Has aggressive investing strategy performed? An insight from Malaysia listed companies
Journal Title: Jurnal Keuangan dan Perbankan - Year 2019, Vol 23, Issue 3
Abstract
This study examines the role of aggressive investing strategy on firm performance for a sample of 514 listed firms in Malaysia from 2010 to 2017. In our first objective, we investigate the investing activism effect on firm performance by simultaneously controlling the firm characteristics and industry in our model. Our second objective is to test whether aggressive investing activism affects firm performance. Lastly, we want to investigate whether this aggressive investing may produce different results with different measures of performance. Our findings show that investment has significant effects on firm performance. Our research further indicates that companies with aggressive investing strategies had a better firm performance than compared to its peers. We test this theory using three different measures of aggressive investing strategies and substantiate this conclusion. Our research confirms the resource-based view theory and empirically proves that aggressive investments would result in better firm performance.
Authors and Affiliations
Maria Kontesa, Emily Jia Chee Lim, Rayenda Khresna Brahmana
Keywords
Related Articles
- EP ID EP663511
- DOI 10.26905/jkdp.v23i3.3069
- Views 130
- Downloads 0
Assessing Shock Volatility using Long Straddle Option Strategy: Evidence at IDX Composite
This study is to identify the probability of occurrence of shock volatility and its impact on return of an investment. Using IDX Composite data from 1998-2016 and long straddle option strategy at IDX composite consisting...
Corporate governance in Indonesia: One decade perspective
This study aim in describing the development of research on corporate governance in Indonesia. The sample of the study consists of 101 articles from 10 Indonesian accredited journals at 2007-2017 periods. This research a...
GCG Role and Audit Quality in Reducing Earnings Management Action in Indonesian Manufacturing Firms
All elements in the financial statements were responsibility of the management, however investors more pay attention on profit information so that this will trigger the management to do earnings management. This study wa...
HOW READY ARE PEOPLE FOR CASHLESS SOCIETY?
Financial technology could be an effective tool to achieve financial inclusion. However, it needed a certain level of readiness of society. In this paper, we investigated the determinants of readiness in the implementati...
CONFIRMATION BIAS, SELF-ATTRIBUTION BIAS, DAN OVERCONFIDENCE DALAM TRANSAKSI SAHAM
Overconfidence caused investors to overestimate their knowledge, underestimate risk and exaggerate their ability to control events. This led to excessive trading, unwarranted risk-taking, and ultimately, financial losses...