Study of Relationship of Company’s Performance with Internal and External Factors on Maxis Berhad

Koh, Way Han (2017): Study of Relationship of Company’s Performance with Internal and External Factors on Maxis Berhad.

Abstract

The purpose of the study is to investigate how the Maxis Berhad internal factors and external factors influence the company’s performance. The financial information is obtained from annual report of Maxis Berhad starting from year 2011 to 2015. The measurement of return on assets is used to see the overall performance of Maxis Berhad in 5 years which beyond benchmark. The additional measurement is the corporate index score, board remuneration, asset size, net profit margin, GDP growth rate, inflation, unemployment rate and exchange rate. To see the relationship of risk factors to the profitability, this paper is utilizing liquidity (current ratio), leverage (debt to equity ratio) and market risk (standard deviation). Data was analysed by utilizing regression and correlation. The regression analysis and correlation shows only one variable is significant to ROA which is market risk with the highest impact to the company’s performance. However, the liquidity risk is not significant to ROA with p value = 0.130. While for the macroeconomic factor, GDP growth rate is also not significant to the company’s performance with low impact to the return on assets.

• Item Type: MPRA Paper
• Language: English
• Keywords: Liquidity risk, Market risk, Leverage, Return on Assets
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance

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