Market timing and capital structure: Malaysian evidence

Market timing and capital structure: Malaysian evidence

This paper is to examines whether the market-timing are found to be relevant in Malaysian firms financing decision. Limited studies have been conducted in the emerging or developing country such as Malaysia. Thus, this study have two objectives to be achieve in this study which are (1) to identify t...

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Main Author: Tengku Muhammad Farhan, Tengku Md Yusoff
Format: Thesis
Language:eng
eng
Published: 2017
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/7373/1/s821044_01.pdf
https://etd.uum.edu.my/7373/2/s821044_02.pdf
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id my-uum-etd.7373
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Ismail, Faizah
topic HG Finance
spellingShingle HG Finance
Tengku Muhammad Farhan, Tengku Md Yusoff
Market timing and capital structure: Malaysian evidence
description This paper is to examines whether the market-timing are found to be relevant in Malaysian firms financing decision. Limited studies have been conducted in the emerging or developing country such as Malaysia. Thus, this study have two objectives to be achieve in this study which are (1) to identify the determinants of the change in book leverage based the market-to-book, profitability, asset tangibility, and size, (2) to seek whether the financing decision in Malaysian firms were mostly made through net equity issues as implied by the market timing theory. In the descriptive analysis show one notable finding is when the mean of net equity issues increases at IPO+5 associated with decreasing mean of book leverage and market leverage. The determinants support most of the past studies in market timing. Thereby, this study found an indicator or sign that Malaysian firms follow the market timing behavior, yet not conclusive.
format Thesis
qualification_name masters
qualification_level Master's degree
author Tengku Muhammad Farhan, Tengku Md Yusoff
author_facet Tengku Muhammad Farhan, Tengku Md Yusoff
author_sort Tengku Muhammad Farhan, Tengku Md Yusoff
title Market timing and capital structure: Malaysian evidence
title_short Market timing and capital structure: Malaysian evidence
title_full Market timing and capital structure: Malaysian evidence
title_fullStr Market timing and capital structure: Malaysian evidence
title_full_unstemmed Market timing and capital structure: Malaysian evidence
title_sort market timing and capital structure: malaysian evidence
granting_institution Universiti Utara Malaysia
granting_department School of Economics, Finance & Banking
publishDate 2017
url https://etd.uum.edu.my/7373/1/s821044_01.pdf
https://etd.uum.edu.my/7373/2/s821044_02.pdf
_version_ 1747828208067149824
spelling my-uum-etd.73732021-08-18T08:05:11Z Market timing and capital structure: Malaysian evidence 2017 Tengku Muhammad Farhan, Tengku Md Yusoff Ismail, Faizah School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance This paper is to examines whether the market-timing are found to be relevant in Malaysian firms financing decision. Limited studies have been conducted in the emerging or developing country such as Malaysia. Thus, this study have two objectives to be achieve in this study which are (1) to identify the determinants of the change in book leverage based the market-to-book, profitability, asset tangibility, and size, (2) to seek whether the financing decision in Malaysian firms were mostly made through net equity issues as implied by the market timing theory. In the descriptive analysis show one notable finding is when the mean of net equity issues increases at IPO+5 associated with decreasing mean of book leverage and market leverage. The determinants support most of the past studies in market timing. Thereby, this study found an indicator or sign that Malaysian firms follow the market timing behavior, yet not conclusive. 2017 Thesis https://etd.uum.edu.my/7373/ https://etd.uum.edu.my/7373/1/s821044_01.pdf text eng public https://etd.uum.edu.my/7373/2/s821044_02.pdf text eng public masters masters Universiti Utara Malaysia Alti, A. (2006). How persistent is the impact of market timing on capital structure?. The Journal of Finance, 61(4), 1681-1710. Altı, A., & Sulaeman, J. (2012). When do high stock returns trigger equity issues? Journal of Financial Economics, 103(1), 61-87. Arosa, C. M. V., Richie, N., & Schuhmann, P. W. (2014). The impact of culture on market timing in capital structure choices. Research in International Business and Finance, 31, 178-192. Baharuddin, N. S., Khamis, Z., Mahmood, W. M. W., & Dollah, H. (2011). Determinants of capital structure for listed construction companies in Malaysia. 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