The Determinant of Capital Structure Under Properties and Plantation Sectors in Malaysia

This study examines the determinants of capital structure of listed companies in the Bursa Malaysia under plantation and properties sectors during the five year period from
2004 to 2008. The data derive from companies' financial statements with 340 numbers of observations. The dependent variable is debt ratio as expressed by total debt divided
by total assets while the independent variables are firm size, asset structure, profitability, growth, liquidity, return on investment and net working asset. Applying cross-sectional time-series analysis, the result shows that in the properties sector, asset structure and profitability are significantly positively related to total debt. However, return on investment and net working assets are significantly negatively related to total debt. In plantation sector, firm size and profitability are positively significantly related to debt. While liquidity, return on investment and net working assets are significantly negatively related to debt. However, firm size, growth and liquidity are insignificant in properties
sector. In plantation sector two variables, asset structure and growth are insignificant related to debt.