The Impact of Market Risk and Fair Value Measurement on the Financial Performance of Public Corporates in Malaysia
Abdul Aziz Noor Ali Khan1, Dhamayanthi Arumugam2, Kahyahthri Suppiah3
1Abdul Aziz Noor Ali Khan, Asia Pacific University of Technology and Innovation, Malaysia.
2Dhamayanthi Arumugam, Asia Pacific University of Technology and Innovation, Malaysia.
3Kahyahthri Suppiah, Asia Pacific University of Technology and Innovation, Malaysia.
Manuscript received on 05 February 2019 | Revised Manuscript received on 11 February 2019 | Manuscript Published on 19 February 2019 | PP: 141-145 | Volume-7 Issue-5S January 2019 | Retrieval Number: ES2138017519/19©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: This research is conducted to evaluate the impact of market risk and fair value on the financial performance of public corporations in Malaysia. This is because market price conditions in the market have resulted in many significant write-offs by applying the fair value. Despite the growth seen in Malaysian companies, Market risk is still a difficult challenge that many companies fail to estimate. The study is covered during the period of 2007 and 2016. Market risk was measured by the interest rate and inflation while financial performance was measured by return on equity (ROE). The data collection method used in this research is mainly through primary and secondary data. Primary data was used to collect data on fair value, whereas secondary data was used in collection of market risk. Furthermore, researcher has also used regression analysis to study the relationships between dependent variables and independent variables. The results gathered from the findings showed that there is no relationship between market risk and financial performance of public corporations in Malaysia. Additionally, another hypothesis showed strong relationship between fair value measurement and financial performance. Moreover, researcher also suggested to include other variables such as exchange rate and financial leverage due to which the relationship with market risk could be further analyzed.
Keywords: Market Risk, Fair Value, Financial Performance.
Scope of the Article: Marketing and Social Sciences