Capital structure and corporate performance of public listed oil and gas companies in Malaysia

• 主要作者: Foo, Varian Tian Ren
• 格式: Thesis
• 語言: 英语
• 出版: 2014
• 主題: HG Finance
• 在線閱讀: https://eprints.ums.edu.my/id/eprint/17889/1/Capital%20structure%20and%20corporate.pdf

The purpose of this study is to examine empirically the relationship between capital structure and corporate performance of the public listed oil and gas companies in Malaysia. Various capital structure theories were presented to support the aim of this study. By using a total of 12 public listed oil and gas companies, the significance of the proposed relationship was proven through two models with the help of regression analysis. Capital structure, the independent variable was measured by three ratios namely short-term to total debt (STDTA), long-term to total debt (LTDTA) and total debt to total asset (TTOTA). On the other hand, the dependent variable, corporate performance was measured by return on equity (ROE), return on asset (ROA) and gross margin (GM). The findings showed that capital structure and ROE had a negative and significant relationship, indicating that an increase in the debt level of a company will negatively affect the profitability especially towards shareholders. On the other hand, capital structure choices in terms of debt level were found to have no significant relationship with corporate performance measured by ROA and GM. This result was found to be consistent with similar studies done in Malaysia as well. Subsequently, limitations of this study and recommendations for future research were discussed.