Capital Structure of Shariah-Compliant Companies in Malaysia

Abstract

<jats:p>The study looks at the determinants of capital structure of listed <jats:italic>Shariah</jats:italic>-compliant companies in Malaysia. It presents a study of the companies included in the Top 100 publicly listed companies in the Main Board of the Bursa Malaysia over the period of 2009 to 2011. The study applies 4 independent variables which are asset tangibility (TANG), growth opportunities (GROWTH), profitability (PROF) and firm size (SIZE while the dependent variable is debt ratio (DR). Panel data analysis on fixed effect model is used in this study. The findings of the study reveal that the debt ratio of Shariah-compliant firms is proved to be significant with growth opportunities and firm size but insignificant with asset tangibility and profitability. This has suggested that the factors are inconsistent for <jats:italic>Shariah</jats:italic> and non-<jats:italic>Shariah</jats:italic> compliant companies in determining the capital structure of public listed companies in Malaysia.</jats:p>

Gaining competitive advantage through new product development capability in Malaysian Government Linked Companies

“…Many scholars have reported that one of the factors that led to this issue was relate with competitive advantage (Lau & Tong, 2008;Ting & Lean, 2012;Zin & Sulaiman, 2011). The failure factors such as weak in strategic planning, lack of capabilities, huge gap in talent and execution skills are the issues or greater challenge that faced by GLCs in achieving competitive advantage (MINDA, 2009).…”