Macroeconomic indicators and stock returns: a case on construction sector in Malaysia / Far-hah Natasha Hashim

• Main Author: Hashim, Far-hah Natasha
• Format: Student Project
• Language: English
• Published: 2017
• Subjects: Macroeconomics; Business cycles. Economic fluctuations. Economic indicators; Interest rates; Inflation and taxation
• Online Access: http://ir.uitm.edu.my/id/eprint/44794/1/44794.pdf; http://ir.uitm.edu.my/id/eprint/44794/

This research is conducted with the intention to identify the effect of macroeconomic indicators on the stock return of the listed construction companies in Malaysia. Previously, a study has been conducted to find the relationship between macroeconomic indicators and listed construction companies in various countries. The data used in this research is collected for the period of 10 years from 20 different listed companies under the construction sector in Malaysia. Macroeconomic indicators used in this research include inflation, interest rate, exchange rate, gross domestic product and money supply. Each macroeconomic indicator is represents by different proxies. As for inflation, the proxy used is consumer price index (CPI), lending rate for interest rate and currency exchange MYR/USD for the exchange rate. The proxy for money supply is M2 and GDP for the economic growth. The stock return for each company is calculated by using the formula PI-PO/PO x 100. All the data are obtained from secondary sources.