Cover Image

Effect of Fundamental Factor Analysis on Blue Chip Stock Return In Malaysia After The Outbreak of Covid-19 Pandemic

This study examines the effects of fundamental factors on the returns of Malaysian blue-chip stocks following the outbreak of the COVID-19 pandemic. Using secondary data from 2020 to 2022, this research analyzes key financial ratios, including return on equity (ROE), price-to-book ratio (P/B), debt-...

Full description

Saved in:
Bibliographic Details
Main Authors: Jefferson Kung Lien, Tiong, Nurul Syuhada, Zaidi, Bakri, Abdul Karim
Format: Article
Language:English
Published: UNIMAS Publisher 2024
Subjects:
HG Finance
Online Access:http://ir.unimas.my/id/eprint/47095/1/8586
http://ir.unimas.my/id/eprint/47095/
https://doi.org/10.33736/uraf.8586.2024
https://doi.org/10.33736/uraf.8586.2024
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.unimas.ir-47095
record_format eprints
spelling my.unimas.ir-470952024-12-30T08:39:30Z http://ir.unimas.my/id/eprint/47095/ Effect of Fundamental Factor Analysis on Blue Chip Stock Return In Malaysia After The Outbreak of Covid-19 Pandemic Jefferson Kung Lien, Tiong Nurul Syuhada, Zaidi Bakri, Abdul Karim HG Finance This study examines the effects of fundamental factors on the returns of Malaysian blue-chip stocks following the outbreak of the COVID-19 pandemic. Using secondary data from 2020 to 2022, this research analyzes key financial ratios, including return on equity (ROE), price-to-book ratio (P/B), debt-to-equity ratio (D/E), price-to-earnings ratio (P/E), dividend payout ratio (DPR), and net profit margin (NPM), to determine their influence on stock returns. The dataset comprises panel data of 30 blue-chip companies, resulting in 90 observations. The analysis, conducted using EViews 12, reveals that ROE has a significant negative relationship with stock returns, while P/B and D/E have positive and significant relationships. In contrast, P/E, DPR, and NPM exhibit negative but insignificant relationships. The findings suggest that P/B and D/E are critical factors for investors when evaluating blue-chip stocks, while ROE warrants cautious interpretation due to its inverse relationship with returns. However, the study is limited by its focus on fundamental analysis, excluding technical analysis, and its short time frame of three years. These limitations indicate the need for further research with broader datasets and alternative analytical approaches. The results have practical implications for investors, portfolio managers, and policymakers. Investors are encouraged to prioritize fundamental factors such as P/B and D/E when making investment decisions, while policymakers can leverage these insights to enhance regulatory frameworks supporting informed decision making in Malaysia's capital markets. This study contributes to the understanding of stock performance during a period of significant economic disruption and offers a foundation for future research in post-pandemic financial analysis. UNIMAS Publisher 2024-12-26 Article PeerReviewed text en http://ir.unimas.my/id/eprint/47095/1/8586 Jefferson Kung Lien, Tiong and Nurul Syuhada, Zaidi and Bakri, Abdul Karim (2024) Effect of Fundamental Factor Analysis on Blue Chip Stock Return In Malaysia After The Outbreak of Covid-19 Pandemic. UNIMAS Review of Accounting and Finance, 8 (1). pp. 49-60. https://doi.org/10.33736/uraf.8586.2024 https://doi.org/10.33736/uraf.8586.2024
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
Jefferson Kung Lien, Tiong
Nurul Syuhada, Zaidi
Bakri, Abdul Karim
Effect of Fundamental Factor Analysis on Blue Chip Stock Return In Malaysia After The Outbreak of Covid-19 Pandemic
description This study examines the effects of fundamental factors on the returns of Malaysian blue-chip stocks following the outbreak of the COVID-19 pandemic. Using secondary data from 2020 to 2022, this research analyzes key financial ratios, including return on equity (ROE), price-to-book ratio (P/B), debt-to-equity ratio (D/E), price-to-earnings ratio (P/E), dividend payout ratio (DPR), and net profit margin (NPM), to determine their influence on stock returns. The dataset comprises panel data of 30 blue-chip companies, resulting in 90 observations. The analysis, conducted using EViews 12, reveals that ROE has a significant negative relationship with stock returns, while P/B and D/E have positive and significant relationships. In contrast, P/E, DPR, and NPM exhibit negative but insignificant relationships. The findings suggest that P/B and D/E are critical factors for investors when evaluating blue-chip stocks, while ROE warrants cautious interpretation due to its inverse relationship with returns. However, the study is limited by its focus on fundamental analysis, excluding technical analysis, and its short time frame of three years. These limitations indicate the need for further research with broader datasets and alternative analytical approaches. The results have practical implications for investors, portfolio managers, and policymakers. Investors are encouraged to prioritize fundamental factors such as P/B and D/E when making investment decisions, while policymakers can leverage these insights to enhance regulatory frameworks supporting informed decision making in Malaysia's capital markets. This study contributes to the understanding of stock performance during a period of significant economic disruption and offers a foundation for future research in post-pandemic financial analysis.
format Article
author Jefferson Kung Lien, Tiong
Nurul Syuhada, Zaidi
Bakri, Abdul Karim
author_facet Jefferson Kung Lien, Tiong
Nurul Syuhada, Zaidi
Bakri, Abdul Karim
author_sort Jefferson Kung Lien, Tiong
title Effect of Fundamental Factor Analysis on Blue Chip Stock Return In Malaysia After The Outbreak of Covid-19 Pandemic
title_short Effect of Fundamental Factor Analysis on Blue Chip Stock Return In Malaysia After The Outbreak of Covid-19 Pandemic
title_full Effect of Fundamental Factor Analysis on Blue Chip Stock Return In Malaysia After The Outbreak of Covid-19 Pandemic
title_fullStr Effect of Fundamental Factor Analysis on Blue Chip Stock Return In Malaysia After The Outbreak of Covid-19 Pandemic
title_full_unstemmed Effect of Fundamental Factor Analysis on Blue Chip Stock Return In Malaysia After The Outbreak of Covid-19 Pandemic
title_sort effect of fundamental factor analysis on blue chip stock return in malaysia after the outbreak of covid-19 pandemic
publisher UNIMAS Publisher
publishDate 2024
url http://ir.unimas.my/id/eprint/47095/1/8586
http://ir.unimas.my/id/eprint/47095/
https://doi.org/10.33736/uraf.8586.2024
https://doi.org/10.33736/uraf.8586.2024
_version_ 1819914987531927552
score 13.223943

Similar Items