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