The influence of liquidity on performance and financial equilbrium during the COVID-19 pandemic: the perspective of property industry in Malaysia / Siti Nabilah Besri

The COVID-19 pandemic has a profound impact on the economy, not only in Malaysia but also throughout the world and has created a lot of uncertainty and obstacles in the property industry. With widespread unemployment, salary cuts, business failures, and job uncertainty, it's understandable that many individuals are hesitant to make the biggest commitment of their lives buying a home. It also has contributed to a decline in the number of home seekers and sellers. During the various phases of the movement control order (MCO), processes like completing documentation and progress payments were put on hold as banks scaled down operations during the period. Further, it can be expected that developers and builders will not be able to complete their projects or developments within the stipulated time frame as supply chains have been interrupted. This study intends to see whether the liquidity indicators significantly influenced the financial equilibrium of companies listed on the Bursa Malaysia by using recent data from 2010 to 2020. The dependent variable in this study is Return on Asset while the independent variables are Current Ratio, Quick Ratio and Debt to Equity Ratio. The study used panel data and data used in this study is secondary data. The result in this study showed that debt to equity ratio have positive significant impact to the return on asset. While the other variables which is quick ratio and current ratio has the insignificant impact towards return on asset.