A SIGNAL OF FUNDAMENTAL FACTORS ON STOCK PRICE IN MALAYSIA:

AN EMPIRICAL STUDY IN FOOD AND BEVERAGE INDUSTRY

Abstract

This study determines the impact of fundamental factors on the stock price in Malaysia. The study used dynamic panel data analysis for 25 listed firms in Food and Beverage Industry in Bursa Malaysia and covered the period from the first quarter of 2021 to the fourth quarter of 2021. It is identified that the last quarter of stock price has a significant impact on the current stock price positively. A negative relationship is found between return on equity and stock price. While other explanatory variables of revenue, net profit, earnings per share, free cash flow, and debt to equity ratio showed insignificant results toward stock price. The findings may benefit listed firms in identifying the main focus factors among investors. A corresponding action may be taken to maintain the capital funding for business expansion.