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Financial risk and its performance: A study on Apollo Food Holdings Berhad in Malaysia

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  • Ling, Coco Siu Yin

Abstract

The performance of a company can be affected by the financial risks associated with it. It is important for a company to manage financial risks efficiently. The purpose of this study is to identify the impact of financial risks on the performance of Apollo Food Holdings Berhad which is a food and beverages company for the period of 2014-2018. This study develops multiple linear regression models to analyse the impact of financial risk on company performance. The findings show that operating margin is the most significant variable that positively influence the performance of the company. This study suggests that Apollo Food Holdings Berhad should deal with their operating margin in order to increase the performance and profitability of the company. This can be done by increasing the revenue or reducing its cost.

Suggested Citation

  • Ling, Coco Siu Yin, 2019. "Financial risk and its performance: A study on Apollo Food Holdings Berhad in Malaysia," MPRA Paper 97889, University Library of Munich, Germany, revised 18 Nov 2019.
    • Handle: RePEc:pra:mprapa:97889
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    References listed on IDEAS

    as
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    4. Samuel Gameli Gadzo & Holy Kwabla Kportorgbi & John Gartchie Gatsi, 2019. "Credit risk and operational risk on financial performance of universal banks in Ghana: A partial least squared structural equation model (PLS SEM) approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1589406-158, January.
    5. Mazin A.M. Al Janabi, 2011. "Modeling coherent trading risk parameters under illiquid market perspective," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 28(4), pages 301-320, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Performance; Financial Risks; Operating Margin.;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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