The impact of fundamental analysis on stock market: evidence from property sector in Malaysia / Nabihah Mohd Yunos

Fundamental analysis can be considered to be essential requirement for investment decision-making since it used for long-term predictions of values of future phenomena, based on historical data and any factors likely to affect the level of demand and supply. The purpose of this research is to justif...

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Bibliographic Details
Main Author: Mohd Yunus, Nabihah
Format: Thesis
Language:English
Published: 2021
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/60282/1/60282.pdf
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Summary:Fundamental analysis can be considered to be essential requirement for investment decision-making since it used for long-term predictions of values of future phenomena, based on historical data and any factors likely to affect the level of demand and supply. The purpose of this research is to justify the investors used fundamental analysis in order to explore their investment possibility and to analyse trustworthiness of this method on estimate the stock return for their good trading strategy. This study used secondary data obtained from financial statements based on 20 companies selected from Bursa Malaysia in the property sector for a period of ten years (2010-2019). The data analyzed on quantitative basis using descriptive statistics, Pearson's correlation and regression analysis. This model is using the stock return as the dependent variable and to measure whether it is able to predict and create the positive return. Thus, the independent variables used in this research which are net profit margin (NPM), price earnings ratio (PER), total asset turnover (TATO), return on equity (ROE), earning per share (EPS) and debt-to-equity ratio (DER). Therefore, before making an investment decision, investors or traders need to identify and knowing what kind of strategy that will be use to generate positive return and they need to identify why people seldom to use fundamental analysis.