The relationship of financial performance indicators towards stock return in consumer product sector listed in Bursa Malaysia / Nor Amalina Ponijan

The aim of this paper is to find out the best indicator for stock return on consumers sector in Malaysia that is listed in Bursa Malaysia. This study focus is on stock return related with the financial performance indicator on food industry companies in Malaysia. The researcher wants to identify the relationship of the financial performance indicator with the stock return. The methodology will be used in this study is Regression Model with panel data source from data stream and annual report. The interactive software package E-view 8 will be used for testing and analyzing the collected data. This study is an attempt to investigate the relationship of the chosen variables on the influence toward the stock return. Based on the findings, it shows that only three variables have significant relationship with the stock return which is debt to equity ratio (DE), book market value equity (BMVE) and sales to price ratio (SP). The remaining three variables which are firm size (FS), dividend yields (DY) and earnings to price ratio (EP) show insignificant relationship towards the stock return. Based on the pooled OLS regression analysis, it shows that SP has the strongest relationship towards stock return compare to other variables.