Open AccessTHE IMPACT OF FIRM LEVERAGE ON STOCK RETURN ON MANUFACTURING INDUSTRY
Author(s) -
Shaharudin Jakpar,
Michael Tinggi,
Wong Yu Qi,
Norshamsiah Samsudin
Publication year - 2019
Publication title -
unimas review of accounting and finance
Language(s) - English
Resource type - Journals
ISSN - 2590-3543
DOI - 10.33736/uraf.1978.2019
Subject(s) - return on assets , debt to equity ratio , return on equity , stock (firearms) , leverage (statistics) , business , debt , regression analysis , equity (law) , monetary economics , variables , debt ratio , econometrics , financial economics , stock exchange , economics , finance , statistics , mathematics , mechanical engineering , population , demography , sociology , law , political science , engineering , nonprobability sampling
This paper seeks to provide evidence on the impact of firm’s leverage on its stock return. The analysis was implemented on the 30 manufacturing companies listed on Bursa Malaysia. The selected companies were estimated from the annual financial reports covering a period of five years (2011-2015). The random effects GLS regression was employed in carrying out this analysis. The result of the study reveals that only one variable which is short term debt has enough evidence and significant negatively related to stock return. However, other variables such as long-term debt, total debt to equity and firm size are found to be irrelevant with stock return.