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The Impact of Market Sentiment on Business Fixed Investment in Malaysia

Understanding how market sentiment reflects the firm investment decision (capital expenditure) is crucial for businesses to make a proper investment strategy. This is because investor sentiment and firms’ investment decision-making lie behind the reasoning that a firm’s investment selection forms th...

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Main Authors: Z.A., Karim,, A.Y., Yusoff,, Bakri, Abdul Karim, Norlin, Khalid
Format: Book Chapter
Language:English
Published: SpringerLink 2024
Subjects:
HG Finance
Online Access:http://ir.unimas.my/id/eprint/44256/1/Bakri_Sentiment.pdf
http://ir.unimas.my/id/eprint/44256/
https://doi.org/10.1007/978-981-99-5447-6_2
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spelling my.unimas.ir-442562024-12-30T01:43:32Z http://ir.unimas.my/id/eprint/44256/ The Impact of Market Sentiment on Business Fixed Investment in Malaysia Z.A., Karim, A.Y., Yusoff, Bakri, Abdul Karim Norlin, Khalid HG Finance Understanding how market sentiment reflects the firm investment decision (capital expenditure) is crucial for businesses to make a proper investment strategy. This is because investor sentiment and firms’ investment decision-making lie behind the reasoning that a firm’s investment selection forms the most crucial part of its overall business decisions. Thus, this study examines how market sentiment, measured by Business Condition Index (BCI) and Consumer Sentiment Index (CSI), reflects Malaysian firms’ investment from 2000 to 2018. This study applies a system generalised method of moment (GMM) technique with 673 firms’ unbalanced panel data. Due to global uncertainty and market downturn, an investor’s confidence level can change from optimism to infectious pessimism. When the market is pessimistic, investors’ confidence becomes negative, leading to a decline in capital expenditure (CAPEX). The findings show that both market sentiment indicators significantly influence private firms’ investment. Higher market sentiment indices create optimism for firms and increase business fixed investment. SpringerLink 2024-01-13 Book Chapter PeerReviewed text en http://ir.unimas.my/id/eprint/44256/1/Bakri_Sentiment.pdf Z.A., Karim, and A.Y., Yusoff, and Bakri, Abdul Karim and Norlin, Khalid (2024) The Impact of Market Sentiment on Business Fixed Investment in Malaysia. In: Contemporary Issues in Finance, Investment and Banking in Malaysia. SpringerLink, Springer, Singapore, pp. 15-35. ISBN 978-981-99-5446-9 https://doi.org/10.1007/978-981-99-5447-6_2
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic HG Finance
spellingShingle HG Finance
Z.A., Karim,
A.Y., Yusoff,
Bakri, Abdul Karim
Norlin, Khalid
The Impact of Market Sentiment on Business Fixed Investment in Malaysia
description Understanding how market sentiment reflects the firm investment decision (capital expenditure) is crucial for businesses to make a proper investment strategy. This is because investor sentiment and firms’ investment decision-making lie behind the reasoning that a firm’s investment selection forms the most crucial part of its overall business decisions. Thus, this study examines how market sentiment, measured by Business Condition Index (BCI) and Consumer Sentiment Index (CSI), reflects Malaysian firms’ investment from 2000 to 2018. This study applies a system generalised method of moment (GMM) technique with 673 firms’ unbalanced panel data. Due to global uncertainty and market downturn, an investor’s confidence level can change from optimism to infectious pessimism. When the market is pessimistic, investors’ confidence becomes negative, leading to a decline in capital expenditure (CAPEX). The findings show that both market sentiment indicators significantly influence private firms’ investment. Higher market sentiment indices create optimism for firms and increase business fixed investment.
format Book Chapter
author Z.A., Karim,
A.Y., Yusoff,
Bakri, Abdul Karim
Norlin, Khalid
author_facet Z.A., Karim,
A.Y., Yusoff,
Bakri, Abdul Karim
Norlin, Khalid
author_sort Z.A., Karim,
title The Impact of Market Sentiment on Business Fixed Investment in Malaysia
title_short The Impact of Market Sentiment on Business Fixed Investment in Malaysia
title_full The Impact of Market Sentiment on Business Fixed Investment in Malaysia
title_fullStr The Impact of Market Sentiment on Business Fixed Investment in Malaysia
title_full_unstemmed The Impact of Market Sentiment on Business Fixed Investment in Malaysia
title_sort impact of market sentiment on business fixed investment in malaysia
publisher SpringerLink
publishDate 2024
url http://ir.unimas.my/id/eprint/44256/1/Bakri_Sentiment.pdf
http://ir.unimas.my/id/eprint/44256/
https://doi.org/10.1007/978-981-99-5447-6_2
_version_ 1819914970305921024
score 13.223943

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