Factors affecting the share price of consumer products companies in Malaysia / Muhammad Afiq Fikri Mohd Nazri

• Main Author: Mohd Nazri, Muhammad Afiq Fikri
• Format: Thesis
• Language: English
• Published: 2022
• Subjects: Dividends. Stock dividends. Dividend reinvestment; Financial leverage
• Online Access: https://ir.uitm.edu.my/id/eprint/96301/1/96301.pdf; https://ir.uitm.edu.my/id/eprint/96301/

The purpose of this research is to determine how profitability, leverage, and dividends influence the share price of Malaysian consumer company firms. There are 10 selected consumer products companies.The sample of data were gathered for a period of 10 years starting from 2011 to 2020, resulting in a total number of observation of 100. Firm's performance was measured by using share price as a dependent variable that was mostly supported and applied by previous reseachers. More ever, the factors used to test on the firms performance are return on assets, dividend per share, earnings per share, debt ratio, and debt equity ratio, which act as independent variables. The data is gathered from annual reports from Bursa Malaysia, Thomson Reuters Datastream and Rifinitiv Datastream then a multiple linear regression is used in this study. In addition, econometrics test are used to observe the relationship between factors of capital structure on a firm's performance. Ineractive software package E-views 11 student version were used for testing and analysing the data collected. Using the pooling panel data regression method, the expected findings of return on assets, dividend per share, earnings per share, debt ratio, and debt equity ratio has a relationship with the firms share price. The results based on the regression analysis on parameter significance (T-Test) revealed that only Earnings Per Share has a meaningful relationship with share price, since the probability value is less than the 5% significance threshold. However, for the other variables such as Return on Assests, Debt Ratio, Debt Equity Ratio, and Dividend Per Share, the probability value is greater than the 5% significance level, indicating that the variables are not significant.