Understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective: the case of Malaysia

From the perspective of firm characteristics, this study explores the determinants of the performance of undervalued stocks compared with that of non-undervalued stocks over a ten-year period (2006–2015). The performance of these stocks is significantly and positively affected by operating cash flow...

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Main Authors: Ting, Irene Wei Kiong, Noor Azlinna, Azizan, Singh, Premjit, Kweh, Qian Long
Format: Article
Language:English
Published: Inderscience Enterprises Ltd. 2024
Subjects:
Online Access:http://umpir.ump.edu.my/id/eprint/43264/
http://umpir.ump.edu.my/id/eprint/43264/1/Ting%20et%20al.%20%282024%29_IJBEX.pdf
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author Ting, Irene Wei Kiong
Noor Azlinna, Azizan
Singh, Premjit
Kweh, Qian Long
author_facet Ting, Irene Wei Kiong
Noor Azlinna, Azizan
Singh, Premjit
Kweh, Qian Long
author_sort Ting, Irene Wei Kiong
building UMP Institutional Repository
collection Online Access
description From the perspective of firm characteristics, this study explores the determinants of the performance of undervalued stocks compared with that of non-undervalued stocks over a ten-year period (2006–2015). The performance of these stocks is significantly and positively affected by operating cash flow, and firm performance decreases along with increasing debt. In this case, both undervalued and non-undervalued tasks should monitor the level of their leverage. These results provide a novel understanding of undervalued stocks and help investors identify firm characteristics that can improve stock performance. These results may also guide firm managers in aligning undervalued or non-undervalued stocks with the characteristics of their firms. The new perspectives offered by this study on the other determinants of stock performance can also benefit future scholars in this field.
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publisher Inderscience Enterprises Ltd.
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spelling ump-432642025-01-06T02:50:40Z http://umpir.ump.edu.my/id/eprint/43264/ Understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective: the case of Malaysia Ting, Irene Wei Kiong Noor Azlinna, Azizan Singh, Premjit Kweh, Qian Long HG Finance From the perspective of firm characteristics, this study explores the determinants of the performance of undervalued stocks compared with that of non-undervalued stocks over a ten-year period (2006–2015). The performance of these stocks is significantly and positively affected by operating cash flow, and firm performance decreases along with increasing debt. In this case, both undervalued and non-undervalued tasks should monitor the level of their leverage. These results provide a novel understanding of undervalued stocks and help investors identify firm characteristics that can improve stock performance. These results may also guide firm managers in aligning undervalued or non-undervalued stocks with the characteristics of their firms. The new perspectives offered by this study on the other determinants of stock performance can also benefit future scholars in this field. Inderscience Enterprises Ltd. 2024 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/43264/1/Ting%20et%20al.%20%282024%29_IJBEX.pdf Ting, Irene Wei Kiong and Noor Azlinna, Azizan and Singh, Premjit and Kweh, Qian Long (2024) Understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective: the case of Malaysia. International Journal of Business Excellence (IJBEX), 33 (3). pp. 372-392. ISSN 1756-0055. (Published) https://doi.org/10.1504/IJBEX.2024.140343 10.1504/IJBEX.2024.140343
spellingShingle HG Finance
Ting, Irene Wei Kiong
Noor Azlinna, Azizan
Singh, Premjit
Kweh, Qian Long
Understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective: the case of Malaysia
title Understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective: the case of Malaysia
title_full Understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective: the case of Malaysia
title_fullStr Understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective: the case of Malaysia
title_full_unstemmed Understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective: the case of Malaysia
title_short Understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective: the case of Malaysia
title_sort understanding undervalued vs. non-undervalued stocks from the firm characteristics perspective: the case of malaysia
topic HG Finance
url http://umpir.ump.edu.my/id/eprint/43264/
http://umpir.ump.edu.my/id/eprint/43264/
http://umpir.ump.edu.my/id/eprint/43264/
http://umpir.ump.edu.my/id/eprint/43264/1/Ting%20et%20al.%20%282024%29_IJBEX.pdf