Some studies have determined the impact of financial factors on the failure of firms; such as bad financial management and lack of capital which are the main determinants of failure. The construction industry is generally also facing these problems to some extent. Where the Malaysian scene is concerned, the failure rate of construction companies is quite high. This study examines the debt and equity structure for the construction companies listed in the Bursa Malaysia market during a seven-year period from 2001 to 2007. This sample data derived from financial statements of 42 companies with a number of observations totalling 294. The dependent variable used is debt ratio and expressed by total debt divided by total assets while the independent variables are profitability, size, growth and assets tangibility. Using panel data method, the results show that the profitability of the construction companies is significant negatively relations to debt ratio while size, growth and assets tangibility are positively significant in relations to total debt. The results of the study suggest that construction companies depend heavily on debt financing compared to equity financing for expansion and growth. The findings also indicate that profit is reduced when the companies are using more debt.