Factors affecting stock return: a case study of plantation sector in Malaysia / Nurul Syafiqah Shafee

This paper is conducted to investigate the factors that affecting stock return in plantation sector Malaysia. The determinant factors that will give affect are oil price, exchange rate, net profit and earnings per share. The period of study is 10 years where it takes from 2008 to 2017. Besides, secondary data has been used and taken from Eikon Thompson Reuters, Bank Negara Malaysia and Bursa Stock Plantation of plantation sector in Malaysia to analyse its performance. Based on the observation in random effect regression result, all independent variable namely oil price, exchange rate, net profit and earnings per share are positively related and significant with the stock return that is measured by stock plantation index (SPI). On the other hand, fixed effect indicates oil price, exchange rate and net profit is positively significant with stock plantation index (SPI), while earnings per share is negatively significant with stock plantation index (SPI). Therefore, it can be concluded that earnings per share are the most important factors that give effect in stock return plantation sector in Malaysia. In this case, the future researcher can use another factors or variables and wider the scope in analyse stock return performance.