The impact of free cash flow on firm’s performance: evidence from Malaysia
The objective of this chapter is to investigate the impact of free cash flow (FCF) on a firm’s performance. This research is using the data from 2013 to 2017 from Malaysia and various industries as the moderating variable. Whereas, firm performance is measured by operating performance, firm value, a...
| Main Authors: | , , , |
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| Format: | Article |
| Published: |
Springer Cham
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/111632/ |
| _version_ | 1848865739536072704 |
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| author | Kok, Elaine Suit Lai Abdul Latiff, Ahmed Razman Ooi, Chee Keong Tong, Chue Qun |
| author_facet | Kok, Elaine Suit Lai Abdul Latiff, Ahmed Razman Ooi, Chee Keong Tong, Chue Qun |
| author_sort | Kok, Elaine Suit Lai |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The objective of this chapter is to investigate the impact of free cash flow (FCF) on a firm’s performance. This research is using the data from 2013 to 2017 from Malaysia and various industries as the moderating variable. Whereas, firm performance is measured by operating performance, firm value, and stock return as the dependent variables. All the explanatory variables are tested as whether they have any significant relationship on the firm’s performance as the dependent variables. The firm performance is measured by the company’s accounting performance, which measured by return on asset (ROA) and return on equity (ROE), firm value is measured by Tobin’s Q and the stock return measure by stock price. The data collected are categorized into five different industries, which include finance, plantation, industrial products, properties, and consumer goods. This chapter utilizes panel data regression for testing the hypothesis and the results indicated that some do not support the hypothesis. The findings point out that FCF as the independent variables has a significantly negative relationship with the firm’s performance, measured by ROA and Tobin Q. Besides that, there is a positively insignificant relationship between ROE and stock return on FCF. |
| first_indexed | 2025-11-15T14:09:30Z |
| format | Article |
| id | upm-111632 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T14:09:30Z |
| publishDate | 2020 |
| publisher | Springer Cham |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1116322024-07-19T02:16:48Z http://psasir.upm.edu.my/id/eprint/111632/ The impact of free cash flow on firm’s performance: evidence from Malaysia Kok, Elaine Suit Lai Abdul Latiff, Ahmed Razman Ooi, Chee Keong Tong, Chue Qun The objective of this chapter is to investigate the impact of free cash flow (FCF) on a firm’s performance. This research is using the data from 2013 to 2017 from Malaysia and various industries as the moderating variable. Whereas, firm performance is measured by operating performance, firm value, and stock return as the dependent variables. All the explanatory variables are tested as whether they have any significant relationship on the firm’s performance as the dependent variables. The firm performance is measured by the company’s accounting performance, which measured by return on asset (ROA) and return on equity (ROE), firm value is measured by Tobin’s Q and the stock return measure by stock price. The data collected are categorized into five different industries, which include finance, plantation, industrial products, properties, and consumer goods. This chapter utilizes panel data regression for testing the hypothesis and the results indicated that some do not support the hypothesis. The findings point out that FCF as the independent variables has a significantly negative relationship with the firm’s performance, measured by ROA and Tobin Q. Besides that, there is a positively insignificant relationship between ROE and stock return on FCF. Springer Cham 2020 Article PeerReviewed Kok, Elaine Suit Lai and Abdul Latiff, Ahmed Razman and Ooi, Chee Keong and Tong, Chue Qun (2020) The impact of free cash flow on firm’s performance: evidence from Malaysia. Eurasian Economic Perspectives. pp. 3-16. ISSN 2364-5067 https://link.springer.com/chapter/10.1007/978-3-030-53536-0_1 |
| spellingShingle | Kok, Elaine Suit Lai Abdul Latiff, Ahmed Razman Ooi, Chee Keong Tong, Chue Qun The impact of free cash flow on firm’s performance: evidence from Malaysia |
| title | The impact of free cash flow on firm’s performance: evidence from Malaysia |
| title_full | The impact of free cash flow on firm’s performance: evidence from Malaysia |
| title_fullStr | The impact of free cash flow on firm’s performance: evidence from Malaysia |
| title_full_unstemmed | The impact of free cash flow on firm’s performance: evidence from Malaysia |
| title_short | The impact of free cash flow on firm’s performance: evidence from Malaysia |
| title_sort | impact of free cash flow on firm’s performance: evidence from malaysia |
| url | http://psasir.upm.edu.my/id/eprint/111632/ http://psasir.upm.edu.my/id/eprint/111632/ |