Work

The Effect of Capital Structure on Firm's Profitability: A Case of Listed Malaysian Industrial Firms

Year: 1994

Type: dissertation

Abstract: This paper attempts to examine the influence of capital structure, particularly in the presence of market imperfections on firm's profitability. The effect of corporate taxes, interest expense, debt level and equity size is analyzed using OLS estimates and correlation analysis. The research model justifies that capital structure changes in response to market imperfections which subsequently affect profitability. This findings empirically implies that: (a) higher debt level result in a lower profitability; (b) higher profitability associates positively with taxation expense but negatively with interest expense.

Source: UUM Electronic Theses and Dissertation [eTheses] (Northern University of Malaysia)

Authors: M. Majid Khan, Raji Jamal

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W79010110

Cites: 31

Cited by: 2

Related to: 10