Firms’ Size as a Contingency Approach in the Relationships of Intellectual Capital, Capital Structure and Financial Performance

Mohammad, Hapsah S.; Bujang, Imbarine

doi:10.6007/ijarbss/v9-i3/5676

Cited by 3 publications

(3 citation statements)

References 23 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This is in line with the theory used in this study, namely signaling theory and resource-based theory. This finding is in line with research conducted by (Buallay & Hamdan, 2019;Kamath, 2017;Mohammad & Bujang, 2019) which shows that intellectual capital affects company size. H6: Company size has an effect on market value of equity with intellectual capital as a moderating variable…”

Section: Company Size and Market Value Of Equity Moderated By Intelle...supporting

confidence: 92%

“…This means that companies with higher intellectual capital will affect the size of company and tend to increase market value of equity. In accordance with the views of resources based theory, companies will excel in business competition and obtain good financial performance by owning, controlling and utilizing important strategic assets (tangible and intangible assets) (Buallay and Hamdan (2019), Kamath (2017) and Mohammad and Bujang (2019).…”

Section: Discussionmentioning

confidence: 90%

See 1 more Smart Citation

The Effect of Debt to Equity Ratio, Earning Per Share and Company Size on Market Value of Equity With Intellectual Capital As Moderating Variable

Milanda

Halim

Savitri

2022

ijesh

View full text Add to dashboard Cite

The purpose of this study was to examine the effect of debt-to-equity ratio, earnings per share, and company size on market value of equity. In this study, intellectual capital was used as a moderating variable. The samples in this study are companies listed in manufacturing companies in 2017-2019 periods on the IDX. Data was processed using the method of moderated regression analysis (Rev Mou1). The results of this study found that debt to debt-to-equity ratio and company size affect the market value of equity meanwhile earning per share can’t affect the market value of equity. Intellectual capital can moderate the effect of debt-to-equity ratio and company size on market value of equity. Based on the results, intellectual capital cannot moderate the effect of earnings per share on market value of equity.

show abstract

Section: Company Size and Market Value Of Equity Moderated By Intelle...supporting

confidence: 92%

Section: Discussionmentioning

confidence: 90%

The Effect of Debt to Equity Ratio, Earning Per Share and Company Size on Market Value of Equity With Intellectual Capital As Moderating Variable

Milanda

Halim

Savitri

2022

ijesh

View full text Add to dashboard Cite

show abstract

“…These results are communicated through the firms' return on assets, return on equity. Hence, it is an indicator of firms' financial health over a given period of time (Mohammad and Bujang, 2019).…”

Section: Introductionmentioning

confidence: 99%

Untitled

2019

Asian Economic and Financial Review

View full text Add to dashboard Cite

This study investigated the impact of capital structure on financial performance of Malaysian construction firms. The empirical data was taken from 41 construction firms listedon the main board of Bursa Malaysia and observed from 2011 to 2015. Capital structure is the financing decision on the proportion between debt and equity. The right proportion leads to optimal capital structure. This study adopts two theories namely trade-off theory and pecking order theory, to explain the concept of optimal capital structure. Capital structure is the independent variable and is measured by short-term debt (STD), long-term debt (LTD), total debt (TD), meanwhile the dependent variable, financial performance, is proxy by return on asset (ROA) and return on equity (ROE). The results indicated positive and significant association between LTD and ROE. However, STD was significant but negatively correlated with ROE. Meanwhile, TD was positive but insignificantly associated with ROE. Nevertheless, STD, LTD and TD were negatively and insignificantly associated with ROA. The findings suggested that financing decisions are influenced by the objective of the firms. If the goal of the firms was to maximize return on asset, the pecking order theory was employed, however if the firms' objective was to maximize return on equity then the trade-off theory was appropriate to explain the concept of optimal capital structure. The concentration on one industry and the relatively narrow five-year period for data collection were the main limitations of this study. The findings of the research will contribute towards capital structure literature. Contribution/ Originality: This study is one of very few studies to investigate the impact of capital structure on the financial performance of Malaysian construction firms. It reports that the financing decisions are influenced by the goal of the firms.

show abstract

The Moderating Role of Firm Size to Capital Structure-Financial Performance Relationship: A Panel Data Approach

Fatima

Bashir

2021

Future of Business and Finance

View full text Add to dashboard Cite

Firms’ Size as a Contingency Approach in the Relationships of Intellectual Capital, Capital Structure and Financial Performance

Cited by 3 publications

References 23 publications

The Effect of Debt to Equity Ratio, Earning Per Share and Company Size on Market Value of Equity With Intellectual Capital As Moderating Variable

The Effect of Debt to Equity Ratio, Earning Per Share and Company Size on Market Value of Equity With Intellectual Capital As Moderating Variable

Untitled

The Moderating Role of Firm Size to Capital Structure-Financial Performance Relationship: A Panel Data Approach

Contact Info

Product

Resources

About