The sustainable growth rate of firm in Malaysia : a panel data analysis

Joint Authors

Rahim, Norfhadzilahwati
Badr al-Munir, Maryam

Source

Al-‘Abqari : Journal of Islamic Social Sciences and Humanities

Publisher

Islamic Science University of Malaysia Faculty of Leadership and Management

Publication Date

2018-12-31

Country of Publication

Malaysia

No. of Pages

12

Main Subjects

Financial and Accounting Sciences
Law

English Abstract

This research analyzes the impact of financial indicators as a key factor on the sustainable growth rate with panel data for time period, 2005-2015.

Sustainable growth rate as a dependent variable, regressed with four different independent variables such as debt to equity ratio, dividend payout ratio, profit margin, and asset turnover ratio.

Three different models like Ordinary Least Squares (OLS), Random Effect Model (REM), and Fixed Effect Model (FEM) were used for the analysis.

This research gathered for eight sectors of firm in Malaysia for eleven years that lead to use the panel data analysis, whereas panel data may have Breusch-Pagan LM test, and Hausman test.

Heteroscedasticity, Modified Wald test for group wise heteroscedasticity, the Wooldridge serial correlation test will apply in this research.

The results found that three models get same results which debt to equity ratio (DTER), dividend payout ratio (DPR), profit margin (PM), and sales to assets (STA) are positive impact of the sustainable growth rate.

This research contributes to the literature by contributing understandings of the sustainable growth rate practice for companies.

Data Type

Conference Papers

Record ID

BIM-1131780

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