Determinants of stock valuation: empirical evidence from Malaysia plantation companies

It is important for an investor to know a share’s value to slacken their chance of selling stocks ahead of time and missing out on future profits or buying a stock that priced too high for what it worth. Previous studies (Wilcox, 1984; Rappaport, 1986; Down, 1991) suggest that stock prices changes a...

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Bibliographic Details
Main Author: Cheng, Khai Ling
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Online Access:https://eprints.nottingham.ac.uk/53712/
Description
Summary:It is important for an investor to know a share’s value to slacken their chance of selling stocks ahead of time and missing out on future profits or buying a stock that priced too high for what it worth. Previous studies (Wilcox, 1984; Rappaport, 1986; Down, 1991) suggest that stock prices changes are connected with the variables that link with share valuation. In Malaysia, there have been no studies specifically related to the effects of stock value on planation companies listed at Kuala Lumpur Stock Exchange (KLSE). The present study analyses the share price performance of seven firms and seeks to identify the factors that influence share prices for the selected firms in various sectors at NSE by developing a model (s) for share price determination. For this study, there will be 2 group of test to determine the effect of stock value, first group is more into the general financial variables while the second group of test focus on the plantation statistics data, data was for a period of six years (2011 – 2016) and regression analysis was utilized to determine the effect of selected variables on the stock value of selected companies in plantation sectors at KLSE. The general results indicate that the leverage, return on asset and size are significant to the stock valuation and consistent with some findings while the subtest indicate age, leverage, return on asset, crops production and crops purchased have effect on stock value.