Authors : Reza Ramezanalivaloujerdi, Devinaga Rasiah and Kogilah Narayanasamy
Abstract: This study examines corporate capital structure of listed construction companies in Malaysia from 2005-2009. Capital structure defines on how a firm would be able to fund its future investment projects via debt, equity or mixed. Capital structure represents both a net worth and long-term debt of the firms as the perpetual funding for firms. This study considers understanding the nature of some critical factors as independent variables, namely profitability, tangibility of assets, growth, size and non-debt tax shield on Malaysia corporate capital structure. The analysis revealed that profitability of the firm; growth opportunity and firm size had the significant relationship with dependent variable, leverage. Other than that non-debt tax shield had the significant relationship with leverage for year 2006. Finally, there was no relationship between tangibility of assets and leverage for construction companies. Capital structure is so important, it could be considered as a basis of most institutions and organizations and it is defined as the mixture of both debt and equity for financing.
Reza Ramezanalivaloujerdi, Devinaga Rasiah and Kogilah Narayanasamy, 2015. Corporate Capital Structure and Performance of Listed Construction Companies in Malaysia from 2005-2009. International Business Management, 9: 191-199.