Che Wan Khalidawaty  Khalid, Nor Jana  Salim, Juliana Mohd  Nor, 
    Determinants of Financial Leverage for a Panel Data of Industrial Product Sector in Malaysia,
    International Business Management,
    Volume 11,Issue 1,
    2017,
    Pages 41-46,
    ISSN 1993-5250,
    ibm.2017.41.46,
    (https://makhillpublications.co/view-article.php?doi=ibm.2017.41.46)
    Abstract: As an indicator that gives impact to the long term performance of a company in term of its profit and valuation, financial leverage has been extensively investigated. This study analyzes the determinants of financial leverage for a panel of 54 industrial product sector companies listed in the Busar Malaysia, as they contribute 41.5% of Malaysia Gross Domestic Product (GDP). The debt ratio has been proxies for leverage. The dynamic tests are performed for a period of 2006-2014 using STATA 10. The empirical results reveal that liquidity, firm size and tangibility are negatively and significantly associated with leverage while profitability is positively and insignificantly related. These signs suggest that two capital structure theories are at work. Even though the explanatory variables selected are all internal factors with the exception for profitability, they all have a high influence on the industrial product companies’ capital structure.
    Keywords: Financial leverage;panel data;profitability;liquidity;firm size;tangibility;industrial product sector