THE SUSTAINABLE GROWTH RATE OF FIRM IN MALAYSIA: A PANEL DATA ANALYSIS

Kadar Pembangunan Firma di Malaysia: Analisis ke Atas Data Panel

  • Norfhadzilahwati Rahim Universiti Sains Islam Malaysia
  • Maryam Badrul Munir Universiti Sains Islam Malaysia
Keywords: random and fixed effect, sustainable growth rate, financial indicators, panel data analysis

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.

 

Keywords: random and fixed effect, sustainable growth rate, financial indicators, panel data analysis.     

 

 

 

 

 

 

Abstrak

Kajian ini menganalisis kesan indikator kewangan sebagai faktor utama kadar pembangunan mampan dengan menggunakan data bagi tempoh 2005-2015. Kadar pembangunan mampan adalah pembolehubah bersandar, manakala empat pembolehubah tidak bersandar adalah nisbah hutang kepada ikuiti, nisbah pembayaran dividen, margin keuntungan dan nisbah perolehan aset. Tiga model berlainan iaitu Ordinary Least Squares (OLS), Random Effect Model (REM), dan Fixed Effect Model (FEM) telah digunakan bagi tujuan analisis. Kajian ini mengumpulkan data daripada 8 sektor organisasi di Malaysia selama 11 tahun menggunakan analisis panel data. Panel data seperti Breusch-Pagan LM test, and Hausman test. Heteroscedasticity, Modified  Wald test for group wise heteroscedasticity, the Wooldridge serial correlation test akan digunakan di dalam kajian ini. Hasil kajian menunjukkan tiga model iaitu nisbah hutang kepada ikuiti (DTER), nisbah pembayaran dividen (DPR), margin keuntungan (PM), dan jualan kepada aset (STA) menunjukkan impak yang positif ke atas kadar pembangunan mampan. Kajian ini memberi sumbangan kepada kajian terdahulu dengan memberikan pengetahuan tentang amalan kadar pembangunan mampan di organisasi.

 

Kata kunci: Kesan rawak dan tetap, kadar pembangunan mampan, indikator kewangan, analisis panel data.

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Published
2018-12-01