TY  - JOUR
T1  - Does Age of the Firm Determine Capital Structure Decision? Evidence from Malaysian Trading and Service Sector
AU - Ahmad, Noryati AU - Wan Aris, Yon Bahiah 
JO  - International Business Management
VL  - 9
IS  - 3
SP  - 200
EP  - 207
PY  - 2015
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2015.200.207
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2015.200.207
KW  - Capital structure
KW  -tangibility
KW  -firm age
KW  -profitability
KW  -Static Trade-off Theory
KW  -Pecking Order Theory
AB  - Trading and services sector has been identified as the next 
  engine growth for Malaysia, since the country’s 
  manufacturing sector has lost its ability to sustain its export-led growth. 
  Similar to other sectors, optimal capital structure is also a pertinent issue 
  for trading and services sector. Hence, this study aims to uncover the firm-specifics 
  determinants that have significant influence on the capital structure decision 
  of companies in trading and services sector. The sample comprises of 181 trading 
  and services companies listed in Bursa Malaysia Main Market. The data covers 
  the period from the year 2007 until 2011. Three pooled Ordinary Least Square 
  (OLS) equations are estimated using three different leverage proxies. The findings 
  reveal that tangibility, profitability, firm size, firm growth, non-debt tax 
  shield, earning volatility, liquidity and firm age are able to explain capital 
  structure decision of firm in trading and services sector in Malaysia. Age of 
  the firm, also play an important role in the firm’s 
  decision to seek for debt financing. Although, three capital structure theories 
  can jointly explain the capital structure of Malaysia’s 
  trading and services companies, however, the pecking order theory tends to dominate 
  the other theories for the trading and services companies.
ER  -