Corporate earning performance in Malaysia from 1992 to 2001 a study of the Price Earning Ratio (PER) / Zaidel Mohidin

This study is aimed at determining and analysing company’s Price Earning Ratio performance in Malaysia during the period 1992 - 2001. Two models have been selected to test and analyse that performance (multiple regression analysis and hypothesis testing). The findings have revealed that all the independent variables of GDP, inflation rate and interest rate are found to be the significant independent variables in influencing the
changes and variation oftheir earnings. The weaknesses of this study is the attention and focus only on the economic variables which is external and no consideration at all on the internal variables for example, the organizational and management capability. For example, management influences on corporate earning performance may vary with organizational characteristics and managerial leadership behavior, one manager may exploit an economic movement opportunity, while another leader may forgo such an opportunity or adapt slowly to it. A manager is important in times of organizational growth, development and crisis, for most part of the organizations require maintenance, and the corporate manager will therefore make little difference to their performance. Therefore the study recommends to other future student and researcher to include the
organizational and management capability which is internal to the firm as one of the independent variables.