An Empirical Examination of the Indicators Influencing Malaysian Listed Manufacturing Companies’ Share Price Escalation
Chew Jing Jiet1, Vikneswaran Manual2
1Chew Jing Jiet, Faculty of Business & Management, Asia Pacific University of Innovation & Technology Malaysia.
2Vikneswaran Manual, Faculty of Business & Management, Asia Pacific University of Innovation & Technology Malaysia
Manuscript received on 08 February 2019 | Revised Manuscript received on 14 February 2019 | Manuscript Published on 19 February 2019 | PP: 512-520 | Volume-7 Issue-5S January 2019 | Retrieval Number: ES2120017519/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The fluctuations and volatility on the share price discourage investments and raises concerns on the indicators or factors that can effectively boost the share price in long run. Most of the investors loss their wealth but also erode confidence in the stock market. This study sought to investigate the indicator that boost share price the most in long run among the manufacturing that listed in Kuala Lumpur Stock Exchange (KLSE). In accomplishing this overall objective, the study sought to determine which indicator among earning per share (EPS), dividend per share (DPS), return on equity (ROE), interest and inflation has the most effective impact on the listed manufacturing companies. The study employed secondary data that extracted from the annual report from individual companies and Bank Negara Malaysia for the ten-year period covering which covering from 2007 to 2016. The study was undertaken using quantitative research design. There are 30 listed manufacturing companies listed in KLSE constituted as the target population. Descriptive statistics and panel regression analysis techniques were employed to analyse the panel data. All collected data were tested by Normality and Multi collinearity tests before carried out the analysis. The study concluded that EPS is the most effective indicator toward the share price movement as compared to the other four indicators. The study recommends that investors should take this indicator as a guidance in their stock investment decision making.
Keywords: Earning Per Share, Listed Manufacturing Companies, Share Price Movement.
Scope of the Article: Advanced Manufacturing Technologies