Essay --

Chapter 1presentation1.1 Introduction One of the most common ways for a blotto to operate or finances its assets is capital expression. Capital structures refer as a combination of equity, debt and hybrid securities that used in the satisfying operation. In a perfect market, transaction or bankruptcy cost, inefficient study and taxes pull up stakes not exist. Therefore, Modigliani and Miller required a theory of capital structure in a perfect market. The use of capital structure is definitive as it affect the impregnable profitability. Financial decision of a short letter organization becomes one of the important decisions that normally pass on represent by capital structure. Musiega, et al. (2013) claimed that choosing an appropriate capital structure will benefit the potent as it help a firm to adapt with various intriguing and competitive business world thereby become more profitability. gibe to Zeitun and Tian (2007), managers who are able to identify the optimal cap ital structure will help the companies to increase the firm revenue or profitability and stretch the firms cost of finance. Nutshell, capital structure of a firm can influence a firm profitability a firm health determined by a firm capital structure. By analyzing the choice of firms capital structure, financial behavior of a firm can be explained by the pecking assign theory and the portion out off theory (Ana, Dragan & Monica, 2012). Both of this theory provides a different kindred betwixt the capital structure and profitability. Based on the study of Zabri (2012), the pecking order theory provide a negative impact of profitability on leverage enchantment the trade-off theory provide a imperious relationship between the capital structure and profitability. There are around of the findings... ...o investigate the relationship between the capital structure and profitability of firm. In order to have clearer and accurate evidence on the relationship between the capital struct ure and profitability, 24 of public listed companies in Sarawak Kuala Lumpur Stock convince (KLSE), Malaysia are chosen to test it. All the financial statement for 24 companies will record accurate and correctly in order to create an accurate test or relationship. The introduction of the research proposal will be discussed in chapter 1. In chapter 2, literature review will be discussed on various views of previous researches which relate to our topic. Research methodology and the info collection will be present in chapter 3 while chapter 4 will discuss about the result and discussion on the result. A conclusion and policy implication will be discussed in the final chapter of this study.