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Capital Structure and Firm Performance: Evidence From Food Processing Industry in Malaysia

Author

Listed:
  • Salawati Sahari*

    (Faculty of Economics & Business, Universiti Malaysia Sarawak, Malaysia)

  • Noradilah Abdul Rahim

    (Faculty of Economics & Business, Universiti Malaysia Sarawak, Malaysia)

  • Michael Tinggi

    (Faculty of Economics & Business, Universiti Malaysia Sarawak, Malaysia)

Abstract

Despite numerous debates on the relationship between the capital structure and the firm performance, there is still lack of study focusing on the food processing industry, which is considered a nation contributor towards the economic growth especially in developing countries. Therefore, this study attempt to obtain empirical findings on the relationship between the capital structure and the firm performance among the food-producing firms in Malaysia for the year 2007 to 2016. The panel data analysis in this study has found that all variables in this study have a significant relationship towards firm performance. This study could contributes in such a way to fill the gap in the literature with regard to the study on capital structure and performance by highlighting such issue to the processing firm in Malaysia.

Suggested Citation

  • Salawati Sahari* & Noradilah Abdul Rahim & Michael Tinggi, 2019. "Capital Structure and Firm Performance: Evidence From Food Processing Industry in Malaysia," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(2), pages 317-324, 02-2019.
    • Handle: RePEc:arp:tjssrr:2019:p:317-324
    as

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    References listed on IDEAS

    as
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    3. Berger, Allen N. & Bonaccorsi di Patti, Emilia, 2006. "Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry," Journal of Banking & Finance, Elsevier, vol. 30(4), pages 1065-1102, April.
    4. Stewart Thornhill & Raphael Amit, 2003. "Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View," Organization Science, INFORMS, vol. 14(5), pages 497-509, October.
    5. Catherine J. Morrison, 1997. "Structural Change, Capital Investment and Productivity in the Food Processing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 110-125.
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