Publication:
THE IMPACT OF FINANCIAL METRICS ON THE FIRM VALUE OF HEALTHCARE COMPANIES LISTED ON BURSA MALAYSIA: A FINANCIAL ECONOMETRICS APPROACH

Simple item page
dc.contributor.authorSHUN KAH JUN
dc.date.accessioned2025-11-26T04:33:56Z
dc.date.available2025-11-26T04:33:56Z
dc.date.issued2025
dc.description.abstractThis study investigates the relationship between key financial metrics and firm value, focusing on profitability, liquidity, and capital structure within the context of healthcare companies listed on Bursa Malaysia. This study aims to address a gap in the literature, where research on the healthcare sector in emerging markets, particularly Malaysia, remains limited. Using a quantitative approach, a firm-level panel data comprising of 160 firm annual observations from 2014 to 2023 were analysed. The study employed fixed effects panel regression models to examine the direct effects of financial metrics indicator on firm value, as well as the interaction effects among them. Firm size and firm age were incorporated as control variables to ensure a comprehensive analysis. The findings reveal that profitability, measured by Return on Equity (ROE), has a significant and positive association with firm value, supporting the premise that strong earnings performance enhances market valuation. Liquidity, proxied by the Current Ratio (CR), exhibits a negative relationship with firm value, suggesting that excess liquidity may reflect inefficient capital allocation or conservative financial management. In contrast, capital structure, represented by the Debt Ratio (DR), does not have a statistically significant effect on firm value, indicating that leverage may be less influential in this context. Notably, the three-way interaction between profitability, liquidity, and capital structure is found to be significant and negative, implying that simultaneous increases in these metrics may result in diminishing returns due to compounded inefficiencies. This study contributes to the financial literature by offering sector-specific evidence from Malaysia’s healthcare industry and underscores the importance of adopting integrated financial strategies. The findings provide valuable insights for corporate managers, investors, and policymakers aiming to enhance firm valuation through informed financial decision-making. Future research should expand to other sectors and incorporate qualitative factors to provide a more comprehensive understanding of firm value determinants. Keywords: Firm Value, Profitability, Liquidity, Capital Structure, Healthcare Companies
dc.identifier.urihttps://hdl.handle.net/20.500.14377/37275
dc.language.isoen
dc.publisherIMU University
dc.subjectFinancial Management
dc.subjectModels, Econometric
dc.subjectHealth Care Sector
dc.subjectHealthcare Financing
dc.subjectMalaysia
dc.titleTHE IMPACT OF FINANCIAL METRICS ON THE FIRM VALUE OF HEALTHCARE COMPANIES LISTED ON BURSA MALAYSIA: A FINANCIAL ECONOMETRICS APPROACH
dc.typeThesis
dspace.entity.typePublication
oairecerif.author.affiliation#PLACEHOLDER_PARENT_METADATA_VALUE#
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
2025_Shun Kah Jun.pdf
Size:
1.41 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed to upon submission
Description:
Download
Collections
Theses (MBA In Healthcare Management)