Capital Structure Determinants of Malaysian Public Listed Real Estate Companies (2007-2009)

Examining capital structure determinants of seventy two publicly-listed Malaysian real estate firms during 2007-2009, this study clarifies the impact of the sub-mortgage loan crisis on the capital structure of the sampled firms, and establishes which theory, Trade-off Theory (TOT), or Pecking Order...

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Main Author:	Al-Ashwal, Yousef Saif Musaed
Format:	Thesis
Language:	eng eng
Published:	2010
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/2498/1/Yousef_Saif_Musaed_Al-Ashwal.pdf https://etd.uum.edu.my/2498/2/1.Yousef_Saif_Musaed_Al-Ashwal.pdf
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id	my-uum-etd.2498
record_format	uketd_dc
spelling	my-uum-etd.24982013-07-24T12:16:17Z Capital Structure Determinants of Malaysian Public Listed Real Estate Companies (2007-2009) 2010-10 Al-Ashwal, Yousef Saif Musaed Ahmad, Norafifah College of Business (COB) College of Business HG Finance Examining capital structure determinants of seventy two publicly-listed Malaysian real estate firms during 2007-2009, this study clarifies the impact of the sub-mortgage loan crisis on the capital structure of the sampled firms, and establishes which theory, Trade-off Theory (TOT), or Pecking Order Theory (POT), that explains financing behavior by the firms. The capital structure determinants tested are size, profitability, tangibility, non-debt tax shields (NDTS), growth, liquidity, business risk (BR) and effective tax rate (ETR). Three debt ratios, namely, short-term debt ratio (STDR), long-term debt ratio (LTDR) and total debt ratio (TDR), are proxies for capital structure. Findings indicate that size and profitability affect debt ratios positively, NDTS and liquidity affect the debt ratios negatively, tangibility affects STDR and TDR positively and LTDR negatively, growth affects STDR and TDR negatively and LTDR positively, while ETR affects LTDR and TDR positively and STDR negatively. Inconsistent with almost all previous studies, and unsupported by both the TOT and POT, business risk positively affects STDR and LTDR, and has a significant positive relationship with TDR. The results also show that the debt levels of these firms declined during the sub-mortgage loans crisis. Finally, the results suggest that both theories (TOT and POT) explain the financing behavior of the sampled firms, though, when taking into account the decline in the debt levels, POT seems to explain the financing behavior of the firms better than TOT. 2010-10 Thesis https://etd.uum.edu.my/2498/ https://etd.uum.edu.my/2498/1/Yousef_Saif_Musaed_Al-Ashwal.pdf application/pdf eng validuser https://etd.uum.edu.my/2498/2/1.Yousef_Saif_Musaed_Al-Ashwal.pdf application/pdf eng public http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000768006 masters masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Ahmad, Norafifah
topic	HG Finance
spellingShingle	HG Finance Al-Ashwal, Yousef Saif Musaed Capital Structure Determinants of Malaysian Public Listed Real Estate Companies (2007-2009)
description	Examining capital structure determinants of seventy two publicly-listed Malaysian real estate firms during 2007-2009, this study clarifies the impact of the sub-mortgage loan crisis on the capital structure of the sampled firms, and establishes which theory, Trade-off Theory (TOT), or Pecking Order Theory (POT), that explains financing behavior by the firms. The capital structure determinants tested are size, profitability, tangibility, non-debt tax shields (NDTS), growth, liquidity, business risk (BR) and effective tax rate (ETR). Three debt ratios, namely, short-term debt ratio (STDR), long-term debt ratio (LTDR) and total debt ratio (TDR), are proxies for capital structure. Findings indicate that size and profitability affect debt ratios positively, NDTS and liquidity affect the debt ratios negatively, tangibility affects STDR and TDR positively and LTDR negatively, growth affects STDR and TDR negatively and LTDR positively, while ETR affects LTDR and TDR positively and STDR negatively. Inconsistent with almost all previous studies, and unsupported by both the TOT and POT, business risk positively affects STDR and LTDR, and has a significant positive relationship with TDR. The results also show that the debt levels of these firms declined during the sub-mortgage loans crisis. Finally, the results suggest that both theories (TOT and POT) explain the financing behavior of the sampled firms, though, when taking into account the decline in the debt levels, POT seems to explain the financing behavior of the firms better than TOT.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Al-Ashwal, Yousef Saif Musaed
author_facet	Al-Ashwal, Yousef Saif Musaed
author_sort	Al-Ashwal, Yousef Saif Musaed
title	Capital Structure Determinants of Malaysian Public Listed Real Estate Companies (2007-2009)
title_short	Capital Structure Determinants of Malaysian Public Listed Real Estate Companies (2007-2009)
title_full	Capital Structure Determinants of Malaysian Public Listed Real Estate Companies (2007-2009)
title_fullStr	Capital Structure Determinants of Malaysian Public Listed Real Estate Companies (2007-2009)
title_full_unstemmed	Capital Structure Determinants of Malaysian Public Listed Real Estate Companies (2007-2009)
title_sort	capital structure determinants of malaysian public listed real estate companies (2007-2009)
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2010
url	https://etd.uum.edu.my/2498/1/Yousef_Saif_Musaed_Al-Ashwal.pdf https://etd.uum.edu.my/2498/2/1.Yousef_Saif_Musaed_Al-Ashwal.pdf
_version_	1747827359554207744

Capital Structure Determinants of Malaysian Public Listed Real Estate Companies (2007-2009)

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