Does Financing Decision Influence Corporate Performance in Malaysia

Wan Daud , Wan Mohd Nazri and Mat Norwani, Norlia and Ahmad Mansor, Anizawati and Endut, Wan Anisah (2016) Does Financing Decision Influence Corporate Performance in Malaysia. International Journal of Economics and Financial Issue, 6 (3). pp. 1165-1171. ISSN 2146-4138

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Abstract

This paper examined the impact of financing decision on performance among Malaysian public listed firms in Bursa Malaysia. Previous studies did not examine the relationship between selection of capital structure and performance in the perspective of firms that implement industrial diversification strategy. This research comprised of 76 firms and covering balanced panel data series for the period of 1994-2007. The study observed that capitals structure has insignificant relationship with performance. However, it is recommended that firms should wary in using debt financing to finance business operation as it could lead to performance discount. Finding of the research contributed in explaining the capital structure decision made in the firms that implement industrial diversification. Future research should investigate the option of firms that implement international diversification and its impact on corporate performance.

Item Type: Article
Subjects: H Social Sciences > HG Finance
Faculty / Institute: Faculty of Economics & Management Sciences
Depositing User: Dr Wan Mohd Nazri Wan Daud
Date Deposited: 11 Sep 2016 04:18
Last Modified: 11 Sep 2016 04:18
URI: http://erep.unisza.edu.my/id/eprint/5062

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