). pp. 105-116. ISSN 7383-1018 10.4197/Islec.30-1.10 |
| spellingShingle | Thabet, Omer Shawtari, Fekri Ali Mohammed Ayedh, Abdullah Ali, Fazlin Capital structure of Malaysian shariah-compliant firms |
| title | Capital structure of Malaysian shariah-compliant firms |
| title_full | Capital structure of Malaysian shariah-compliant firms |
| title_fullStr | Capital structure of Malaysian shariah-compliant firms |
| title_full_unstemmed | Capital structure of Malaysian shariah-compliant firms |
| title_short | Capital structure of Malaysian shariah-compliant firms |
| title_sort | capital structure of malaysian shariah compliant firms |
| url | http://psasir.upm.edu.my/id/eprint/61042/1/Capital%20structure%20of%20Malaysian%20shariah-compliant%20firms.pdf |
| work_keys_str_mv | AT thabetomer capitalstructureofmalaysianshariahcompliantfirms AT shawtarifekriali capitalstructureofmalaysianshariahcompliantfirms AT mohammedayedhabdullah capitalstructureofmalaysianshariahcompliantfirms AT alifazlin capitalstructureofmalaysianshariahcompliantfirms |