Assess the Impact of Capital Structure Decisions on Firm Value in Malaysian Public Listed Companies

ASSIGNMENT TITLE                                                             

Assess the Impact of Capital Structure Decisions on Firm Value in Malaysian Public Listed Companies

                                                      ASSIGNMENT OBJECTIVES                                               

1. To analyze the capital structure of selected Malaysian public listed
2. To assess the relationship between capital structure and firm
3. To evaluate the influence of leverage on financial performance

                                                      ASSIGNMENT GUIDELINES                                                 

1. Choose THREE (3) Malaysian public listed companies for
   • Choose companies listed on Bursa Malaysia Main Market or ACE
   • Ideally, select      companies      from     different     industries     (e.g., manufacturing, telecommunications, finance, property) for broader analysis.
   • Ensure that companies have sufficient data in their annual reports (preferably over 3–5 years).
   • Avoid companies with irregular reporting or major restructuring unless it supports your
2. Refer to Bursa Malaysia for financial reports and company
   • Visit the official Bursa Malaysia website: https://bursamalaysia.com
   • Download the Annual Reports, Financial Highlights, and Investor Relations
   • Focus on the following:
   • Capital structure data: Total debt, equity, retained
   • Firm value indicators: ROE, EPS, share price, market
   • Other useful sections: Management Discussion & Analysis (MD&A), Notes to
3. Apply theories such as Modigliani-Miller, Trade-Off, or Pecking Order to interpret findings. Include diagrams or models where appropriate to explain these theories (if applicable).
4. Use real data and justify all
   • Use actual financial figures (not estimations) wherever
   • Ensure all ratios are computed correctly using the same time period for
   • Examples of useful ratios:
     • Debt-to-Equity Ratio
     • Interest Coverage Ratio
     • Return on Equity (ROE)
     • Earnings per Share (EPS)
   • Justify any assumptions you make (e.g., reasons for comparing certain years or industries).
   • If data is limited, state the limitation and how it may impact your
5. Ensure your recommendations are supported by
   • Your recommendations should be based on the analysis and theoretical
   • Examples of evidence-based recommendations:
     • If a company has a high debt ratio and declining ROE, recommend restructuring to balance debt and equity.
     • If another firm’s low leverage coincides with low growth, suggest exploring debt to finance expansion.
   • Support each recommendation with data findings and financial
   • Avoid vague or generic suggestions (e.g., “improve capital structure”)—be specific and

                                                      ASSIGNMENT STRUCTURE