Evaluating Company's Performance Using Multiple Discriminant Analysis: A Study On Shariah Compliance Companies
The global business environment is really demanding the investors to be prepared with the emerging and dynamic markets. Measuring company's performance is important for management, shareholders, government, customers, suppliers and other stakeholders that have importance or linkage with the...
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| Main Authors: | , , |
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| Format: | Research Report |
| Language: | English |
| Published: |
Universiti Sains Islam Malaysia
2015
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| Online Access: | http://ddms.usim.edu.my/handle/123456789/7773 |
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| Summary: | The global business environment is really demanding the investors to be prepared with
the emerging and dynamic markets. Measuring company's performance is important for
management, shareholders, government, customers, suppliers and other stakeholders that
have importance or linkage with the wealth distribution directly or indirectly. To evaluate
company's performance, we need tools that can be used to measure the performance and
one of most popular tools is the financial ratio analysis. This paper will explore the use of
alpha Jensen technique to classify the shariah compliance companies in the Main Board
of Bursa Malaysia into two categories i.e. performing and non performing. Then the
result would be used with the companies 20 financial ratios to identify the model that
could discriminate the performing and non performing companies using multiple
discriminant analysis. The study found that only shareholders fund / share ratio is
significantly contributing to the discriminant function. |
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