@article{MAKHILLJEAS201813815997,
    title = {Capital Structure Speed of Adjustment and Shari’ah Compliance:
Empirical Evidence from Malaysia},
    journal = {Journal of Engineering and Applied Sciences},
    volume = {13},
    number = {8},
    pages = {2103-2107},
    year = {2018},
    issn = {1816-949x},
    doi = {jeasci.2018.2103.2107},
    url = {https://makhillpublications.co/view-article.php?issn=1816-949x&doi=jeasci.2018.2103.2107},
    author = {Hafezali,H. Obsatar,M. Haizam,Firdaus,Nur Surayya,Mohd and},
    keywords = {Capital structure,speed of adjustment,Shari`ah compliance,Islamic finance,notion,firms},
    abstract = {The study empirically tests the speed of adjustment of a sample of Malaysian firms. We find that
Shari’ah compliance influences the speed of adjustment implying that cost of capital for Shari’ah compliant
firms differ from non-compliant firms. Our tests further show that Shari’ah compliant companies whose leverage
leves are above target tend to adjust more rapidly to target levels than non-compliant firms. The evidence
provides an opposite conclusion on firms below target levels. The findings provide a notion of debt versus
equity choice for Shari’ah compliant firms versus non-compliant firms indicating that preference is guided by
implied cost of capital which differs based on the extent of current leverage levels.}
    }