Modern paradigm versus old school stock valuation model: case study from Malaysian technology based company / Darryl Dixonel Chipli

This study estimates Doffou (2015) model using cross-sectional data. Two factors are taken into account that are stochastic and deterministic variables. Data was collected from 20 public listed technology based companies in Malaysia for the period of 2009 to 2013. The data were collected from Data Stream, Yahoo Finance and UMS BESSAR Annual Report System. Cross-sectional analysis was run by using IBM SPSS Statistic 21. Multiple linear regression shows there’s only significant relationship between sales, loss carry forward, cash available and accumulated property, plant and equipment to the company and the other remaining variable are insignificant. Paired Sample T-Test shows that there is significant difference between the old school models to the modern paradigm stock valuation model. It was found that the EMH theory in this study was applicable to the situation in Malaysia.