The Relation between Average Stock Return to Earning Ratio and Book to Market Ratio in FTSEBM

The Relation between Average Stock Return to Earning Ratio and Book to Market Ratio in FTSEBM

Malaysia stock market is an emerging market in Asia. Recently, Malaysia has implemented some liberalizations in the stock market. Malaysia stock market is a potential market to get high profits. Many local as well as foreign investors would be interested to know whether the Malaysian stock returns c...

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Main Author: Al-Rawashdeh, Najed Massad Sulaiman
Format: Thesis
Language:eng
eng
Published: 2009
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/1654/1/Najed_Massad_Sulaiman_Alrawashdeh.pdf
https://etd.uum.edu.my/1654/2/1.Najed_Massad_Sulaiman_Alrawashdeh.pdf
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id my-uum-etd.1654
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
topic HG Finance
spellingShingle HG Finance
Al-Rawashdeh, Najed Massad Sulaiman
The Relation between Average Stock Return to Earning Ratio and Book to Market Ratio in FTSEBM
description Malaysia stock market is an emerging market in Asia. Recently, Malaysia has implemented some liberalizations in the stock market. Malaysia stock market is a potential market to get high profits. Many local as well as foreign investors would be interested to know whether the Malaysian stock returns could predicted by financial ratios. The main purpose of this study is to investigate the ability of price to earning and book-to-market ratios to predict future stock market returns in FTSEBM. A linear regression analysis is applied for this purpose. Findings reveal that book to market ratio significantly influences stock return,while there is no significant positive linkage between price to earning ratio and stock return.
format Thesis
qualification_name masters
qualification_level Master's degree
author Al-Rawashdeh, Najed Massad Sulaiman
author_facet Al-Rawashdeh, Najed Massad Sulaiman
author_sort Al-Rawashdeh, Najed Massad Sulaiman
title The Relation between Average Stock Return to Earning Ratio and Book to Market Ratio in FTSEBM
title_short The Relation between Average Stock Return to Earning Ratio and Book to Market Ratio in FTSEBM
title_full The Relation between Average Stock Return to Earning Ratio and Book to Market Ratio in FTSEBM
title_fullStr The Relation between Average Stock Return to Earning Ratio and Book to Market Ratio in FTSEBM
title_full_unstemmed The Relation between Average Stock Return to Earning Ratio and Book to Market Ratio in FTSEBM
title_sort relation between average stock return to earning ratio and book to market ratio in ftsebm
granting_institution Universiti Utara Malaysia
granting_department College of Business (COB)
publishDate 2009
url https://etd.uum.edu.my/1654/1/Najed_Massad_Sulaiman_Alrawashdeh.pdf
https://etd.uum.edu.my/1654/2/1.Najed_Massad_Sulaiman_Alrawashdeh.pdf
_version_ 1747827183666069504
spelling my-uum-etd.16542022-04-21T03:08:40Z The Relation between Average Stock Return to Earning Ratio and Book to Market Ratio in FTSEBM 2009 Al-Rawashdeh, Najed Massad Sulaiman College of Business (COB) College of Business HG Finance Malaysia stock market is an emerging market in Asia. Recently, Malaysia has implemented some liberalizations in the stock market. Malaysia stock market is a potential market to get high profits. Many local as well as foreign investors would be interested to know whether the Malaysian stock returns could predicted by financial ratios. The main purpose of this study is to investigate the ability of price to earning and book-to-market ratios to predict future stock market returns in FTSEBM. A linear regression analysis is applied for this purpose. Findings reveal that book to market ratio significantly influences stock return,while there is no significant positive linkage between price to earning ratio and stock return. 2009 Thesis https://etd.uum.edu.my/1654/ https://etd.uum.edu.my/1654/1/Najed_Massad_Sulaiman_Alrawashdeh.pdf text eng public https://etd.uum.edu.my/1654/2/1.Najed_Massad_Sulaiman_Alrawashdeh.pdf text eng public masters masters Universiti Utara Malaysia Allen D. E. and F. Cleary (1998), Determinats of the Cross-Section of Stock returns in the Malaysian Stock Market, International Review of Financial Analysis, Vol. 7, No. 5, pp 253-27.Anderson, D. J. , Sweeney, T. A. and Williams, T. A. (1996). Statistics for Business and Economics. Minneapolis, MN: West Publishing.Barber, Brad M., and John d. Lyon (1997), Firm Size, Book-to-Market Ratio, and Security Returns: A Holdout Sample of Financial Firms, The Journal of Finance 52, pp 875-883.Banz, R. W. (1981). 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Faculty of Business Administration Bilkent University.Lam, Keith, S.K, (2002),.The Relationship between Size, Book to Market Equity Ratio, Earning Price Ratio and return for Hong Kong Stock Market, Global Finance Journal ,13,pp.163-179.Lanstein, R., Reid, K., Rosenberg, B., (1985), Persuasive Evidence of Market Inefficiency, Journal of Portfolio Management, (11), pp. 9 – 17.Lewllen, Jonathan (1999), The Time-Series Relations among Expected Return, Risk & Book-to-Market, Journal of Financial Economics, 54 pp. 5-43.Lewllen, Jonathan (2004), Predicting Returns with Financial Ratios,Journal of Financial Economics, 74 pp. 209-235.Masulis, R. (March 1983), The Impact of Capital Structure Change on Firm Value: Some Estimates, Journal of Finance, pp 107-126. Rahmani, A. Sauber Sheri & Elnaz Tajvidi (2006),.“Accounting Variables, Market Variables and Stock Return in Emerging Markets” : Case of Iran. Faculty of Management & Accounting Allameh Tabataba’i University, Tehran-Iran.S.A. Ross, R. W. 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