Financial ratios to predict the stock returns of trading and services public listed company in Malaysia

Nursyamimi Huda, Binti Bohari (2012) Financial ratios to predict the stock returns of trading and services public listed company in Malaysia. [Final Year Project Report] (Unpublished)

[img] PDF (Please get the password by email to repository@unimas.my , or call ext: 3914 / 3942 / 3933)
Nursyamimi Huda Binti Bohari.pdf
Restricted to Registered users only

Download (24MB)

Abstract

This research was carried out to study whether the financial ratios can predict the stock return of trading and services public listed company in Malaysia for the period from January 2001 to December 2010. Three financial ratios have been selected which include dividend yield (DY), earning yield (EY), and book to market ratios (BIM) that have been documented to predict stock returns. This study applies fixed effect model techniques to estimate the predictive regressions in the form of simple and multiple models ofpanel data sets. From the findings, the financial ratios can predict stock return as book to market ratio has a higher predictive power than dividend yield and earning yield respectively. Hence, book to market ratio playa significant role in capturing strong variation in stock returns. Furthermore, financial ratios are able to develop stock return predictability when the ratios are combined in the mUltiple predictive regression models. For future study, it is recommended to use more than 10 years and adding more variables to get a more reliable data and strong results.

Item Type: Final Year Project Report
Additional Information: Project Report (B.Sc.) -- Universiti Malaysia Sarawak, 2012.
Uncontrolled Keywords: financial ratios, stock, Ratio analysis, financial, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, Postgraduate, research, Universiti Malaysia Sarawak
Subjects: H Social Sciences > HB Economic Theory
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User: Karen Kornalius
Date Deposited: 05 Oct 2015 02:38
Last Modified: 23 Nov 2023 02:28
URI: http://ir.unimas.my/id/eprint/9065

Actions (For repository members only: login required)

View Item View Item