The effect of capital structure towards banks performance in Malaysia / Nur Asyiqin Husna Mohamed Tarmizi

This paper seeks to investigate the effect of capital structure towards the banks performance particularly on commercial banks that are listed in Bursa Malaysia. There are many factors that affect the bank's performance to enable it to achieve its objective to enhance the value of the bank and...

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Main Author:	Mohamed Tarmizi, Nur Asyiqin Husna
Format:	Thesis
Language:	English
Published:	2021
Subjects:	Capital costs
Online Access:	https://ir.uitm.edu.my/id/eprint/104929/1/104929.pdf
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id	my-uitm-ir.104929
record_format	uketd_dc
spelling	my-uitm-ir.1049292024-11-08T09:57:51Z The effect of capital structure towards banks performance in Malaysia / Nur Asyiqin Husna Mohamed Tarmizi 2021 Mohamed Tarmizi, Nur Asyiqin Husna Capital costs This paper seeks to investigate the effect of capital structure towards the banks performance particularly on commercial banks that are listed in Bursa Malaysia. There are many factors that affect the bank's performance to enable it to achieve its objective to enhance the value of the bank and shareholder's wealth. The ability of a bank to carry out its day-to-day operations and run its businesses is tightly related to capital structure. In many years, a lot of empirical studies have been conducted to explore if there is any relationship between capital structure and firm's performance and these studies produced mixed results. For this purpose, this research paper will be focused on four capital structures measures that consist of short-term debt ratio (STD), total debt ratio (TD), debt to equity ratio (DTE) and asset growth ratio (GROWTH) as the independent variables. Panel data regression model and multiple regression models were used to determine the effect of each capital structure to a dependent variable which is bank performance that will be measured by using the bank's return on equity (ROE). Sample in this study are 8 commercial banks that are listed in Bursa Malaysia and a 10 years' time frame was used to regain the data from each bank's annual report which results in a total of 80 observations. Results indicate that performance of banks in Malaysia is higher when they have higher debt to finance their assets and growth while the Malaysian banks performance will be lower when there is increment in total asset. 2021 Thesis https://ir.uitm.edu.my/id/eprint/104929/ https://ir.uitm.edu.my/id/eprint/104929/1/104929.pdf text en public degree Universiti Teknologi MARA, Johor Faculty of Business and Management Hamzah, Nor Haliza
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Hamzah, Nor Haliza
topic	Capital costs
spellingShingle	Capital costs Mohamed Tarmizi, Nur Asyiqin Husna The effect of capital structure towards banks performance in Malaysia / Nur Asyiqin Husna Mohamed Tarmizi
description	This paper seeks to investigate the effect of capital structure towards the banks performance particularly on commercial banks that are listed in Bursa Malaysia. There are many factors that affect the bank's performance to enable it to achieve its objective to enhance the value of the bank and shareholder's wealth. The ability of a bank to carry out its day-to-day operations and run its businesses is tightly related to capital structure. In many years, a lot of empirical studies have been conducted to explore if there is any relationship between capital structure and firm's performance and these studies produced mixed results. For this purpose, this research paper will be focused on four capital structures measures that consist of short-term debt ratio (STD), total debt ratio (TD), debt to equity ratio (DTE) and asset growth ratio (GROWTH) as the independent variables. Panel data regression model and multiple regression models were used to determine the effect of each capital structure to a dependent variable which is bank performance that will be measured by using the bank's return on equity (ROE). Sample in this study are 8 commercial banks that are listed in Bursa Malaysia and a 10 years' time frame was used to regain the data from each bank's annual report which results in a total of 80 observations. Results indicate that performance of banks in Malaysia is higher when they have higher debt to finance their assets and growth while the Malaysian banks performance will be lower when there is increment in total asset.
format	Thesis
qualification_level	Bachelor degree
author	Mohamed Tarmizi, Nur Asyiqin Husna
author_facet	Mohamed Tarmizi, Nur Asyiqin Husna
author_sort	Mohamed Tarmizi, Nur Asyiqin Husna
title	The effect of capital structure towards banks performance in Malaysia / Nur Asyiqin Husna Mohamed Tarmizi
title_short	The effect of capital structure towards banks performance in Malaysia / Nur Asyiqin Husna Mohamed Tarmizi
title_full	The effect of capital structure towards banks performance in Malaysia / Nur Asyiqin Husna Mohamed Tarmizi
title_fullStr	The effect of capital structure towards banks performance in Malaysia / Nur Asyiqin Husna Mohamed Tarmizi
title_full_unstemmed	The effect of capital structure towards banks performance in Malaysia / Nur Asyiqin Husna Mohamed Tarmizi
title_sort	effect of capital structure towards banks performance in malaysia / nur asyiqin husna mohamed tarmizi
granting_institution	Universiti Teknologi MARA, Johor
granting_department	Faculty of Business and Management
publishDate	2021
url	https://ir.uitm.edu.my/id/eprint/104929/1/104929.pdf
_version_	1818588129354842112

The effect of capital structure towards banks performance in Malaysia / Nur Asyiqin Husna Mohamed Tarmizi

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