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Determinants of capital structure and firm financial performance-A PLS-SEM approach: Evidence from Malaysia and Indonesia

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dc.contributor.authorRamli, NAen_US
dc.contributor.authorLatan, Hen_US
dc.contributor.authorSolovida, GTen_US
dc.date.accessioned2024-05-29T02:51:54Z
dc.date.available2024-05-29T02:51:54Z
dc.date.issued2019
dc.descriptionThe Quarterly Review of Economics and Finance Volume 71, February 2019, Pages 148-160en_US
dc.description.abstractWe examine the impact of capital structure determinants on firm financial performance together with the mediation effect of firm leverage in Malaysia and Indonesia over the period of 1990-2010. Our results show that certain of the capital structure determinants directly affect firm financial performance. We also observe that only the Malaysian sample has a positive significant correlation between firm leverage and firm financial performance. Malaysian firms use external financing instead of internal financing to heighten performance. Our results also show that firm leverage plays a mediating role in Malaysia but not for the Indonesian sample. The asset structure, growth opportunities, liquidity, non-debt tax shield and interest rate are the attributes that were indirectly influenced by firm leverage on firm financial performance. Further analysis for multi-group analysis (MGA) in PLS was also used to test the equality of the parameter estimates. We observe that certain attribute coefficients in the determinants of capital structure and firm financial performance are significantly different between Malaysia and Indonesia. (C) 2018 Board of Trustees of the University of Illinois. Published by Elsevier Inc. All rights reserved.en_US
dc.identifier.doihttps://doi.org/10.1016/j.qref.2018.07.001
dc.identifier.epage160
dc.identifier.isbn1878-4259
dc.identifier.issn1062-9769
dc.identifier.scopusWOS:000458137200013
dc.identifier.spage148
dc.identifier.urihttps://www.scopus.com/inward/record.uri?eid=2-s2.0-85050351824&doi=10.1016%2fj.qref.2018.07.001&partnerID=40&md5=a05e5638d0a9e507d4db0415b6ce504e
dc.identifier.urihttps://www.sciencedirect.com/science/article/abs/pii/S1062976917300042
dc.identifier.urihttps://oarep.usim.edu.my/handle/123456789/11253
dc.identifier.volume71
dc.languageEnglish
dc.language.isoen_USen_US
dc.publisherElsevier Science Incen_US
dc.relation.ispartofQuarterly Review Of Economics And Financeen_US
dc.sourceWeb Of Science (ISI)
dc.subjectCapital structureen_US
dc.subjectLeverageen_US
dc.subjectFirm performanceen_US
dc.subjectIndonesiaen_US
dc.subjectMalaysiaen_US
dc.subjectPLSen_US
dc.titleDeterminants of capital structure and firm financial performance-A PLS-SEM approach: Evidence from Malaysia and Indonesiaen_US
dc.typeArticleen_US
dspace.entity.typePublication

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