Capital Structure Decision Impact on Malaysian Commercial Banks: Customer Deposits As a Moderating Variable
| dc.contributor.author | Ting Mei Fei | |
| dc.date.accessioned | 2026-09-01T01:50:58Z | |
| dc.date.issued | 2025 | |
| dc.description | The banking industry in Malaysia has great contributions to the economic development of the country. This study aims to investigate the capital structure decision impact on Malaysia commercial banks with customer deposits as a moderating variable. A sample of 25 commercial banks was chosen and data for the period 2019 to 2023 were collected from the Orbis database and banks’ annual reports. Financial performance is measured by the Return on Assets (ROA) and Return on Equity (ROE). Bank borrowings and equity financing are as independent variables and the moderating variable is customer deposits. Although deposits are fundamental to commercial banking operations, there is limited research has examined how deposits influence the relationship between capital structure and bank performance, creating a significant gap in the literature. The study also separates the timeline into two sub-periods: the Covid-19 period (2019–2021) and the postpandemic recovery period (2022–2023) to examine performance under different economic conditions. Three regression techniques, pooled OLS, fixed effect and random effect models are used to explore the relationship. The empirical results have shown that debt ratio and equity ratio have a positive significant effect on ROA throughout the study period and are relatively stronger during the recovery period. Customer deposits showed no significant direct or moderating effect on ROA overall, but it did become significant in the recovery period, which are positively influencing ROA but negatively impacting ROE due to rising interest rates and higher funding costs. The study provides insights which are useful to regulators, bank managers, and shareholders in developing effective financial strategies and ensuring long-term financial sustainability. | |
| dc.identifier.uri | https://scholarhub.unimas.my/handle/123456789/1884 | |
| dc.language.iso | English | |
| dc.publisher | Universiti Malaysia Sarawak (UNIMAS) | |
| dc.relation.ispartofseries | Faculty of Economics and Business | |
| dc.subject | Capital Structure, Commercial Banks, Bank Borrowings, Equity Financing, Customer Deposits, Return on Asset, Return on Equity. | |
| dc.title | Capital Structure Decision Impact on Malaysian Commercial Banks: Customer Deposits As a Moderating Variable | |
| dc.type | Final Year Project |