Capital structure determinants of public listed real estate companies in Malaysia

This study examines the determinants of capital structure in the case of real estate companies listed in Main Market of Bursa Malaysia. There are 10 companies included in this study which the data has been collected from Bursa Marketplace starting from 2016 until 2020. The capital structure of real estate companies are studied based on the trade-off theory (TOT) and pecking order theory (POT) explaining the financing behaviours of the real estate companies. The capital structure determiants tested are company size, asset tangibility, annual growth, liquidity, profitability and non-debt tax shield. The findings shows that capital structure has significant positive relationship with company size and asset tangibility, while having a significant negative relationship with company liquidity and profitability level. Company annual growth level and non-debt tax shield does not hold any significant against the capital structure of the real estate companies.