Impact of Corporate Performance on Stock Return in Malaysia: The Moderating Role of Sustainability.
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Universiti Malaysia Sarawak (UNIMAS)
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This study aims to examine the relationship between corporate performance and stock return with the moderating role of sustainability. The sample collected for this study covered 6 years of data from 2018 to 2023. The top 50 publicly listed companies in Bursa Malaysia have been selected to be examined during the study period. This study will include return on assets (ROA), net profit margin (NPM), and total assets turnover (TATO) as the indicator of corporate performance. Corporate Social Responsibility (CSR) Expenditure as the indicator of sustainability. Panel data regression analysis has been utilized in this study to investigate the moderating role of corporate social responsibility expenditure in the relationship between corporate performance and stock return. The main results indicate that the firm size has the most positive impact towards the stock return, while the corporate performance has no significant impact towards the stock return. However, the additional test for pre- COVID has shown that return on assets (ROA) positively impacts the stock return when the economic environment is in a stable and normal condition. Besides, the moderating role of corporate social responsibility has no moderate effect towards the relationship between corporate performance and stock return.