UUM Electronic Theses and Dissertation
UUM ETD | Universiti Utara Malaysian Electronic Theses and Dissertation
FAQs | Feedback | Search Tips | Sitemap

Determinants of capital structure : evidence from Malaysian SMEs

Masor, Nurhayati (2017) Determinants of capital structure : evidence from Malaysian SMEs. Masters thesis, Universiti Utara Malaysia.

[thumbnail of s817814_01.pdf]

Download (731kB) | Preview
[thumbnail of s817814_02.pdf]

Download (453kB) | Preview


This paper aims to investigate the determinants of capital structure of small and medium
enterprises (SMEs) from manufacturing sector in Malaysia. Specifically, this study wants to examine the effect of asset structure, profitability, quality of information, size
and age on leverage. Multivariate regression analysis and Pearson’s correlation analysis
were used to investigate the most significant factors that affect the capital structure
choice of Malaysian SMEs during the year 2013. In the first model, both results find a
negative and significant relationship for profitability and size with leverage while asset
structure, quality of information and age show negative but not significant relationship
with leverage. However, using a second model, asset structure shows a significant positive relationship with leverage, while quality of information shows significant negative relationship with leverage. The analysis indicates that firstly; the results are
consistent with some capital structure theories such as trade-off theory and pecking order
theory. Secondly, quality of information, asset structure, profitability and size are
important factors that affect capital structure choice of Malaysian SMEs.

Item Type: Thesis (Masters)
Supervisor : Abdul Rahman, Azhar
Item ID: 6702
Uncontrolled Keywords: Capital Structure, leverage, SMEs, pecking order theory, trade-off theory
Subjects: H Social Sciences > HB Economic Theory > HB615-715 Entrepreneurship. Risk and uncertainty. Property
H Social Sciences > HD Industries. Land use. Labor. > HD60 Small Business.
Divisions: Othman Yeop Abdullah Graduate School of Business
Date Deposited: 23 Apr 2018 06:40
Last Modified: 10 May 2021 06:26
Department: Othman Yeop Abdullah Graduate School of Business
Name: Abdul Rahman, Azhar
URI: https://etd.uum.edu.my/id/eprint/6702

Actions (login required)

View Item
View Item