Determinants of the firm's value: the study of steel industry in public listed companies of Bursa Malaysia / Farah Aqilah Azman

The purpose of this study is to examine the determinants of the firm's value from 15 listed steel companies of Bursa Malaysia from the year of 2007 until 2016. There were 150 observations which were involved in this paper. Five independent variables were involved which are net profit margin, operating cost, book value per share, earnings per share and dividend per share. These variables were tested to be the determinants of the firm's value. In this study, panel data fixed effect model were applied by using EViews 8.1. There were two independent variables were significant which are operating cost and the dividend per share. The other three independent variables were insignificant from the results which are net profit margin, book value per share and earnings per share. This study had R-squared of 0.973906, which means there were 97.39% of the dependent variable was explained by the independent variables. But R-squared is still known to be biased, thus it had the adjusted R-squared of 0.970092, means there were 97.01% of the variability in firm's value is explained by the explanatory variables which are net profit margin, operating cost, book value per share, earnings per share and dividend per share. On top of that, the results showed the Prob (F-statistics) of 0.000000 which does mean the independent variables used do show significant impact to the firm's value of the steel companies involved in Malaysia.