Abstract: The study evaluates the capital structure of Malaysian firms from a unique perspective by evaluating the impact of Shariah compliance on firms financing decision. We find that firms that are Shariah compliant tend to lean towards lower debt issues to finance their deficits, implying that the compliance status has an impact on their cost of equity which ultimately affects cost of capital.
Hafezali Iqbal Hussain, M Haizam M Saudi, Nur Surayya M Saudi, Firdaus Hilmi Nadzri, Mohd Nazrul Azizi, Mohd Farid Shamsudin and Milad Abdelnabi Salem, 2018. Capital Structure of Malaysian Firms: Financing the Deficit and Shariah Compliance. Journal of Engineering and Applied Sciences, 13: 2511-2513.