THE IMPACTS OF FINANCIAL RATIOS ON STOCK PRICES IN MALAYSIA: EVIDENCE FROM BANKING INDUSTRY

Authors

  • Bakri Abdul Karim 082584396
  • Annescia Franciene Patres
  • Bridney Chow Yi Ying
  • Jefferson Tiong Kung Lien

DOI:

https://doi.org/10.33736/uraf.6380.2023

Keywords:

Financial Ratio, Stock Price, Banking Industry, EMH Theory, Signaling Theory

Abstract

The objective of this study is to identify whether the financial ratios have an impact towards the stock price in the banking industry of Malaysia. The financial ratios used in this study are the net profit margin, price to earnings ratio and dividend payout ratio. The sample collected for this empirical study covered 10 years of data from 2013-2022. The study found that the net profit margin and price to earnings ratio boost stock price, however the dividend payout ratio decreases stock price. The influence of net profit margin and dividend payment ratio on stock price is negligible, in contrast to price to earnings ratio, which has a large effect on stock price.

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Published

2023-12-24

How to Cite

Karim, B. A., Patres, A. F. ., Chow Yi Ying , B. ., & Kung Lien, J. T. . (2023). THE IMPACTS OF FINANCIAL RATIOS ON STOCK PRICES IN MALAYSIA: EVIDENCE FROM BANKING INDUSTRY. UNIMAS Review of Accounting and Finance, 7(1), 28–41. https://doi.org/10.33736/uraf.6380.2023

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