Capital Structure of Malaysian Firms: Financing the Deficit and Shari’ah Compliance
Hafezali Iqbal Hussain
MPRA Paper from University Library of Munich, Germany
Our paper evaluates the capital structure of Malaysian firms from a unique perspective by evaluating the impact of Shari’ah compliance on firms’ financing decision. We find that firms that are Shari’ah compliant tend to lean towards lower debt issues to finance their deficits, implying that the compliance status has an impact on their cost of equity which ultimately affects cost of capital.
Keywords: Capital Structure; Shari’ah Compliance; Islamic Finance; Malaysian Firms (search for similar items in EconPapers)
JEL-codes: G32 Z12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn, nep-sbm and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:80786
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