Determinants of financial performance : evidence from ace market of Bursa Malaysia / Asfarina Baharudin

Financial performance is importance to the investor before they invest in the market. Investor must investigate the firm's management, shareholders and how the firm manage their debt to maintain their performance to gain trust from the investor. If the firm a doing well, it going to influence the investors to invest with them. A few variables that can be used to measure the firm performance such as return on asset, return on equity, earning per share and Tobin's q. There are some reasons explained to justify the firm's poor performance in the ACE market which linked to the nature of the market which high risk and too speculative. Hence this study is to examine the relationship and impact of market capitalization, capital structure, firm's growth, and liquidity on firms' performance which measured by Tobin's Q. This study applies the methods of descriptive analysis, correlation analysis and multiple regressions in examine and analyse the selected variables. It spans the period from 2015 until 2020, a period of 6 years of 17 listed companies in ACE Market of Bursa Malaysia. The study found that market capitalization and debt to equity has positive and negative significant relationship with firm performance while growth and liquidity shows insignificant impact with performance (Tobin's Q). According to the Rahman (20 16) state that there is a positive relationship between liquidity ratio and firm performance which measure by return on asset. These findings suggest and give consideration for the investors to monitor the factor affecting the firm performance before make decision. In a nutshell. the researcher has come up with the conclusion and advice as a suggestion for a better and safer choice for the investor to choose a better firm with a good performance.