The relationship between debt-financing and leverage level of financing companies in Malaysia / Nur Najihah Nor Azalan

The main objective of this study was to investigate the relationship between Debt to Equity, Short Term Leverage, Tangible Asset, Liquidity and Growth towards Financial Debt. The sample of this study were taken from seven (7) listed companies under Bursa Malaysia which are Malayan bank, Cimb bank, P...

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Main Author: Nor Azalan, Nur Najihah
Format: Thesis
Language:English
Published: 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/94187/2/94187.pdf
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spelling my-uitm-ir.941872024-05-28T15:43:38Z The relationship between debt-financing and leverage level of financing companies in Malaysia / Nur Najihah Nor Azalan 2017 Nor Azalan, Nur Najihah Financial leverage The main objective of this study was to investigate the relationship between Debt to Equity, Short Term Leverage, Tangible Asset, Liquidity and Growth towards Financial Debt. The sample of this study were taken from seven (7) listed companies under Bursa Malaysia which are Malayan bank, Cimb bank, Public bank, Rhb bank, Hong Leong bank, Affin bank and Ambank. The data were collected for the period of 10 years, which was from the year 2007 - 2016. In conducting this study, researcher has used Descriptive, Correlation and Regression analysis in order to obtain accurate results for this research. The sample was found to be asymmetric whereas the distribution has heavier tails and a sharper peak than the normal distribution. There was an amount of 31.73% of the dependent variable that was explained by the independent variables used in this study as referred to the R-squared indicator. The study is positively auto-correlated as its value is below 2 and the error terms were found to be not normally distributed. Besides that, GLS was not needed since the error term was homogeneous. The results that were established in correlation were, a significant and positive relationship was discovered between short term leverage and growth with financial debt. On the other hand, there was a negative relationship between debt to equity, tangibles asset and liquidity with financial debt. The results obtained along conducting this study have enhanced our understanding on the factors that affects the leverage level of financing companies in Malaysia. 2017 Thesis https://ir.uitm.edu.my/id/eprint/94187/ https://ir.uitm.edu.my/id/eprint/94187/2/94187.pdf text en public degree Universiti Teknologi MARA, Johor Faculty of Business Management Roslan, Shashazrina Md Lazan, Rohanizan
institution Universiti Teknologi MARA
collection UiTM Institutional Repository
language English
advisor Roslan, Shashazrina
Md Lazan, Rohanizan
topic Financial leverage
spellingShingle Financial leverage
Nor Azalan, Nur Najihah
The relationship between debt-financing and leverage level of financing companies in Malaysia / Nur Najihah Nor Azalan
description The main objective of this study was to investigate the relationship between Debt to Equity, Short Term Leverage, Tangible Asset, Liquidity and Growth towards Financial Debt. The sample of this study were taken from seven (7) listed companies under Bursa Malaysia which are Malayan bank, Cimb bank, Public bank, Rhb bank, Hong Leong bank, Affin bank and Ambank. The data were collected for the period of 10 years, which was from the year 2007 - 2016. In conducting this study, researcher has used Descriptive, Correlation and Regression analysis in order to obtain accurate results for this research. The sample was found to be asymmetric whereas the distribution has heavier tails and a sharper peak than the normal distribution. There was an amount of 31.73% of the dependent variable that was explained by the independent variables used in this study as referred to the R-squared indicator. The study is positively auto-correlated as its value is below 2 and the error terms were found to be not normally distributed. Besides that, GLS was not needed since the error term was homogeneous. The results that were established in correlation were, a significant and positive relationship was discovered between short term leverage and growth with financial debt. On the other hand, there was a negative relationship between debt to equity, tangibles asset and liquidity with financial debt. The results obtained along conducting this study have enhanced our understanding on the factors that affects the leverage level of financing companies in Malaysia.
format Thesis
qualification_level Bachelor degree
author Nor Azalan, Nur Najihah
author_facet Nor Azalan, Nur Najihah
author_sort Nor Azalan, Nur Najihah
title The relationship between debt-financing and leverage level of financing companies in Malaysia / Nur Najihah Nor Azalan
title_short The relationship between debt-financing and leverage level of financing companies in Malaysia / Nur Najihah Nor Azalan
title_full The relationship between debt-financing and leverage level of financing companies in Malaysia / Nur Najihah Nor Azalan
title_fullStr The relationship between debt-financing and leverage level of financing companies in Malaysia / Nur Najihah Nor Azalan
title_full_unstemmed The relationship between debt-financing and leverage level of financing companies in Malaysia / Nur Najihah Nor Azalan
title_sort relationship between debt-financing and leverage level of financing companies in malaysia / nur najihah nor azalan
granting_institution Universiti Teknologi MARA, Johor
granting_department Faculty of Business Management
publishDate 2017
url https://ir.uitm.edu.my/id/eprint/94187/2/94187.pdf
_version_ 1804889923066527744