The effect of financial ratio towards stock return in consumer product sector/ Muhammad Syafiq Borhan

Financing and accounting information from financial reports can portray firm's condition. The financial reports are affected by two factors which is firms' activities and accounting system adopted by the firms (Palepu, Healy, & Bernard, 2004). There are numerous researches in estimation of financial reports information. Some researches study accounting information in foreseeing firms' future financial performance, such as earnings and development (Ross, Westerfield, & Jordan, 2008), while other researches measure the effect of accounting information on stock price (R. Johnson & Soenen, 2003b). In conclusion, this study is about to explore the relationship between return on stock by using five categories of ordinarily used in financial ratios including profitability, leverage, asset utilization, liquidity and market value. Cumulative market adjusted return is used as proxy of Stock re turn variable. The sample of study are top 20 of big market capital companies in consumer product sector during 2012 until 2017 which is recorded in Bursa Malaysia.