A comparative study on the relationship of financial determinants with stock market price on selected telecommunication companies in Malaysia, Singapore and Indonesia / Noor Adzyan Othman

The Global Financial Crisis that happened in the year 2008 give a big impact to every single country in the world either directly or indirectly especially in the economy growth. All over the world, many types of researches were conducted to investigates the determinants of the stock market price, but this study differs from the prior related studies. There are many research conducted on this issue in Malaysia. However, there is only a few research conducted in the service sector. The objective of this research is to study the relationship of internal and external financial determinants with the stock market price. Annual panel data of the period of the year 2006-2016 had been used to measure the data. A total of 13 telecommunications services companies listed in Bursa Malaysia had been selected to measure the internal financial determinants which are book value per share (BVPS), firm size (SIZE) and price-earnings ratio (PE), while, the external determinants are inflation and gross domestic products (GDP). The empirical findings indicate that the variables that have a significant relationship towards stock market price in Malaysia are firm size and inflation, while in Singapore only the firm size and for Indonesia book value per share (BVPS) only. The researcher suggesting that these are active financial determinants that act in shaping stock market price in the countries respectively.