Profitability of Malaysian technological industry: a study on liquidity, leverage and market valuation / Afza Sha Efy Jamil

This paper has examined the financial performance of Malaysian technological industry. The performance that wants to be studied was represent by the profitability of the industry. Then, to study the performance, the researcher were interested to identify the factor affecting the financial performance. Hence, three financial fundamentals were used to discover the study. The three fundamentals were liquidity, leverage and market valuation. Liquidity, leverage and market valuation in addition, were represent by current ratio, debt to equity ratio and market price per share respectively. The study comprises 22 Malaysian technological listed companies with 10 years financial availability. The study found that the three fundamentals have a significant relationships. Moreover, the study’s objective was also to find the most dominant factor that influence the performance of the industry. Therefore, the result shown the most dominant factor that affecting the profitability was leverage.