The relationship between capital structure and the firm's performance of publicly listed industrial companies belonging to the ASEAN community

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories



Ramon V. Del Rosario College of Business



Thesis Adviser

Arnel Onesimo O. Uy

Defense Panel Member

Cynthia P. Cudia


This study aims to empirically investigate the impact of capital structure on firm financial performance in the ASEAN region. A sample size of 239 listed industrial firms from five different countries has been taken to analyze the relationship between leverage and firm performance. The countries included in the study are Malaysia, Philippines, Singapore, Thailand, and Indonesia. A period of five years from 2011-2015 and annual financial standalone data have been considered to analyze the leverage effect. Panel data analysis has been applied to perform the empirical study. The research involves the use of three proxies for financial performance. Tobin's Q, return on assets (ROA), and return on equity (ROE) and the use of financial leverage as a representative of capital structure with respect to the control variables size, growth, asset tangibility, and turnover. It was found that financial leverage has a negative significant impact on Tobin's Q in ASEAN. However, ROA and ROE both showed insignificant results overall. Results show that leverage is significant and negatively correlated with ROE in Malaysia, positively correlated with ROE in Philippines. Lastly, leverage in Singapore is significant and negatively correlated with Tobin's Q. The findings of the study contribute to the current literature on capital structure and is informative for ASEAN industrial firms' capital structure decision-making.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

vi, 107 leaves : illustrations (some colored) ; 28 cm. + 1 computer disc ; 4 3/4 in.


Corporations--Finance--Southeast Asia; Capital-- Southeast Asia

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